Document:

exv10w1

Exhibit 10.1

CREDIT AGREEMENT

consisting of a

$850,000,000

Tranche B Term Loan Facility

and a

$300,000,000

Revolving Credit Facility

dated as of

June 1, 2011,

among

SELECT MEDICAL HOLDINGS CORPORATION,

as Holdings

SELECT MEDICAL CORPORATION,

as the Borrower

The Lenders Party Hereto from Time to Time

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and Collateral Agent

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, and

GOLDMAN SACHS BANK USA,

as Co- Syndication Agents

and

MORGAN STANLEY SENIOR FUNDING, INC., and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Co-Documentation Agents

J.P. MORGAN SECURITIES LLC,

GOLDMAN SACHS LENDING PARTNERS LLC,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

MORGAN STANLEY SENIOR FUNDING, INC.

WELLS FARGO SECURITIES, LLC, and

RBC CAPITAL MARKETS, LLC,

as Joint Lead Arrangers and Joint Bookrunners

1157474

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	2	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	30	 
	SECTION 1.03. Terms Generally
	 	 	30	 
	SECTION 1.04. Accounting Terms; GAAP
	 	 	30	 
	SECTION 1.05. Specified Transactions
	 	 	31	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	The Credits
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	31	 
	SECTION 2.02. Loans and Borrowings
	 	 	31	 
	SECTION 2.03. Requests for Borrowings
	 	 	32	 
	SECTION 2.04. Swingline Loans
	 	 	33	 
	SECTION 2.05. Letters of Credit
	 	 	34	 
	SECTION 2.06. Funding of Borrowings
	 	 	37	 
	SECTION 2.07. Interest Elections
	 	 	38	 
	SECTION 2.08. Termination and Reduction of Commitments
	 	 	39	 
	SECTION 2.09. Repayment of Loans; Evidence of Debt
	 	 	39	 
	SECTION 2.10. Amortization of Tranche B Term Loans
	 	 	40	 
	SECTION 2.11. Prepayment of Loans
	 	 	41	 
	SECTION 2.12. Fees
	 	 	43	 
	SECTION 2.13. Interest
	 	 	44	 
	SECTION 2.14. Alternate Rate of Interest
	 	 	45	 
	SECTION 2.15. Increased Costs
	 	 	45	 
	SECTION 2.16. Break Funding Payments
	 	 	46	 
	SECTION 2.17. Taxes
	 	 	47	 
	SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Setoffs
	 	 	49	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	 	 	50	 
	SECTION 2.20. Incremental Extensions of Credit
	 	 	51	 
	SECTION 2.21. Extended Term Loans and Extended Revolving Commitments
	 	 	52	 
	SECTION 2.22. Defaulting Lenders
	 	 	54	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Representations and Warranties
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Organization; Power
	 	 	55	 
	SECTION 3.02. Authorization; Enforceability
	 	 	56	 
	SECTION 3.03. Governmental Approvals; No Conflicts
	 	 	56	 
	SECTION 3.04. Financial Condition; No Material Adverse Change
	 	 	56	 
	SECTION 3.05. Properties
	 	 	57	 
	SECTION 3.06. Litigation and Environmental Matters
	 	 	57	 

 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 3.07. Compliance with Laws and Agreements
	 	 	58	 
	SECTION 3.08. Investment and Holding Company Status
	 	 	58	 
	SECTION 3.09. Taxes
	 	 	58	 
	SECTION 3.10. ERISA
	 	 	58	 
	SECTION 3.11. Disclosure
	 	 	58	 
	SECTION 3.12. Subsidiaries
	 	 	58	 
	SECTION 3.13. Insurance
	 	 	58	 
	SECTION 3.14. Labor Matters
	 	 	59	 
	SECTION 3.15. Solvency
	 	 	59	 
	SECTION 3.16. Federal Reserve Regulations
	 	 	59	 
	SECTION 3.17. Reimbursement from Third Party Payors
	 	 	59	 
	SECTION 3.18. Fraud and Abuse
	 	 	60	 
	SECTION 3.19. USA PATRIOT Act, Etc.
	 	 	60	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Conditions
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Effective Date
	 	 	60	 
	SECTION 4.02. Each Credit Event
	 	 	62	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Affirmative Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Financial Statements and Other Information
	 	 	63	 
	SECTION 5.02. Notices of Material Events
	 	 	65	 
	SECTION 5.03. Information Regarding Collateral
	 	 	65	 
	SECTION 5.04. Existence; Conduct of Business
	 	 	66	 
	SECTION 5.05. Payment of Obligations
	 	 	66	 
	SECTION 5.06. Maintenance of Properties
	 	 	66	 
	SECTION 5.07. Insurance
	 	 	66	 
	SECTION 5.08. Casualty and Condemnation
	 	 	66	 
	SECTION 5.09. Books and Records; Inspection and Audit Rights
	 	 	67	 
	SECTION 5.10. Compliance with Laws
	 	 	67	 
	SECTION 5.11. Use of Proceeds and Letters of Credit
	 	 	67	 
	SECTION 5.12. Additional Subsidiaries; Succeeding Holdings
	 	 	67	 
	SECTION 5.13. Further Assurances
	 	 	67	 
	SECTION 5.14. Post-Closing Matters
	 	 	68	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Negative Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Indebtedness; Certain Equity Securities
	 	 	68	 
	SECTION 6.02. Liens
	 	 	71	 
	SECTION 6.03. Fundamental Changes
	 	 	72	 
	SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	73	 
	SECTION 6.05. Asset Sales
	 	 	75	 
	SECTION 6.06. Sale and Leaseback Transactions
	 	 	76	 

 

-ii-

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 6.07. Swap Agreements
	 	 	76	 
	SECTION 6.08. Restricted Payments; Certain Payments of Indebtedness
	 	 	76	 
	SECTION 6.09. Transactions with Affiliates
	 	 	79	 
	SECTION 6.10. Restrictive Agreements
	 	 	80	 
	SECTION 6.11. Amendment of Material Documents
	 	 	80	 
	SECTION 6.12. [Reserved]
	 	 	80	 
	SECTION 6.13. Leverage Ratio
	 	 	81	 
	SECTION 6.14. Maximum Capital Expenditures
	 	 	82	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	Events of Default
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Events of Default
	 	 	83	 
	SECTION 7.02. Borrower’s Right to Cure
	 	 	85	 
	SECTION 7.03. Exclusion of Immaterial Subsidiaries
	 	 	86	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	The Agents
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. The Agents
	 	 	86	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	88	 
	SECTION 9.02. Waivers; Amendments
	 	 	89	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver
	 	 	92	 
	SECTION 9.04. Successors and Assigns
	 	 	93	 
	SECTION 9.05. Survival
	 	 	96	 
	SECTION 9.06. Counterparts; Integration; Effectiveness
	 	 	96	 
	SECTION 9.07. Severability
	 	 	96	 
	SECTION 9.08. Right of Setoff
	 	 	97	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	97	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	97	 
	SECTION 9.11. Headings
	 	 	98	 
	SECTION 9.12. Confidentiality
	 	 	98	 
	SECTION 9.13. Interest Rate Limitation
	 	 	98	 
	SECTION 9.14. USA Patriot Act
	 	 	99	 
	SECTION 9.15. Release of Collateral
	 	 	99	 
	SECTION 9.16. No Fiduciary Duty
	 	 	99	 

 

-iii-

 

	 	 	 	 	 	 	 	 	 
	SCHEDULES:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Schedule 1.01
	 	 	—	 	 	Mortgaged Property
	Schedule 2.01
	 	 	—	 	 	Commitments
	Schedule 2.05
	 	 	—	 	 	Existing Letters of Credit
	Schedule 3.05
	 	 	—	 	 	Real Property
	Schedule 3.06
	 	 	—	 	 	Litigation and Environmental Matters
	Schedule 3.12
	 	 	—	 	 	Subsidiaries
	Schedule 3.13
	 	 	—	 	 	Insurance
	Schedule 4.01
	 	 	—	 	 	Local Counsel Jurisdictions
	Schedule 5.14
	 	 	—	 	 	Post-Closing Matters
	Schedule 6.01
	 	 	—	 	 	Existing Indebtedness
	Schedule 6.02
	 	 	—	 	 	Existing Liens
	Schedule 6.04
	 	 	—	 	 	Existing Investments
	Schedule 6.05
	 	 	—	 	 	Asset Sales
	Schedule 6.09
	 	 	—	 	 	Existing Transactions with Affiliates
	Schedule 6.10
	 	 	—	 	 	Existing Restrictions

	 	 	 	 	 	 	 	 	 
	EXHIBITS:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Exhibit A
	 	 	—	 	 	Form of Assignment and Assumption
	Exhibit B-1
	 	 	—	 	 	Form of Opinion of Dechert LLP
	Exhibit B-2
	 	 	—	 	 	Form of Opinion of Local Counsel
	Exhibit C
	 	 	—	 	 	Form of Collateral Agreement
	Exhibit D
	 	 	—	 	 	Form of Perfection Certificate
	Exhibit E
	 	 	—	 	 	Form of Borrowing Request
	Exhibit F
	 	 	—	 	 	Form of Interest Election Request
	Exhibit G
	 	 	—	 	 	Form of First Lien Intercreditor Agreement
	Exhibit H
	 	 	—	 	 	Form of IRPTL Waiver and Certificate

 

-iv-

 

CREDIT AGREEMENT dated as of June 1, 2011, among SELECT MEDICAL HOLDINGS CORPORATION, a
Delaware corporation, SELECT MEDICAL CORPORATION, a Delaware corporation, the LENDERS party hereto
from time to time and JPMORGAN CHASE BANK, N.A., as Administrative Agent and Collateral Agent.

The Borrower and the Subsidiaries will (a) repay all amounts outstanding under the Borrower’s
existing Credit Agreement dated as of February 24, 2005 (as amended and supplemented from time to
time, the “Existing Credit Agreement”), by and among Holdings, the Borrower, certain of its
subsidiaries, the banks and financial institutions named as lenders therein, JPMORGAN CHASE BANK,
N.A., as Administrative Agent and Collateral Agent and the other parties thereto, and the Borrower
will terminate all commitments thereunder and all liens in respect thereof shall be released; (b)
the Borrower will consummate a debt tender offer in respect of the Borrower’s 75/8% Senior
Subordinated Notes due 2015 (the “Existing Subordinated Notes”), pursuant to which the
Borrower will repurchase at least $266,500,000 in aggregate principal amount of the Existing
Subordinated Notes, all in accordance with the Offer to Purchase and Consent Solicitation Statement
dated April 25, 2011 (as subsequently amended), and the related Consent and Letter of Transmittal
dated April 25, 2011 (as subsequently amended) (the “Debt Tender Offer”) (or, if such
amount of Existing Subordinated Notes is not purchased in such offer, redeem an amount of such
Existing Subordinated Notes such that at least $266,500,000 in aggregate principal amount is
repurchased or redeemed); (c) Holdings will redeem all of its outstanding 10.00% Senior
Subordinated Notes due 2015 (the “Holdings Senior Subordinated Notes”); and (d) the
Borrower and the Subsidiaries will pay all fees, expenses and other costs (including consent fees,
if any) incurred in connection with the foregoing clauses (a) through (c) (together, the
“Transaction Costs”).

The Borrower has requested that the Lenders extend credit in the form of (a) Tranche B Term
Loans (as defined below) on the Effective Date (as defined below) in an aggregate principal amount
not to exceed $850,000,000 and (b) Revolving Loans, Swingline Loans and Letters of Credit (each as
defined below) at any time and from time to time during the Revolving Availability Period, in an
aggregate principal amount at any time outstanding not to exceed $300,000,000.

The proceeds of the Tranche B Term Loans and any Revolving Loans borrowed on the Effective
Date will be used by the Borrower on the Effective Date, solely (i) to pay the Transaction Costs,
(ii) to pay all principal, interest, fees and other amounts outstanding under the Existing Credit
Agreement, (iii) to repurchase or redeem a portion of the Existing Subordinated Notes, including
any premium payments associated therewith, and (iv) redeem all of the Holdings Senior Subordinated
Notes outstanding. The proceeds of Revolving Loans borrowed after the Effective Date, Swingline
Loans and Letters of Credit will be used by the Borrower for working capital and general corporate
purposes (including Permitted Acquisitions).

The Lenders are willing to extend such credit to the Borrower, and the Issuing Bank is willing
to issue Letters of Credit for the account of the Borrower, on the terms and subject to the
conditions set forth herein. Accordingly, the parties hereto agree as follows:

 

 

 

ARTICLE I

Definitions

SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below:

“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

“Additional Credit Extension Amendment” means an amendment to this Agreement (which
may, at the option of the Administrative Agent, be in the form of an amendment and restatement of
this Agreement) and any other applicable Loan Document providing for any Incremental Term Loans,
Replacement Term Loans, Extended Term Loans or Extended Revolving Commitments which shall be
consistent with the applicable provisions of this Agreement relating to Incremental Term Loans,
Replacement Term Loans, Extended Term Loans or Extended Revolving Commitments and otherwise
satisfactory to the Administrative Agent.

“Additional Lender” has the meaning set forth in Section 2.20.

“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal
to (a) the LIBO Rate for the applicable Class of Loans for such Interest Period multiplied by (b)
the Statutory Reserve Rate.

“Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders under the Loan Documents.

“Administrative Questionnaire” means an administrative questionnaire in a form
supplied by the Administrative Agent.

“Affiliate” means, with respect to a specified Person, any other Person that directly,
or indirectly through one or more intermediaries, Controls, is Controlled by or is under common
Control with the Person specified.

“Agents” means the Administrative Agent, the Collateral Agent, the Arrangers, the
Co-Syndication Agents and the Co-Documentation Agents.

“Agreement” means this Credit Agreement, as the same may be renewed, extended,
modified, supplemented, amended or amended and restated from time to time.

“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1% and (c) the Adjusted LIBO Rate for the applicable Class of Loans (after giving
effect to any applicable minimum rate set forth therein) for a one month Interest Period on such
day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%,
provided that, for the avoidance of doubt (subject to any minimum rate specified in such
definition), the Adjusted LIBO Rate for any day shall be based on the rate appearing on the Reuters
BBA Libor Rates Page 3750 (or on any successor or substitute page of such page) at approximately
11:00 a.m. London time on such day. Any change in the Alternate Base Rate due to a change in the
Prime Rate, the Federal Funds Effective Rate or the Adjusted
LIBO Rate shall be effective from and including the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively.

 

-2-

 

“Applicable Percentage” means, with respect to any Revolving Lender, the percentage of
the aggregate Revolving Commitments represented by such Lender’s Revolving Commitment;
provided that in the case of Section 2.22 when a Defaulting Lender shall exist, “Applicable
Percentage” shall mean, with respect to any Revolving Lender, the percentage of the total Revolving
Commitments (disregarding any Defaulting Lender’s Revolving Commitment) represented by such
Revolving Lender’s Revolving Commitment. If the Revolving Commitments have terminated or expired,
the Applicable Percentage of the Revolving Commitments shall be determined based upon the Revolving
Commitments most recently in effect, giving effect to any assignments that occur thereafter and to
any Revolving Lender’s status as a Defaulting Lender at the time of determination.

“Applicable Rate” means, for any day with respect to (a) any ABR Loan or Eurodollar
Loan that is a Revolving Loan or (b) the commitment fees payable hereunder in respect of the
Revolving Commitments, as applicable, the applicable rate per annum set forth below under the
caption “Revolving Loan ABR Spread”, “Revolving Loan Eurodollar Spread” or “Commitment Fee Rate”,
as applicable, in each case, based upon the Leverage Ratio as of the most recent determination
date:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Revolving	 	 	 	 
	 	 	Revolving	 	 	Loan	 	 	 	 
	 	 	Loan ABR	 	 	Eurodollar	 	 	Commitment	 
	Leverage Ratio	 	Spread	 	 	Spread	 	 	Fee Rate	 
	Category 1
≥ 3.5x
	 	 	2.75	%	 	 	3.75	%	 	 	0.50	%
	Category 2
≥ 3.0x and < 3.5x
	 	 	2.50	%	 	 	3.50	%	 	 	0.50	%
	Category 3
≥ 2.5x and < 3.0x
	 	 	2.25	%	 	 	3.25	%	 	 	0.50	%
	Category 4
≥ 2.0x and < 2.5x
	 	 	2.00	%	 	 	3.00	%	 	 	0.50	%
	Category 5
< 2.0x
	 	 	1.75	%	 	 	2.75	%	 	 	0.375	%

The Applicable Rate for Tranche B Term Loans shall at all times be 3.75% per annum for
Eurodollar Loans and 2.75% per annum for ABR Loans.

For purposes of the foregoing, (a) the Leverage Ratio shall be determined on a Pro Forma Basis
as of the end of each fiscal quarter of Holdings based upon Holdings’ consolidated financial
statements delivered pursuant to Section 5.01(a) or (b), and (b) each change in the Applicable Rate
resulting from a change in the Leverage Ratio shall be effective during the period commencing on
and including the date of delivery to the Administrative Agent of such consolidated financial
statements indicating such change and ending on the date immediately preceding the effective date
of the next such change, provided that the Leverage Ratio, for purposes of determining the
Applicable Rate, shall be deemed to be in Category 1 (i) at any time that an Event of Default has
occurred and is continuing or (ii) at the option of the Administrative Agent or at the request of
the Required Lenders if the Borrower fails to deliver the consolidated financial statements
required to be delivered by it pursuant to Section 5.01(a) or (b), during the
period from the expiration of the time for delivery thereof until such consolidated financial
statements are delivered.

 

-3-

 

“Approved Fund” has the meaning assigned to such term in Section 9.04(b).

“Arrangers” means J.P. Morgan Securities LLC, Goldman Sachs Lending Partners LLC,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley Senior Funding, Inc., Wells
Fargo Securities, LLC and RBC Capital Markets, LLC.

“Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04)
and accepted by the Administrative Agent, in the form of Exhibit A or any other form
approved by the Administrative Agent.

“Available Amount” means, the sum, without duplication, of:

(a) the sum (determined on a cumulative basis and in no event less than zero) of the
Borrower’s Portion of Excess Cash Flow for (i) the period from July 1, 2011 through December
31, 2011 and (ii) all fiscal years ending after January 1, 2012; plus

(b) the amount of Net Proceeds actually received by the Borrower from the issuance by
Holdings of any Equity Interests (or capital contribution in respect thereof) after the
Effective Date) other than pursuant to the Cure Right or to the extent Otherwise Applied;
plus

(c) the amount of Net Proceeds actually received by the Borrower from the issuance
after the Effective Date of Qualified Holdings Debt; plus

(d) an amount equal to any returns (including dividends, interest, distributions,
returns of principal and profits on sale) actually received by the Borrower or any of the
Borrower’s Subsidiaries in cash in respect of any Investments made after the Effective Date
pursuant to Section 6.04(xviii); plus

(e) $100.0 million; minus

(f) the sum of (i) the aggregate amount of Investments made after the Effective Date
pursuant to Section 6.04(xviii), (ii) the aggregate amount of Restricted Payments made after
the Effective Date pursuant to Section 6.08(a)(x) and (iii) the aggregate amount of payments
made after the Effective Date pursuant to Section 6.08(b)(iii)).

“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee,
administrator, custodian, assignee for the benefit of creditors or similar Person charged with the
reorganization or liquidation of its business appointed for it, or, in the good faith determination
of the Administrative Agent, has taken any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any such proceeding or appointment, provided that a
Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of
any ownership interest, in such Person by a Governmental Authority or instrumentality thereof,
provided, further, that such ownership interest does not result in or provide such
Person with immunity from the jurisdiction of courts within the United States or from the
enforcement of judgments or writs of attachment on its assets or permit such Person (or such
Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts
or agreements made by such Person.

 

-4-

 

“Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

“Borrower” has the meaning set forth in the preamble to this Agreement.

“Borrower’s Portion of Excess Cash Flow” means, (i) on any date after January 1, 2012
and prior to January 1, 2013, the portion of Excess Cash Flow for the period from July 1, 2011 to
December 31, 2011 for which financial statements have been delivered pursuant to Section 5.01 and
(ii) on any date after January 1, 2013, the portion of Excess Cash Flow for the immediately
preceding full fiscal year of the Borrower for which financial statements have been delivered
pursuant to Section 5.01, in each case, that has not been, or is not required to be, applied to
prepay Loans pursuant to Section 2.11(d).

“Borrowing” means (a) Loans of the same Class and Type made, converted or continued on
the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect, or (b) a Swingline Loan.

“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03, provided that a written Borrowing Request shall be substantially in the form
of Exhibit E, or such other form as shall be approved by the Administrative Agent.

“Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed,
provided that when used in connection with a Eurodollar Loan, the term “Business Day” shall
also exclude any day on which banks are not open for dealings in dollar deposits in the London
interbank market.

“Capital Expenditures” means, for any period (and without duplication), (a) the
additions to property, plant and equipment and other capital expenditures of the Borrower and any
of the Subsidiaries that are (or would be) set forth in a consolidated statement of cash flows of
the Borrower for such period prepared in accordance with GAAP and (b) Capital Lease Obligations
incurred by the Borrower and the Subsidiaries during such period; provided that Capital
Expenditures shall not include (i) expenditures to the extent they are made with the Net Proceeds
of the issuance by Holdings of Equity Interests (or capital contributions in respect thereof) after
the Effective Date to the extent not Otherwise Applied or Qualified Holdings Debt, (ii) investments
that constitute a portion of the purchase price of a Permitted Acquisition, (iii) expenditures that
constitute a reinvestment of the Net Proceeds of any event described in clause (a) or (b) of the
definition of the term “Prepayment Event”, to the extent permitted by Section 2.11(c), and (iv) the
purchase price of equipment purchased during such period to the extent the consideration therefor
consists of any combination of (x) used or surplus equipment traded in at the time of such purchase
and (y) the proceeds of a concurrent sale of used or surplus equipment.

“Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

“Cash Management Bank” means any Person that was a Lender or an Affiliate of a Lender
(i) on the Effective Date and to whom Cash Management Obligations are then owed, (ii) at the time
it enters into an agreement with Parent or any Subsidiary with respect to Cash Management
Obligations or (iii) at the time the Borrower notifies the Administrative Agent that such Lender
and its Affiliates are “Cash Management Banks” hereunder.

 

-5-

 

“Cash Management Obligations” means obligations owed by Holdings or any Subsidiary to
any Lender or any Affiliate of a Lender in respect of (1) any overdraft and related liabilities
arising from treasury, depository and cash management services or any automated clearing house
transfers of funds and (2) Holdings’ or any Subsidiary’s participation in commercial (or
purchasing) card programs at the Lender or any Affiliate (“card obligations”).

“CFC” means (i) a “controlled foreign corporation” within the meaning of Section
957(a) of the Code, (ii) any direct subsidiary of an entity described in clause (i) of this
definition or (iii) any entity that wholly-owns the Equity Interests of an entity described in
clause (i) of this definition and which is disregarded for United States federal income tax
purposes as an entity that is separate from its owner, but only so long as such entity has no
assets other than the Equity Interests of a CFC and de minimis assets.

“Change in Control” means:

(a) the acquisition of record ownership by any Person other than Holdings of any Equity
Interests in the Borrower,

(b) (i) the acquisition of ownership, directly or indirectly, beneficially or of
record, by any Person or group (within the meaning of the Securities Exchange Act of 1934,
as amended, and the rules of the SEC thereunder as in effect on the date hereof) other than
one or more Permitted Investors of Equity Interests in Holdings representing more than 35%
of the aggregate ordinary voting power represented by the issued and outstanding Equity
Interests in Holdings and (ii) the ownership, directly or indirectly, beneficially or of
record, by the Permitted Investors of Equity Interests in Holdings representing in the
aggregate a lesser percentage of the aggregate ordinary voting power represented by the
issued and outstanding Equity Interests in Holdings than such Person or group,

(c) occupation of a majority of the seats (other than vacant seats) on the Board of
Directors of Holdings by Persons who were not (i) nominated by the Board of Directors of
Holdings, (ii) appointed by directors so nominated or (iii) nominated by the Permitted
Investors or

(d) the occurrence of a “Change of Control”, as defined in any of the Existing
Subordinated Notes Documents, the Qualified Holdings Floating Rate Notes Documents, any
indenture or other instrument, agreement or other document evidencing or governing any
Qualified Holdings Debt or Permitted Debt Securities or any certificate of designations
relating to the Qualified Preferred Stock.

“Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement; provided that, notwithstanding
anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and
Basel III and all requests, rules, guidelines or directives thereunder or issued in connection
therewith shall be deemed to be a “Change in Law”, regardless of the date enacted, adopted or
issued.

“Charges” has the meaning set forth in Section 9.13.

 

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“Class,” when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Tranche B Term Loans, Incremental Term
Loans of any series, Extended Term Loans of any series, Replacement Term Loans of any series or
Swingline Loans and, when used in reference to any Commitment, refers to whether such Commitment is
a Revolving Commitment or a Tranche B Commitment.

“CLO” has the meaning assigned to such term in Section 9.04(b).

“Code” means the Internal Revenue Code of 1986 and the rules and regulations
promulgated thereunder, as amended from time to time.

“Collateral” means any and all “Collateral”, as defined in any applicable Security
Document.

“Collateral Agent” means JPMorgan Chase Bank, N.A., in its capacity as collateral
agent for the Lenders under this Agreement and any Security Document.

“Collateral Agreement” means the Guarantee and Collateral Agreement among the Loan
Parties and the Collateral Agent, substantially in the form of Exhibit C.

“Collateral and Guarantee Requirement” means the requirement that:

(a) the Collateral Agent shall have received from each Loan Party either (i) a
counterpart of the Collateral Agreement duly executed and delivered on behalf of such Loan
Party or (ii) in the case of any Person that becomes a Loan Party after the Effective Date,
a supplement to the Collateral Agreement, in the form specified therein, duly executed and
delivered on behalf of such Loan Party;

(b) all outstanding Equity Interests of (i) the Borrower and (ii) each Subsidiary owned
directly by any Loan Party shall have been pledged pursuant to the Collateral Agreement
(except that the Loan Parties shall not be required to pledge more than 65% of the
outstanding voting Equity Interests of any Foreign Subsidiary) and the Collateral Agent
shall have received certificates or other instruments representing all such Equity
Interests, together with undated stock powers or other instruments of transfer with respect
thereto endorsed in blank;

(c) all Indebtedness of Holdings, the Borrower and each Subsidiary that is owing to any
Loan Party shall be evidenced by a promissory note and shall have been pledged pursuant to
the Collateral Agreement, and the Collateral Agent shall have received all such promissory
notes, together with undated instruments of transfer with respect thereto endorsed in blank;

(d) all documents and instruments, including Uniform Commercial Code financing
statements, required by law or reasonably requested by the Collateral Agent to be filed,
registered or recorded to create the Liens intended to be created by the Collateral
Agreement and perfect such Liens to the extent required by the Collateral Agreement, shall
have been executed, filed, registered or recorded or delivered to the Collateral Agent for
filing, registration or recording;

 

-7-

 

(e) the Collateral Agent shall have received (i) counterparts of a Mortgage with
respect to each Mortgaged Property duly executed and delivered by the record owner of such
Mortgaged Property, (ii) a policy or policies of title insurance issued by a nationally
recognized title insurance company insuring the Lien of each such Mortgage as a valid
first-priority Lien on the Mortgaged Property described therein, free of any other Liens
except as expressly permitted by
Section 6.02 in amounts reasonably acceptable to the Collateral Agent (not to exceed
100% of the Fair Market Value of such Mortgaged Property in jurisdictions that impose
mortgage recording taxes or 110% otherwise), together with such endorsements, coinsurance
and reinsurance as the Collateral Agent or the Required Lenders may reasonably request, and
such surveys, appraisals, legal opinions and other documents as the Collateral Agent or the
Required Lenders may reasonably request with respect to any such Mortgage or Mortgaged
Property; and

(f) each Loan Party shall have obtained all material consents and approvals required to
be obtained by it in connection with the execution and delivery of all Security Documents to
which it is a party, the performance of its obligations thereunder and the granting by it of
the Liens thereunder.

Notwithstanding anything to the contrary in this Agreement or any Security Document, no Loan Party
shall be required to pledge or grant security interests (i) in particular assets if, in the
reasonable judgment of the Administrative Agent or the Collateral Agent, the costs of creating or
perfecting such pledges or security interests in such assets (including any mortgage, mortgage
recording, stamp, intangibles or other tax) are excessive in relation to the benefits to the
Lenders therefrom, (ii) in any owned real property other than Material Real Property or (iii) in
any leasehold interests.

“Commitment” means a Revolving Commitment, a Tranche B Commitment, any Commitment in
respect of an Incremental Extension of Credit or any combination thereof (as the context requires).

“Consolidated EBITDA” means, for any period, Consolidated Net Income for such period
plus

(a) without duplication and to the extent deducted in determining such Consolidated Net Income
for such period, the sum of: (i) consolidated interest expense of the Borrower and its
subsidiaries, for such period, (ii) (A) consolidated income tax expense of the Borrower and its
subsidiaries for such period and (B) income tax expense of Holdings for such period to the extent
paid in such period using the proceeds of Restricted Payments made by the Borrower pursuant to
clause (v) of Section 6.08(a), (iii) all amounts attributable to depreciation and amortization
expense of the Borrower and its subsidiaries for such period, (iv) any non-cash charges for such
period (but excluding (A) any non-cash charge in respect of an item that was included in
Consolidated Net Income in a prior period and (B) any non-cash charge that relates to the
write-down or write-off of inventory), (v) any non-recurring fees, cash charges and other cash
expenses (A) made or incurred by the Borrower and its subsidiaries in connection with any Permitted
Acquisition, including severance, relocation and facilities closing costs, that are paid, accrued
or reserved for within 180 days of such transaction or (B) incurred in connection with the issuance
of Equity Interests or Indebtedness or the extinguishment of Indebtedness, (vi) any Transaction
Costs made or incurred by the Borrower and its subsidiaries in connection with the Transactions
that are paid or accrued within 180 days of the consummation of the Transactions, (vii) other cash
expenses incurred during such period in connection with a Permitted Acquisition to the extent that
such expenses are reimbursed in cash during such period pursuant to indemnification provisions of
any agreement relating to such transaction, (viii) fees paid to any Sponsor or Sponsor Affiliate
under Section 6.09(h), (ix) Consolidated Net Income attributable to non-controlling interests of a
subsidiary (less the amount of any mandatory cash distribution with respect to any non-controlling
interest other than in connection with a proportionate discretionary cash distribution with respect
to the interest held by the Borrower or any subsidiary), (x) start-up losses attributable to LTACHs
paid under acute care MS-DRGs during their LTACH qualification period in connection with health
care facilities acquired in any Permitted Acquisition, not to exceed $10,000,000 in any single
acquisition or group of related acquisitions and $15,000,000 in any fiscal year, and (xi) cash
expenses incurred during such period in connection with extraordinary casualty events to the
extent such expenses are reimbursed in cash by insurance during such period, minus

 

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(b) without duplication and to the extent included in determining such Consolidated Net
Income, (i) any cash payments made during such period in respect of non-cash charges described in
clause (a)(iv) taken in a prior period and (ii) any non-cash items of income for such period, all
determined on a consolidated basis in accordance with GAAP, and

(c) (without duplication) plus unrealized losses and minus unrealized gains in
each case in respect of Swap Agreements, as determined in accordance with GAAP.

Consolidated EBITDA for the fiscal quarters ended June 30, 2010, September 30, 2010, December 31,
2010 and March 31, 2011 shall be $95,716,000, $63,857,000, $72,796,000 and $104,178,000,
respectively.

“Consolidated Net Income” means, for any period, the net income or loss of the
Borrower and its subsidiaries for such period determined on a consolidated basis in accordance with
GAAP, provided that there shall be excluded from Consolidated Net Income (a) the income of
any subsidiary (other than a Consolidated Practice) to the extent that the declaration or payment
of dividends or other distributions by such subsidiary of that income is not at the time permitted
by a Requirement of Law or any agreement or instrument applicable to such subsidiary, except to the
extent of the amount of cash dividends or other cash distributions actually paid to the Borrower or
any subsidiary during such period (unless the income of any subsidiary receiving such dividend or
distribution would be excluded from Consolidated Net Income pursuant to this proviso), and (b) any
gains or losses attributable to sales of assets out of the ordinary course of business and any
extraordinary losses or gains. Notwithstanding the foregoing, (1) the income of any Permitted
Joint Venture that is not a subsidiary shall be included in Consolidated Net Income during any
four-quarter period only to the extent of the amount of cash dividends or other cash distributions
of such income actually paid to the Borrower or any subsidiary prior to the date financial
statements are required to be delivered pursuant to Section 5.01(a) or (b) for the most recent
fiscal period (unless the income of the subsidiary receiving such dividend or distribution would be
excluded from Consolidated Net Income pursuant to this definition) and (2) for purposes of
calculating the “Available Amount”, Consolidated Net Income shall be increased (without
duplication) by the amount of cash dividends or other cash distributions actually paid to the
Borrower or any subsidiary (unless the income of the subsidiary receiving such dividend or
distribution would be excluded from Consolidated Net Income pursuant to this definition) since the
Effective Date, to the extent not previously included therein.

“Consolidated Practice” means any therapist- or physician-owned professional
organization, association or corporation that employs or contracts with physicians and has entered
into a management services agreement with the Borrower or any other Subsidiary, the accounts of
which are consolidated with the Borrower and its subsidiaries in accordance with GAAP.

“Consolidated Tangible Assets” means, as of any date, the total assets of the Borrower
and its subsidiaries determined in accordance with GAAP (less, to the extent not deducted in the
determination of total assets, accumulated depreciation and amortization, allowances for doubtful
receivables, other applicable reserves and other properly deductible items) after giving effect to
purchase accounting and, after deducting therefrom, to the extent otherwise included, the amounts
of (without duplication): (a) the excess of cost over fair market value of real property; (b) any
revaluation or other write-up in book value of assets subsequent to the last day of the fiscal
quarter of the Borrower immediately preceding the Effective Date as a result of any change in the
method of valuation in accordance with GAAP; (c) unamortized debt discount and expenses and other
unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names,
copyrights, licenses, organization or developmental expenses and
other intangible items as to which Statement of Financial Accounting Standards No. 142
(“Goodwill and Other Intangible Assets”) applies; (d) non-controlling interests in subsidiaries
held by Persons other than the Borrower or any subsidiary; (e) treasury stock; (f) cash or
securities set aside and held in a sinking or other analogous fund established for the purpose of
redemption or other retirement of Equity Interests; (g) investments in (and, for the avoidance of
doubt, assets of) Permitted Joint Ventures; and (h) non-current deferred tax assets.

 

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“Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

“Debt Tender Offer” has the meaning set forth in the preamble to this Agreement.

“Default” means any event or condition that constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

“Defaulting Lender” means any Revolving Lender that (a) has failed, within three
Business Days of the date required to be funded or paid, to (i) fund any portion of its Revolving
Loans, (ii) fund any portion of its participations in Letters of Credit or Swingline Loans or (iii)
pay over to the Administrative Agent, any Issuing Bank, the Swingline Lender or any other Lender
any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such
Revolving Lender notifies the Administrative Agent in writing that such failure is the result of
such Revolving Lender’s good faith determination that a condition precedent to funding
(specifically identified and including the particular default, if any) has not been satisfied, (b)
has notified the Borrower or the Administrative Agent, any Issuing Bank, the Swingline Lender or
any other Lender in writing, or has made a public statement to the effect, that it does not intend
or expect to comply with (i) any of its funding obligations under this Agreement (unless such
writing or public statement indicates that such position is based on such Revolving Lender’s good
faith determination that a condition precedent (specifically identified and including the
particular default, if any) to funding a loan under this Agreement cannot be satisfied) or (ii) its
funding obligations generally under other agreements in which it commits to extend credit, (c) has
failed, within three Business Days after written request by the Administrative Agent, acting in
good faith, to provide a certification in writing from an authorized officer of such Revolving
Lender that it will comply with its obligations (and is financially able to meet such obligations)
to fund prospective Revolving Loans and participations in then outstanding Letters of Credit and
Swingline Loans under this Agreement, provided that such Revolving Lender shall cease to be
a Defaulting Lender pursuant to this clause (c) upon such Loan Party’s receipt of such
certification in form and substance reasonably satisfactory to it and the Administrative Agent, or
(d) has become the subject of a Bankruptcy Event.

“dollars” or “$” refers to lawful money of the United States of America.

“Domestic Subsidiary” means any Subsidiary incorporated or organized under the laws of
the United States of America, any State thereof or the District of Columbia, other than a
Subsidiary that is a CFC.

“Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived).

“Environmental Laws” means all laws (including the common law), rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by or with any Governmental Authority, relating in any way to the
environment, preservation or reclamation of or damage to natural resources, the presence,
management, storage, treatment, transports, exposure to, Release or threatened Release of any Hazardous Material, or to
health and safety matters.

 

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“Environmental Liability” means liabilities, obligations, damages, claims, actions,
suits, judgments, orders, fines, penalties, fees, expenses and costs (including administrative
oversight costs, natural resource damages and medical monitoring, investigation or remediation
costs), whether contingent or otherwise, arising out of or relating to (a) compliance or
non-compliance with any Environmental Law, (b) the generation, use, handling, transportation,
storage or treatment of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

“Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest from the issuer thereof.

“ERISA” means the Employee Retirement Income Security Act of 1974 and the regulations
promulgated thereunder, as amended from time to time.

“ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414 of the Code.

“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder, with respect to a Plan (other than an event for which the 30 day
notice period is waived), (b) a failure to satisfy the minimum funding standard under Section 412
of the Code or Section 302 of ERISA, whether or not waived, (c) the filing pursuant to Section
412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Plan or Multiemployer Plan, (d) the incurrence by the Borrower or any
of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of
any Plan, (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or
to appoint a trustee to administer any Plan or Multiemployer Plan, (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan, (g) the withdrawal of the Borrower or any of its
ERISA Affiliates from a Plan subject to Section 4063 of ERISA during a plan year in which such
entity was a “substantial employer” (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA, or (h) the receipt
by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from
the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA or that a Multiemployer Plan is in
“critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA) or (i)
the occurrence of a non-exempt prohibited transaction (within the meaning of Section 406 of ERISA
or Section 4975 of the Code) with respect to any Plan.

“Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

“Event of Default” has the meaning assigned to such term in Section 7.01.

 

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“Excess Cash Flow” means, for any fiscal year (provided that for purposes of
the determination of the Borrower’s Excess Cash Flow and Section 2.11(d), the fiscal year ended
December 31, 2011 shall be deemed to have begun on July 1, 2011), the sum (without duplication) of:

(a) Consolidated Net Income for such fiscal year, adjusted to exclude any gains or
losses attributable to Prepayment Events; plus

(b) depreciation, amortization and other non-cash charges or losses (including deferred
income taxes) deducted in determining such Consolidated Net Income for such fiscal year;
plus

(c) the amount, if any, by which Net Working Capital decreased during such fiscal year
(except as a result of reclassification of items from short-term to long-term);
minus

(d) the sum of (i) any non-cash gains or non-cash items of income included in
determining Consolidated Net Income for such fiscal year plus (ii) the amount, if
any, by which Net Working Capital increased during such fiscal year (except as a result of
reclassification of items from long-term to short-term); minus

(e) the greater of (x) the amount of Capital Expenditures of the Borrower and its
subsidiaries in such fiscal year (except to the extent attributable to the incurrence of
Capital Lease Obligations or otherwise financed by incurring Long-Term Indebtedness) and (y)
the amount of Capital Expenditures budgeted by the Borrower and its subsidiaries for the
next succeeding fiscal year; minus 

(f) the aggregate principal amount of Long-Term Indebtedness repaid or prepaid by the
Borrower and its subsidiaries during such fiscal year, excluding (i) Indebtedness in respect
of Revolving Loans and Letters of Credit (unless there is a corresponding reduction in the
aggregate Revolving Commitments), (ii) Tranche B Term Loans prepaid pursuant to Section
2.11(a), (c) or (d), and (iii) repayments or prepayments of Long-Term Indebtedness financed
by the incurrence of other Long-Term Indebtedness by a Parent or any Loan Party or the
issuance of Equity Interests (or capital contributions in respect thereof) after the
Effective Date to the extent not Otherwise Applied; minus

(g) the amount of Restricted Payments made by a Loan Party in such fiscal year pursuant
to clause (iii) of Section 6.08(a); minus

(h) cash Taxes paid in such fiscal year that did not reduce Consolidated Net Income for
such fiscal year; minus

(i) cash payments made during such fiscal year in respect of non-cash charges that
increased Excess Cash Flow in any prior fiscal year.

 

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“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrower or any Loan Party hereunder, (a) income taxes imposed on (or measured by) its net
income (however denominated) (including any backup withholding with respect thereto) and franchise
taxes imposed on it (in lieu of net income taxes) (i) by the United States of America, (ii) by the
jurisdiction under the laws of which such recipient is organized or in which its principal office
is located or, in the case of any Lender, in which its applicable lending office is located or
(iii) by any other jurisdiction as a result of a present or former connection between the
Administrative Agent, the Lender or the Issuing Bank, as applicable, and the jurisdiction imposing such tax (other than a connection arising by such Person
having become a party to, performed its obligations or received payments under, or enforced, any
Loan Document), (b) any branch profits taxes imposed by the United States of America or any similar
tax imposed by any other jurisdiction described in clause (a) above, (c) in the case of a Foreign
Lender (other than an assignee pursuant to a request by the Borrower under Section 2.19(b)), any
withholding tax that is in effect and would apply to amounts payable to such Foreign Lender at the
time such Foreign Lender becomes a party to this Agreement (or designates a new lending office),
except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time
of designation of a new lending office (or assignment), to receive additional amounts from the
Borrower with respect to any withholding tax pursuant to Section 2.17(a); provided that
this clause (c) shall be limited solely to U.S. federal withholding tax in respect of any amount
payable by a “United States person” as defined in Section 7701(a)(30) of the Code, (d) any
withholding tax that is attributable to a Lender’s failure to comply with Section 2.17(e) and (e)
any taxes under FATCA.

“Existing Credit Agreement” has the meaning set forth in the preamble to this
Agreement.

“Existing Lender” has the meaning assigned to such term in Section 2.20.

“Existing Letter of Credit” means each letter of credit previously issued for the
account of the Borrower pursuant to the Existing Credit Agreement that (a) is outstanding on the
Effective Date and (b) is listed on Schedule 2.05.

“Existing Subordinated Notes” has the meaning set forth in the preamble to this
Agreement.

“Existing Subordinated Notes Documents” means the Existing Subordinated Notes
Indenture and all other instruments, agreements and other documents evidencing or governing the
Existing Subordinated Notes or providing for any Guarantee or other right in respect thereof.

“Existing Subordinated Notes Indenture” means the Indenture dated as of February 24,
2005 governing the Existing Subordinated Notes.

“Extended Revolving Commitments” means revolving credit commitments established
pursuant to Section 2.21 that are substantially identical to the Revolving Commitments except that
such extended revolving commitments may have a later maturity date and different provisions with
respect to interest rates and fees than those applicable to the Revolving Commitments.

“Extended Term Loans” has the meaning provided in Section 2.21(a).

“Extending Term Lender” has the meaning provided in Section 2.21(c).

“Extension Election” has the meaning provided in Section 2.21(c).

“Extension Request” has the meaning provided in Section 2.21(a).

“Fair Market Value” means the value that would be paid by a willing buyer to an
unaffiliated willing seller in a transaction not involving distress or necessity of either party,
determined in good faith by the Board of Directors, chief executive officer or chief financial
officer of the Borrower.

 

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“FATCA” means Sections 1471 through 1474 of the Code and any regulations or official
interpretations thereof (including any future regulations and official interpretations).

“Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

“Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Borrower, in each case in his or her capacity as such.

“Financial Performance Covenant” means the covenant of the Borrower set forth in
Section 6.13.

“First Lien Intercreditor Agreement” shall mean an Intercreditor Agreement,
substantially in the form of Exhibit G (with such changes thereto as are reasonably
acceptable to the Administrative Agent), by and between the Administrative Agent and the collateral
agent for one or more classes of Permitted Secured Notes that are intended to be secured by Liens
ranking pari passu with the Liens securing the Obligations.

“Flood Insurance Laws” means, collectively (i) the National Flood Insurance Act of
1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster
Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (iii) the
National Flood Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute
thereto and (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or any
successor statute thereto.

“Foreign Lender” means any Lender that is not a United States person within the
meaning of Section 7701(a)(30) of the Code.

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

“GAAP” means generally accepted accounting principles in the United States of America,
as in effect from time to time.

“Government Programs” means (i) the Medicare and Medicaid Programs, (ii) the United
States Department of Defense Civilian Health Program for Uniformed Services and (iii) other similar
foreign or domestic Federal, state or local reimbursement or governmental health care programs.

“Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

 

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“Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or
to advance or supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity
capital or any other financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party
or applicant in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation, provided that the term “Guarantee” shall not include
endorsements for collection or deposit in the ordinary course of business. The amount of any
Guarantee of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the
stated or determinable amount of the primary obligation in respect of which the Guarantee is made
and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms
of the instrument embodying such Guarantee.

“Hazardous Materials” means all explosive, radioactive, infectious, chemical,
biological, medical, hazardous or toxic materials, substances, wastes or other pollutants or
contaminants, including petroleum or petroleum byproducts, asbestos or asbestos-containing
materials, polychlorinated biphenyls, radon gas and all other materials, substances or wastes of
any nature regulated pursuant to any Environmental Law.

“Holdings” means (A) Select Medical Holdings Corporation, a Delaware corporation, or
(B) any other entity (such entity, a “Succeeding Holdings”) that becomes the immediate
parent of the Borrower.

“Holdings Leverage Ratio” has the same meaning as “Leverage Ratio,” but for purposes
of determining Total Indebtedness, substituting “Holdings” for “Borrower”.

“Holdings Senior Subordinated Notes” means Select Medical Holdings Corporation’s 10%
Senior Subordinated Notes due 2015, in an aggregate principal amount immediately prior to the
Effective Date of $150,000,000.

“Inactive Subsidiary” means a Subsidiary that (a) conducts no business operations, (b)
has total assets with a fair market value of not more than $500,000 individually and not more than
$5,000,000 in the aggregate and (c) has no Indebtedness outstanding.

“Incremental Extensions of Credit” has the meaning set forth in Section 2.20.

“Incremental Facility Closing Date” has the meaning set forth in Section 2.20.

“Incremental Revolver Commitments” has the meaning set forth in Section 2.20.

“Incremental Term Loans” has the meaning set forth in Section 2.20.

“Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding trade accounts payable and accrued obligations incurred in the ordinary course
of business), (f) all obligations of others secured by (or for which the holder of such obligations
has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the obligations secured thereby have been assumed, but
limited, in the event such secured obligations are nonrecourse to such

 

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Person, to the fair value of such property, (g) all Guarantees by such Person of the
obligations of any other Person, (h) all Capital Lease Obligations of such Person, (i) all
obligations, contingent or otherwise, of such Person as an account party or applicant in respect of
letters of credit and letters of guaranty and (j) all obligations, contingent or otherwise, of such
Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the
Indebtedness of any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor. Notwithstanding the foregoing, the
term “Indebtedness” shall not include post-closing payment adjustments, earn-outs or non-compete
payments to which the seller in any Permitted Acquisition is or may become entitled or amounts that
any member of management, the employees or consultants of Holdings, the Borrower or any of the
Subsidiaries may become entitled to under any cash incentive plan in existence from time to time.

“Indemnified Taxes” means Taxes other than Excluded Taxes.

“Indemnitee” has the meaning set forth in Section 9.03(b).

“Information” has the meaning set forth in Section 9.12.

“Information Memorandum” means the Confidential Information Memorandum dated April
2011, relating to Holdings, the Borrower and the Transactions.

“Insurance Subsidiary” means a subsidiary of the Borrower established for the sole
purpose of providing insurance benefits to the Borrower and its subsidiaries.

“Interest Election Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.07, provided that a written Interest Election
Request shall be substantially in the form of Exhibit F, or such other form as shall be
approved by the Administrative Agent.

“Interest Payment Date” means (a) with respect to any ABR Loan (including a Swingline
Loan), the last day of each March, June, September and December and (b) with respect to any
Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan
is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three
months’ duration, each day prior to the last day of such Interest Period that occurs at intervals
of three months’ duration after the first day of such Interest Period.

“Interest Period” means, with respect to any Eurodollar Borrowing, with respect to
Revolving Loans and Tranche B Term Loans, the period commencing on the date of such Borrowing and
ending on the numerically corresponding day in the calendar month that is one, two, three or six
months thereafter (or such other period as may be agreed by the Borrower, the Administrative Agent
and all Lenders participating therein) and, in each case as the Borrower may elect,
provided that (a) if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest Period shall end on
the next preceding Business Day, and (b) any Interest Period that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially
shall be the date on which such Borrowing is made and thereafter shall be the effective date of the
most recent conversion or continuation of such Borrowing.

 

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“Issuing Bank” means (a) JPMorgan Chase Bank, N.A. or such other Lender designated as
an “Issuing Bank” pursuant to Section 2.05(k) and (b) with respect to the Existing Letters of
Credit only, JPMorgan Chase Bank, N.A. The Issuing Bank may, in its discretion, arrange for one or
more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term
“Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such
Affiliate.

“LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of
Credit.

“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC
Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The
LC Exposure of any Revolving Lender at any time shall be its Applicable Percentage of the aggregate
LC Exposure at such time.

“Lenders” means each Person that was a lender on the Effective Date and any other
Person that shall have become a party hereto pursuant to an Assignment and Assumption or an
Additional Credit Extension Amendment, other than any such Person that ceases to be a party hereto
pursuant to an Assignment and Assumption. Unless the context otherwise requires, the term
“Lenders” includes the Swingline Lender. 

“Letter of Credit” means any letter of credit issued or deemed issued pursuant to this
Agreement (including each Existing Letter of Credit).

“Leverage Ratio” means, on any date, the ratio of (a) Total Indebtedness on such date
(minus up to $175,000,000 of unrestricted cash and Permitted Investments held, on such
date, by the Borrower and the Subsidiary Loan Parties on such date) to (b) Consolidated EBITDA for
the period of four consecutive fiscal quarters of the Borrower ended on such date (or, if such date
is not the last day of a fiscal quarter, ended on the last day of the fiscal quarter of the
Borrower most recently ended prior to such date).

“LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of
such page) providing rate quotations comparable to those currently provided on such page, as
determined by the Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00
a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate
for dollar deposits with a maturity comparable to such Interest Period. In the event that such
rate is not available at such time for any reason, then the “LIBO Rate” with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate at which dollar deposits of
$5,000,000 and for a maturity comparable to such Interest Period are offered by the principal
London office of the Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period. Notwithstanding anything to the contrary set forth in the foregoing, to the
extent the LIBO Rate for any Interest Period for the Tranche B Term Loans would be less than 1.75%,
then the LIBO Rate for the Tranche B Term Loans for such Interest Period shall instead be 1.75%.

“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset or other
arrangement to provide priority or preference with respect to such asset, (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement
(or any financing lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of
securities, any purchase option, call or similar right of a third party (other than customary
rights of first refusal and tag, drag and similar rights in joint venture agreements (other than
any such agreement in respect of any Subsidiary)) with respect to such securities.

 

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“Limitation” means a revocation, suspension, termination, impairment, probation,
limitation, nonrenewal, forfeiture, declaration of ineligibility, loss of status as a participating
provider in any Third Party Payor Arrangement, and the loss of any other rights.

“Loan Document Obligations” means (a) the due and punctual payment by the Borrower of
(i) the principal of and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by
the Borrower under this Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of disbursements, interest thereon (including interest
accruing during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) and obligations to
provide cash collateral, and (iii) all other monetary obligations of the Borrower to any of the
Secured Parties under this Agreement and each other Loan Document, including obligations to pay
fees, expense reimbursement obligations and indemnification obligations, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during
the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding), (b) the due and punctual performance of all other
obligations of the Borrower under or pursuant to this Agreement and each other Loan Document, and
(c) the due and punctual payment and performance in full of all the obligations of each other Loan
Party under or pursuant to the Collateral Agreement and each other Loan Document.

“Loan Documents” means this Agreement, the promissory notes, if any, executed and
delivered pursuant to Section 2.09(e), any Additional Credit Extension Amendment, the Collateral
Agreement and the other Security Documents.

“Loan Parties” means Holdings, the Borrower, the Subsidiary Loan Parties and each
Permitted Joint Venture Loan Party.

“Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement
or an Additional Credit Extension Amendment.

“Long-Term Indebtedness” means any Indebtedness that, in accordance with GAAP,
constitutes (or, when incurred, constituted) a long-term liability.

“LTACH” means (a) a long-term hospital as defined in Volume 42, Section 412.23 of the
Code of Federal Regulations (or any successor definition) or (b) any long-term hospital that is in
development to achieve such status.

“Material Adverse Effect” means a material adverse effect on (a) the business,
operations, assets, liabilities, financial condition or results of operations of Holdings, the
Borrower and the Subsidiaries, taken as a whole, (b) the ability of any Loan Party to perform any
obligation under any Loan Document or (c) the rights of or benefits available to the Lenders under
any Loan Document.

“Material Disposition” means the sale by the Borrower or any Subsidiary of assets
(including the capital stock of a Subsidiary or a business unit) for aggregate consideration
(including
amounts received in connection with post-closing payment adjustments, earn-outs and noncompete
payments) of at least $35,000,000.

 

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“Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one or more of Holdings,
the Borrower and the Subsidiaries in an aggregate principal amount exceeding $50,000,000. For
purposes of determining Material Indebtedness, the “principal amount” of the obligations of the
Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary
would be required to pay if such Swap Agreement were terminated at such time.

“Material Real Property” means a real property with a gross book value of at least
$10,000,000, as reasonably determined by the Borrower in good faith.

“Maximum Rate” has the meaning set forth in Section 9.13.

“Medicare and Medicaid Programs” means the programs established under Title XVIII and
XIX of the Social Security Act and any successor programs performing similar functions.

“Moody’s” means Moody’s Investors Service, Inc.

“Mortgage” means a mortgage, deed of trust, assignment of leases and rents, leasehold
mortgage or other security document granting a Lien on any Mortgaged Property to secure the
Obligations. Each Mortgage shall be reasonably satisfactory in form and substance to the
Collateral Agent.

“Mortgaged Property” means, initially, each Material Real Property identified on
Schedule 1.01 and includes each other Material Real Property with respect to which a
Mortgage is granted pursuant to Section 5.12 or 5.13.

“MS-DRG” means a medical severity diagnosis related group.

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

“Net Proceeds” means, with respect to any event, (a) the cash proceeds received in
respect of such event including (i) any cash received in respect of any non-cash proceeds
(including any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or purchase price adjustment receivable or otherwise, but excluding any
interest payments), but only as and when received, (ii) in the case of a casualty, insurance
proceeds and (iii) in the case of a condemnation or similar event, condemnation awards and similar
payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third
parties (other than Affiliates) in connection with such event, (ii) in the case of a sale, transfer
or other disposition of an asset (including pursuant to a sale and leaseback transaction or a
casualty or a condemnation or similar proceeding), the amount of all payments required to be made
as a result of such event to repay Indebtedness (other than Loans) secured by such asset or
otherwise subject to mandatory prepayment as a result of such event and (iii) the amount of all
taxes paid (or reasonably estimated to be payable) and the amount of any reserves established to
fund liabilities reasonably estimated to be payable, in each case during the year that such event
occurred or the next succeeding year and that are directly attributable to such event (as
determined reasonably and in good faith by a Financial Officer), provided that no net
proceeds calculated in accordance with the foregoing of less than $2,500,000 realized in a single
transaction or series of related transactions shall constitute Net Proceeds.

 

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“Net Working Capital” means, at any date, (a) the consolidated current assets of the
Borrower and its subsidiaries as of such date (excluding cash and Permitted Investments)
minus (b) the consolidated current liabilities of the Borrower and its subsidiaries as of
such date (excluding current liabilities in respect of Indebtedness). Net Working Capital at any
date may be a positive or negative number. Net Working Capital increases when it becomes more
positive or less negative and decreases when it becomes less positive or more negative.

“Non-Consenting Lender” has the meaning set forth in Section 9.02(b).

“Obligations” means (a) Loan Document Obligations, (b) the due and punctual payment
and performance in full of all obligations of each Loan Party under each Swap Agreement that (i) is
in effect on the Effective Date with a counterparty that is a Lender or an Affiliate of a Lender as
of the Effective Date or (ii) is entered into after the Effective Date with any counterparty that
is a Lender or an Affiliate of a Lender at the time such Swap Agreement is entered into and (c)
Cash Management Obligations.

“Other Taxes” means any and all present or future recording, stamp, documentary,
excise, transfer, sales, property or similar taxes, charges or levies of the United States or any
political subdivision thereof arising from any payment made under any Loan Document or from the
execution, delivery or enforcement of, or from the filing or recording of or otherwise with respect
to the exercise by the Administrative Agent or the Lenders of their rights under, any Loan
Document.

“Otherwise Applied” means, with respect to any Net Proceeds, the amount of such Net
Proceeds that was (i) required to prepay the Loans pursuant to Section 2.11 or (ii) otherwise
previously applied under the Loan Documents.

“Parent” means any direct or indirect parent of which Holdings is a wholly owned
subsidiary.

“Participant” has the meaning set forth in Section 9.04(c).

“Patriot Act” has the meaning set forth in Section 9.14.

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

“Perfection Certificate” means a certificate in the form of Exhibit D or any
other form approved by the Collateral Agent.

“Permitted Acquisitions” means any acquisition by the Borrower or any Subsidiary Loan
Party at least 80% of all outstanding Equity Interests (other than directors’ qualifying shares or
shares issued to foreign nationals to the extent required by applicable law) in, all or
substantially all the assets of, or all or substantially all the assets constituting a division or
line of business of, a Person if (a) no Default has occurred and is continuing or would result
therefrom, (b) after giving effect to such acquisition, the Borrower and the Subsidiary Loan Party
shall have aggregate unused and available Revolving Commitments and unrestricted cash and Permitted
Investments of not less than $40,000,000, (c) after giving effect to such acquisition, the
aggregate Consolidated Tangible Assets acquired in all Permitted Acquisitions consummated since the
Effective Date (excluding acquisitions resulting in a newly formed Domestic Subsidiary or otherwise
related to assets substantially located in the United States of America) does not exceed 5% of
Consolidated Tangible Assets, (d) such acquisition and all transactions related thereto are
consummated in accordance in all material respects with all applicable laws, (e) all actions
required to be
taken with respect to such acquired or newly formed Subsidiary (if a Domestic Subsidiary) or
assets (if held by a Domestic Subsidiary) to cause such Person to become a Loan Party under
Sections 5.12 and 5.13 shall have been taken (or shall be taken promptly thereafter), (f) on a Pro
Forma Basis the Leverage Ratio recomputed as of the last day of the most recently ended fiscal
quarter of the Borrower for which financial statements are available does not exceed 5.25 to 1.00,
and (g) the Borrower has delivered to the Administrative Agent an officer’s certificate to the
effect set forth in clauses (a), (b), (c), (d), (e) and (f) above, together with all relevant
financial information for the Person or assets to be acquired.

 

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“Permitted Debt Securities” means any Indebtedness consisting of notes or loans under
credit agreements, indentures or other similar agreements or instruments incurred or Guaranteed by
Loan Parties following the Effective Date; provided that (i) such Indebtedness does not
mature or have scheduled amortization or scheduled payments of principal and is not subject to
mandatory redemption, repurchase, prepayment or sinking fund obligation (other than customary
offers to repurchase upon a change of control, asset sale or casualty event and customary
acceleration rights after an event of default) prior to the 181st day after the Tranche B Maturity
Date, (ii) shall be unsecured, except as permitted by Section 6.02(xii), (iii) such Indebtedness is
not incurred or guaranteed by any Subsidiaries that are not Loan Parties, and (iv) the other terms
and conditions relating to such debt securities or loans (other than interest rates, call
protection and other pricing terms) are not in the aggregate more restrictive to the Borrower and
its Subsidiaries than the terms of this Agreement as determined in good faith by the Borrower.

“Permitted Encumbrances” means:

(a) Liens imposed by law for taxes that are not yet due or are being contested in
compliance with Section 5.05;

(b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing obligations
that are not overdue by more than 30 days or are being contested in compliance with Section
5.05;

(c) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations;

(d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature;

(e) judgment liens in respect of judgments that do not constitute an Event of Default
under paragraph (k) of Section 7.01;

(f) easements, zoning restrictions, rights-of-way, minor defects or irregularities of
title and other similar encumbrances on real property imposed by law or arising in the
ordinary course of business that do not secure any monetary obligations and do not either
detract from the value of the affected property or interfere with the ordinary conduct of
business of the Borrower or any Subsidiary, in each case in any material respect;

(g) landlords’ and lessors’ and other like Liens in respect of rent not in default;

(h) any Liens shown on the title insurance policies in favor of the Collateral Agent
insuring the Liens of the Mortgages; and

(i) leases or subleases which are subordinate to the Lien of any Mortgage,

 

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provided that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness.

“Permitted Investments” means:

(a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United States of
America), in each case maturing within one year from the date of acquisition thereof;

(b) investments in commercial paper maturing within 365 days from the date of
acquisition thereof and having, at such date of acquisition, a credit rating from S&P or
Moody’s of at least A2 or P2, respectively;

(c) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 365 days from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, any domestic office of
any commercial bank organized under the laws of the United States of America or any State
thereof that has a combined capital and surplus and undivided profits of not less than
$500,000,000;

(d) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution
satisfying the criteria described in clause (c) above; and

(e) investments in money market funds that comply with the criteria set forth in SEC
Rule 2a-7 under the Investment Company Act of 1940, as amended, substantially all of whose
assets are invested in investments of the type described in clauses (a) through (d) above.

“Permitted Investors” means (A) Welsh, Carson, Anderson & Stowe IX, L.P., WCAS Capital
Partners IV, L.P., Thoma Cressey Fund VI, L.P., Thoma Cressey Fund VII, L.P., and their respective
Sponsor Affiliates and (B) (i) Rocco A. Ortenzio, Robert A. Ortenzio and each of the other
directors, officers and employees of the Borrower who owned capital stock of Holdings on the first
date the Borrower became a wholly owned subsidiary of Holdings; (ii) the spouses, ancestors,
siblings, descendants (including children or grandchildren by adoption) and the descendants of any
of the siblings of the Persons referred to in clause (i); (iii) in the event of the incompetence or
death of any of the Persons described in clauses (i) or (ii), such Person’s estate, executor,
administrator, committee or other personal representative, in each case who at any particular date
shall be the beneficial owner or have the right to acquire, directly or indirectly, capital stock
of the Borrower or Holdings (or any other direct or indirect parent company of the Borrower); (iv)
any trust created for the benefit of the Persons described in any of clauses (i) through (iii) or
any trust for the benefit of any such trust; or (v) any Person Controlled by any of the Persons
described in any of clauses (i) through (iv); or (C) any “group” within the meaning of Section
13(d)(3) or Section 14(d)(2) of the Securities Exchange Act or any successor provision) of which
any of the foregoing are members; provided that in the case of such “group” and without
giving effect to the existence of such “group” or any other “group”, such Persons specified in
clauses (A) or (B) above, collectively, have beneficial ownership, directly or indirectly of more
than 50% of the total voting power of the voting Equity Interests of Holdings or any of its direct
or indirect parent entities held by such “group”.

“Permitted Liens” has the meaning set forth in Section 6.02.

“Permitted Joint Venture” means any investment by which the Borrower or any Subsidiary
Loan Party acquires at least 10% but not more than 99% of the Equity Interests of any Person,
provided that the primary business of such Person is (x) to own, lease or operate
facilities which provide
health care related services including long-term acute care services or rehabilitation
services or (y) to provide health care related services including long-term acute care services or
rehabilitation services or any related services to a hospital or other health care facility.

 

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“Permitted Joint Venture Loan Party” means any Permitted Joint Venture which (x) is a
subsidiary of the Borrower or any Subsidiary Loan Party and (y) satisfies the terms of the
Collateral and Guarantee Requirement.

“Permitted Real Estate Joint Venture” means any Permitted Joint Venture which is a
subsidiary and owns real property used in the business of the Borrower or any Subsidiary,
provided that such Permitted Real Estate Joint Venture is not engaged in any business or
activity other than the ownership of such real property and activities incidental thereto.

“Permitted Secured Notes” means (i) Permitted Debt Securities and (ii) any Refinancing
Indebtedness in respect of such Permitted Debt Securities, in each case, that are secured by a Lien
permitted by Section 6.02(xii).

“Permitted Security” means (a) common stock of Holdings or (b) Qualified Preferred
Stock, in each case (i) (x) issued to the Permitted Investors for cash or (y) issued to any other
Person that makes an equity investment in Holdings in connection with the Transactions and (ii) the
proceeds of which are contributed by Holdings to the Borrower in exchange for common stock or as a
capital contribution.

“Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

“Plan” means any “employee pension benefit plan” (as defined in Section 3(2) of ERISA)
that is subject to the provisions of Title IV or Section 302 of ERISA or Section 412 of the Code,
and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

“Prepayment Event” means:

(a) any sale, transfer or other disposition (excluding pursuant to a sale and leaseback
transaction permitted under Section 6.06) of any property or asset of Holdings, the Borrower
or any Subsidiary in excess of $5,000,000 in any fiscal year, other than dispositions
described in clauses (a), (b), (c) and (d) of Section 6.05; or

(b) any casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any property or asset of Holdings, the
Borrower or any Subsidiary with a fair value immediately prior to such event equal to or
greater than $2,500,000; or

(c) the incurrence by Holdings, the Borrower or any Subsidiary of (x) any Refinancing
Indebtedness or (y) any Indebtedness not permitted under Section 6.01.

“Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank, N.A. as its prime rate in effect for dollars at its principal office in New
York City; each change in the Prime Rate shall be effective from and including the date such change
is publicly announced as being effective.

 

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“Pro Forma Basis” means, for purposes of calculating the Leverage Ratio, the Holdings
Leverage Ratio or the Secured Leverage Ratio for any period, that any Specified Transaction that
has been consummated in such period and the following transactions in connection therewith shall be
deemed to have occurred as of the first day of such period:

(a) income statement items (whether positive or negative) attributable to the property
or Person subject to such Specified Transaction, in the case of a Permitted Acquisition,

(b) any retirement of Indebtedness, and

(c) any Indebtedness incurred or assumed by Holdings, the Borrower or any of their
subsidiaries in connection therewith (or in any Specified Transaction);

provided that the foregoing pro forma adjustments may be applied to any such test solely to
the extent that such adjustments are consistent with the definition of “Consolidated EBITDA” and
give effect to events (including cost savings) to the extent they (i) would be permitted to be
reflected in pro forma financial information complying with the requirements of GAAP and Article XI
of Regulation S-X under the Securities Act of 1933, as amended, as interpreted by the Staff of the
SEC; (ii) were actually implemented by the business that was the subject of the applicable
Permitted Acquisition or Material Disposition, as the case may be, within 12 months after the date
of such transaction, and are supportable and quantifiable by the underlying accounting records of
such business or (iii) for all purposes other than determining the “Applicable Rate”, relate to the
business that is the subject of such Specified Transaction, and are reasonably determined by the
Borrower to be probable based upon specifically identifiable actions to be taken within 12 months
after the date of such Specified Transaction, and, in each case are certified by a Financial
Officer (accompanied by reasonably detailed supporting evidence).

“Proposed Change” has the meaning set forth in Section 9.02(b).

“Qualified Holdings Debt” means Qualified Holdings Discount Debt and Qualified
Holdings Floating Rate Notes.

“Qualified Holdings Discount Debt” means unsecured Indebtedness of Holdings or a
Parent that (a) is not subject to any Guarantee by the Borrower or any Subsidiary Loan Party, (b)
does not mature prior to the date that is 180 days after the Tranche B Maturity Date, (c) has no
scheduled amortization or payments of principal prior to such 180th day (except to the extent
required to prevent such Indebtedness from being treated as an “Applicable High Yield Discount
Obligation” within the meaning of Section 163(i)(1) of the Internal Revenue Code of 1986, as
amended; provided that any such payment obligation of Holdings shall be subordinated to the
Obligations to the same extent as the Holdings Senior Subordinated Notes are subordinated to the
Obligations), (d) does not require any payments in cash of interest or other amounts in respect of
the principal thereof for at least four (4) years from the date of issuance or incurrence thereof
and (e) has mandatory prepayment, repurchase or redemption, covenant, default and remedy provisions
customary for senior discount notes of an issuer that is the parent of a borrower under senior
secured credit facilities and in any event, with respect to default and remedy provisions customary
for senior discount notes of a holding company.

“Qualified Holdings Floating Rate Notes” means the Senior Floating Rate Notes due 2015
issued by Holdings (and not supported by any Guarantee) outstanding on the Effective Date,
initially in the aggregate principal amount of up to $175,000,000 and the Indebtedness represented
thereby.

 

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“Qualified Holdings Floating Rate Notes Documents” means the indenture in respect of
the Qualified Holdings Floating Rate Notes and all other instruments, agreements and other
documents evidencing or governing the Qualified Holdings Floating Rate Notes.

“Qualified Preferred Stock” means preferred stock of Holdings that (a) does not
require the payment of cash dividends (it being understood that cumulative dividends shall be
permitted), (b) is not mandatorily redeemable pursuant to a sinking fund obligation or otherwise
prior to the date that is 180 days after the Tranche B Maturity Date (other than upon an event of
default or change in control, provided that any such payment is subordinated (whether by
contract or pursuant to Holdings’ charter or the certificate of designations of such preferred
stock) in right of payment to the Obligations on the terms set forth in the certificate of
incorporation of Holdings in existence on the Effective Date or such other terms reasonably
satisfactory to the Administrative Agent), (c) contains no maintenance covenants, other covenants
materially adverse to the Lenders or remedies (other than voting rights) and (d) is convertible
only into common equity of Holdings or securities that would constitute Qualified Preferred Stock.

“Refinanced Term Loans” has the meaning assigned to such term in Section 9.02.

“Refinancing Debt Securities” means any Permitted Debt Securities that are designated
as “Refinancing Debt Securities” in a certificate of a Responsible Officer of the Borrower
delivered to the Administrative Agent on or prior to the date such Permitted Debt Securities are
incurred.

“Refinancing Indebtedness” means (i) any Refinancing Term Loans and (ii) any
Refinancing Debt Securities.

“Refinancing Term Loans” means Incremental Term Loans that are designated by a
Responsible Officer of the Borrower as “Refinancing Term Loans” in a certificate of a Responsible
Officer of the Borrower delivered to the Administrative Agent on or prior to the date of
incurrence.

“Register” has the meaning set forth in Section 9.04(b).

“Reimbursement Approvals” means, with respect to all Government Programs, any and all
certifications, provider numbers, provider agreements, participation agreements, accreditations and
any other similar agreements with or approvals by any Governmental Authority or other Person.

“Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents, trustees and advisors of such
Person and such Person’s Affiliates.

“Release” means any release, spill, emission, leaking, dumping, injection, pouring,
deposit, disposal, discharge, dispersal, leaching or migration into or through the environment or
within, into or from any building, structure, facility or fixture.

“Replacement Term Loans” has the meaning assigned to such term in Section 9.02.

“Required Lenders” means, at any time, Lenders having Revolving Exposures, Tranche B
Term Loans, Loans in respect of Incremental Extensions of Credit, if any, and unused Commitments
representing more than 50% of the aggregate Revolving Exposures, outstanding Tranche B Term Loans,
outstanding Loans in respect of Incremental Extensions of Credit, if any, and unused Commitments at
such time (disregarding any of the foregoing of a Defaulting Lender).

 

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“Required Revolving Lenders” means, at any time, Lenders having Revolving Exposures
and unused Revolving Commitments representing more than 50% of the sum of the aggregate Revolving
Exposures and unused Revolving Commitments at such time (disregarding any of the foregoing of a
Defaulting Lender).

“Requirement of Law” means, with respect to any Person, (i) the charter, articles or
certificate of organization or incorporation and bylaws or other organizational or governing
documents of such Person and (ii) any statute, law, treaty, rule, regulation, order, decree, writ,
injunction or determination of any arbitrator or court or other Governmental Authority, in each
case applicable to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

“Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in Holdings, the Borrower or any
Subsidiary, or any payment thereon (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any Equity Interests in Holdings, the Borrower or any Subsidiary or
any option, warrant or other right to acquire any such Equity Interests in Holdings, the Borrower
or any Subsidiary.

“Revolving Availability Period” means the period from and including the Effective Date
to but excluding the earlier of (a) the Revolving Maturity Date and (b) the date of termination of
the Revolving Commitments.

“Revolving Commitment” means, with respect to each Lender, the commitment, if any, of
such Lender to make Revolving Loans hereunder, expressed as an amount representing the maximum
possible aggregate amount of such Lender’s Revolving Exposure hereunder, as such commitment may be
(a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section 9.04. The aggregate amount
of the Lenders’ Revolving Commitments on the Effective Date is set forth on Schedule 2.01.

“Revolving Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans at such time.

“Revolving Lender” means a Lender with a Revolving Commitment or, if the Revolving
Commitments have terminated or expired, a Lender with Revolving Exposure.

“Revolving Loan” means a Loan made pursuant to clause (b) of Section 2.01.

“Revolving Maturity Date” means June 1, 2016; provided that if on the 90th day
prior to the scheduled final maturity date of the Existing Subordinated Notes, more than $60.0
million in aggregate principal amount of the Existing Subordinated Notes are outstanding (such 90th
day prior to the scheduled final maturity of the Existing Subordinated Notes, the “Revolving
Trigger Date”), in each case, the Revolving Loans outstanding shall be due and payable in full
on, and the Revolving Commitments shall terminate on, and the Revolving Maturity Date shall be, the
Revolving Trigger Date.

“S&P” means Standard & Poor’s Ratings Group, Inc.

“SEC” means the Securities and Exchange Commission or any Governmental Authority
succeeding to any of its principal functions.

 

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“Second Lien Intercreditor Agreement” shall mean an Intercreditor Agreement, in form
reasonably acceptable to the Administrative Agent, by and between the Administrative Agent and the
collateral agent for one or more classes of Permitted Secured Notes that are intended to be
secured by Liens ranking junior to the Liens securing the Obligations providing that, inter alia,
(i) the Liens securing Obligations rank prior to the Liens securing the Permitted Secured Notes,
(ii) all amounts received in connection with any enforcement action with respect to any Collateral
or in connection with any United States or foreign bankruptcy, liquidation or insolvency proceeding
shall first be applied to repay all Obligations (whether or not allowed in any such proceeding)
prior to being applied to the obligations in respect of the Permitted Secured Notes and (iii) until
the repayment of the Obligations in full and termination of commitments hereunder (subject to
customary limitations with respect to contingent obligations and other customary qualifications)
the Administrative Agent shall have the sole right to take enforcement actions with respect to the
Collateral.

“Secured Indebtedness” at any date shall mean the aggregate principal amount of Total
Indebtedness outstanding at such date that consists of Indebtedness that in each case is then
secured by Liens on any property or assets of Borrower or its Subsidiaries.

“Secured Leverage Ratio” shall mean, on any date, the ratio of (a) Secured
Indebtedness (minus up to $175,000,000 of unrestricted cash and Permitted Investments held,
on such date, by the Borrower and the Subsidiary Loan Parties on such date) on such date to (b)
Consolidated EBITDA for the period of four consecutive fiscal quarters of the Borrower ended on
such date (or, if such date is not the last day of a fiscal quarter, ended on the last day of the
fiscal quarter of the Borrower most recently ended prior to such date).

“Secured Parties” means (a) the Lenders, (b) the Collateral Agent, (c) the
Administrative Agent, (d) the Issuing Bank, (e) each counterparty that is a Lender or an Affiliate
of a Lender to any Swap Agreement with a Loan Party the obligations under which constitute
Obligations, (f) each Cash Management Bank and (g) the successors and assigns of each of the
foregoing.

“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder.

“Security Documents” means the Collateral Agreement, the Mortgages and each other
security agreement or other instrument or document executed and delivered pursuant to Section 5.12
or 5.13 to secure any of the Obligations.

“series” means, with respect to any Extended Term Loans, Incremental Term Loans or
Replacement Term Loans, all such Term Loans that have the same maturity date, amortization and
interest rate provisions and that are designated as part of such “series” pursuant to the
applicable Additional Credit Extension Amendment.

“Specified Indebtedness” has the meaning set forth in Section 6.08(b).

“Specified Transactions” means (a) any Permitted Acquisition, (b) any Material
Disposition and (c) any proposed incurrence of Indebtedness in respect of which the Leverage Ratio,
the Secured Leverage Ratio or Holdings Leverage Ratio is by the terms of this Agreement required to
be calculated on a Pro Forma Basis.

“Sponsor” means (A) Welsh, Carson, Anderson & Stowe IX, L.P. and (B) Thoma Cressey
Equity Partners.

“Sponsor Affiliate” means (i) each Affiliate of the Sponsor that is neither an
operating company nor a company controlled by an operating company, (ii) each partner, officer,
director, principal
or member of the Sponsor or any Sponsor Affiliate and (iii) any spouse, parent or lineal
descendant (including by adoption) of any of the foregoing who are natural persons and any trust
for the benefit of such persons.

 

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“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate
of the maximum reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board to which the bank serving as the
Administrative Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve
percentages shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be
deemed to constitute eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available from time to time
to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in any reserve
percentage.

“Subordinated Indebtedness” means Indebtedness of Holdings, the Borrower or any
Subsidiary that is contractually subordinated to the Obligations.

“subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
of which securities or other ownership interests representing more than 50% of the equity or more
than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held.

“Subsidiary” means any subsidiary of the Borrower, other than any Permitted Joint
Venture that is not a Permitted Joint Venture Loan Party.

“Subsidiary Loan Party” means any Domestic Subsidiary (other than (a) any Inactive
Subsidiary for which the Borrower has not satisfied the Collateral and Guarantee Requirement, (b)
any Consolidated Practice and (c) any Insurance Subsidiary).

“Succeeding Holdings” has the meaning set forth in the definition of “Holdings.”

“Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions, provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a
Swap Agreement.

“Swingline Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall
be its Applicable Percentage of the aggregate Swingline Exposure at such time.

“Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of
Swingline Loans hereunder, together with its successors in such capacity.

 

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“Swingline Loan” means a Loan made pursuant to Section 2.04.

“Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

“Term Loans” means the Tranche B Term Loans, the Incremental Term Loans of each
series, the Extended Term Loans of each series, collectively.

“Third Party Payor” means any Government Program and any quasipublic agency, Blue
Cross, Blue Shield and any managed care plans and organizations, including health maintenance
organizations and preferred provider organizations and private commercial insurance companies and
any similar third party arrangements, plans or programs for payment or reimbursement in connection
with health care services, products or supplies.

“Third Party Payor Arrangement” means any arrangement, plan or program for payment or
reimbursement by any Third Party Payor in connection with the provision of healthcare services,
products or supplies.

“Total Indebtedness” means, as of any date, the aggregate principal amount of
Indebtedness of the Borrower and the Subsidiaries outstanding as of such date, in the amount that
would be reflected on a balance sheet prepared as of such date on a consolidated basis in
accordance with GAAP.

“Tranche B Commitment” means, with respect to each Lender, the commitment, if any, of
such Lender to make a Tranche B Term Loan hereunder on the Effective Date, expressed as an amount
representing the maximum principal amount of the Tranche B Term Loan to be made by such Lender
hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b)
reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to
Section 9.04.

“Tranche B Lender” means a Lender with a Tranche B Commitment or an outstanding
Tranche B Term Loan.

“Tranche B Maturity Date” means June 1, 2018; provided that if on the 90th day
prior to the scheduled final maturity date of the Existing Subordinated Notes, more than $60.0
million in aggregate principal amount of the Existing Subordinated Notes are outstanding (such 90th
day prior to the scheduled final maturity of the Existing Subordinated Notes, the “Tranche B
Trigger Date”), in each case, the Tranche B Term Loans outstanding shall be due and payable in
full on, and the Tranche B Maturity Date shall be, the Tranche B Trigger Date.

“Tranche B Term Loan” means a Loan made pursuant to clause (a) of Section 2.01.

“Transaction Costs” has the meaning set forth in the preamble to this Agreement.

“Transactions” means (a) the consummation of the Debt Tender Offer and the repurchase
or redemption of a portion of the Existing Subordinated Notes in an aggregate principal amount
pursuant to this subclause (a) not to exceed $266,500,000, (b) the repayment in full of all
obligations under the Existing Credit Agreement, the termination of all commitments thereunder and
the release of all liens in respect thereof, (c) redemption of all outstanding Holdings Senior
Subordinated Notes, (d) the execution, delivery and performance by each Loan Party of the Loan
Documents to which it is to be a party, the borrowing of Loans, the use of the proceeds thereof and
the issuance of Letters of Credit hereunder and (e) payment of the Transaction Costs.

 

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“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

“wholly owned” means with respect to any Person, a subsidiary of such Person all the
outstanding Equity Interests of which (other than (x) directors’ qualifying shares and (y) shares
issued to foreign nationals to the extent required by applicable law) are owned by such Person
and/or by one or more wholly owned subsidiaries of such Person.

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in ERISA.

“Yield” for any Indebtedness on any date of determination will be determined by the
Administrative Agent utilizing (a) if applicable, any “LIBOR floor” applicable to such Indebtedness
on such date; (b) the interest margin for such Indebtedness on such date; and (c) the issue price
of such Indebtedness (after giving effect to any original issue discount (with original issue
discount being equated to interest based on an assumed four-year life to maturity) or upfront fees
(which shall be deemed to constitute like amounts of original issue discount) paid to the market in
respect of such Indebtedness but excluding customary arranger, underwriting and commitment fees not
paid to the lenders providing such Indebtedness generally).

SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and
Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred
to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to
have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a)
any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented, amended and restated or otherwise modified (subject to any restrictions on
such amendments, supplements, amendment and restatements or modifications set forth herein), (b)
any reference herein to any Person shall be construed to include such Person’s successors and
assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision hereof,
(d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer
to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
“asset” and “property” shall be construed to have the same meaning and effect and to refer to any
and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights.

SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP as in effect from time to time, provided
that if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to
any provision (including any definition) hereof to eliminate the effect of any change occurring
after the date hereof in GAAP or in the application thereof on the operation of such provision (or
if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to
any provision (including any

 

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definition)
hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof,
then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith. In addition, notwithstanding any other provision
contained herein, (i) the definitions set forth in the Loan Documents and any financial
calculations required by the Loan Documents shall be computed to exclude any change to lease
accounting rules from those in effect pursuant to Financial Accounting Standards Board Accounting
Standards Codification 840 (Leases) and other related lease accounting guidance as in effect on the
Effective Date and (ii) all terms of an accounting or financial nature used herein shall be
construed, and all computations of amounts and ratios referred to herein shall be made, without
giving effect to any election under Financial Accounting Standards Board Accounting Standards
Codification 825 (or any other Financial Accounting Standard having a similar result or effect) to
value any Indebtedness or other liabilities of the Parent, the Borrower or any Subsidiary at “fair
value”, as defined therein.

SECTION 1.05. Specified Transactions. Notwithstanding anything to the contrary herein, solely for purposes of determining the
Leverage Ratio, Secured Leverage Ratio and Holdings Leverage Ratio, with respect to any period
during which any Specified Transaction occurs, such ratios shall be calculated with respect to such
period and such Specified Transaction (and all other Specified Transactions that have been
consummated during such period) on a Pro Forma Basis.

ARTICLE II

The Credits

SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each Lender agrees (a) to make a Tranche
B Term Loan to the Borrower on the Effective Date in a principal amount not exceeding its Tranche B
Commitment and (b) to make Revolving Loans to the Borrower from time to time during the Revolving
Availability Period in an aggregate principal amount that will not result in such Lender’s
Revolving Exposure exceeding such Lender’s Revolving Commitment. The Borrower shall designate in
the relevant Borrowing Request whether each Borrowing will be maintained as a Eurodollar Loan or an
ABR Loan and, if such Borrowing is to be a Eurodollar Borrowing, the Interest Period with respect
thereto. Amounts repaid or prepaid in respect of Tranche B Term Loans may not be reborrowed.

SECTION 2.02. Loans and Borrowings.

(a) Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of
Loans of the same Class and Type made by the Lenders ratably in accordance with their respective
Commitments of the applicable Class. The failure of any Lender to make any Loan required to be
made by it shall not relieve any other Lender of its obligations hereunder, provided that
the Commitments of the Lenders are several and no Lender shall be responsible for any other
Lender’s failure to make Loans as required.

(b) Subject to Section 2.14, each Revolving Borrowing and Tranche B Term Loan Borrowing shall
be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance
herewith.

 

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(c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing
shall be in an aggregate amount that is an integral multiple of $500,000 and not less than
$2,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $500,000 and not less than $1,000,000. Borrowings of
more than one Type and Class may be outstanding at the same time. There shall not at any time be
more than a total of 20 Eurodollar Borrowings outstanding. Notwithstanding anything to the
contrary herein, (1) an ABR Revolving Borrowing may be in an aggregate amount that is equal to the
entire unused balance of the aggregate Revolving Commitments and (2) subject to Section 2.04(a), a
Swingline Loan may be in an aggregate amount (i) that is equal to the entire unused balance of the
aggregate Revolving Commitments or (ii) that is required to finance the reimbursement of an LC
Disbursement as contemplated by Section 2.05(e).

(d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled
to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Revolving Maturity Date or the Tranche B Maturity Date, as
applicable.

SECTION 2.03. Requests for Borrowings. To request a Revolving Borrowing or Tranche B Term Loan Borrowing, the Borrower shall
notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar
Borrowing, not later than 12:00 noon, New York City time, three Business Days before the date of
the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00 noon, New York
City time, one Business Day before the date of the proposed Borrowing, provided that any
such notice of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.05(e) may be given not later than 10:00 a.m., New York City time, on the
date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and
shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request signed by the Borrower. Each such telephonic and written Borrowing Request shall
specify the following information in compliance with Section 2.02:

(i) whether the requested Borrowing is to be a Revolving Borrowing or a Tranche B Term
Loan Borrowing;

(ii) the aggregate amount of such Borrowing;

(iii) the date of such Borrowing, which shall be a Business Day;

(iv) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

(v) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of the term “Interest
Period”; and

(vi) the location and number of the Borrower’s account to which funds are to be disbursed,
which shall comply with the requirements of Section 2.06.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be
an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with this Section 2.03,
the Administrative Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

 

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SECTION 2.04. Swingline Loans.

(a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make
Swingline Loans to the Borrower from time to time during the Revolving Availability Period, in an
aggregate principal amount at any time outstanding that will not result in (i) the aggregate
principal amount of outstanding Swingline Loans exceeding $25,000,000 or (ii) the aggregate
Revolving Exposures exceeding the aggregate Revolving Commitments, provided that the
Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding
Swingline Loan. Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Swingline Loans.

(b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such
request by telephone (confirmed by telecopy), not later than 2:00 p.m., New York City time, on the
day of a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the
requested date (which shall be a Business Day) and amount of the requested Swingline Loan. The
Administrative Agent will promptly advise the Swingline Lender of any such notice received from the
Borrower. The Swingline Lender shall make each Swingline Loan available to the Borrower by means
of a credit to the general deposit account of the Borrower maintained with the Swingline Lender
(or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e), by remittance to the Issuing Bank) by 3:00 p.m., New York City time,
on the requested date of such Swingline Loan.

(c) The Swingline Lender may by written notice given to the Administrative Agent not later
than 12:00 noon, New York City time, on any Business Day require the Revolving Lenders to acquire
participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such
notice shall specify the aggregate amount of Swingline Loans in which Revolving Lenders will
participate. Promptly upon receipt of such notice, the Administrative Agent will give notice
thereof to each Revolving Lender, specifying in such notice such Lender’s Applicable Percentage of
such Swingline Loan or Swingline Loans. Each Revolving Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative
Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage of such
Swingline Loan or Swingline Loans. Each Revolving Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Revolving Commitments, and that
each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
Each Revolving Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.06 with respect to Loans
made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment
obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the
Swingline Lender the amounts so received by it from the Revolving Lenders. The Administrative
Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to
this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the
Administrative Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender
from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after
receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be
promptly remitted to the Administrative Agent; any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the Revolving Lenders that shall
have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests
may appear, provided that any such payment so remitted shall be repaid to the Swingline
Lender or to the Administrative Agent, as applicable, if and to the extent such payment is required
to be refunded to the Borrower for any reason. The purchase of participations in a
Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the
payment thereof.

 

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SECTION 2.05. Letters of Credit.

(a) General. Upon satisfaction of the conditions specified in Section 4.01 on the
Effective Date, each Existing Letter of Credit will, automatically and without any action on the
part of any Person, be deemed to be a Letter of Credit issued hereunder for all purposes of this
Agreement and the other Loan Documents. In addition, subject to the terms and conditions set forth
herein, the Borrower may request the issuance of additional Letters of Credit for its own account
(or for the account of any of its subsidiaries so long as the Borrower is a co-applicant), in a
form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from
time to time during the Revolving Availability Period. In the event of any inconsistency between
the terms and conditions of this Agreement and the terms and conditions of any form of letter of
credit application or other agreement submitted by the Borrower to, or entered into by the Borrower
with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement
shall control.

(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication,
if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank (except
that the Issuing Bank in respect of Existing Letters of Credit shall not issue additional Letters
of Credit and shall not be required to renew or extend an Existing Letter of Credit unless agreed
by it) and the Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) of this Section 2.05), the
amount of such Letter of Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If
requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the
Issuing Bank’s standard form in connection with any request for a Letter of Credit. A Letter of
Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal
or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension, the LC Exposure shall not
exceed $75,000,000.

(c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date that is one year after the date of the issuance of such
Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal
or extension) and (ii) the date that is five Business Days prior to the Revolving Maturity Date.

(d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Revolving Lender, and each
Revolving Lender hereby acquires from the Issuing Bank, a participation in any such Letter of
Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn
under any such Letter of Credit. In consideration and in furtherance of the foregoing, each
Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent,
for the account of the Issuing Bank, such Revolving Lender’s Applicable Percentage of each LC
Disbursement made by the Issuing Bank and not reimbursed by the Borrower on the date due as
provided in paragraph (e) of this Section 2.05, or of any
reimbursement payment required to be refunded to the Borrower for any reason. Each Revolving Lender
acknowledges and agrees that its obligation to assume and acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

 

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(e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on (i)
the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been
received by the Borrower prior to such time on such date, then not later than 12:00 noon, New York
City time, on the Business Day that the Borrower receives such notice, if such notice is received
prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Borrower receives such notice, if such notice is not
received prior to such time on the day of receipt; provided that, if such LC Disbursement
is not less than $2,000,000, the Borrower may, subject to the conditions to borrowing set forth
herein, request (and, if the Borrower fails to reimburse such LC Disbursement when due, the
Borrower shall be deemed to have requested) in accordance with Section 2.03 or 2.04 that such LC
Disbursement be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount
and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged
and replaced by the resulting ABR Revolving Borrowing or Swingline Loan (and the time for
reimbursement of such LC Disbursement shall automatically be extended to the Business Day following
such request or deemed request). If the Borrower fails to make such payment when due, the
Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the
payment then due from the Borrower in respect thereof and such Revolving Lender’s Applicable
Percentage thereof. Promptly following receipt of such notice, each Revolving Lender shall pay to
the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in
the same manner as provided in Section 2.06 with respect to Loans made by such Revolving Lender
(and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the
Revolving Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts
so received by it from the Revolving Lenders. Promptly following receipt by the Administrative
Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall
distribute such payment to the Issuing Bank or, to the extent that Revolving Lenders have made
payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Revolving Lenders
and the Issuing Bank as their interests may appear. Any payment made by a Revolving Lender
pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the
funding of ABR Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a
Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.

(f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as
provided in paragraph (e) of this Section 2.05 shall be absolute, unconditional and irrevocable,
and shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section 2.05, constitute a legal or equitable discharge of, or provide a right of setoff
against, the Borrower’s

 

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obligations hereunder. Neither the Administrative Agent, the Lenders nor
the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or
failure to make any payment thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in transmission or
delivery of any draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the Issuing Bank,
provided that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to consequential or
punitive damages, claims in respect of which are hereby waived by the Borrower to the extent
permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure
to exercise care when determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of
gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a
court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each
such determination. In furtherance of the foregoing and without limiting the generality thereof,
the parties agree that, with respect to documents presented that appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance with the terms of
such Letter of Credit.

(g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by
telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has made
or will make an LC Disbursement thereunder, provided that any failure to give or delay in
giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank
and the Revolving Lenders with respect to any such LC Disbursement in accordance with paragraph (e)
of this Section 2.05.

(h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement
is made, the unpaid amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans, provided that,
if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this
Section 2.05, then Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall
be for the account of the Issuing Bank, except that interest accrued on and after the date of
payment by any Revolving Lender pursuant to paragraph (e) of this Section 2.05 to reimburse the
Issuing Bank shall be for the account of such Revolving Lender to the extent of such payment.

(i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the Borrower, the Administrative Agent and the successor Issuing Bank. The
Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank. At the
time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued
for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the
effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights
and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be
issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to
such successor or to any previous Issuing Bank, or to such successor and all previous Issuing
Banks, as the context shall require. After the replacement of the Issuing Bank hereunder, the
replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of the Issuing Bank under this Agreement with
respect to Letters of Credit issued by it prior to such replacement, but shall not be required to
issue additional Letters of Credit.

 

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(j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that the Borrower receives notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Loans has been accelerated, Revolving Lenders with LC Exposure
representing greater than 50% of the aggregate LC Exposure) demanding the deposit of cash
collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Collateral
Agent, in the name of the Collateral Agent and for the benefit of the Lenders, an amount in cash
equal to 105% the LC Exposure as of such date plus any accrued and unpaid interest thereon,
provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without demand or other
notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower
described in paragraph (h) or (i) of Section 7.01. The Borrower also shall deposit cash collateral
pursuant to this paragraph as and to the extent required by Section 2.11(b) and Section 2.22. Each
such deposit shall be held by the Collateral Agent as collateral for the payment and performance of
the obligations of the Borrower under this Agreement. The Collateral Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such account. Other than
any interest earned on the investment of such deposits, which investments shall be made at the
option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such
deposits shall not bear interest. Interest or profits, if any, on such investments shall
accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to
reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the
extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the
Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated
(but subject to the consent of Revolving Lenders with LC Exposure representing greater than 50% of
the aggregate LC Exposure), be applied to satisfy other obligations of the Borrower under this
Agreement. If the Borrower is required to provide an amount of cash collateral hereunder as a
result of the occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default
have been cured or waived.

(k) Additional Issuing Banks. The Borrower may at any time, and from time to time,
designate one or more additional Lenders to act as an issuing bank under this Agreement with the
consent of the Administrative Agent (which consent shall not be unreasonably withheld) and such
Lender. Any Lender designated as an issuing bank pursuant to this Section 2.05(k) shall be deemed
to be and shall have all the rights and obligations of an “Issuing Bank” hereunder.

SECTION 2.06. Funding of Borrowings.

(a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof
by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account
of the Administrative Agent most recently designated by it for such purpose by notice to the
Lenders, provided that Swingline Loans shall be made as provided in Section 2.04. The
Administrative Agent will make such Loans available to the Borrower by promptly crediting the
amounts so received in like funds, to an account of the Borrower maintained with the Administrative
Agent in New York City and designated by the Borrower in the applicable Borrowing Request,
provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement
as provided in Section 2.05(e) shall be remitted by the Administrative Agent to the Issuing Bank.

 

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(b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed Borrowing that such Lender will not make available to the Administrative Agent such
Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made
such share available on such date in accordance with paragraph (a) of this Section 2.06 and may, in
reliance upon such assumption and in its sole discretion, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount
with interest thereon, for each day from and including the date such amount is made available to
the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case
of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in
the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such
amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included
in such Borrowing.

SECTION 2.07. Interest Elections.

(a) Each Revolving Borrowing and Tranche B Term Loan Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall
have an initial Interest Period as specified in such Borrowing Request or as designated by Section
2.03. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to
continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods
therefor, all as provided in this Section 2.07. The Borrower may elect different options with
respect to different portions of the affected Borrowing, in which case each such portion shall be
allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans
comprising each such portion shall be considered a separate Borrowing. This Section 2.07 shall not
apply to Swingline Borrowings, which may not be converted or continued.

(b) To make an election pursuant to this Section 2.07, the Borrower shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing Request would be
required under Section 2.03 if the Borrower were requesting a Revolving Borrowing of the Type
resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election Request signed by
the Borrower. 

(c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

(i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

(ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

 

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If any such Interest Election Request requests a Eurodollar Borrowing but does not
specify an Interest Period, then the Borrower shall be deemed to have selected an Interest
Period of one month’s duration.

(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

(e) If the Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing.

(f) Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing, (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar
Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

SECTION 2.08. Termination and Reduction of Commitments.

(a) Unless previously terminated, (i) the Tranche B Commitments shall terminate at 5:00 p.m.,
New York City time, on the Effective Date and (ii) the Revolving Commitments shall terminate on the
Revolving Maturity Date.

(b) The Borrower may at any time terminate, or from time to time reduce, the Commitments of
any Class, provided that (i) each reduction of the Commitments of any Class shall be in an amount
that is an integral multiple of $500,000 and not less than $5,000,000 and (ii) the Borrower shall
not terminate or reduce the Revolving Commitments if, after giving effect to any concurrent
prepayment of the Revolving Loans in accordance with Section 2.11, the aggregate Revolving
Exposures would exceed the aggregate Revolving Commitments.

(c) The Borrower shall notify the Administrative Agent of any election to terminate or reduce
the Commitments under paragraph (b) of this Section 2.08 at least three Business Days prior to the
effective date of such termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section
2.08 shall be irrevocable, provided that a notice of termination of the Revolving
Commitments delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower
(by notice to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination or reduction of the Commitments of any Class shall be
permanent. Each reduction of the Commitments of any Class shall be made ratably among the Lenders
in accordance with their respective Commitments of such Class.

SECTION 2.09. Repayment of Loans; Evidence of Debt.

(a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for
the account of each Lender the then unpaid principal amount of each Revolving Loan of such Lender
on the Revolving Maturity Date, (ii) to the Administrative Agent for the account of each Lender the
then unpaid principal amount of each Tranche B Term Loan of such Lender as provided in Section
2.10, and (iii) the then unpaid principal amount of each Swingline Loan on the earlier of the
Revolving Maturity Date and the first date after such Swingline Loan is made that is the 15th or
last day of a calendar month and is at least two Business Days after such Swingline Loan is made;
provided that on each date that a Revolving Borrowing is made, the Borrower shall repay all
Swingline Loans then outstanding.

 

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(b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

(c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

(d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section 2.09 shall be prima facie evidence of the existence and amounts of the
obligations recorded therein, provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation
of the Borrower to repay the Loans in accordance with the terms of this Agreement.

(e) Any Lender may request that Loans of any Class made by it be evidenced by a promissory
note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory
note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form
payable to the order of the payee named therein (or, if such promissory note is a registered note,
to such payee and its registered assigns).

SECTION 2.10. Amortization of Tranche B Term Loans.

(a) Subject to adjustment pursuant to paragraph (c) of this Section 2.10, the Borrower shall
repay Tranche B Term Loan Borrowings on each date set forth below in the aggregate principal amount
set forth opposite such date (as adjusted from time to time pursuant to Section 2.10(c)):

	 	 	 	 	 
	Date	 	Amount (Percent of Principal)	 
	September 30, 2011
	 	$	2,125,000 (0.25	%)
	December 31, 2011
	 	$	2,125,000 (0.25	%)
	March 31, 2012
	 	$	2,125,000 (0.25	%)
	June 30, 2012
	 	$	2,125,000 (0.25	%)
	September 30, 2012
	 	$	2,125,000 (0.25	%)
	December 31, 2012
	 	$	2,125,000 (0.25	%)
	March 31, 2013
	 	$	2,125,000 (0.25	%)

 

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	Date	 	Amount (Percent of Principal)	 
	June 30, 2013
	 	$	2,125,000 (0.25	%)
	September 30, 2013
	 	$	2,125,000 (0.25	%)
	December 31, 2013
	 	$	2,125,000 (0.25	%)
	March 31, 2014
	 	$	2,125,000 (0.25	%)
	June 30, 2014
	 	$	2,125,000 (0.25	%)
	September 30, 2014
	 	$	2,125,000 (0.25	%)
	December 31, 2014
	 	$	2,125,000 (0.25	%)
	March 31, 2015
	 	$	2,125,000 (0.25	%)
	June 30, 2015
	 	$	2,125,000 (0.25	%)
	September 30, 2015
	 	$	2,125,000 (0.25	%)
	December 31, 2015
	 	$	2,125,000 (0.25	%)
	March 31, 2016
	 	$	2,125,000 (0.25	%)
	June 30, 2016
	 	$	2,125,000 (0.25	%)
	September 30, 2016
	 	$	2,125,000 (0.25	%)
	December 31, 2016
	 	$	2,125,000 (0.25	%)
	March 31, 2017
	 	$	2,125,000 (0.25	%)
	June 30, 2017
	 	$	2,125,000 (0.25	%)
	September 30, 2017
	 	$	2,125,000 (0.25	%)
	December 31, 2017
	 	$	2,125,000 (0.25	%)
	March 31, 2018
	 	$	2,125,000 (0.25	%)
	Tranche B Maturity Date
	 	$	792,625,000 (93.25	%)

(b) To the extent not previously paid, all Tranche B Term Loans shall be due and payable on
the Tranche B Maturity Date.

(c) Any prepayment of a Tranche B Term Loan Borrowing pursuant to clause (c) or (d) of Section
2.11 shall be applied (i) first, to reduce, in the direct order of maturity, the scheduled
repayments of the Tranche B Term Loan Borrowings to be made pursuant to this Section 2.10 on the
four consecutive scheduled payment dates next following the date of such prepayment unless and
until each such scheduled repayment has been eliminated as a result of reductions hereunder; and
(ii) second, to reduce ratably the remaining scheduled repayments of the Tranche B Term
Loan Borrowings. Any prepayment of a Tranche B Term Loan Borrowing pursuant to Section 2.11(a)
shall be applied to reduce scheduled repayment amounts of the Tranche B Term Loans as directed by
the Borrower.

SECTION 2.11. Prepayment of Loans.

(a) The Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to the requirements of this Section 2.11. Any such
prepayment (other than a prepayment of a Revolving Borrowing or a Swingline Borrowing) made when
any Term Loan is outstanding shall be applied entirely to Term Loan Borrowings. Until the
Revolving Maturity Date, any prepayment of a Revolving Borrowing the Borrower may apply such
prepayment to Revolving Borrowings only.

(b) In the event and on such occasion that the aggregate Revolving Exposures exceed the
aggregate Revolving Commitments, the Borrower shall prepay Revolving Borrowings or Swingline
Borrowings (or, if no such Borrowings are outstanding, deposit cash collateral in an account with
the Collateral Agent pursuant to Section 2.05(j)) in an aggregate amount equal to such excess).

 

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(c) In the event and on each occasion that any Net Proceeds are received by or on behalf of
Holdings, the Borrower or any Subsidiary in respect of any Prepayment Event, the Borrower shall,
promptly after such Net Proceeds are received by Holdings, the Borrower or such Subsidiary (and in
any event not later than the fifth Business Day after such Net Proceeds are received), prepay Term
Loan Borrowings in an amount equal to 100% of such Net Proceeds; provided that to the
extent required by the terms of any Permitted Secured Notes that are secured by Liens subject to
the First Lien Intercreditor Agreement, the Borrower may, in lieu of prepaying Term Loans with such
portion of the Net Proceeds of any prepayment event described in clause (a) or clause (b) of the
definition of “Prepayment Event”, apply a portion of such Net Proceeds (based on the respective
principal amounts at such time of (A) such Permitted Secured Notes that are secured by Liens
subject to the First Lien Intercreditor Agreement and (B) the Term Loans) to repurchase or redeem
Permitted Secured Notes that are secured by Liens subject to the First Lien Intercreditor
Agreement, provided further that in the case of any event described in clause (a)
or (b) of the definition of the term “Prepayment Event,” if the Borrower shall deliver to the
Administrative Agent a certificate of a Financial Officer to the effect that the Borrower and the
Subsidiaries intend to apply the Net Proceeds from such event (or a portion thereof specified in
such certificate), within 360 days after receipt of such Net Proceeds, to acquire or replace real
property, equipment or other tangible assets (excluding inventory) to be used in the business of
the Borrower and the Subsidiaries, and certifying that no Default has occurred and is continuing,
then no prepayment shall be required pursuant to this paragraph in respect of the Net Proceeds
specified in such certificate, except to the extent of any such Net Proceeds therefrom that have
not been so applied or contractually committed in writing by the end of such 360-day period (and,
if so contractually committed in writing but not applied prior to the end of such 360-day period,
applied within 90 days of the end of such period), promptly after which time a prepayment shall be
required in an amount equal to such Net Proceeds that have not been so applied.

(d) Following the end of each fiscal year of the Borrower, commencing with the fiscal year
ending December 31, 2011, the Borrower shall prepay Term Loan Borrowings in an amount equal to:

(x) the excess of (A) 50% of Excess Cash Flow over (B) the amount of prepayments of
Term Loans under Section 2.11(a) during such fiscal year for any fiscal year for which the
Leverage Ratio at the end of such fiscal year is greater than 3.75 to 1.00,

(y) the excess of (A) 25% of Excess Cash Flow over (B) the amount of prepayments of
Term Loans under Section 2.11(a) during such fiscal year for any fiscal year for which the
Leverage Ratio at the end of such fiscal year is less than or equal to 3.75 to 1.00 and
greater than 3.25 to 1.00, and

(z) none of Excess Cash Flow for any fiscal year for which the Leverage Ratio at the
end of such fiscal year is less than or equal to 3.25 to 1.00.

Each prepayment pursuant to this paragraph shall be made within five Business Days of the date
on which financial statements are delivered pursuant to Section 5.01 with respect to the fiscal
year for which Excess Cash Flow is being calculated (and in any event within 95 days after the end
of such fiscal year).

(e) Prior to any optional or mandatory prepayment of Borrowings hereunder, the Borrower shall
determine in accordance with Section 2.10(c) and clauses (a), (c) and (d) of this Section 2.11 the
Borrowing or Borrowings to be prepaid and shall specify such determination in the notice of such
prepayment pursuant to paragraph (f) of this Section 2.11.

 

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(f) The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a
Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any prepayment
hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 12:00 noon, New
York City time, three Business Days before the date of prepayment, (ii) in the case of prepayment
of an ABR Borrowing, not later than 12:00 noon, New York City time, one Business Day before the
date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 2:00
p.m., New York City time, on the date of prepayment. Each such notice shall be irrevocable and
shall specify the prepayment date, the principal amount of each Borrowing or portion thereof to be
prepaid and, in the case of a mandatory prepayment, a reasonably detailed calculation of the amount
of such prepayment, provided that, if a notice of optional prepayment is given in
connection with a conditional notice of termination of the Revolving Commitments as contemplated by
Section 2.08, then such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.08. Promptly following receipt of any such notice (other than
a notice relating solely to Swingline Loans), the Administrative Agent shall advise the Lenders of
the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02,
except as necessary to apply fully the required amount of a mandatory prepayment. Each prepayment
of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.
Prepayments shall be accompanied by accrued interest to the extent required by Section 2.13 but
shall in no event include premium or penalty.

SECTION 2.12. Fees.

(a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a
commitment fee, which shall accrue at the Applicable Rate on the average daily unused amount of
each Revolving Commitment of such Lender during the period from and including the Effective Date to
but excluding the date on which the aggregate Revolving Commitments terminate. The Borrower agrees
to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall
accrue at the Applicable Rate on the average daily unused amount of each Revolving Commitment of
such Lender during the period from and to but excluding the date on which the aggregate Revolving
Commitments terminate. Accrued commitment fees shall be payable in arrears in respect of the
Revolving Commitments on the last Business Day of March, June, September and December of each year
and on the date on which the Revolving Commitments terminate. All commitment fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). For purposes of computing commitment
fees with respect to Revolving Commitments, a Revolving Commitment of a Lender shall be deemed to
be used to the extent of the outstanding Revolving Loans. For purposes of computing commitment
fees with respect to Revolving Commitments, a Revolving Commitment of a Lender shall be deemed to
be used to the extent of the outstanding Revolving Loans and LC Exposure of such Lender (and the
Swingline Exposure of such Lender shall be disregarded for such purpose).

(b) The Borrower agrees to pay (i) to the Administrative Agent for the account of each
Revolving Lender a participation fee with respect to its participations in Letters of Credit, which
shall accrue at the same Applicable Rate used to determine the interest rate applicable to
Eurodollar Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period from and including
the date of issuance of any Letter of Credit to but excluding the later of the date on which such
Lender’s Revolving Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at a rate equal to 0.125%
per annum on the average daily amount of the LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and including the Effective
Date to but excluding the later of the date of
termination of the Revolving Commitments and the date on which there ceases to be any LC
Exposure, as well as the Issuing Bank’s standard fees with respect to the issuance, amendment,
renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation
fees and fronting fees shall be payable on the last Business Day of March, June, September and
December of each year, commencing on the first such date to occur after the Effective Date,
provided that all such fees shall be payable on the date on which the Revolving Commitments
terminate and any such fees accruing after the date on which the Revolving Commitments terminate
shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this paragraph
shall be payable within 10 days after demand. All participation fees and fronting fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

 

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(c) All prepayments of the Tranche B Term Loans effected on or prior to the second anniversary
of the Effective Date with the proceeds of a substantially concurrent issuance or incurrence of new
term loans (including with the proceeds of Refinancing Term Loans or Replacement Term Loans and
excluding a refinancing of all the facilities outstanding under this Agreement in connection with
another transaction not permitted by this Agreement (as determined prior to giving effect to any
amendment or waiver of this Agreement being adopted in connection with such transaction)), shall be
accompanied by a prepayment fee equal to 1.00% of the aggregate principal amount of such
prepayments if the Yield applicable to such new term loans is less than the Yield applicable to the
Tranche B Term Loans on the Effective Date.

(d) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable
in the amounts and at the times separately agreed upon between the Borrower and the Administrative
Agent.

(e) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of commitment fees and participation fees, to the Lenders entitled
thereto. Fees paid shall not be refundable under any circumstances.

SECTION 2.13. Interest.

(a) The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear
interest at the Alternate Base Rate plus the Applicable Rate.

(b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

(c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2%
plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of
this Section 2.13 or (ii) in the case of any other amount, 2% plus the rate applicable to
ABR Revolving Loans as provided in paragraph (a) of this Section 2.13.

(d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and, in the case of Revolving Loans, upon termination of the Revolving Commitments,
provided that (i) interest accrued pursuant to paragraph (c) of this Section 2.13 shall be
payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of an ABR Revolving Loan prior to the end of the Revolving Availability Period), accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment
and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of
such conversion.

(e) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate or Federal Funds Effective Rate shall be computed on the basis of a year of
365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of
days elapsed (including the first day but excluding the last day). The applicable Alternate Base
Rate or Adjusted LIBO Rate shall be determined by the Administrative Agent, and such determination
shall be conclusive absent manifest error.

 

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SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

(a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBO Rate for such Interest Period; or

(b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate for such Interest Period will not adequately and fairly reflect the cost to such
Lenders of making or maintaining their Loans included in such Borrowing for such Interest
Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any
Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.

SECTION 2.15. Increased Costs.

(a) If any Change in Law shall:

(i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the
Issuing Bank; or

(ii) impose on any Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of
Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrower will
pay to such Lender or the Issuing Bank, as applicable, such additional amount or amounts as will
compensate such Lender or the Issuing Bank, as applicable, for such additional costs incurred or
reduction suffered.

(b) If any Lender or the Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or the
Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below
that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or the
Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company
with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or
the Issuing Bank, as applicable, such additional amount or amounts as will compensate such Lender
or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction
suffered.

 

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(c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company, as applicable, as
specified in paragraph (a) or (b) of this Section 2.15 shall be delivered to the Borrower and shall
be conclusive absent manifest error. The Borrower shall pay such Lender or the Issuing Bank, as
applicable, the amount shown as due on any such certificate within 10 days after receipt thereof.

(d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section 2.15 shall not constitute a waiver of such Lender’s or the Issuing Bank’s
right to demand such compensation, provided that the Borrower shall not be required to
compensate a Lender or the Issuing Bank pursuant to this Section 2.15 for any increased costs or
reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as
applicable, notifies the Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor,
provided, further, that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the 270-day period referred to above shall be extended to
include the period of retroactive effect thereof.

SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the
last day of an Interest Period applicable thereto (including as a result of an Event of Default),
(b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period
applicable thereto, (c) the failure to borrow, convert, continue or prepay any Revolving Loan or
Tranche B Term Loan on the date specified in any notice delivered pursuant hereto (regardless of
whether such notice may be revoked under Section 2.11(f) and is revoked in accordance therewith),
or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any
such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable
to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be
deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount
of interest that would have accrued on the principal amount of such Loan had such event not
occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan (excluding any
“floor” applicable pursuant to the definition of Adjusted LIBO Rate), for the period from the date
of such event to the last day of the then current Interest Period therefor (or, in the case of a
failure to borrow, convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest that would accrue on such principal amount for such
period at the interest rate that such Lender would bid were it to bid, at the commencement of such
period, for dollar deposits of a comparable amount and period from other banks in the eurodollar
market. A certificate of any Lender setting forth any amount or amounts that such Lender is
entitled to receive pursuant to this Section 2.16 shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof. Notwithstanding the foregoing, no
additional
amounts shall be due and payable pursuant to this Section 2.16 to the extent that on the
relevant due date the Borrower deposits in a Prepayment Account an amount equal to any payment of
Eurodollar Loans otherwise required to be made on a date that is not the last day of the applicable
Interest Period; provided that on the last day of the applicable Interest Period, the
Administrative Agent shall be authorized, without any further action by or notice to or from the
Borrower or any other Loan Party, to apply such amount to the prepayment of such Eurodollar Loans.
For purposes of this Agreement, the term “Prepayment Account” shall mean a non-interest bearing
account established by the Borrower with the Administrative Agent and over which the Administrative
Agent shall have exclusive dominion and control, including the right of withdrawal for application
in accordance with this Section 2.16.

 

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SECTION 2.17. Taxes.

(a) Any and all payments by or on account of any obligation of the Borrower hereunder or under
any other Loan Document shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes, provided that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.17) the Administrative Agent, Lender or Issuing Bank
(as applicable) receives an amount equal to the sum it would have received had no such deductions
been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full
amount deducted to the relevant Governmental Authority in accordance with applicable law.

(b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

(c) The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within 30 days after written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as applicable, on or with
respect to any payment by or on account of any obligation of the Borrower hereunder or under any
other Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section 2.17) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other
Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the Borrower by a Lender or
the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or the
Issuing Bank, shall be conclusive absent manifest error.

(d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, if any, a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Administrative Agent.

(e) (i) Any Foreign Lender that is entitled to an exemption from or reduction of withholding
tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), on or prior to the Effective Date in the case
of each Foreign Lender that is a signatory hereto, and on the date of assignment pursuant to which
it becomes a Lender in the case of each other Lender and from time to time thereafter as reasonably
requested by either of the Borrower or the Administrative Agent, such properly completed and
executed documentation prescribed by applicable law or reasonably requested by the Borrower
(including any documentation demonstrating
that such Lender or any Agent has complied with its obligations under FATCA) as will permit
such payments to be made without withholding or at a reduced rate, provided that such
Foreign Lender has received written notice from the Borrower advising it of the availability of
such exemption or reduction and supplying all applicable documentation.

 

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(ii) Without limiting the generality of the foregoing:

(A) each Lender that is a “United States person” within the meaning of Section
7701(a)(30) of the Code shall deliver to the requesting party two duly completed and
executed original copies of Internal Revenue Service Form W-9;

(B) each Foreign Lender shall deliver to the Borrower and the Administrative Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on
which such Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon request of the Borrower or the Administrative Agent, but only if such
Foreign Lender is legally entitled to do so), whichever of the following is applicable:

(i) duly completed and executed original copies of Internal Revenue Service Form W-8BEN
claiming eligibility for benefits of an income tax treaty to which the United States is a
party;

(ii) duly completed and executed original copies of Internal Revenue Service Form
W-8ECI;

(iii) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under Section 881(c) of the Code, (x) a certificate to the effect that
such Foreign Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of the Borrower within the meaning of Section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in Section
881(c)(3)(C) of the Code and (y) duly completed and executed original copies of Internal
Revenue Service Form W-8BEN; or

(iv) any other form prescribed by applicable law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together with such
supplementary documentation as may be prescribed by applicable law to permit the Borrower to
determine the withholding or deduction required to be made.

(f) Each Lender shall promptly notify the Borrower (or, in the case of a Participant, the
Lender granting the participation only), in writing, of any change in circumstances that, to the
knowledge such Lender, would modify or render invalid any claimed exemption or reduction.

(g) If the Administrative Agent or a Lender determines, in its sole discretion, that it has
received a refund (whether in cash or by offset against taxes otherwise due) of any Indemnified
Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which
the Borrower has paid additional amounts pursuant to this Section 2.17, it shall pay over such
refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts
paid, by the Borrower under this Section 2.17 with respect to the Indemnified Taxes or Other Taxes
giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such
Lender and without interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund), provided that the Borrower, upon the request of the
Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower
(plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority. This Section
2.17 shall not be construed to require the Administrative Agent or any Lender to make available its
tax returns (or any other information relating to its taxes that it deems confidential) to the
Borrower or any other Person.

 

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SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Setoffs.

(a) The Borrower shall make each payment required to be made by it hereunder or under any
other Loan Document (whether of principal, interest, fees or reimbursement of LC Disbursements, or
of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) at or prior to the time
expressly required hereunder or under such other Loan Document for such payment (or, if no such
time is expressly required, prior to 3:00 p.m., New York City time), on the date when due, in
immediately available funds, without setoff or counterclaim. Any amounts received after such time
on any date may, in the discretion of the Administrative Agent, be deemed to have been received on
the next succeeding Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 1111 Fannin Street, 10th Floor,
Houston, Texas 77002, except payments to be made directly to the Issuing Bank or Swingline Lender
as expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and
9.03 shall be made directly to the Persons entitled thereto and payments pursuant to other Loan
Documents shall be made to the Persons specified therein. The Administrative Agent shall
distribute any such payments received by it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment under any Loan Document shall be due
on a day that is not a Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable
for the period of such extension. All payments under each Loan Document shall be made in dollars.

(b) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal and unreimbursed LC Disbursements then due to such parties.

(c) If any Lender shall, by exercising any right of setoff or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans, Tranche B
Term Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender
receiving payment of a greater proportion of the aggregate amount of its Revolving Loans, Tranche B
Term Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon
than the proportion received by any other Lender, then the Lender receiving such greater proportion
shall purchase (for cash at face value) participations in the Revolving Loans, Tranche B Term Loans
and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary
so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with
the aggregate amount of principal of and accrued interest on their respective Revolving Loans,
Tranche B Term Loans and participations in LC Disbursements and Swingline Loans, provided
that (i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by the Borrower pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations in LC Disbursements
to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing
and agrees, to the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower
rights of setoff and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of the Borrower in the amount of such participation.

 

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(d) Unless the Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of the Lenders or the
Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption and in its sole discretion, distribute to the Lenders or the Issuing
Bank, as applicable, the amount due. In such event, if the Borrower has not in fact made such
payment, then each of the Lenders or the Issuing Bank, as applicable, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing
Bank with interest thereon, for each day from and including the date such amount is distributed to
it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal
Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

(e) If any Tranche B Lender or Revolving Lender shall fail to make any payment required to be
made by it pursuant to Section 2.06(a), 2.18(d) or 9.03(c), then the Administrative Agent may, in
its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy such Lender’s
obligations under such Sections until all such unsatisfied obligations are fully paid. If any
Revolving Lender shall fail to make any payment required to be made by it pursuant to Section
2.04(c), 2.05(d) or (e), 2.06(a), 2.18(d) or 9.03(c), then the Administrative Agent may, in its
discretion and notwithstanding any contrary provision hereof, (i) apply any amounts thereafter
received by the Administrative Agent for the account of such Revolving Lender and for the benefit
of the Administrative Agent, the Swingline Lender or the Issuing Bank to satisfy such Revolving
Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid,
and/or (ii) hold any such amounts in a segregated account as cash collateral for, and application
to, any future funding obligations of such Revolving Lender under such Sections; in the case of
each of (i) and (ii) above, in any order as determined by the Administrative Agent in its
discretion.

SECTION 2.19. Mitigation Obligations; Replacement of Lenders.

(a) If any Lender requests compensation under Section 2.15, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a different
lending office for funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender,
such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section
2.15 or 2.17, as applicable, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

(b) If any Lender requests compensation under Section 2.15, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, or if any Lender defaults in its obligation to fund Loans hereunder, then
the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in Section 9.04), all its interests, rights and obligations under
this Agreement to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment), provided that (i) the Borrower shall have received the prior
written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii)
such Lender shall have received payment of an amount equal to the outstanding principal of its
Loans and participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under
Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result
in a material reduction in such compensation or payments. A Lender shall not be required to make
any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease
to apply.

 

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SECTION 2.20. Incremental Extensions of Credit. At any time during the Revolving Availability Period, subject to the terms and conditions
set forth herein, the Borrower may at any time and from time to time, by notice to the
Administrative Agent (whereupon the Administrative Agent shall promptly deliver a copy to each of
the Lenders), request to add additional term loans (the “Incremental Term Loans”) or
additional Revolving Commitments or Extended Revolving Commitments (the “Incremental Revolver
Commitments” and together with the Incremental Term Loans, the “Incremental Extensions of
Credit”) in minimum principal amounts of $25,000,000; provided that such amount may be
less than $25,000,000 if such amount represents all the remaining availability under the aggregate
principal amount set forth below; provided, further, that (x) immediately prior to
and after giving effect to any Additional Credit Extension Amendment (as defined below), no Default
has occurred or is continuing or shall result therefrom, (y) the Borrower shall be in compliance on
a Pro Forma Basis with the Financial Performance Covenant recomputed as of the last day of the most
recently ended fiscal quarter of the Borrower for which financial statements are available and (z)
on a Pro Forma Basis after giving effect to any such Incremental Extension of Credit the Secured
Leverage Ratio of Borrower would be less than or equal to 3.50 to 1.00 as of the last day of the
most recent fiscal quarter of the Borrower for which financial statements have been delivered
pursuant to Section 5.01(a) or (b). The Incremental Extensions of Credit:

(a) shall be in an aggregate principal amount not exceeding $500,000,000 (exclusive of
any Refinancing Term Loans),

(b) shall rank pari passu in right of payment and right of security in
respect of the Collateral with the Revolving Loans and Tranche B Term Loans, and

(c) (i) that are Incremental Term Loans, shall have the same terms other than
amortization, pricing or maturity date, as the Tranche B Term Loans existing immediately
prior to the effectiveness of such Additional Credit Extension Amendment (the “Existing
Term Loans”) and (ii) that are Incremental Revolver Commitments shall have the same
terms as the Revolving Commitments or Extended Revolving Commitments existing immediately
prior to the effectiveness of such Additional Credit Extension Amendment; provided
that (i) if the Yield relating to any Incremental Term Loans (other than Refinancing Term
Loans) exceeds the Yield relating to the Tranche B Term Loans, by more than 0.50%, the
Applicable Rate relating to the Tranche B Term Loans shall be increased to the extent
necessary so that the Yield of the Tranche B Term Loans is equal to the Yield of such
Incremental Term Loans minus 0.50%, (ii) the Incremental Term Loans shall not have a
final maturity date earlier than the Tranche B Maturity Date, (iii) the Incremental Term
Loans shall not have a weighted average life that is shorter than that of the then-remaining
weighted average life of the Tranche B Term Loans and (iv) the Incremental Revolving
Commitments shall not require any mandatory commitment reductions, mandatory prepayments or scheduled payments other than those applicable to the Revolving Loans and
Revolving Commitments. The Borrower shall by written notice offer each Lender providing
Existing Extensions of Credit (an “Existing Lender”) the opportunity for no less
than ten (10) Business Days after delivery of the notice to commit to provide its pro rata
portion (based on the amount of its outstanding Tranche B Term Loans or

 

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outstanding
Revolving Loans and unused Revolving Commitments,  as applicable, on the date of such notice)
of any requested Incremental Extension of Credit, provided that no Existing Lender
shall be obligated to provide any Incremental Extension of Credit unless it so agrees. Any
additional bank, financial institution, Existing Lender or other Person that elects to
extend Incremental Extensions of Credit shall be reasonably satisfactory to the Borrower and
the Administrative Agent and, in the case of Incremental Extensions of Credit in the form of
Incremental Revolving Commitments, the Issuing Bank (any such bank, financial institution,
Existing Lender or other Person being called an “Additional Lender”) and shall
become a Lender under this Agreement pursuant to an Additional Credit Extension Amendment
giving effect to the modifications permitted by this Section 2.20 and, as appropriate, the
other Loan Documents and executed by the Borrower, each Additional Lender and the
Administrative Agent. Commitments in respect of Incremental Extensions of Credit shall be
Commitments under this Agreement. An Additional Credit Extension Amendment may, without the
consent of any other Lenders, effect such amendments to this Agreement and the other Loan
Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to
effect the provisions of this Section 2.20 (including voting provisions applicable to the
Additional Lenders comparable to the provisions of clause (B) of the second proviso of
Section 9.02(b)). The effectiveness of any Additional Credit Extension Amendment shall be
subject to the satisfaction on the date thereof (each, an “Incremental Facility Closing
Date”) of each of the conditions set forth in Section 4.02 (it being understood that all
references to “the date of such Borrowing” in such Section 4.02 shall be deemed to refer to
the Incremental Facility Closing Date). The proceeds of the Incremental Extensions of
Credit shall be used for working capital and general corporate purposes (including Permitted
Acquisitions). The provisions of this Section 2.20 shall override any provision of Section
9.02 to the contrary.

SECTION 2.21. Extended Term Loans and Extended Revolving Commitments.

(a) The Borrower may at any time and from time to time request that all or a portion of the
Term Loans of any Class (an “Existing Term Loan Class”) be converted to extend the
scheduled maturity date(s) of any payment of principal with respect to all or a portion of any
principal amount of such Term Loans (any such Term Loans which have been so converted,
“Extended Term Loans”) and to provide for other terms consistent with this Section 2.21.
In order to establish any Extended Term Loans, the Borrower shall provide a notice to the
Administrative Agent (who shall provide a copy of such notice to each of the Lenders under the
Existing Term Loan Class) (an “Extension Request”) setting forth the proposed terms of the
Extended Term Loans to be established, which shall be consistent with the Term Loans under the
Existing Term Loan Class from which such Extended Term Loans are to be converted except that:

(i) all or any of the scheduled amortization payments of principal of the Extended Term
Loans may be delayed to later dates than the scheduled amortization payments of principal of
the Term Loans of such Existing Term Loan Class to the extent provided in the applicable
Additional Credit Extension Amendment;

(ii) the interest margins with respect to the Extended Term Loans may be different than
the Applicable Rate for the Term Loans of such Existing Term Loan Class and upfront fees
may be paid to the Extending Term Lenders to the extent provided in the applicable
Additional Credit Extension Amendment; and

(iii) the Additional Credit Extension Amendment may provide for other covenants and
terms that apply only after the Tranche B Maturity Date.

 

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(b) Any Extended Term Loans converted pursuant to any Extension Request shall be designated a
series of Extended Term Loans for all purposes of this Agreement; provided that, subject to
the limitations set forth in clause (a) above, any Extended Term Loans converted from an Existing
Term Loan Class may, to the extent provided in the applicable Additional Credit Extension Amendment
and consistent with the requirements set forth above, be designated as an increase in any
previously established Class of Term Loans.

(c) The Borrower shall provide the applicable Extension Request at least five (5) Business
Days prior to the date on which Lenders under the applicable Existing Term Loan Class are requested
to respond. No Lender shall have any obligation to agree to have any of its Term Loans of any
Existing Term Loan Class converted into Extended Term Loans pursuant to any Extension Request. Any
Lender wishing to have all or a portion of its Term Loans under the Existing Term Loan Class
subject to such Extension Request (such Lender an “Extending Term Lender”) converted into
Extended Term Loans shall notify the Administrative Agent (an “Extension Election”) on or
prior to the date specified in such Extension Request of the amount of its Term Loans under the
Existing Term Loan Class which it has elected to request be converted into Extended Term Loans
(subject to any minimum denomination requirements reasonably imposed by the Administrative Agent
and acceptable to the Borrower). In the event that the aggregate amount of Term Loans under the
Existing Term Loan Class subject to Extension Elections exceeds the amount of Extended Term Loans
requested pursuant to an Extension Request, Term Loans of the Existing Term Loan Class subject to
Extension Elections shall be converted to Extended Term Loans on a pro rata basis based on the
amount of Term Loans included in each such Extension Election (subject to any minimum denomination
requirements reasonably imposed by the Administrative Agent and acceptable to the Borrower).

(d) The Borrower may, with the consent of each Person providing an Extended Revolving
Commitment, the Administrative Agent and any Person acting as swingline lender or issuing bank
under such Extended Revolving Commitments, amend this Agreement pursuant to an Additional Credit
Extension Amendment to provide for Extended Revolving Commitments and to incorporate the terms of
such Extended Revolving Commitments into this Agreement on substantially the same basis as provided
with respect to the Revolving Commitments; provided that (i) the establishment of any such
Extended Revolving Commitments shall be accompanied by a corresponding reduction in the Revolving
Commitments and (ii) any reduction in the Revolving Commitments may, at the option of the Borrower,
be directed to a disproportional reduction of the Revolving Commitments of any Lender providing an
Extended Revolving Commitment.

(e) Extended Term Loans and Extended Revolving Commitments shall be established pursuant to an
Additional Credit Extension Amendment to this Agreement among the Borrower, the Administrative
Agent and each Extending Term Lender or Lender providing an Extended Revolving Commitment which
shall be consistent with the provisions set forth above (but which shall not require the consent of
any other Lender other than those consents provided in this Section 2.21). Each Additional Credit
Extension Amendment shall be binding on the Lenders, the Loan Parties and the other parties hereto.
In connection with any Additional Credit Extension Amendment, the Loan Parties and the
Administrative Agent shall enter into such amendments to the Collateral Documents as may be
reasonably requested by the Administrative Agent (which shall not require any consent from any
Lender other than
those consents provided pursuant to this Agreement) in order to ensure that the Extended Term
Loans or Extended Revolving Commitments are provided with the benefit of the applicable Collateral
Documents and shall deliver such other documents, certificates and opinions of counsel in
connection therewith as may be reasonably requested by the Administrative Agent.

(f) The provisions of this Section 2.21 shall override any provision of Section 9.02 to the
contrary.

 

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SECTION 2.22. Defaulting Lenders.

(a) Notwithstanding any provision of this Agreement to the contrary, if any Revolving Lender
becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender
is a Defaulting Lender:

(i) fees shall cease to accrue on the unfunded portion of the Revolving Commitment of
such Defaulting Lender pursuant to Section 2.12(a);

(ii) the Revolving Commitment, Revolving Exposure, LC Exposure or Swingline Exposure of
such Defaulting Lender shall not be included in determining whether the Required Lenders
have taken or may take any action hereunder (including any consent to any amendment, waiver
or other modification pursuant to Section 9.02); provided that this clause (ii)
shall not apply to the vote of a Defaulting Lender, except to the extent the consent of such
Lender would be required under clause (i), (ii), (iii) or (iv) in the proviso to the first
sentence of Section 9.02(b);

(iii) if any Swingline Exposure or LC Exposure exists at the time such Lender becomes a
Defaulting Lender then:

(1) so long as no Event of Default has occurred and is continuing as to which
the Administrative Agent has received written notice from the Borrower or a
Revolving Lender, all or any part of the Swingline Exposure and LC Exposure of such
Defaulting Lender shall be reallocated among the non-Defaulting Lenders in
accordance with their respective Applicable Percentages but only to the extent that
the sum of all non-Defaulting Lenders’ Revolving Credit Exposures plus such
Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the total of
all non-Defaulting Lenders’ Revolving Commitments;

(2) if the reallocation described in clause (1) above cannot, or can only
partially, be effected, the Borrower shall within one Business Day following notice
by the Administrative Agent (x) first, prepay such Swingline Exposure and (y)
second, cash collateralize, for the benefit of the Issuing Bank only, the Borrower’s
obligations corresponding to such Defaulting Lender’s LC Exposure (after giving
effect to any partial reallocation pursuant to clause (1) above) in accordance with
the procedures set forth in Section 2.05(j) for so long as such LC Exposure is
outstanding;

(3) if the Borrower cash collateralizes any portion of such Defaulting Lender’s
LC Exposure pursuant to clause (2) above, the Borrower shall not be required to pay
any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such
Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC
Exposure is cash collateralized;

(4) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to
clause (1) above, then the fees payable to the Lenders pursuant to Section 2.12(a)
and Section 2.12(b) shall be adjusted in accordance with such non-Defaulting
Lenders’ Applicable Percentages; and

 

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(5) if all or any portion of such Defaulting Lender’s LC Exposure is neither
reallocated nor cash collateralized pursuant to clause (1) or (2) above, then,
without prejudice to any rights or remedies of the Issuing Bank or any other Lender
hereunder, all fees that otherwise would have been payable to such Defaulting Lender
(solely with respect to the portion of such Defaulting Lender’s Revolving Commitment
that was utilized by such LC Exposure) and letter of credit fees payable under
Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be
payable to the Issuing Bank until and to the extent that such LC Exposure is
reallocated and/or cash collateralized; and

(iv) so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be
required to fund any Swingline Loan and the Issuing Bank shall not be required to issue,
amend or increase any Letter of Credit, unless it is satisfied that the related exposure and
the Defaulting Lender’s then outstanding LC Exposure will be 100% covered by the Commitments
of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in
accordance with Section 2.22(a)(iii), and participating interests in any newly made
Swingline Loan or any newly issued or increased Letter of Credit shall be allocated among
non-Defaulting Lenders in a manner consistent with Section 2.22(a)(iii)(1) (and such
Defaulting Lender shall not participate therein).

(b) If (i) a Bankruptcy Event with respect to a parent entity of any Lender shall occur
following the Effective Date and for so long as such event shall continue or (ii) the Swingline
Lender or the Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its
obligations under one or more other agreements in which such Lender commits to extend credit, the
Swingline Lender shall not be required to fund any Swingline Loan and the Issuing Bank shall not be
required to issue, amend or increase any Letter of Credit, unless the Swingline Lender or the
Issuing Bank, as the case may be, shall have entered into arrangements with the Borrower or such
Lender, satisfactory to the Swingline Lender or the Issuing Bank, as the case may be, to defease
any risk to it in respect of such Lender hereunder.

(c) In the event that the Administrative Agent, the Borrower, the Swingline Lender and the
Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused
such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Revolving
Lenders shall be readjusted to reflect the inclusion of such Lender’s Revolving Commitment and on
such date such Lender shall purchase at par such of the Revolving Loans of the other Revolving
Lenders as the Administrative Agent shall determine may be necessary in order for such Lender to
hold Revolving Loans in accordance with its Applicable Percentage (whereupon such Lender shall
cease to be a Defaulting Lender).

ARTICLE III

Representations and Warranties

The Borrower represents and warrants to the Lenders that:

SECTION 3.01. Organization; Power. Each of Holdings, the Borrower and the Subsidiaries (a) is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization, (b) has the power and
authority and all governmental rights, qualifications, approvals, authorizations, permits,
accreditations, Reimbursement Approvals, licenses and franchises material to the
business of the Borrower and the Subsidiaries taken as a whole that are necessary to own its
assets, to carry on its business as now conducted and as proposed to be conducted and to execute,
deliver and perform its obligations under each Loan Document to which it is a party and (c) except
where the failure to do so, individually or in the aggregate, is not reasonably likely to result in
a Material Adverse Effect, is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required.

 

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SECTION 3.02. Authorization; Enforceability. The Transactions to be entered into by each Loan Party have been duly authorized by all
necessary corporate or other action and, if required, stockholder action. This Agreement has been
duly executed and delivered by each of Holdings and the Borrower and constitutes, and each other
Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan
Party, will constitute, a legal, valid and binding obligation of Holdings, the Borrower or such
Loan Party, as applicable, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions (a) do not require any consent or approval of, registration or filing
with, or any other action by, any Governmental Authority, except such as have been obtained or made
and are in full force and effect and except filings necessary to perfect Liens created under the
Loan Documents, (b) will not violate any Requirement of Law applicable to Holdings, the Borrower or
any of the Subsidiaries, as applicable, (c) will not violate or result in a default under any
indenture or other material agreement or instrument binding upon Holdings, the Borrower or any of
the Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be
made by Holdings, the Borrower or any of the Subsidiaries or give rise to a right of, or result in,
termination, cancellation or acceleration of any material obligation thereunder, (d) will not
result in a Limitation on any right, qualification, approval, permit, accreditation, authorization,
Reimbursement Approval, license or franchise or authorization granted by any Governmental
Authority, Third Party Payor or other Person applicable to the business, operations or assets of
the Borrower or any of the Subsidiaries or adversely affect the ability of the Borrower or any of
the Subsidiaries to participate in any Third Party Payor Arrangement except for Limitations,
individually or in the aggregate, that are not material to the business of the Borrower and the
Subsidiaries, taken as a whole, and (e) will not result in the creation or imposition of any Lien
on any asset of Holdings, the Borrower or any of the Subsidiaries, except Liens created under the
Loan Documents. There is no pending or, to the knowledge of the Borrower, threatened Limitation by
any Governmental Authority, Third Party Payor or any other Person of any right, qualification,
approval, permit, authorization, accreditation, Reimbursement Approval, license or franchise of the
Borrower, or any Subsidiary, except for such Limitations, individually or in the aggregate, as are
not reasonably likely to result in a Material Adverse Effect. No certifications by any
Governmental Authority or any Third Party Payor are required for operation of the business of the
Borrower and the Subsidiaries that are not in place, except for such certifications or agreements,
the absence of which do not materially and adversely affect the operation of the business.

SECTION 3.04. Financial Condition; No Material Adverse Change.

(a) The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and
consolidated statements of operations and comprehensive income, stockholders’ equity and cash flows
as of and for the fiscal years ended December 31, 2008, December 31, 2009, and December 31, 2010,
reported on by PricewaterhouseCoopers LLP, independent public accountants. Such financial
statements present fairly, in all material respects, the financial position and results of
operations and cash
flows of the Borrower and the Subsidiaries as of such dates and for such periods in accordance
with GAAP consistently applied.

(b) [reserved].

(c) Except as disclosed in the financial statements referred to above or the notes thereto or
in the Information Memorandum, after giving effect to the Transactions, none of the Borrower or its
Subsidiaries has, as of the Effective Date, any material direct or contingent liabilities.

 

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(d) No event, change or condition has occurred that has had, or is reasonably likely to have,
a material adverse effect on the business, operations, assets, liabilities, financial condition or
results of operations of Holdings, the Borrower and the Subsidiaries, taken as a whole, since
December 31, 2010.

SECTION 3.05. Properties.

(a) Each of Holdings, the Borrower and the Subsidiaries has good title to, or valid leasehold
interests in, all its real and personal property material to its business (including its Mortgaged
Properties), free and clear of all Liens, except for Permitted Liens and minor defects in title
that do not interfere in any material respect with its ability to conduct its business or to
utilize such properties for their intended purposes.

(b) Each of Holdings, the Borrower and the Subsidiaries owns, licenses or possesses the right
to use all trademarks, trade names, copyrights, patents and other intellectual property material to
its business. The conduct of the businesses of Holdings, the Borrower and the Subsidiaries does
not infringe upon the intellectual property rights of any other Person, except for any such
infringements that, individually or in the aggregate, are not reasonably likely to result in a
Material Adverse Effect.

(c) Schedule 3.05 sets forth the address of each real property that is owned or leased
by Holdings, the Borrower or any of the Subsidiaries as of the Effective Date after giving effect
to the Transactions.

(d) As of the Effective Date, neither Holdings or the Borrower nor any of the Subsidiaries has
received written notice of, or has knowledge of, any pending or contemplated condemnation
proceeding affecting any Mortgaged Property or any sale or disposition thereof in lieu of
condemnation. As of the Effective Date, except as set forth on Schedule 3.05, neither any
Mortgaged Property nor any interest therein is subject to any right of first refusal, option or
other contractual right to purchase such Mortgaged Property or interest therein.

SECTION 3.06. Litigation and Environmental Matters.

(a) Except as set forth on Schedule 3.06, there are no actions, suits or proceedings by or
before any arbitrator or Governmental Authority pending against or, to the knowledge of Holdings,
the Borrower or any Subsidiary, threatened against or affecting Holdings, the Borrower or any
Subsidiary, including any relating to any Environmental Law, that are reasonably likely to (i) have
a Material Adverse Effect or (ii) adversely affect in any material respect the ability of the Loan
Parties to consummate the Transactions or the other transactions contemplated hereby.

(b) Except with respect to any other matters that, individually or in the aggregate, are not
reasonably likely to result in a Material Adverse Effect, (A) neither Holdings, the Borrower nor
any Subsidiary (i) has failed to comply with any Environmental Law or to obtain, maintain or comply
with
any permit, license or other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) knows of any basis for any Environmental Liability or
(iv) has received any written claim or notice of violation or of potential responsibility regarding
any alleged violation of or liability under any Environmental Law; and (B)(i) there has been no
Release of Hazardous Materials at, on, under or from any property currently, or to the knowledge of
Holdings, the Borrower or any of the Subsidiaries, formerly owned, leased or operated by any of
them which could reasonably be expected to result in liability under any Environmental Law on the
part of any of them, and (ii) all Hazardous Materials generated, used or stored at, or transported
for treatment or disposal from, any properties currently, or to the knowledge of Holdings, Borrower
and the Subsidiaries, formerly owned, leased or operated by Holdings, the Borrower or any of the
Subsidiaries have been disposed of in a manner that could not reasonably be expected to result in
liability under any Environmental Law on the part of any of them.

 

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SECTION 3.07. Compliance with Laws and Agreements. Except with respect to any matters that, individually or in the aggregate, are not material
to the business of the Borrower and the Subsidiaries, taken as a whole, each of Holdings, the
Borrower and the Subsidiaries is in compliance with all material Requirements of Law applicable to
it or its property or operations and all material indentures, agreements and other instruments
binding upon it or its property.

SECTION 3.08. Investment and Holding Company Status. Neither Holdings, the Borrower nor any Subsidiary is (a) an “investment company” as defined
in, or subject to regulation under, the Investment Company Act of 1940, as amended or (b) a
“holding company” as defined in, or subject to regulation under, the Public Utility Holding Company
Act of 1935, as amended.

SECTION 3.09. Taxes. Each of Holdings, the Borrower and the Subsidiaries has timely filed or caused to be filed
all Federal and other material Tax returns and reports required to have been filed and has paid or
caused to be paid all Taxes required to have been paid by it, except (a) any Taxes that are being
contested in good faith by appropriate proceedings and for which Holdings, the Borrower or such
Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or
(b) to the extent that the failure to do so is not reasonably likely to result in a Material
Adverse Effect.

SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably likely to occur that, when taken together with
all other such ERISA Events for which liability is reasonably likely to occur, is reasonably likely
to result in a Material Adverse Effect. The present value of all accumulated benefit obligations
under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial statements reflecting such
amounts, exceed the fair value of the assets of such Plan, except as would not reasonably be likely
to result in a Material Adverse Effect.

SECTION 3.11. Disclosure. Neither the Information Memorandum nor any of the other reports, financial statements,
certificates or other information furnished by or on behalf of any Loan Party to the Administrative
Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document
or delivered hereunder or thereunder (as modified or supplemented by other information so
furnished) contains any material misstatement of fact or omits to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not
misleading, provided that the foregoing shall not apply to any projected financial
information, and with respect to such projected financial information, Holdings and the Borrower
represent only that such information was prepared in good faith based upon assumptions believed by
them to be reasonable at the time delivered and as of the Effective Date.

SECTION 3.12. Subsidiaries. Holdings does not have any subsidiaries other than the Borrower and the Subsidiaries,
Permitted Joint Ventures and Inactive Subsidiaries listed on Schedule 3.12. Schedule
3.12 sets forth the name of, and the ownership or beneficial interest of Holdings in, each
subsidiary, including the Borrower, and identifies each Subsidiary that is a Subsidiary Loan Party,
in each case as of the Effective Date.

SECTION 3.13. Insurance. Schedule 3.13 sets forth a description of all insurance maintained by or on behalf
of Holdings, the Borrower and the Subsidiaries as of the Effective Date. As of the Effective Date,
all premiums in respect of such insurance have been paid. Holdings and the Borrower believe that
the insurance maintained by or on behalf of the Borrower and the Subsidiaries is adequate.

 

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SECTION 3.14. Labor Matters. As of the Effective Date, there are no strikes, lockouts or slowdowns against Holdings, the
Borrower or any Subsidiary pending or, to the knowledge of Holdings or the Borrower, threatened.
The hours worked by and payments made to employees of the Borrower and the Subsidiaries have not
been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or
foreign law dealing with such matters. All payments due from Holdings, the Borrower or any
Subsidiary, or for which any claim may be made against Holdings, the Borrower or any Subsidiary, on
account of wages and employee health and welfare insurance and other benefits, have been paid or
accrued as a liability on the books of Holdings, the Borrower or such Subsidiary. The consummation
of the Transactions will not give rise to any right of termination or right of renegotiation on the
part of any union under any collective bargaining agreement to which Holdings, the Borrower or any
Subsidiary is bound.

SECTION 3.15. Solvency. Immediately after the consummation of the Transactions to occur on the Effective Date, (a)
the fair value of the assets of each Loan Party, at a fair valuation, will exceed its debts and
liabilities, subordinated, contingent or otherwise, (b) the present fair saleable value of the
property of each Loan Party will be greater than the amount that will be required to pay the
probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as
such debts and other liabilities become absolute and matured, (c) each Loan Party will be able to
pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities
become absolute and matured, and (d) no Loan Party will have unreasonably small capital with which
to conduct the business in which it is engaged as such business is now conducted and is proposed to
be conducted following the Effective Date, in each case after giving effect to any rights of
indemnification, contribution or subrogation arising among the Subsidiary Loan Parties pursuant to
the Collateral Agreement or by law.

SECTION 3.16. Federal Reserve Regulations. No part of the proceeds of any Loan have been used or will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations of the Board,
including Regulations T, U and X. Neither Holdings nor any of its Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending credit for the
purpose of buying or carrying margin stock (as defined in Regulation U).

SECTION 3.17. Reimbursement from Third Party Payors. The accounts receivable of Holdings, the Borrower and the Subsidiaries have been and will
continue to be adjusted to reflect the reimbursement policies required by all applicable
Requirements of Law and other Third Party Payor Arrangements to which Holdings, the Borrower or
such Subsidiary is subject, and do not exceed in any material respect amounts the Borrower or such
Subsidiary is entitled to receive under any capitation arrangement, fee schedule, discount formula,
cost-based reimbursement or other adjustment or limitation to usual charges. All billings by
Holdings, the Borrower and each Subsidiary pursuant to any Third Party Payor Arrangements have been
made in compliance with all applicable Requirements of Law, except where failure to comply would
not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect. There has been no intentional or material over-billing or
over-collection by the Borrower or any Subsidiary pursuant to any Third Party Payor Arrangements,
other than as created by routine adjustments and disallowances made in the ordinary course of
business by the Third Party Payors with respect to such billings.

 

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SECTION 3.18. Fraud and Abuse. None of Holdings, the Borrower or any Subsidiary, nor any of their respective partners,
members, stockholders, officers or directors, acting on behalf of Holdings, the Borrower or any
Subsidiary, have engaged on behalf of Holdings, the Borrower or any Subsidiary in any activities
that are prohibited under 42 U.S.C. § 1320a-7, 42 U.S.C. § 1320a-7a, 42 U.S.C. § 1320a-7b, 42
U.S.C. § 1395nn, 31 U.S.C. § 3729 et seq., or the regulations promulgated
thereunder, or related Requirements of Law, or under any similar state law or regulation, or that
are prohibited by binding rules of professional conduct, including to the extent prohibited by such
laws (a) knowingly and willfully making or causing to be made a false statement or
misrepresentation of a material fact in any application for any benefit or payment, (b) knowingly
and willfully making or causing to be made any false statement or misrepresentation of a material
fact for use in determining rights to any benefit or payment, (c) failing to disclose knowledge by
a claimant of the occurrence of any event affecting the initial or continued right to any benefit
or payment on its own behalf or on behalf of another, with intent to secure such benefit or payment
fraudulently, (d) knowingly and willfully soliciting or receiving any remuneration (including any
kickback, bribe or rebate), directly or indirectly, overtly or covertly, in cash or in kind, or
offering to pay or receive such remuneration (i) in return for referring an individual to a Person
for the furnishing or arranging for the furnishing of any item or service for which payment may be
made, in whole or in part, pursuant to any Third Party Payor Arrangement to which the foregoing
rules and regulations apply or (ii) in return for purchasing, leasing or ordering or arranging for
or recommending purchasing, leasing or ordering any good, facility, service or item for which
payment may be made, in whole or in part, pursuant to any Third Party Payor Arrangement to which
the foregoing rules and regulations apply and (e) making any prohibited referral for designated
health services, or presenting or causing to be presented a claim or bill to any individual, Third
Party Payor or other entity for designated health services furnished pursuant to a prohibited
referral. Neither Holdings, the Borrower nor any Subsidiary shall be considered to be in breach of
this Section 3.18 so long as (a) it shall have taken such actions (including implementation of
appropriate internal controls) as may be reasonably necessary to prevent such prohibited actions
and (b) such prohibited actions as have occurred, individually or in the aggregate, are not
reasonably likely to have a Material Adverse Effect.

SECTION 3.19. USA PATRIOT Act, Etc. Holdings and each of its Subsidiaries is in compliance, in all material respects, with (i) the
Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the
United States Treasury Department (31 C.F.R. Subtitle B, Chapter V, as amended) and any other
enabling legislation or executive order relating thereto and (ii) the USA PATRIOT Act. No part of
the proceeds of the Loans will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt
Practices Act of 1977, as amended.

ARTICLE IV

Conditions

SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of
Credit hereunder shall not become effective until the date on which each of the following
conditions is satisfied (or waived):

(a) The Administrative Agent shall have received from each party hereto either (i) a
counterpart of this Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy transmission of a
signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement.

(b) The Administrative Agent shall have received a written opinion (addressed to the
Administrative Agent and the Lenders and dated the Effective Date) of each of (i) Dechert
LLP, counsel for Holdings and the Borrower, substantially in the form of Exhibit
B-1, and (ii) local counsel in each jurisdiction where a Subsidiary is organized as
specified on Schedule 4.01 or a Mortgaged Property is located, substantially in the
form of Exhibit B-2, and, in the case of each such opinion required by this
paragraph, covering such other matters relating to the Loan Parties, the Loan Documents or
the Transactions as the Administrative Agent shall reasonably request.

 

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(c) The Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the organization,
existence and good standing of each Loan Party, the authorization of the Transactions and
any other legal matters relating to the Loan Parties, the Loan Documents or the
Transactions, all in form and substance reasonably satisfactory to the Administrative Agent.

(d) The Administrative Agent shall have received a certificate, dated the Effective Date and
signed by a Financial Officer, confirming compliance with the conditions set forth in paragraphs
(a) and (b) of Section 4.02.

(e) The Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement
or payment of all out-of-pocket expenses (including fees, charges and disbursements of
counsel) required to be reimbursed or paid by any Loan Party hereunder or under any other
Loan Document.

(f) The Collateral and Guarantee Requirement shall have been satisfied and the
Administrative Agent shall have received (i) a completed Perfection Certificate dated the
Effective Date and signed by a Financial Officer and a legal officer of the Borrower,
together with all attachments contemplated thereby, including the results of a search of the
Uniform Commercial Code (or equivalent) filings made with respect to the Loan Parties in the
jurisdictions contemplated by the Perfection Certificate and copies of the financing
statements (or similar documents) disclosed by such search and evidence reasonably
satisfactory to the Administrative Agent that the Liens indicated by such financing
statements (or similar documents) are permitted by Section 6.02 or have been released and
(ii) control agreements for each deposit and securities account as contemplated by the
Collateral Agreement, provided that the Collateral Agent may, in its reasonable
judgment, grant extensions of time for compliance with the Collateral and Guarantee
Requirement by any Loan Party.

(g) (i) The Administrative Agent shall have received a completed “Life-of-Loan” Federal
Emergency Management Agency Standard Flood Hazard Determination with respect to
each Mortgaged Property (together with a notice about special flood hazard area status
and flood disaster assistance duly executed by the Borrower and each Loan Party relating
thereto) and (ii) the Administrative Agent shall have received a copy of, or a certificate
as to coverage under, and a declaration page relating to, the insurance policies required by
Section 5.07 including, without limitation, flood insurance policies (to the extent
required in order to comply with applicable law) and the applicable provisions of the
Security Documents, each of which (w) shall be endorsed or otherwise amended to include a
“standard” or “New York” lender’s loss payable or mortgagee endorsement (as applicable), (x)
shall name the Collateral Agent, on behalf of the Secured Parties, as additional insured,
(y) in the case of flood insurance, shall (I) identify the addressee of each property
located in a special flood hazard area, (II) indicate the applicable flood zone designation,
the flood insurance coverage and the deductible relating thereto and (III) provide that the
insurer will give the Administrative Agent 45 days’ written notice of cancellation or
non-renewal and (z) shall be otherwise in form and substance reasonably satisfactory to the
Administrative Agent.

(h) All obligations under or relating to the Existing Credit Agreement (other than
customary indemnification obligations) and all liens, guarantees and security interests
granted in respect thereof (including all adequate protection obligations related thereto)
shall have been discharged, and the terms and conditions of such discharge shall be
satisfactory to the Administrative Agent. The Administrative Agent shall have received
payoff and release letters with respect to the Existing Credit Agreement in form and
substance reasonably satisfactory to the Administrative Agent.

 

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(i) The Administrative Agent shall have received documentation in support of the
repayment arrangements with respect to the Holdings Senior Subordinated Notes in form and
substance reasonably satisfactory to the Administrative Agent.

(j) The Administrative Agent shall have received a certificate, dated the Effective
Date and signed by the president or a vice president of the Borrower or a Financial Officer,
in form and substance reasonably satisfactory to the Administrative Agent, together with
such other evidence reasonably requested by the Lenders, confirming the solvency of the
Borrower and the Subsidiaries on a consolidated basis after giving effect to the
Transactions.

(k) The Administrative Agent shall have received a certificate, dated the Effective
Date and signed by the president or a vice president of the Borrower or a Financial Officer,
substantially in the form attached hereto as Exhibit H.

(l) The Debt Tender Offer shall have been consummated or shall be consummated
substantially simultaneous with the initial funding of the Loans.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such
notice shall be conclusive and binding.

SECTION 4.02. Each Credit Event. The obligation of each Lender to make any Loan and of the Issuing Bank to issue, amend,
renew or extend any Letter of Credit, including, without limitation, on the Effective Date, is
subject to receipt of the request therefor in accordance herewith and to the satisfaction of the
following conditions:

(a) The representations and warranties of each Loan Party set forth in the Loan
Documents shall be true and correct in all material respects (except to the extent any such
representation or warranty is qualified by “materially”, “Material Adverse Effect” or a
similar term, in which case such representation and warranty shall be true and correct in all respects)
on and as of the date of such Borrowing or the date of issuance, amendment, renewal or
extension of such Letter of Credit, as applicable, except to the extent such representations
and warranties expressly relate to an earlier date (in which case such representations and
warranties shall be true and correct (or true and correct in all material respects, as the
case may be) as of such earlier date).

(b) At the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no
Default shall have occurred and be continuing.

Each Borrowing (provided that a conversion or continuation of a Borrowing shall not
constitute a “Borrowing” for purposes of this Section 4.02) and each issuance, amendment, renewal
or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by
Holdings and the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b)
of this Section 4.02.

 

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ARTICLE V

Affirmative Covenants

Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees, expenses and other amounts payable under any Loan Document shall have been
paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements
shall have been reimbursed, each of Holdings and the Borrower covenants and agrees with the Lenders
that:

SECTION 5.01. Financial Statements and Other Information. The Borrower will furnish to the Administrative Agent (for distribution to each Lender):

(a) within 90 days (or such shorter period as the SEC shall specify for the filing of
annual reports on Form 10-K) after the end of each fiscal year of Holdings commencing with
the fiscal year ended December 31, 2011, (i) its audited consolidated balance sheet and
consolidated statements of operations and comprehensive income, stockholders’ equity and
cash flows as of the end of and for such fiscal year, and the related notes thereto, setting
forth in each case in comparative form the figures for the previous fiscal year, all
reported on by independent public accountants of recognized national standing (without a
“going concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial condition and results of
operations of Holdings and the Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, and (ii) if at any time Holdings is not subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, a “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” that describes the financial
condition and results of operations of Holdings and its consolidated Subsidiaries;

(b) within 45 days (or such shorter period as the SEC shall specify for the filing of
quarterly reports on Form 10-Q) after the end of each of the first three fiscal quarters of
each fiscal year of Holdings commencing with the fiscal quarter ending June 30, 2011, its
consolidated balance sheet and consolidated statements of operations and comprehensive
income, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and
the then-elapsed portion of the fiscal year, setting forth in each case in comparative form
the figures for the corresponding period or periods of (or, in the case of the balance
sheet, as of the end of) the previous fiscal year, all certified by a Financial Officer as
presenting fairly in all material respects the financial condition and results of operations of Holdings and the Subsidiaries on a consolidated basis
in accordance with GAAP consistently applied, subject to normal year-end audit adjustments
and the absence of footnotes;

(c) concurrently with any delivery of financial statements under paragraph (a) or (b)
above, a certificate of a Financial Officer (i) certifying as to whether a Default has
occurred and, if a Default has occurred, specifying the details thereof and any action taken
or proposed to be taken with respect thereto, (ii) setting forth (A) reasonably detailed
calculations demonstrating compliance with Sections 6.13 and 6.14 (including (x) any
prepayment of the Loans as set forth in the definition of “Leverage Ratio” and (y) any
exercise of the rights set forth in Section 7.02) and (B) in the case of financial
statements delivered under paragraph (a) above beginning in 2012 with respect to fiscal year
2011, reasonably detailed calculations of Excess Cash Flow, (iii) stating whether any change
in GAAP or in the application thereof has occurred since the date of the Borrower’s audited
financial statements referred to in Section 3.04 and, if any such change has occurred,
specifying the effect of such change on the financial statements accompanying such
certificate, and (iv) certifying as to the calculation of Consolidated EBITDA on a Pro Forma
Basis for the four fiscal quarter period ending on the date of such financial statements and
accompanied by reasonably detailed supporting evidence, it being understood that each of the
calculations described in this paragraph (c) shall provide a reconciliation to the financial
statements delivered under paragraphs (a) and (b) above;

 

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(d) commencing with the delivery of audited financial statements of Holdings for the
fiscal year ended December 31, 2011, concurrently with any delivery of financial statements
under paragraph (a) above, a certificate of the accounting firm that reported on such
financial statements stating whether they obtained knowledge during the course of their
examination of such financial statements of any Default and, if such knowledge has been
obtained, describing such Default (which certificate may be limited to the extent required
by accounting rules or guidelines);

(e) concurrently with the issuance of any Indebtedness permitted by Sections
6.01(a)(xii), or a Restricted Payment permitted by Section 6.08(a)(x), a certificate of a
Financial Officer certifying as to (i) the Holdings Leverage Ratio or Leverage Ratio, as the
case may be, accompanied by reasonably detailed supporting evidence, (ii) the use of
proceeds from such issuance and (iii) whether a Default has occurred and, if a Default has
occurred, specifying the details thereof and any action taken or proposed to be taken with
respect thereto, it being understood that each of the calculations described in this
paragraph (e) shall provide a reconciliation to the financial statements delivered under
paragraphs (a) and (b) above;

(f) within 30 days after the commencement of each fiscal year of Holdings, a detailed
consolidated budget for such fiscal year (including a projected consolidated balance sheet
and consolidated statements of projected operations and cash flows as of the end of and for
such fiscal year) and, promptly when available, any significant revisions of such budget;

(g) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by the Borrower or any Subsidiary with
the SEC or with any national securities exchange, as applicable; and

(h) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of Holdings, the Borrower or any
Subsidiary or any Plan, or compliance with the terms of any Loan Document, as the
Administrative Agent or any Lender may reasonably request.

Documents required to be delivered pursuant to subsection 5.01(a), (b), (d) or (g) may at the
Borrower’s option be delivered electronically and, if so delivered, shall be deemed to have been
delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on
the Borrower’s (or Holdings’ or any Parent’s) website on the Internet at the website address
previously provided to the Administrative Agent in writing (or such other website address as the
Borrower may specify by written notice to the Administrative Agent from time to time); or (ii) on
which such documents are posted on the Borrower’s (or Holdings’ or any Parent’s) behalf on an
Internet or intranet website to which each Lender, the Administrative Agent and the Collateral
Agent have access (whether a commercial, third-party website or whether sponsored by the
Administrative Agent); provided that (i) upon the reasonable request of the Administrative
Agent or the Collateral Agent with respect to any specific document so delivered electronically,
the Borrower shall promptly deliver a physical copy of such document and (ii) the Borrower shall
notify (which notice may be by facsimile or electronic mail) the Administrative Agent of the
posting by the Borrower of any such documents on any such website (other than a website maintained
for or sponsored by the Administrative Agent) and the electronic location at which such documents
may be accessed.

 

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SECTION 5.02. Notices of Material Events. Holdings and the Borrower will furnish to the Administrative Agent (for distribution to
each Lender), through the Administrative Agent, written notice of the following promptly after
obtaining knowledge thereof:

(a) the occurrence of any Default;

(b) the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting Holdings, the Borrower or any
Subsidiary that, if adversely determined, is reasonably likely to result in a Material
Adverse Effect;

(c) the occurrence of any ERISA Event that alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the
Borrower and the Subsidiaries in an aggregate amount exceeding $20,000,000;

(d) the receipt by Holdings, the Borrower or any Subsidiary of (i) any notice of any
loss of (A) accreditation from the Joint Commission on Accreditation of Healthcare
Organizations or (B) any governmental right, qualification, permit, accreditation, approval,
authorization, Reimbursement Approval, license or franchise or (ii) any notice, compliance
order or adverse report issued by any Governmental Authority or Third Party Payor that, if
not promptly complied with or cured, could result in (A) the suspension or forfeiture of any
material governmental right, qualification, permit, accreditation, approval, authorization,
Reimbursement Approval, license or franchise necessary for the Borrower or any Subsidiary to
carry on its business as now conducted or as proposed to be conducted or (B) any other
material Limitation imposed upon the Borrower or any Subsidiary;

(e) any Change in Law of the type described in clause (a) or (b) of such definition
relating to any Third Party Payor Arrangement that could reasonably be expected to have a
material and adverse effect on the ability of the Borrower or any Subsidiary to carry on its
business as now conducted or as proposed to be conducted; and

(f) any other development that results in, or is reasonably likely to result in, a
Material Adverse Effect.

Each notice delivered under this Section 5.02 shall be accompanied by a statement of a Financial
Officer or other executive officer of the Borrower setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken with respect
thereto.

SECTION 5.03. Information Regarding Collateral.

(a) The Borrower will furnish to the Collateral Agent prompt written notice (but in no event
later than 90 days) of any change (i) in any Loan Party’s corporate name, (ii) in the jurisdiction
of incorporation or organization of any Loan Party or (iii) in any Loan Party’s organizational
identification number. The Borrower agrees not to effect or permit any change referred to in the
preceding sentence unless all filings have been made under the Uniform Commercial Code or otherwise
that are required in order for the Collateral Agent to continue at all times following such change
to have a valid, legal and perfected security interest in all the Collateral. The Borrower also
agrees promptly to notify the Collateral Agent if any material portion of the Collateral is damaged
or destroyed.

(b) Each year, at the time of delivery of annual financial statements pursuant to Section
5.01(a), the Borrower shall deliver to the Collateral Agent a certificate executed by a Financial
Officer and the chief legal officer of the Borrower setting forth the information required pursuant
to the Perfection Certificate or confirming that there has been no change in such information since
the date of the Perfection Certificate delivered on the Effective Date or the date of the most
recent certificate delivered pursuant to this Section.

 

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SECTION 5.04. Existence; Conduct of Business. Each of Holdings and the Borrower will, and will cause each of the Subsidiaries to, do or
cause to be done all things necessary to preserve, renew and keep in full force and effect its
legal existence and the rights, qualifications, permits, approvals, accreditations, authorizations,
Reimbursement Approvals, licenses, franchises, patents, copyrights, trademarks and trade names
material to the conduct of its business; provided that the foregoing shall not prohibit any
merger, consolidation, liquidation or dissolution permitted under Section 6.03.

SECTION 5.05. Payment of Obligations. Each of Holdings and the Borrower will, and will cause each of the Subsidiaries to, pay its
Tax liabilities, before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate proceedings, (b)
Holdings, the Borrower or such Subsidiary has set aside on its books adequate reserves with respect
thereto in accordance with GAAP, (c) such contest effectively suspends the enforcement of any Lien
securing such obligation and (d) the failure to make payment pending such contest is not reasonably
likely to result in a Material Adverse Effect.

SECTION 5.06. Maintenance of Properties. Each of Holdings and the Borrower will, and will cause each of the Subsidiaries to, keep
and maintain all property material to the conduct of its business in good working order and
condition, ordinary wear and tear excepted.

SECTION 5.07. Insurance. (i) Each of Holdings and the Borrower will, and will cause each of the Subsidiaries to,
maintain, with financially sound and reputable insurance companies (which may include
self-insurance), (a) insurance in such amounts (with no greater risk retention) and against such
risks as are customarily maintained by companies of established repute engaged in the same or
similar businesses operating in the same or similar locations and (b) all insurance required to be
maintained pursuant to the Security Documents. The Borrower will furnish to the Lenders, upon
request of the Administrative Agent, information in reasonable detail as to the insurance so
maintained.

(ii) If any portion of any Mortgaged Property is at any time located in an area identified by
the Federal Emergency Management Agency (or any successor agency) as a special flood hazard
area with respect to which flood insurance has been made available under the National Flood
Insurance Act of 1968 (as now or hereafter in effect or any successor statute thereto), then
Holdings and the Borrower shall, or shall cause each Loan Party to (x) maintain, or cause to be
maintained, with a financially sound and reputable insurer, flood insurance in an amount and
otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to
the Flood Insurance Laws and (y) deliver to the Administrative Agent evidence of such compliance in
form and substance reasonably acceptable to the Administrative Agent.

SECTION 5.08. Casualty and Condemnation. The Borrower (a) will furnish to the Administrative Agent and the Lenders prompt written
notice of any casualty or other insured damage to any material portion of the Collateral or the
commencement of any action or proceeding for the taking of any material portion of the Collateral
or interest therein under power of eminent domain or by condemnation or similar proceeding and (b)
will ensure that the Net Proceeds of any such event (whether in the form of insurance proceeds,
condemnation awards or otherwise) are collected and applied in accordance with the applicable
provisions of this Agreement and the Security Documents.

 

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SECTION 5.09. Books and Records; Inspection and Audit Rights. Each of Holdings and the Borrower will, and will cause each of the Subsidiaries to, keep
proper books of record and account in which full, true and correct entries are made of all dealings
and transactions in relation to its business and activities. Each of Holdings and the Borrower
will, and will cause each of the Subsidiaries to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its
properties during normal business hours, to examine and make extracts from its books and records,
including environment assessment reports and Phase I or Phase II studies, and to discuss its
affairs, finances and condition with its officers and independent accountants (provided
that the Borrower shall be provided the opportunity to participate in any such discussions with its
independent accountants), all at such reasonable times and as often as reasonably requested.

SECTION 5.10. Compliance with Laws. Each of Holdings and the Borrower will cause each of the Subsidiaries to comply with all
Requirements of Law, including Environmental Laws, applicable to it or its property, except where
the failure to do so, individually or in the aggregate, is not reasonably likely to result in a
Material Adverse Effect.

SECTION 5.11. Use of Proceeds and Letters of Credit. The proceeds of the Tranche B Term Loans and any Revolving Loans borrowed on the Effective
Date will be used by the Borrower on the Effective Date, solely for (i) the payment of the
Transaction Costs, (ii) the payment of all principal, interest, fees and other amounts outstanding
under the Existing Credit Agreement, (iii) the repurchase or redemption of a portion of the
Existing Subordinated Notes in an aggregate principal amount pursuant to this subclause (iii) not
to exceed $266,500,000, including any premium payments associated therewith, and (iv) the
redemption of all of the Holdings Senior Subordinated Notes outstanding. The proceeds of Revolving
Loans borrowed after the Effective Date, Swingline Loans and Letters of Credit will be used by the
Borrower for working capital and general corporate purposes (including Permitted Acquisitions).
The proceeds of the Revolving Loans (except as described above), Swingline Loans and Letters of
Credit will be used only for working capital and other general corporate purposes. No part of the
proceeds of any Loan and no Letter of Credit will be used, whether directly or indirectly, for any
purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U
and X.

SECTION 5.12. Additional Subsidiaries; Succeeding Holdings.

(a) If any additional Subsidiary (other than a Consolidated Practice) is formed or acquired
after the Effective Date (or if (x) any Inactive Subsidiary that is not a Subsidiary Loan Party
ceases to qualify as an Inactive Subsidiary or (y) a Permitted Joint Venture that is not otherwise
a Permitted Joint Venture Loan Party becomes a wholly owned Subsidiary of the Borrower), the Borrower will,
promptly after such Subsidiary is formed or acquired, notify the Collateral Agent and the Lenders
(through the Administrative Agent) thereof and promptly cause the Collateral and Guarantee
Requirement to be satisfied with respect to such Subsidiary (if it is a Subsidiary Loan Party) and
with respect to any Equity Interest in or Indebtedness of such Subsidiary owned by or on behalf of
any Loan Party.

(b) Upon the addition of a Succeeding Holdings, the Borrower will notify the Collateral Agent
and the Lenders (through the Administrative Agent) thereof and promptly cause the Collateral and
Guarantee Requirement to be satisfied with respect to the Succeeding Holdings.

SECTION 5.13. Further Assurances.

(a) Each of Holdings, each Succeeding Holdings and the Borrower will, and will cause each
Subsidiary Loan Party to, execute any and all further documents, financing statements, agreements
and instruments, and take all such further actions (including the filing and recording of financing
statements, fixture filings, mortgages, deeds of trust and other documents), which may be required
under any applicable law, or which the Administrative Agent or the Required Lenders may reasonably
request, to cause the Collateral and Guarantee Requirement to be and remain satisfied, all at the
expense of the Loan Parties. Each of Holdings and the Borrower also agrees to provide to the
Collateral Agent, from time to time upon reasonable request, evidence reasonably satisfactory to
the Administrative Agent as to the perfection and priority of the Liens created or intended to be
created by the Security Documents.

 

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(b) If any material assets (including any real property (other than any leased real property)
which constitutes a Material Real Property) are acquired by the Borrower or any Subsidiary Loan
Party after the Effective Date (other than assets constituting Collateral under the Collateral
Agreement that become subject to the Lien in favor of the Collateral Agreement upon acquisition
thereof), the Borrower will notify the Administrative Agent and the Lenders thereof and, if
requested by the Administrative Agent or the Required Lenders, the Borrower will cause such assets
to be subjected to a Lien securing the Obligations and will take, and cause the Subsidiary Loan
Parties to take, such actions as shall be necessary or reasonably requested by the Administrative
Agent to grant and perfect such Liens, including actions described in paragraph (a) of this Section
5.13, all at the expense of the Loan Parties, provided that the Collateral Agent may, in
its reasonable judgment, grant extensions of time for compliance or exceptions with the provisions
of this paragraph by any Loan Party.

SECTION 5.14. Post-Closing Matters. Execute and deliver the documents and complete the tasks set forth on Schedule
5.14, in each case within the time limits specified on such schedule; provided that the
Administrative Agent or Collateral Agent, as applicable, may in its reasonable judgment, grant
extensions of time for compliance or exceptions with the provisions of this paragraph.

ARTICLE VI

Negative Covenants

Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees, expenses and other amounts payable under any Loan Document have been paid
in full and all Letters of Credit have expired or terminated and all LC Disbursements shall have
been reimbursed, each of Holdings and the Borrower covenants and agrees with the Lenders that:

SECTION 6.01. Indebtedness; Certain Equity Securities.

(a) Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, create,
incur, assume or permit to exist any Indebtedness, except:

(i) Indebtedness created under the Loan Documents;

(ii) [reserved];

(iii) the Existing Subordinated Notes, to the extent not repurchased pursuant to the
Debt Tender Offer, in an aggregate principal amount not to exceed $345,000,000 and
extensions, renewals and replacements of the Existing Subordinated Notes, provided
that such extending, renewal or replacement Indebtedness (A) shall not be in a principal
amount that exceeds the principal amount of the Existing Subordinated Notes being extended,
renewed or replaced (plus accrued interest and premium thereon), (B) shall not have
a maturity date that is earlier than the date that is 180 days after the Tranche B Maturity
Date or a weighted average life that is shorter than that of the then-remaining weighted
average life of the Tranche B Term Loans, (C) at the time of such extension renewal or
replacement, no Default or Event of Default shall have occurred and be continuing and (D)
there is no obligor of such Indebtedness that is not either (x) an obligor of such
Indebtedness on the Effective Date or (y) otherwise permitted to incur such Indebtedness by
another clause of this Section 6.01;

 

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(iv) Indebtedness existing on the Effective Date and set forth in Schedule 6.01
and extensions, renewals and replacements of any such Indebtedness, provided that
such extending, renewal or replacement Indebtedness (A) shall not be in a principal amount
that exceeds the principal amount of the Indebtedness being extended, renewed or replaced
(plus accrued interest and premium thereon), (B) shall not have an earlier maturity
date or a decreased weighted average life than the Indebtedness being extended, renewed or
replaced, (C) shall be subordinated to the Obligations on the same terms (or, from a
Lender’s perspective, better terms) as the Indebtedness being extended, renewed or replaced
and (D) there is no obligor of such Indebtedness that is not either (x) an obligor of such
Indebtedness on the Effective Date or (y) otherwise permitted to incur such Indebtedness by
another clause of this Section 6.01;

(v) Indebtedness of the Borrower owed to any Subsidiary and of any Subsidiary owed to
the Borrower or any other Subsidiary, provided that Indebtedness of the Borrower
owed to any Subsidiary and Indebtedness of any Subsidiary Loan Party owed to the Borrower or
any other Subsidiary shall be subordinated to the Obligations on terms reasonably
satisfactory to the Administrative Agent; provided further that, (A)
Indebtedness owed to any Insurance Subsidiary by the Borrower or any other Subsidiary shall
be limited in principal amount to the aggregate amount of Investments made in such Insurance
Subsidiary pursuant to Section 6.04(xx) and (B) notwithstanding the first proviso above,
such Indebtedness shall only be subordinated to the extent permitted by applicable laws or
regulations;

(vi) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary
of Indebtedness of the Borrower or any other Subsidiary, provided that (A) the
Indebtedness so Guaranteed is permitted by this Section 6.01, (B) Guarantees permitted under
this clause (vi) shall be subordinated to the Obligations of the Borrower or the applicable
Subsidiary to the same extent and on the same terms as the Indebtedness so Guaranteed is
subordinated to the Obligations and (C) except in the case of Foreign Subsidiaries that
provide Guarantees of Indebtedness of other Foreign Subsidiaries, no Subsidiary shall
Guarantee any Indebtedness unless it is a Subsidiary Loan Party;

(vii) Indebtedness of the Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets, including Capital
Lease Obligations, and any Indebtedness assumed by the Borrower or any Subsidiary in
connection with the acquisition of any such assets or secured by a Lien on any such assets
prior to the acquisition thereof, and extensions, renewals and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof (including the
principal and any accrued but unpaid interest or premium in respect thereof),
provided that (A) such Indebtedness is incurred prior to or within 120 days after
such acquisition or the completion of such construction or improvement and (B) the aggregate
principal amount of Indebtedness permitted by this clause (vii) shall not exceed at any time
outstanding the greater of (x) $60,000,000 and (y) 6.0% of Consolidated Tangible Assets as
of the end of the immediately preceding fiscal quarter;

(viii) (A) Indebtedness of any Person that becomes a Subsidiary after the date hereof,
provided that (1) such Indebtedness exists at the time such Person becomes a
Subsidiary and is not created in contemplation of or in connection with such Person becoming
a Subsidiary and (2) the aggregate amount of Indebtedness permitted by this clause (viii)
(including subclause (B)) shall not exceed $50,000,000 at any time outstanding, and (B) any
refinancings, renewals and replacements of any such Indebtedness pursuant to the preceding
clause (A) that do not increase the outstanding principal amount (plus accrued
interest and premium) thereof;

 

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(ix) Indebtedness owed to any Person (including obligations in respect of letters of
credit for the benefit of such Person) providing workers’ compensation, health, disability
or other employee benefits or property, casualty or liability insurance pursuant to
reimbursement or indemnification obligations to such Person, in each case incurred in the
ordinary course of business;

(x) Indebtedness of the Borrower or any Subsidiary in respect of performance bonds, bid
bonds, appeal bonds, surety bonds, performance and completion guarantees and similar
obligations, in each case provided in the ordinary course of business;

(xi) Indebtedness of any Loan Party pursuant to Swap Agreements permitted by Section
6.07;

(xii) with respect to Holdings, Qualified Holdings Debt; provided that other
than with respect to any additional principal amounts resulting from the accrual of
pay-in-kind interest, (A) such Indebtedness may only be issued or incurred to the extent
that after giving effect to the incurrence of such additional Indebtedness on a Pro Forma
Basis, the Holdings Leverage Ratio would be less than 5.50 to 1.00 and (B) no Default has
occurred and is continuing or would result therefrom;

(xiii) [reserved];

(xiv) Indebtedness representing deferred compensation to employees of the Borrower and
the Subsidiaries incurred in the ordinary course of business;

(xv) Indebtedness in respect of promissory notes issued to physicians, consultants,
employees or directors or former employees, consultants or directors in connection with
repurchases of Equity Interests permitted by Section 6.08(a)(iii);

(xvi) Indebtedness of any Foreign Subsidiary or any Subsidiary of the Borrower that is
not a Loan Party in an amount not to exceed $50,000,000 at any time outstanding;

(xvii) (x) Permitted Debt Securities so long as no Default or Event of Default has
occurred and is continuing or would arise after giving effect thereto and, except in the
case of Refinancing Debt Securities, on a Pro Forma Basis the Leverage Ratio is less than or
equal to 5.25 to 1.00 as of the last day of the most recent fiscal quarter for which
financial statements have been delivered pursuant to Section 5.01(a) or (b) prior to the
incurrence of such Permitted Debt Securities and (y) any Refinancing Indebtedness in respect
of Indebtedness permitted by this clause 6.09(a)(xvii);

(xviii) other Indebtedness of the Borrower or any Subsidiary in an aggregate principal
amount not exceeding $200,000,000 at any time outstanding;

(xix) in the case of Holdings, the Qualified Holdings Floating Rate Notes; and

(xx) Cash Management Obligations.

(b) The Borrower will not, and Holdings and the Borrower will not permit any Subsidiary to,
issue any preferred Equity Interests.

 

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(c) Holdings will not issue any preferred Equity Interests other than Qualified Preferred
Stock.

SECTION 6.02. Liens. Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, create,
incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired
by it, or assign or sell any income or revenues (including accounts receivable) or rights in
respect of any thereof, except (collectively, “Permitted Liens”):

(i) Liens created by the Loan Documents;

(ii) Permitted Encumbrances;

(iii) any Lien on any property or asset of the Borrower or any Subsidiary existing on
the Effective Date and set forth in Schedule 6.02; provided that (A) such
Lien shall not apply to any other property or asset of the Borrower or any Subsidiary and
(B) such Lien shall secure only those obligations which it secures on the Effective Date and
extensions, renewals and replacements thereof that do not increase the outstanding principal
amount thereof (plus accrued interest and premium thereon);

(iv) any Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a
Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary,
provided that (A) such Lien is not created in contemplation of or in connection with
such acquisition or such Person becoming a Subsidiary, as applicable, (B) such Lien shall
not apply to any other property or asset of the Borrower or any Subsidiary and (C) such Lien
shall secure only those obligations that it secures on the date of such acquisition or the
date such Person becomes a Subsidiary, as applicable, and extensions, renewals and
replacements thereof that do not increase the outstanding principal amount thereof
(plus accrued interest and premium thereon);

(v) Liens on fixed or capital assets acquired, constructed or improved by the Borrower
or any Subsidiary, provided that (A) such security interests secure Indebtedness
permitted by clause (vii) of Section 6.01(a), (B) such security interests and the
Indebtedness secured thereby are incurred prior to or within 120 days after such acquisition
or the completion of such construction or improvement, (C) the Indebtedness secured thereby does not exceed 100% of the
cost of acquiring, constructing or improving such fixed or capital assets and (D) such
security interests shall not apply to any other property or assets of the Borrower or any
Subsidiary;

(vi) Liens of a collecting bank arising in the ordinary course of business under
Section 4-208 of the Uniform Commercial Code in effect in the relevant jurisdiction covering
only the items being collected upon;

(vii) Liens arising out of sale and leaseback transactions permitted by Section 6.06;

(viii) Liens granted by a Subsidiary that is not a Loan Party in favor of the Borrower
or another Loan Party in respect of Indebtedness owed by such Subsidiary;

(ix) licenses, sublicenses, leases or subleases granted to others not interfering in
any material respect with the business of the Borrower or any Subsidiary;

(x) Liens on assets of any Foreign Subsidiary securing Indebtedness (and related
obligations) permitted by Section 6.01(a)(xvi);

 

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(xi) Liens on assets of the Borrower or the Subsidiaries not otherwise permitted by
this Section 6.02, so long as neither (i) the aggregate outstanding principal amount of the
obligations secured thereby nor (ii) the aggregate fair value (determined as of the date
such Lien is incurred) of the assets subject thereto exceeds $25,000,000 at any time
outstanding, provided that in no event shall Holdings, the Borrower or any Subsidiary
create, incur, assume or permit to exist any Lien on any Equity Interests of the Borrower or
any Subsidiary; and

(xii) Liens on the Collateral securing Permitted Secured Notes; provided that
the holders thereof (or the collateral agent for such holders) shall have entered into the
First Lien Intercreditor Agreement or the Second Lien Intercreditor Agreement, as
applicable.

SECTION 6.03. Fundamental Changes.

(a) Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, merge into
or consolidate with any other Person, or permit any other Person to merge into or consolidate with
it, or liquidate or dissolve, except that, if at the time thereof and immediately after giving
effect thereto no Default shall have occurred and be continuing, (i) any Person may merge into the
Borrower in a transaction in which the surviving entity is a Person organized or existing under the
laws of the United States of America, any State thereof or the District of Columbia and, if such
surviving entity is not the Borrower, such Person expressly assumes, in writing, all the
obligations the Borrower under the Loan Documents, (ii) any Person may merge into any Subsidiary in
a transaction in which the surviving entity is a Subsidiary and, if any party to such merger is a
Subsidiary Loan Party, is or becomes a Subsidiary Loan Party concurrently with such merger, (iii)
any Subsidiary (other than a Subsidiary Loan Party) may liquidate or dissolve if the Borrower
determines in good faith that such liquidation or dissolution is in the best interests of the
Borrower and is not materially disadvantageous to the Lenders and (iv) any asset sale permitted by
Section 6.05(g) may be effected through the merger of a subsidiary of the Borrower with a third
party, provided that any such merger referred to in clauses (i), (ii) or (iv) above
involving a Person that is not a wholly owned Subsidiary immediately prior to such merger shall not
be permitted unless also permitted by Section 6.04.

(b) The Borrower will not, and Holdings and the Borrower will not permit any Subsidiary to,
engage to any material extent in any business other than businesses of the type conducted by
the Borrower and the Subsidiaries on the Effective Date and businesses reasonably related or
incidental thereto.

(c) Holdings will not engage in any business or activity other than the ownership of all the
outstanding shares of capital stock of the Borrower and engaging in corporate and administrative
functions and other activities incidental thereto. Holdings will not own or acquire any assets
(other than Equity Interests of the Borrower and the cash proceeds of any Restricted Payments
permitted by Section 6.08 or proceeds of any issuance of Indebtedness or Equity Interests permitted
by this Agreement pending application as required by this Agreement) or incur any liabilities
(other than liabilities under and permitted to be incurred under the Loan Documents and liabilities
reasonably incurred in connection with its maintenance of its existence and activities incidental
thereto). Notwithstanding the foregoing, Holdings shall be permitted to enter into transactions,
engage in activities and maintain assets or incur liabilities in respect of the Qualified Holdings
Floating Rate Notes or Swap Agreements related to Indebtedness of Holdings permitted hereunder.

 

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SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, purchase or
acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary
prior to such merger) any Equity Interests in or evidences of indebtedness or other securities
(including any option, warrant or other right to acquire any of the foregoing) of, make any loans
or advances to, Guarantee any obligations of, or make any investment or any other interest in, any
other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any
assets of any other Person constituting a business unit (collectively, “Investments”),
except:

(i) Permitted Acquisitions;

(ii) Permitted Investments;

(iii) Investments set forth on Schedule 6.04;

(iv) Investments by Holdings in the Borrower and by the Borrower and the Subsidiaries
in Equity Interests in their respective Subsidiaries, provided that (A) any such
Equity Interests held by a Loan Party shall be pledged pursuant to the Collateral Agreement
(subject to the limitations applicable to common stock of a Foreign Subsidiary referred to
in the definition of “Collateral and Guarantee Requirement”) and (B) the aggregate amount of
investments (other than investments set forth on Schedule 6.04) by Loan Parties in
Subsidiaries that are not Loan Parties (together with outstanding intercompany loans
permitted under clause (B) to the proviso to Section 6.04(v) and outstanding Guarantees
permitted to be incurred under clause (B) to the proviso to Section 6.04(vi)) shall not
exceed $15,000,000 at any time outstanding (in each case determined without regard to any
write-downs or write-offs);

(v) loans or advances made by the Borrower to any Subsidiary and made by any Subsidiary
to the Borrower or any other Subsidiary, provided that (A) any such loans and
advances made by a Loan Party shall be evidenced by a promissory note pledged pursuant to
the Collateral Agreement and (B) the amount of such loans and advances made by Loan Parties
to Subsidiaries that are not Loan Parties (together with outstanding investments permitted
under clause (B) to the proviso to Section 6.04(iv) and outstanding Guarantees permitted
under clause (B) to the proviso to Section 6.04(vi)) shall not exceed $15,000,000 at any
time outstanding (in each case determined without regard to any write-downs or write-offs);

(vi) Guarantees constituting Indebtedness permitted by Section 6.01, provided
that (and without limiting the foregoing) the aggregate principal amount of Indebtedness of
Subsidiaries that are not Loan Parties that is Guaranteed by any Loan Party (together with
outstanding investments permitted under clause (B) to the proviso to Section 6.04(iv) and
outstanding intercompany loans permitted under clause (B) to the proviso to Section 6.04(v))
shall not exceed $15,000,000 at any time outstanding (in each case determined without regard
to any write-downs or write-offs);

(vii) receivables or other trade payables owing to the Borrower or any Subsidiary if
created or acquired in the ordinary course of business consistent with past practice and
payable or dischargeable in accordance with customary trade terms, provided that
such trade terms may include such concessionary trade terms as the Borrower or any such
Subsidiary deems reasonable under the circumstances;

(viii) Investments consisting of Equity Interests, obligations, securities or other
property received in settlement of delinquent accounts of and disputes with customers and
suppliers in the ordinary course of business and owing to the Borrower or any Subsidiary or
in satisfaction of judgments;

 

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(ix) Investments by the Borrower or any Subsidiary in payroll, travel and similar
advances to cover matters that are expected at the time of such advances ultimately to be
treated as expenses for accounting purposes and that are made in the ordinary course of
business;

(x) loans or advances by the Borrower or any Subsidiary to employees and other
individual service providers made in the ordinary course of business (including travel,
entertainment and relocation expenses) of the Borrower or any Subsidiary not exceeding
$2,500,000 in the aggregate at any time outstanding (determined without regard to any
write-downs or write-offs of such loans or advances);

(xi) Investments in the form of Swap Agreements permitted by Section 6.07;

(xii) Investments of any Person existing at the time such Person becomes a Subsidiary
of the Borrower or consolidates or merges with the Borrower or any of the Subsidiaries
(including in connection with a Permitted Acquisition) so long as such investments were not
made in contemplation of such Person becoming a Subsidiary or of such consolidation or
merger;

(xiii) Investments received in connection with the dispositions of assets permitted by
Section 6.05;

(xiv) Investments constituting deposits described in clauses (c) and (d) of the
definition of the term “Permitted Encumbrances”;

(xv) Investments in Permitted Joint Ventures; provided that, if at the time of
any such Investment pursuant to this Section 6.04(xv), on a Pro Forma Basis, the Secured
Leverage Ratio of the Borrower equals or exceeds 2.50 to 1.00, the aggregate amount of
Investments in Permitted Joint Ventures (together with the aggregate amount of Investments
in Permitted Real Estate Joint Ventures permitted under Section 6.04(xvi)) shall not exceed
$250,000,000 outstanding at any time plus an amount equal to any returns (including
dividends, interest, distributions, returns of principal and profits on sale) actually
received in cash in respect of any such Investments (which amount shall not exceed the
amount of such Investment valued at cost at the time such Investment was made);

(xvi) Investments in Permitted Real Estate Joint Ventures; provided that, if at
the time of any such Investment pursuant to this Section 6.04(xvi), on a Pro Forma Basis,
the Secured Leverage Ratio of the Borrower equals or exceeds 2.50 to 1.00, the aggregate
amount of Investments in Permitted Real Estate Joint Ventures (together with the aggregate
amount of Investments in Permitted Joint Ventures permitted under Section 6.04(xv)) shall
not exceed $250,000,000 outstanding at any time plus an amount equal to any returns
(including dividends, interest, distributions, returns of principal and profits on sale)
actually received in cash in respect of any such Investments (which amount shall not exceed
the amount of such Investment valued at cost at the time such Investment was made);

(xvii) payments, loans, advances to, and investments in, Consolidated Practices in the
ordinary course of business and consistent with past practice in satisfaction of their
obligations under any management services agreements;

(xviii) Investments by the Borrower or any Subsidiary (including Investments in
Permitted Joint Ventures) in an aggregate amount, as valued at cost at the time each such
Investment is made and including all related commitments for future advances, not exceeding
the Available Amount immediately prior to the time of the making of any such Investment;

 

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(xix) Investments by the Borrower or any Subsidiary (including Investments in Permitted
Joint Ventures) in an aggregate amount not to exceed the sum of (A) $100,000,000 and (B) an
amount equal to any returns (including dividends, interest, distributions, returns of
principal and profits on sale) actually theretofore received in cash in respect of any such
investment, loan or advance (which amount shall not exceed the amount of such Investment
valued at cost at the time such Investment was made); and

(xx) Investments, loans and advances by the Borrower or any Subsidiary to any Insurance
Subsidiary in an amount equal to (A) the capital required under the applicable laws or
regulations of the jurisdiction in which such Insurance Subsidiary is formed or determined
by independent actuaries as prudent and necessary capital to operate such Insurance
Subsidiary plus (B) any reasonable general corporate and overhead expenses of such
Insurance Subsidiary.

SECTION 6.05. Asset Sales. Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, sell,
transfer, lease or otherwise dispose of any asset, including any Equity Interest owned by it, nor
will the Borrower permit any Subsidiary to issue any additional Equity Interest in such Subsidiary
(other than to the Borrower or another Subsidiary in compliance with Section 6.04), except:

(a) sales, transfers and dispositions of (i) inventory in the ordinary course of
business and (ii) used, obsolete, worn out or surplus equipment or property in the ordinary
course of business;

(b) sales, transfers and dispositions to the Borrower or any Subsidiary,
provided that any such sales, transfers or dispositions involving a Subsidiary that
is not a Loan Party shall be made in compliance with Section 6.09;

(c) sales, transfers and dispositions of accounts receivable in connection with the
compromise, settlement or collection thereof consistent with past practice;

(d) sales, transfers and dispositions of property to the extent such property
constitutes an investment permitted by clauses (ii), (viii), (xii) and (xiv) of Section
6.04;

(e) sale and leaseback transactions permitted by Section 6.06;

(f) dispositions resulting from any casualty or other insured damage to, or any taking
under power of eminent domain or by condemnation or similar proceeding of, any property or
asset of the Borrower or any Subsidiary;

(g) sales, transfers and other dispositions of assets (other than Equity Interests in a
Subsidiary unless all Equity Interests in such Subsidiary are sold) that are not permitted
by any other paragraph of this Section 6.05, provided that the aggregate fair value
of all assets sold, transferred or otherwise disposed of in reliance upon this paragraph (g)
shall not exceed $200,000,000 during the term of this Agreement (excluding any single
transaction or series of related transactions that involves assets having a Fair Market
Value of less than $2,500,000);

(h) exchanges of property for similar replacement property for fair value; and

(i) assets set forth on Schedule 6.05;

 

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provided that all sales, transfers, leases and other dispositions permitted hereby (other
than those permitted by paragraphs (b), (c) and (f) above) shall be made for fair value and (other
than those permitted by paragraphs (b), (d) and (h) above) for at least 75% cash consideration;
plus (for all such sales, transfers, leases and other dispositions permitted hereby) an
aggregate additional amount of non-cash consideration in the amount of $35,000,000 (it being
understood that for purposes of paragraph (a) above, accounts receivable received in the ordinary
course and any property received in exchange for used, obsolete, worn out or surplus equipment or
property and any non-cash consideration that was actually converted into cash within 6 months
following the applicable sale, transfer, lease or other disposition by the Borrower or any of its
Subsidiaries shall be deemed to constitute cash consideration).

SECTION 6.06. Sale and Leaseback Transactions. Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, enter into
any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or
personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter
rent or lease such property or other property that it intends to use for substantially the same
purpose or purposes as the property sold or transferred, except for (x) any such sale of any fixed
or capital assets by the Borrower or any Subsidiary that is made for cash consideration in an
amount not less than the fair value of such fixed or capital asset and is consummated within 120
days after the Borrower or such Subsidiary acquires or completes the construction of such fixed or
capital asset or (y) sale and leaseback transactions with respect to properties acquired after the
Effective Date, where the Fair Market Value of such properties in the aggregate does not to exceed
$50,000,000.

SECTION 6.07. Swap Agreements. Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, enter into
any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the
Borrower or any Subsidiary has actual exposure (other than those in respect of Equity Interests of
the Borrower or any of the Subsidiaries) and (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating
rate to another floating rate or otherwise) with respect to any interest-bearing liability or
investment of Holdings, the Borrower or any Subsidiary.

SECTION 6.08. Restricted Payments; Certain Payments of Indebtedness.

(a) Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, declare or
make, or agree to pay or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except:

(i) each of Holdings and the Borrower may declare and pay dividends with respect to its
common stock payable solely in additional shares of its common stock, and, with respect to
its preferred stock, payable solely in additional shares of such preferred stock or in
 shares of its common stock;

(ii) Subsidiaries may declare and pay dividends ratably with respect to their capital
stock, membership or partnership interests or other similar Equity Interests;

(iii) Holdings may (or may make Restricted Payments to allow a Parent to) purchase or
redeem (and the Borrower may declare and pay dividends or make other distributions to
Holdings, the proceeds of which are used by Holdings or a Parent to purchase or redeem)
Equity Interests of Holdings or a Parent (x) acquired by employees, consultants or directors
of Holdings, the Borrower or any Subsidiary upon such Person’s death, disability, retirement
or termination of employment, provided that the aggregate amount of such purchases
or redemptions under this clause (iii)(x) shall not exceed $15,000,000 in any fiscal year
(and, to the extent that the aggregate amount of purchases or redemptions made in any fiscal
year pursuant to this clause (iii)(x) is less than $15,000,000, the amount of such
difference may be carried forward and used for such purpose in the following fiscal year)
and $40,000,000 in the aggregate and (y) in connection with Holdings’ stock repurchase
program announced prior to the Effective Date authorizing the repurchase shares of Holdings’
common stock for aggregate consideration not to exceed $55,000,000;

 

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(iv) the Borrower may make Restricted Payments to Holdings to be used by Holdings
solely to pay (or to make Restricted Payments to allow a Parent to pay) its franchise taxes
and other fees required to maintain its corporate existence and to pay for general corporate
and overhead expenses (including salaries and other compensation of employees) and other
expenses in its capacity as the parent of Borrower incurred by Holdings or a Parent in the
ordinary course of its business, provided that such Restricted Payments shall not
exceed $5,000,000 in any fiscal year;

(v) the Borrower may make Restricted Payments to Holdings in an amount necessary to
enable Holdings to pay (or make Restricted Payments to allow a Parent to pay) the Taxes
directly attributable to (or arising as a result of) the operations of a Parent, Holdings,
the Borrower and the Subsidiaries, provided that (A) the amount of any such
Restricted Payments pursuant to this clause (v) shall not exceed the amount that the
Borrower and the Subsidiaries would be required to pay in respect of Federal, state and
local taxes were the Borrower and the Subsidiaries to pay such taxes as stand-alone
taxpayers (including any interest or penalties thereon, if applicable) and (B) all
Restricted Payments made to Holdings or a Parent pursuant to this clause (v) are used by
Holdings or a Parent for the purposes specified herein within 20 days of the receipt
thereof;

(vi) cashless repurchases of Equity Interests of Holdings deemed to occur upon exercise
of stock options or warrants or upon vesting of common stock, if such Equity Interests
represent a portion of the exercise price or withholding obligations of such options,
warrants or common stock;

(vii) [reserved];

(viii) the Borrower may make Restricted Payments to Holdings to pay management,
consulting and advisory fees to any Sponsor or Sponsor Affiliate to the extent permitted by
Section 6.09;

(ix) the Borrower may make Restricted Payments to Holdings in an amount necessary to
permit Holdings to pay (or to make Restricted Payments to allow a Parent to pay) interest in
cash (including interest previously paid “in kind” or added to the principal amount thereof)
and, with respect to subclause (x) of this Section 6.08(a)(ix) only, principal in cash on
(x) Qualified Holdings Floating Rate Notes or (y) additional Qualified Holdings Debt, but,
in the case of this clause (y), only to the extent the proceeds (together with a pro
rata portion of related transaction expenses paid from such proceeds) of such
additional Qualified Holdings Debt were used to make Capital Expenditures (without giving
effect to the proviso in the definition of the term “Capital Expenditures”), prepay Tranche
B Term Loans, make Investments pursuant to Section 6.04(xvii) or repay, redeem, defease or
otherwise refinance any Qualified Holdings Debt previously issued hereunder or were
Otherwise Applied, provided that (A) no Default has occurred and is continuing or
would result therefrom and (B) all Restricted Payments made pursuant to this clause (ix) are
used by Holdings or a Parent for the purposes specified herein within 20 days of receipt
thereof;

(x) the Borrower and the Subsidiaries may make additional Restricted Payments (and
Holdings may make Restricted Payments with such amounts received from the Borrower) in an
aggregate amount not exceeding the Available Amount immediately prior to the time of the
making of such Restricted Payment; provided that (A) immediately prior to and after giving
effect to such Restricted Payment, the Borrower is in compliance with the Financial
Performance Covenant and (B) no Default has occurred and is continuing or would result
therefrom;

 

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(xi) the Borrower may make Restricted Payments to Holdings to pay any non-recurring
fees, cash charges and cost expenses incurred in connection with the issuance of Equity
Interests or Indebtedness, in each case only to the extent that such transaction is not
consummated;

(xii) the Borrower and its Subsidiaries may make additional Restricted Payments (and
Holdings may make Restricted Payments with such amounts received from the Borrower) in an
aggregate amount not to exceed $50,000,000; provided that no Default or Event of
Default has occurred and is continuing or would result therefrom; and

(xiii) Holdings may make Restricted Payments with the Net Proceeds received by Holdings
from any issuance of any Equity Interests (or capital contribution in respect thereof) or
Qualified Holdings Debt to the extent such Net Proceeds are not contributed or otherwise
received by the Borrower or any of the Subsidiaries; provided that no Default or
Event of Default has occurred and is continuing or would result therefrom.

(b) The Borrower will not nor will it permit any Subsidiary to, make, directly or indirectly,
any payment or other distribution (whether in cash, securities or other property) of or in respect
of principal of or interest on, or any payment or other distribution (whether in cash, securities
or other property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of, any Subordinated Indebtedness
(other than the Existing Subordinated Notes and intercompany loans among Subsidiaries and the
Borrower) or Permitted Debt Securities issued pursuant to Section 6.01(xvii) (other than Permitted
Secured Notes (x) that are secured by Liens subject to the First Lien Intercreditor Agreement or
(y) the proceeds of which are used to repay Term Loans) (“Specified Indebtedness”), except:

(i) payment of regularly scheduled interest and principal payments as and when due in
respect of any Indebtedness, other than, in the case of Subordinated Indebtedness, as
prohibited by the subordination provisions thereof;

(ii) the conversion or exchange of any Specified Indebtedness into, or redemption,
repurchase, prepayment, defeasance or other retirement of any such Indebtedness with the Net
Proceeds of the issuance by Holdings or a Parent of, (A) Equity Interests (or capital
contributions in respect thereof) of Holdings or a Parent after the Effective Date to the
extent not Otherwise Applied or (B) Qualified Holdings Debt, plus any fees and
expenses in connection with such conversion, exchange, redemption, repurchase, prepayment,
defeasance or other retirement;

(iii) so long as no Default or Event of Default has occurred and is continuing or would
result therefrom, the prepayment, redemption, defeasance, repurchase or other retirement of
Specified Indebtedness for an aggregate purchase price not to exceed the Available Amount;
and

(iv) refinancings of Indebtedness to the extent the Indebtedness being incurred in
connection with such refinancing is permitted by Section 6.01.

 

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SECTION 6.09. Transactions with Affiliates. Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, sell, lease
or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with, any of its Affiliates,
except

(a) transactions that are at prices and on terms and conditions not less favorable to
Holdings, the Borrower or such Subsidiary than could be obtained on an arm’s-length basis
from unrelated third parties,

(b) (i) transactions between or among the Borrower and the Subsidiary Loan Parties, and
(ii) transactions between or among the Borrower and its Subsidiaries in the ordinary course
of business,

(c) any investment permitted under Section 6.04(iv), 6.04(v), 6.04(vii) or 6.04(xiii),

(d) any Indebtedness permitted under Section 6.01(a)(v) and Section 6.01(a)(xii),

(e) any Restricted Payment permitted under Section 6.08,

(f) loans or advances to employees permitted under Section 6.04,

(g) any lease entered into between the Borrower or any Subsidiary, as lessee, and any
of the Affiliates (as of the Effective Date) of the Borrower or entity controlled by such
Affiliates, as lessor, which is approved in good faith by a majority of the disinterested
members of the Board of Directors of the Borrower,

(h) so long as no Default described in Section 7.01(b) and no Event of Default has
occurred and is continuing, the Borrower may pay, or may pay cash dividends to enable
Holdings to pay, (A) customary management, consulting, monitoring or advisory fees to the
Sponsor or any Sponsor Affiliates in an aggregate amount not greater than $2,500,000 during
any fiscal year (plus any unpaid management, consulting, monitoring or advisory fees within
such amount accrued in any prior year) and (B) fees in respect of any financings,
acquisitions or dispositions with respect to which the Sponsor or any Sponsor Affiliate acts
as an adviser to Holdings, the Borrower or any Subsidiary in an amount not to exceed 2.0% of
the value of any such transaction,

(i) any contribution to the capital of Holdings directly or indirectly by the Permitted
Investors or any purchase of Equity Interests of Holdings by the Permitted Investors not
prohibited by this Agreement,

(j) the payment of reasonable fees to directors of Holdings, the Borrower or any
Subsidiary who are not employees of Holdings, the Borrower or any Subsidiary, and
compensation and employee benefit arrangements paid to, and indemnities provided for the
benefit of, directors, officers or employees of Holdings, the Borrower or any Subsidiary in
the ordinary course of business,

(k) any issuances of securities or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment agreements, stock options and stock
ownership plans approved by the Borrower’s or Holdings’ Board of Directors (or a committee
thereof),

 

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(l) transactions pursuant to agreements set forth on Schedule 6.09 and any
amendments thereto to the extent such amendments are not materially less favorable to the
Borrower or such Subsidiary Loan Party than those provided for in the original agreements,

(m) employment, change in control and severance arrangements entered into in the
ordinary course of business and approved by the Borrower’s or Holdings’ Board of Directors
(or a committee thereof) between a Parent, Holdings, the Borrower or any Subsidiary and any
employee thereof, and

(n) payments by the Borrower or any of its Subsidiaries of reasonable insurance
premiums to, and any borrowings or dividends received from, any Insurance Subsidiary.

SECTION 6.10. Restrictive Agreements.

(a) Subject to clauses (b) through (d) below, neither Holdings nor the Borrower will, nor will
they permit any Subsidiary to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any condition upon (i) the
ability of Holdings, the Borrower or any Subsidiary to create, incur or permit to exist any Lien
upon any of its property or assets or (ii) the ability of any Subsidiary to pay dividends or other
distributions with respect to any shares of its capital stock or to make or repay loans or advances
to the Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower or any other
Subsidiary.

(b) The foregoing clause (a) shall not apply to restrictions and conditions (i) imposed by law
or by any Loan Document, Existing Subordinated Notes Document, Qualified Holdings Debt, Qualified
Holdings Floating Rate Notes Document or documentation governing any Permitted Debt Securities, or
Indebtedness of a Foreign Subsidiary permitted to be incurred under this Agreement
(provided that such restrictions shall apply only to such Foreign Subsidiary), (ii)
existing on the date hereof identified on Schedule 6.10 (but shall apply to any extension
or renewal of, or any amendment or modification expanding the scope of, any such restriction or
condition), (iii) contained in agreements relating to the sale of a Subsidiary pending such sale,
provided such restrictions and conditions apply only to the Subsidiary that is to be sold
and such sale is permitted hereunder, (iv) imposed on any Consolidated Practice by (and for the
benefit of) any Loan Party and (v) imposed by any customary provisions restricting assignment of
any agreement entered into the ordinary course of business.

(c) The foregoing clause (a)(i) shall not apply to restrictions or conditions (i) imposed by
any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions
or conditions apply only to the property or assets securing such Indebtedness and (ii) imposed
by customary provisions in leases restricting the assignment thereof.

(d) The foregoing clause (a)(ii) shall not apply to customary provisions in joint venture
agreements relating to purchase options, rights of first refusal or call or similar rights of a
third party that owns Equity Interests in such joint venture.

SECTION 6.11. Amendment of Material Documents. Neither Holdings nor the Borrower will, nor will they permit any Subsidiary to, amend,
modify or waive any of its rights under (a) any Existing Subordinated Notes Document, (b) the
documentation governing any Permitted Debt Securities or (c) its certificate of incorporation,
by-laws or other organizational documents, in each case to the extent such amendment, modification
or waiver would be materially adverse to the Lenders.

SECTION 6.12. [Reserved].

 

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SECTION 6.13. Leverage Ratio. The Borrower will not permit the Leverage Ratio as of any date set forth below to exceed
the ratio set forth opposite such date:

	 	 	 
	Date	 	Ratio
	 
	 	 
	June 30, 2011

	 	6.00 to 1.00
	 
	 	 
	September 30, 2011

	 	6.00 to 1.00
	 
	 	 
	December 31, 2011

	 	5.75 to 1.00
	 
	 	 
	March 31, 2012

	 	5.50 to 1.00
	 
	 	 
	June 30, 2012

	 	5.25 to 1.00
	 
	 	 
	September 30, 2012

	 	5.00 to 1.00
	 
	 	 
	December 31, 2012

	 	4.75 to 1.00
	 
	 	 
	March 31, 2013

	 	4.50 to 1.00
	 
	 	 
	June 30, 2013

	 	4.50 to 1.00
	 
	 	 
	September 30, 2013

	 	4.50 to 1.00
	 
	 	 
	December 31, 2013

	 	4.50 to 1.00
	 
	 	 
	March 31, 2014

	 	4.50 to 1.00
	 
	 	 
	June 30, 2014

	 	4.50 to 1.00
	 
	 	 
	September 30, 2014

	 	4.50 to 1.00
	 
	 	 
	December 31, 2014

	 	4.50 to 1.00
	 
	 	 
	March 31, 2015

	 	4.50 to 1.00
	 
	 	 
	June 30, 2015

	 	4.50 to 1.00
	 
	 	 
	September 30, 2015

	 	4.50 to 1.00
	 
	 	 
	December 31, 2015

	 	4.50 to 1.00
	 
	 	 
	March 31, 2016

	 	4.50 to 1.00
	 
	 	 
	June 30, 2016

	 	4.50 to 1.00
	 
	 	 
	September 30, 2016

	 	4.50 to 1.00
	 
	 	 
	December 31, 2016

	 	4.50 to 1.00

 

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	Date	 	Ratio
	 
	 	 
	March 31, 2017

	 	4.50 to 1.00
	 
	 	 
	June 30, 2017

	 	4.50 to 1.00
	 
	 	 
	September 30, 2017

	 	4.50 to 1.00
	 
	 	 
	December 31, 2017

	 	4.50 to 1.00
	 
	 	 
	March 31, 2018

	 	4.50 to 1.00

SECTION 6.14. Maximum Capital Expenditures.

(a) The Borrower will not, nor will it permit any Subsidiary to, incur or make any Capital
Expenditures except and as set forth below:

	 	 	 
	Fiscal Year	 	Maximum Capital Expenditures
	 
	 	 
	2011

	 	$125.0 million
	 
	 	 
	2012

	 	$125.0 million
	 
	 	 
	2013

	 	$125.0 million
	 
	 	 
	2014

	 	$125.0 million
	 
	 	 
	2015

	 	$125.0 million
	 
	 	 
	2016

	 	$125.0 million
	 
	 	 
	2017

	 	$125.0 million
	 
	 	 
	2018

	 	$125.0 million

; provided that if the aggregate amount of Capital Expenditures made in any fiscal year
shall be less than the maximum amount of Capital Expenditures permitted under this Section 6.14 for
such fiscal year (including any carryover), then an amount of such shortfall not exceeding 50% of
such maximum amount (not including any carryover) may be added to the amount of Capital
Expenditures permitted under this Section 6.14 for the immediately succeeding (but not any other)
fiscal year.

 

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ARTICLE VII

Events of Default

SECTION 7.01. Events of Default. If any of the following events (any such event, an “Event of Default”) shall occur:

(a) the Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in paragraph (a) of this Section 7.01) payable
under this Agreement or any other Loan Document, when and as the same shall become due and
payable, and such failure shall continue unremedied for a period of three Business Days;

(c) any representation or warranty made or deemed made by or on behalf of Holdings, the
Borrower or any Subsidiary in or in connection with any Loan Document or any amendment or
modification thereof or waiver thereunder, or in any report, certificate, financial
statement or other document furnished pursuant to or in connection with any Loan Document or
any amendment or modification thereof or waiver thereunder, shall prove to have been
incorrect in any material respect (except to the extent any such representation or warranty
is qualified by “materially,” “Material Adverse Effect” or a similar term, in which case
such representation or warranty shall prove to have been incorrect in any respect) when made
or deemed made;

(d) Holdings or the Borrower shall fail to observe or perform any covenant, condition
or agreement contained in Section 5.02, 5.03, 5.04 (with respect to the existence of
Holdings and the Borrower), 5.11 or in Article VI;

(e) Holdings, the Borrower or any Subsidiary Loan Party shall fail to observe or
perform any covenant, condition or agreement contained in any Loan Document (other than
those specified in paragraph (a), (b) or (d) of this Section 7.01), and such failure shall
continue unremedied for a period of 30 days after notice thereof from the Administrative
Agent to the Borrower (which notice will be given at the request of any Lender);

(f) Holdings, the Borrower or any Subsidiary shall fail to make any payment (whether of
principal or interest and regardless of amount) in respect of any Material Indebtedness,
when and as the same shall become due and payable (after giving effect to any applicable
grace period);

(g) any event or condition occurs that results in any Material Indebtedness becoming
due prior to its scheduled maturity or that enables or permits (with or without the giving
of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or
any trustee or agent on its or their behalf to cause any Material Indebtedness to become
due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to
its scheduled maturity, provided that this paragraph (g) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of the property
or assets (to the extent not prohibited under this Agreement) securing such Indebtedness;

 

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(h) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of Holdings, the
Borrower or any Subsidiary or its debts, or of a substantial part of its assets, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for Holdings, the Borrower or any Subsidiary or for a
substantial part of its assets, and, in any such case, such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

(i) Holdings, the Borrower or any Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other relief under
any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in paragraph (h) of this Section
7.01, (iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for Holdings, the Borrower or any Subsidiary
or for a substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors or (vi) take any formal action for the purpose of
effecting any of the foregoing;

(j) Holdings, the Borrower or any Subsidiary shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due;

(k) one or more judgments for the payment of money (to the extent not paid or covered
by insurance provided by a carrier that has acknowledged its obligation to pay such claim in
writing and that has a credit rating of at least “A” by A.M. Best Company, Inc.) in an
aggregate amount in excess of $50,000,000 shall be rendered against Holdings, the Borrower,
any Subsidiary or any combination thereof and the same shall remain undischarged for a
period of 30 consecutive days during which execution shall not be effectively stayed, or any
action shall be legally taken by a judgment creditor to attach or levy upon any assets of
Holdings, the Borrower or any Subsidiary to enforce any such judgment;

(l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could reasonably be
expected to result in liability of the Borrower and the Subsidiaries in an aggregate amount
exceeding $50,000,000 for all periods;

(m) any Lien purported to be created under any Security Document shall cease to be, or
shall be asserted by any Loan Party not to be, a valid and perfected Lien on any Collateral
with a fair value in excess of $5,000,000, with the priority required by the applicable
Security Document, except (i) as a result of the sale or other disposition of the applicable
Collateral in a transaction permitted under the Loan Documents or (ii) as a result of the
Administrative Agent’s failure to maintain possession of any stock certificates, promissory notes or other instruments
delivered to it under the Collateral Agreement;

(n) any Loan Document shall for any reason be asserted by any Loan Party not to be a
legal, valid and binding obligation of any party thereto;

(o) the Guarantees of the Obligations by Holdings and the Subsidiary Loan Parties
pursuant to the Collateral Agreement shall cease to be in full force and effect (other than
in accordance with the terms of the Loan Documents) or shall be asserted by Holdings, the
Borrower or any Subsidiary Loan Party not to be in effect or not to be legal, valid and
binding obligations; or

 

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(p) a Change in Control shall occur;

then, and in every such event (other than an event with respect to the Borrower described in
paragraph (h) or (i) of this Section 7.01), and at any time thereafter during the continuance of
such event, the Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Borrower, take either or both of the following actions, at the same or different
times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately,
and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which
case any principal not so declared to be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to
the Borrower described in paragraph (h) or (i) of this Section 7.01, the Commitments shall
automatically terminate and the principal of the Loans then outstanding, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower.

SECTION 7.02. Borrower’s Right to Cure.

(a) Notwithstanding anything to the contrary contained in Section 7.01, in the event that the
Borrower fails to comply with the requirements of the Financial Performance Covenant for any Fiscal
Quarter, from the first day of such Fiscal Quarter until the date that is ten days subsequent to
the date on which financial statements with respect to the fiscal period for such Financial
Performance Covenant is being measured are required to be delivered pursuant to Section 5.01,
Holdings shall have the right to issue Permitted Securities, the proceeds of which Holdings will
contribute in cash to the Borrower as common equity (collectively, the “Cure Right”);
provided that at the Borrower’s option, the Borrower may elect to exercise such Cure Right
prior to the date of the delivery of the applicable financial statements if the Borrower reasonably
determines that it will fail to comply with the requirements of the Financial Performance Covenant
upon the delivery of such financial statements, and upon the receipt by the Borrower of such cash
(the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right the
Financial Performance Covenant shall be recalculated giving effect to the following pro forma
adjustments:

(i) Consolidated EBITDA shall be increased, solely for the purpose of measuring the
Financial Performance Covenant at the end of the applicable Fiscal Quarter and applicable
subsequent periods which include such Fiscal Quarter and not for any other purpose under
this Agreement, by an amount equal to the Cure Amount; and

(ii) if, after giving effect to the foregoing recalculations, the Borrower shall then
be in compliance with the requirements of the Financial Performance Covenant, the Borrower
shall be deemed to have satisfied the requirements of the Financial Performance Covenant as
of the relevant date of determination with the same effect as though there had been no
failure to comply therewith at such date, and the applicable breach or default of the
Financial Performance Covenant that had occurred shall be deemed cured for the purposes of
this Agreement.

(b) Notwithstanding anything herein to the contrary, (a) in each four-Fiscal-Quarter period
there shall be at least two Fiscal Quarters in which the Cure Right is not exercised and no more
than five Cure Rights shall be exercised during the term of this Agreement, (b) the Cure Amount
shall be no greater than the amount required for purposes of complying with the Financial
Performance Covenant and (c) the Cure Amount shall be set forth in an Officer’s Certificate
delivered to the Administrative Agent.

 

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SECTION 7.03. Exclusion of Immaterial Subsidiaries. Solely for the purposes of determining whether a Default has occurred under clause (h) or
(i) of Section 7.01, any reference in any such clause to any Subsidiary shall be deemed not to
include any Subsidiary affected by any event or circumstance referred to in any such clause that
did not, as of the last day of the fiscal quarter of the Borrower most recently ended, have assets
with a value in excess of 5% of the consolidated total assets of the Borrower and the Subsidiaries
or 5% of the total revenues of the Borrower and the Subsidiaries as of such date; provided
that if it is necessary to exclude more than one Subsidiary from clause (h) or (i) of Section 7.01
pursuant to this Section 7.03 in order to avoid an Event of Default thereunder, all excluded
Subsidiaries shall be considered to be a single consolidated Subsidiary for purposes of determining
whether the condition specified above is satisfied.

ARTICLE VIII

The Agents

SECTION 8.01. The Agents. Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative
Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Administrative Agent by the terms of the Loan
Documents, together with such actions and powers as are reasonably incidental thereto. For
purposes of this Article VIII, all references to the Administrative Agent shall be deemed to be
references to both the Administrative Agent and the Collateral Agent.

The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

The Administrative Agent shall not have any duties or obligations except those expressly set
forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the
Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is
required to exercise in writing as directed by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
2.05(j) and Section 9.02), and (c) except as expressly set forth in
the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to Holdings, the Borrower or
any of the Subsidiaries that is communicated to or obtained by the bank serving as Administrative
Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for
any action taken or not taken by it with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until written
notice thereof is given to the Administrative Agent by Holdings, the Borrower or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered thereunder or in connection
therewith, (iii) the performance or observance of any of the covenants, agreements or other terms
or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or
genuineness of any Loan Document or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than
to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

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The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more subagents appointed by the Administrative Agent. The Administrative
Agent and any such subagent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such subagent and to the Related Parties of each Administrative Agent and any
such subagent, and shall apply to their respective activities in connection with the syndication of
the credit facilities provided for herein as well as activities as Administrative Agent.

The Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and
the Borrower. Upon any such resignation, the Required Lenders shall have the right, in
consultation with the Borrower, to appoint a successor. If no successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent gives notice of its resignation, then the retiring Administrative
Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent
which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon
the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Administrative Agent’s resignation hereunder, the
provisions of this Article and Section 9.03 shall continue in effect for the benefit of such
retiring Administrative Agent, its subagents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while it was acting as Administrative Agent.

Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or related agreement or any document furnished
hereunder or thereunder. The Lenders identified in this Agreement as a Syndication Agent and a
Documentation Agent shall not have any right, power, obligation, liability, responsibility or duty
under this Agreement other than those applicable to all Lenders. Without limiting the foregoing, no
Syndication Agent nor any Documentation Agent shall have or be deemed to have a fiduciary
relationship with any Lender.

Each Lender irrevocably agrees that the Administrative Agent may enter into the First Lien
Intercreditor Agreement and the Second Lien Intercreditor agreement, without any further consent
from any Secured Party, in connection with any incurrence by the Borrower of Permitted Debt
Securities and bind the Secured Parties thereby.

 

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ARTICLE IX

Miscellaneous

SECTION 9.01. Notices.

(a) Except in the case of notices and other communications expressly permitted to be given by
telephone, all notices and other communications provided for herein shall be in writing and shall
be delivered by hand or overnight courier service, mailed by certified or registered mail or sent
by telecopy, as follows:

(i) if to the Borrower, to Select Medical Corporation, 4716 Old Gettysburg Road, P.O.
Box 2034, Mechanicsburg, PA 17055, Attention: Michael E. Tarvin (Telecopy No. (717)
975-9981);

(ii) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., 270 Park Avenue, 4th
Floor, New York, New York 10017, Attention of Dawn Lee Lum (Telecopy No. (212) 270-2472),
with a copy to JPMorgan Chase Bank, N.A., Loan and Agency Services, 1111 Fannin Street, 10th
Floor, Houston, TX 77002, Attention: John Ngo (Telecopy No. (713) 750- 2931);

(iii) if to the Issuing Bank, to JPMorgan Chase Bank, N.A., Loan and Agency Services,
1111 Fannin Street, 10th Floor, Houston, TX 77002, Attention: John Ngo (Telecopy No. (713)
750- 2931);

(iv) if to the Swingline Lender, to JPMorgan Chase Bank, N.A., Loan and Agency
Services, 1111 Fannin Street, 10th Floor, Houston, TX 77002, Attention: John Ngo (Telecopy
No. (713) 750- 2931);

(v) if to the Collateral Agent, to JPMorgan Chase Bank, N.A., Loan and Agency Services,
1111 Fannin Street, 10th Floor, Houston, TX 77002, Attention: John Ngo (Telecopy No. (713)
750- 2931); and

(vi) if to any other Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.

(b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent,
provided that the foregoing shall not apply to notices pursuant to Article II unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Borrower may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided that
approval of such procedures may be limited to particular notices or communications.

 

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(c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the Administrative Agent (and, in the case of the
Administrative Agent, by written notice to the Borrower). All notices and other communications
given to any party hereto in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt.

SECTION 9.02. Waivers; Amendments.

(a) No failure or delay by the Administrative Agent, the Issuing Bank, the Collateral Agent,
the Swingline Lender or any Lender in exercising any right or power hereunder or under any other
Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Administrative Agent, the Issuing Bank, the Collateral Agent, the
Swingline Lender and the Lenders hereunder and under the other Loan Documents are cumulative and
are not exclusive of any rights or remedies that they would otherwise have. No waiver of any
provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any
event be effective unless the same shall be permitted by paragraph (b) of this Section 9.02, and
then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given. Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of
whether the Administrative Agent, any Lender, the Collateral Agent, the Swingline Lender or the
Issuing Bank may have had notice or knowledge of such Default at the time.

(b) Except as provided in Section 2.20 with respect to an Additional Credit Extension
Amendment (or to give effect to any restatement of this Agreement, the substantive terms of which
are otherwise permitted hereby), neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended or modified except, in the case of this
Agreement, pursuant to an agreement or agreements in writing entered into by Holdings, the Borrower
and the Required Lenders or, in the case of any other Loan Document, pursuant to an agreement or
agreements in writing entered into by the Administrative Agent and the Loan Party or Loan Parties
that are parties thereto, in each case with the consent of the Required Lenders; provided
that no such agreement shall

(i) increase the Commitment of any Lender without the written consent of such Lender,

(ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written consent of each
Lender affected thereby,

(iii) postpone the maturity of any Loan, or any scheduled date of payment of the
principal amount of any Tranche B Term Loan under Section 2.10, the required date of
reimbursement of any LC Disbursement, or any date for the payment of any interest or fees
payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone
the scheduled date of expiration of any Commitment, without the written consent of each
Lender affected thereby,

(iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender adversely affected
thereby,

 

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(v) change any of the provisions of this Section 9.02 or the percentage set forth in
the definition of “Required Lenders”, “Required Revolving Lenders” or any other provision of
any Loan Document specifying the number or percentage of Lenders (or Lenders of any Class)
required to waive, amend or modify any rights thereunder or make any determination or grant
any consent thereunder, without the written consent of each Lender (or each Lender of such
Class, as applicable),

(vi) release Holdings or any Subsidiary Loan Party from its Guarantee under the
Collateral Agreement (except as provided in Section 9.15 or in the Collateral Agreement) or
limit its liability in respect of such Guarantee, without the written consent of each
Lender,

(vii) release all or substantially all the Collateral from the Liens of the Security
Documents (except as provided in Section 9.15 or in the Collateral Agreement), without the
written consent of each Lender,

(viii) change any provisions of any Loan Document in a manner that by its terms
adversely affects the rights in respect of payments due to Lenders holding Loans of any
Class differently than those holding Loans of any other Class, without the written consent
of Lenders holding a majority in interest of the outstanding Loans and unused Commitments of
each adversely affected Class, or

(ix) expressly change or waive any condition precedent in Section 4.02 to any
Revolving Borrowing, including, without limitation, the related defined terms therein to the
extent applicable to such section, without the written consent of the Required Revolving
Lenders,

provided, further, that (A) no such agreement shall amend, modify or otherwise
affect the rights or duties of the Administrative Agent, the Issuing Bank or the Swingline Lender
without the prior written consent of the Administrative Agent, the Issuing Bank or the Swingline
Lender, as applicable, and (B) any waiver, amendment or modification of this Agreement that by its
terms affects the rights or duties under this Agreement of the Revolving Lenders (but not the
Tranche B Lenders) or the Tranche B Lenders (but not the Revolving Lenders) may be effected by an
agreement or agreements in writing entered into by Holdings, the Borrower and requisite percentage
in interest of the affected Class of Lenders that would be required to consent thereto under this
Section 9.02(b) if such Class of Lenders were the only Class of Lenders hereunder at the time. In
connection with any proposed amendment, modification, waiver or termination (a “Proposed
Change”) requiring the consent of all affected Lenders, if the consent of the Required Lenders
to such Proposed Change is obtained, but the consent to such Proposed Change of other Lenders whose
consent is required is not obtained (any such Lender whose consent is not obtained as described in
this Section 9.02(b) being referred to as a “Non-Consenting Lender”), then, so long as the
Lender that is acting as the Administrative Agent is not a Non-Consenting Lender, at the Borrower’s
request, any assignee that is acceptable to the Administrative Agent shall have the right, with the
Administrative Agent’s
consent, to purchase from such Non-Consenting Lender, and such Non-Consenting Lender agrees that it
shall, upon the Borrower’s request, sell and assign to such assignee, at no expense to such
Non-Consenting Lender, all the Commitments, Tranche B Term Loans and Revolving Exposure of such
Non-Consenting Lender for an amount equal to the principal balance of all Tranche B Term Loans and
Revolving Loans (and funded participations in Swingline Loans and unreimbursed LC Disbursements)
held by such Non-Consenting Lender and all accrued interest and fees with respect thereto through
the date of sale (including amounts under Sections 2.15, 2.16 and 2.17), such purchase and sale to
be consummated pursuant to an executed Assignment and Assumption in accordance with Section 9.04(b)
(which Assignment and Assumption need not be signed by such Non-Consenting Lender).

 

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(c) Notwithstanding the provisions of clause (b), this Agreement may be amended (or amended
and restated) with the written consent of the Required Lenders, the Administrative Agent, Holdings
and the Borrower (i) to add one or more additional credit facilities to this Agreement and to
permit the extensions of credit from time to time thereunder and the accrued interest and fees in
respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents
with the Tranche B Term Loans and the Revolving Loans and the accrued interest and fees in respect
thereof, and (ii) to include appropriately the Lenders holding such credit facilities in any
determination of the Required Lenders. In addition, this Agreement may be amended with the written
consent of the Administrative Agent, Holdings, the Borrower and the Lenders providing the relevant
Replacement Term Loans (as defined below) to permit the refinancing of all outstanding Tranche B
Term Loans (the “Refinanced Term Loans”) with a replacement term loan tranche hereunder
(the “Replacement Term Loans”); provided that (i) the aggregate principal amount of such
Replacement Term Loans shall not exceed the aggregate principal amount of such Refinanced Term
Loans, (ii) the Applicable Rate for such Replacement Term Loans shall not be higher than the
Applicable Rate for such Refinanced Term Loans, (iii) the weighted average life to maturity of such
Replacement Term Loans shall not be shorter than the weighted average life to maturity of such
Refinanced Term Loans at the time of such refinancing (except to the extent of nominal amortization
for periods where amortization has been eliminated as a result of prepayment of the Tranche B Term
Loans) and (iv) all other terms applicable to such Replacement Term Loans shall be substantially
identical to, or less favorable to the Lenders providing such Replacement Term Loans than, those
applicable to such Refinanced Term Loans, except to the extent necessary to provide for covenants
and other terms applicable to any period after the latest final maturity of the Tranche B Term
Loans in effect immediately prior to such refinancing.

(d) Notwithstanding anything in this Section 9.02 to the contrary, (a) technical and
conforming modifications to the Loan Documents may be made with the consent of the Borrower and the
Administrative Agent to the extent necessary (i) to integrate any Incremental Term Loans, any
Incremental Revolving Commitments, any Extended Term Loans or any Extended Revolving Commitments or
(ii) to cure any ambiguity, omission, defect or inconsistency and (b) without the consent of any
Lender or Issuing Bank, the Loan Parties and the Administrative Agent or any collateral agent may
(in their respective sole discretion, or shall, to the extent required by any Loan Document) enter
into (x) any amendment, modification or waiver of any Loan Document, or enter into any new
agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement
of any security interest in any Collateral or additional property to become Collateral for the
benefit of the Secured Parties or as required by local law to give effect to, or protect any
security interest for benefit of the Secured Parties, in any property or so that the security
interests therein comply with applicable law or this Agreement or in each case to otherwise enhance
the rights or benefits of any Lender under any Loan Document or (y) any First Lien Intercreditor
Agreement and/or Second Lien Intercreditor Agreement with the holders of Permitted Debt Securities
(or any amendment or supplement thereto with respect to additional Permitted Debt Securities).

(e) In the event that this Agreement is amended at any time on or prior to the date that is
two years after the Effective Date and such amendment to this Agreement reduces the Yield
applicable to the Tranche B Term Loans on the Effective Date, the Borrower agrees to pay to the
Administrative Agent for the account of each Lender (whether or not such Lender consents to such
amendment) a fee in an amount equal to 1.00% of such Lender’s Tranche B Term Loans outstanding on
the effective date of such amendment; provided that no such fee shall be payable if a
prepayment fee is payable in accordance with Section 2.12(c) related to such amendment.
Notwithstanding the provisions of Section 9.02, this Section 9.02(e) shall not be waived, amended
or modified without the written consent of each Lender adversely affected thereby.

 

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SECTION 9.03. Expenses; Indemnity; Damage Waiver.

(a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Agents
and their respective Affiliates, including the reasonable fees, charges and disbursements of
counsel for the Agents, in connection with the syndication of the credit facilities provided for
herein, the preparation and administration of the Loan Documents or any amendments, modifications
or waivers of the provisions thereof (whether or not the transactions contemplated hereby or
thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing
Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all reasonable out-of-pocket expenses incurred by the
Administrative Agent, the Issuing Bank or any Lender, including the reasonable fees, charges and
disbursements of any counsel for the Administrative Agent, the Issuing Bank or any Lender, in
connection with the enforcement or protection of its rights in connection with the Loan Documents,
including its rights under this Section 9.03, or in connection with the Loans made or Letters of
Credit issued hereunder, including all such reasonable out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

(b) The Borrower shall indemnify the Administrative Agent, the Issuing Bank and each Lender,
and each Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”), and hold each Indemnitee harmless, from and against any and all losses,
claims, damages, liabilities and related expenses, including the fees, charges and disbursements of
any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of any Loan Document or any other
agreement or instrument contemplated hereby, the performance by the parties to the Loan Documents
of their respective obligations thereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds
therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter
of Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit), (iii) any actual or alleged presence or Release or threat of
Release of Hazardous Materials on, at, under or from any Mortgaged Property or any other property
currently or formerly owned, leased or operated by the Borrower or any of its Subsidiaries, or any
actual or alleged Environmental Liability related in any way to the Borrower or any of its
Subsidiaries or their respective properties or operations, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto,
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are finally judicially
determined by a court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of such Indemnitee.

(c) To the extent that the Borrower fails to pay any amount required to be paid by it to the
Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this
Section 9.03, each Lender severally agrees to pay to the Administrative Agent, the Issuing
Bank or the Swingline Lender, as applicable, such Lender’s pro rata share (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as applicable, was incurred by or asserted against the Administrative
Agent, the Issuing Bank or the Swingline Lender in its capacity as such. For purposes hereof, a
Lender’s “pro rata share” shall be determined based upon its share of the aggregate Revolving
Exposures, outstanding Tranche B Term Loans, and unused Commitments at the time.

 

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(d) To the extent permitted by applicable law, neither Holdings nor the Borrower shall assert,
and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement or any agreement or instrument
contemplated hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds
thereof.

(e) All amounts due under this Section 9.03 shall be payable not later than three days after
written demand therefor.

SECTION 9.04. Successors and Assigns.

(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may
not assign or otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights
or obligations hereunder except in accordance with this Section. Nothing in this Agreement,
express or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby (including any Affiliate of the Issuing
Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of
this Section 9.04) and, to the extent expressly contemplated hereby, the Related Parties of each of
the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

(b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld or delayed) of:

(1) the Borrower; provided that the Borrower shall be deemed to have consented
to an assignment unless it shall have objected thereto by written notice to the
Administrative Agent within ten (10) Business Days after having received notice thereof;
provided further that no consent of the Borrower shall be required for an
assignment to a Lender, an Affiliate of a Lender, an Approved Fund (as defined below) or, if
an Event of Default has occurred and is continuing, any other assignee;

(2) the Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment of all or any portion of a Tranche B Term Loan to
a Lender, an Affiliate of a Lender or an Approved Fund; and

(3) the Issuing Bank, provided that no consent of the Issuing Bank shall be
required for an assignment of all or any portion of a Tranche B Term Loan.

(ii) Assignments shall be subject to the following conditions:

(1) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of
any Class, the amount of the Commitment or Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000
or, in the case of a Tranche B Term Loan, $1,000,000, unless each of the Borrower and the
Administrative Agent otherwise consents; provided that no such consent of the
Borrower shall be required if an Event of Default has occurred and is continuing;

 

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(2) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement; provided
that this clause shall not be construed to prohibit assignment of a proportionate part of
all the assigning Lender’s rights and obligations in respect of one Class of Commitments or
Loans;

(3) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of
$3,500; and

(4) the assignee, if it is not already a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

For purposes of this Section 9.04(b):

“Approved Fund” means (a) a CLO and (b) with respect to any Lender that is a
fund which invests in bank loans and similar extensions of credit, any other fund that
invests in bank loans and similar extensions of credit and is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such investment advisor.

“CLO” means any entity (whether a corporation, partnership, trust or otherwise)
that is engaged in making, purchasing, holding or otherwise investing in bank loans and
similar extensions of credit in the ordinary course and is administered or managed by a
Lender or an Affiliate of such Lender.

(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section 9.04, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment
and Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.15, 2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this Section 9.04 shall be treated
for purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section 9.04.

(iv) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Commitment of, and
principal amount and stated interest of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Banks and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrower, the Issuing Banks and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

 

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(v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section 9.04 and any written consent to such assignment required by paragraph (b) of
this Section 9.04, the Administrative Agent shall accept such Assignment and Assumption and record
the information contained therein in the Register. No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in this paragraph.

(c) (i) Any Lender may, without the consent of the Borrower, the Administrative Agent, the
Issuing Banks or the Swingline Lender, sell participations to one or more banks or other entities
(a “Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it),
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrower, the Administrative Agent, the Issuing Banks and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement, provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 9.02(b) that affects such Participant.

(ii) Each Lender that sells a participation shall, acting solely for this purpose as a
non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of
each Participant and the principal amounts (and related interest amounts) of each participant’s
interest in the Loans or other obligations under this Agreement (the “Participant
Register”); provided that no Lender shall have any obligation to disclose all or any portion of
the Participant Register to any Person (including the identity of any participant or any
information relating to a participant’s interest in any Commitments, Loans or its other obligations
under this Agreement) except to the extent that the relevant parties, acting reasonably and in good
faith, determine that such disclosure is necessary to establish that such Commitment, Loan or other
obligation is in registered form under Section 5f.103-1(c) of the United States Treasury
Regulations. Unless otherwise required by the Internal Revenue Service (“IRS”), any disclosure
required by the foregoing sentence shall be made by the relevant Lender directly and solely to the
IRS. The entries in the Participant Register shall be conclusive absent manifest error, and the
Borrower, the Administrative Agent and each Lender shall treat each person whose name is recorded
in the Participant Register as the owner of the participation in question for all purposes of this
Agreement notwithstanding any notice to the contrary.

(iii) Subject to paragraph (c)(ii) of this Section 9.04, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this
Section 9.04; provided that a Participant shall not be entitled to receive any greater
payment under Section 2.15 or 2.17 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the
Borrower’s prior written consent. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 9.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.18(c) as though it were a Lender. A Participant that
would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17
unless the Borrower is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 2.17(e) as though it were a Lender.

 

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(iv) Any Lender may at any time pledge, assign or grant a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender, including any
pledge, assignment or grant to secure obligations to a Federal Reserve Bank, and this Section 9.04
shall not apply to any such pledge, assignment or grant of a security interest, provided
that no such pledge, assignment or grant of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledge or assignee for such Lender as a party
hereto.

(v) Notwithstanding any other provision of this Agreement, no Lender will assign its rights
and obligations under this Agreement, or sell participations in its rights and/or obligations under
this Agreement, to any Person who is (i) listed on the Specially Designated Nationals and Blocked
Persons List maintained by the U.S. Department of Treasury Office of Foreign Assets Control
(“OFAC”) and/or on any other similar list maintained by OFAC pursuant to any authorizing
statute, executive order or regulation or (ii) either (A) included within the term “designated
national” as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515 or (B) designated
under Section 1(a), 1(b), 1(c) or 1(d) of Executive Order No. 13224, 66 Fed. Reg. 49079 (published
September 25, 2001) or similarly designated under any related enabling legislation or any other
similar executive orders.

SECTION 9.05. Survival. All covenants, agreements, representations and warranties made by the Loan Parties in the
Loan Documents and in the certificates or other instruments delivered in connection with or
pursuant to this Agreement or any other Loan Document shall have independent significance and be
considered to have been relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of
any Default or incorrect representation or warranty at the time any credit is extended hereunder,
and shall continue in full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or
any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.
The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in
full force and effect regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments
or the termination of this Agreement or any provision hereof.

SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. This Agreement, the other Loan Documents and any
separate letter agreements with respect to fees payable to the Administrative Agent constitute the
entire contract among the parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject matter hereof.
Except as provided in Section 4.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of the other parties
hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 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.

SECTION 9.07. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and enforceability of the
remaining provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

 

-96-

 

SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by such Lender or Affiliate to
or for the credit or the account of the Borrower against any of and all the obligations of the
Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The applicable Lender shall notify the Borrower and the
Administrative Agent of such setoff or application, provided that any failure to give or
any delay in giving such notice shall not affect the validity of any such setoff or application
under this Section 9.08. The rights of each Lender under this Section 9.08 are in addition to
other rights and remedies (including other rights of setoff) which such Lender may have.

SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process.

(a) This Agreement shall be construed in accordance with and governed by the law of the State
of New York.

(b) Each of Holdings and the Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the exclusive jurisdiction of the Supreme Court of the State of New
York sitting in New York County and of the United States District Court of the Southern District of
New York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to any Loan Document, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State or, to the extent permitted
by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan
Document shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or any other Loan
Document against Holdings, the Borrower or their respective properties in the courts of any
jurisdiction.

(c) Each of Holdings and the Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section
9.09. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

(d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement or any other Loan Document will
affect the right of any party to this Agreement to serve process in any other manner permitted by
law.

SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.10.

 

-97-

 

SECTION 9.11. Headings. Article and Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

SECTION 9.12. Confidentiality. Each of the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal
counsel and other advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory authority or
self-regulatory authority, (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this Section 9.12, to (i) any
assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights
or obligations under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g)
with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section 9.12 or (ii) becomes available to the
Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other
than Holdings or the Borrower, provided that such source is not actually known by such
disclosing party to be bound by an agreement containing provisions substantially the same as those
contained in this Section 9.12. For the purposes of this Section 9.12, the term
“Information” means all information received from Holdings or the Borrower relating to
Holdings or the Borrower or its business, other than any such information that is available to the
Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure
by Holdings or the Borrower, provided that, in the case of information received from
Holdings, the Borrower or any Subsidiary after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section 9.12 shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

SECTION 9.13. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate
applicable to any Loan, together with all fees, charges and other amounts that are treated as
interest on such Loan under applicable law (collectively, the “Charges”), shall exceed the
maximum lawful rate (the “Maximum Rate”) that may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of
interest payable in respect of such Loan hereunder, together with all Charges payable in respect
thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a result of the
operation of this Section 9.13 shall be cumulated and the interest and Charges payable to such
Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the Federal Funds
Effective Rate to the date of repayment, shall have been received by such Lender.

 

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SECTION 9.14. USA Patriot Act. Each Lender hereby notifies each Loan Party that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot
Act”), it is required to obtain, verify and record information that identifies the Borrower,
which information includes the name and address of each Loan Party and other information that will
allow such Lender to identify such Loan Party in accordance with the Patriot Act.

SECTION 9.15. Release of Collateral.

(a) Upon any sale or other transfer by any Loan Party of any Collateral that is permitted
under this Agreement, or upon the effectiveness of any written consent to the release of the
security interest granted hereby in any Collateral pursuant to Section 9.02 of this Agreement, the
security interest in such Collateral shall be automatically released.

(b) Upon the addition of a Succeeding Holdings and satisfaction by such Succeeding Holdings of
the Collateral and Guarantee Requirement, the prior Holdings shall be automatically released from
all of its obligations under the Security Documents.

SECTION 9.16. No Fiduciary Duty. In connection with all aspects of each transaction contemplated by this Agreement, the
Borrower acknowledges and agrees, and acknowledges the other Loan Parties’ understanding, that (i)
each transaction contemplated by this Agreement is an arm’s-length commercial transaction between
the Loan Parties, on the one hand, and the Administrative Agent and the Lenders, on the other hand,
(ii) in connection with each such transaction and the process leading thereto, the Administrative
Agent and the Lenders will act solely as principals and not as agents or fiduciaries of the Loan
Parties or any of their stockholders, affiliates, creditors, employees or any other party, (iii)
neither the Administrative Agent nor any Lender will assume an advisory or fiduciary responsibility
in favor of the Borrower or any of its Affiliates with respect to any of the transactions
contemplated hereby or the process leading thereto (irrespective of whether the Administrative
Agent or any Lender has advised or is currently advising any Loan Party on other matters) and
neither the Administrative Agent nor any Lender will have any obligation to any Loan Party or any
of its Affiliates with respect to the transactions contemplated in this Agreement except the
obligations expressly set forth herein, (iv) the Administrative Agent and each Lender may be
engaged in a broad range of transactions that involve interests that differ from those of the Loan
Parties and their affiliates, and (v) neither the Administrative Agent nor any Lender has provided
or will provide any legal, accounting, regulatory or tax advice with respect to any of the
transactions contemplated hereby and the Loan Parties have consulted and will consult their own
legal, accounting, regulatory, and tax advisors to the extent it deems appropriate. The matters
set forth in this Agreement and the other Loan Documents reflect an arm’s-length commercial
transaction between the Loan Parties, on the one hand, and the Administrative Agent and the
Lenders, on the other hand. The Borrower
agrees that the Loan Parties shall not assert any claims that any Loan Party may have against
the Administrative Agent or any Lender based on any breach or alleged breach of fiduciary duty.

 

-99-

 

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

	 	 	 	 	 
	 	SELECT MEDICAL CORPORATION,

as the Borrower

 	 
	 	By:  	/s/ Michael E. Tarvin
 	 
	 	 	Name:  	Michael E. Tarvin 	 
	 	 	Title:  	Executive Vice President, General Counsel and Secretary 	 
	 
	 	SELECT MEDICAL HOLDINGS CORPORATION

 	 
	 	By:  	/s/ Michael E. Tarvin
 	 
	 	 	Name:  	Michael E. Tarvin 	 
	 	 	Title:  	Executive Vice President, General Counsel and Secretary 	 
	 

 

S-1

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., individually and as

Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/ Dawn LeeLum
 	 
	 	 	Name:  	Dawn LeeLum 	 
	 	 	Title:  	Executive Director 	 
	 

 

S-2

 

	 	 	 	 	 
	JPMORGAN CHASE BANK, N.A.,

as a Lender

 	 	 
	By:  	/s/ Dawn LeeLum
 	 	 
	 	Name:  	Dawn LeeLum 	 	 
	 	Title:  	Executive Director 	 	 
	 
	J.P. MORGAN SECURITIES LLC,

as Joint Lead Arranger and Joint Bookrunner

 	 	 
	By:  	/s/ Lauren Camp
 	 	 
	 	Name:  	Lauren Camp 	 	 
	 	Title:  	Managing Director 	 	 
	 

 

S-3

 

	 	 	 	 	 
	GOLDMAN SACHS BANK USA,

as Lender and Co-Syndication Agent

 	 	 
	By:  	/s/ Alexis Maged
 	 	 
	 	Name:  	Alexis Maged 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 
	GOLDMAN SACHS LENDING PARTNERS LLC,

as Joint Bookrunner and Joint Lead Arranger

 	 	 
	By:  	/s/ Alexis Maged
 	 	 
	 	Name:  	Alexis Maged 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 

 

S-4

 

	 	 	 	 	 
	BANK OF AMERICA, N.A.,

as a Lender

 	 	 
	By:  	/s/ Sarang Gadkari
 	 	 
	 	Name:  	Sarang Gadkari 	 	 
	 	Title:  	Managing Director 	 	 
	 
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

as Co-Syndication Agent

 	 	 
	By:  	/s/ Sarang Gadkari
 	 	 
	 	Name:  	Sarang Gadkari 	 	 
	 	Title:  	Managing Director 	 	 
	 
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

as Joint Lead Arranger and Joint Bookrunner

 	 	 
	By:  	/s/ Sarang Gadkari
 	 	 
	 	Name:  	Sarang Gardkari 	 	 
	 	Title:  	Managing Director 	 	 
	 

 

S-5

 

	 	 	 	 	 
	MORGAN STANLEY SENIOR FUNDING, INC.,

as a Lender

 	 	 
	By:  	/s/ Christy Silvester
 	 	 
	 	Name:  	Christy Silvester 	 	 
	 	Title:  	Executive Director 	 	 
	 
	MORGAN STANLEY SENIOR FUNDING, INC.,

as Co-Documentation Agent

 	 	 
	By:  	/s/  Christy Silvester
 	 	 
	 	Name:  	Christy Silvester 	 	 
	 	Title:  	Executive Director 	 	 
	 
	MORGAN STANLEY SENIOR FUNDING, INC.,

as Joint Bookrunner and Joint Lead Arranger

 	 	 
	By:  	/s/ Christy Silvester
 	 	 
	 	Name:  	Christy Silvester 	 	 
	 	Title:  	Executive Director 	 	 
	 

 

S-6

 

	 	 	 	 	 
	MORGAN STANLEY BANK, N.A.

as a Lender

 	 	 
	By:  	/s/ Melissa James
 	 	 
	 	Name:  	Melissa James 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 

 

S-7

 

	 	 	 	 	 
	PNC BANK, NATIONAL ASSOCIATION

as a Lender

 	 	 
	By:  	/s/ Marie T. Boyer
 	 	 
	 	Name:  	Marie T. Boyer 	 	 
	 	Title:  	Senior Vice President 	 	 
	 

 

S-8

 

	 	 	 	 	 
	ROYAL BANK OF CANADA,

as a Lender

 	 	 
	By:  	/s/ Dean Sas
 	 	 
	 	Name:  	Dean Sas 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 
	RBC CAPITAL MARKETS, LLC,

as Joint Bookrunner and Joint Lead Arranger

 	 	 
	By:  	/s/  Jim Wolfe
 	 	 
	 	Name:  	Jim Wolfe 	 	 
	 	Title:  	Managing Director 	 	 
	 

 

S-9

 

	 	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

 	 	 
	By:  	/s/ Kent Davis
 	 	 
	 	Name:  	Kent Davis 	 	 
	 	Title:  	Managing Director 	 	 
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Co-Documentation Agent

 	 	 
	By:  	/s/ Kent Davis
 	 	 
	 	Name:  	Kent Davis 	 	 
	 	Title:  	Managing Director 	 	 
	 
	WELLS FARGO SECURITIES, LLC,

as Joint Bookrunner and Joint Lead Arranger

 	 	 
	By:  	/s/ David Gillespie
 	 	 
	 	Name:  	David Gillespie 	 	 
	 	Title:  	Managing Director 	 	 
	 

 

S-10exv10w1

Exhibit 10.1

SETTLEMENT AGREEMENT

     This Settlement Agreement (Agreement) is entered into among the United States of
America, acting through the United States Department of Justice and on behalf of Department of
Defense (collectively the “United States”) and Ultralife Corporation, formerly known as Ultralife
Batteries, Inc. (hereafter collectively referred to as “the Parties”), through their authorized
representatives.

RECITALS

     A.
Ultralife Corporation (“Ultralife”) is a Delaware corporation headquartered in
Newark, New York that develops, manufactures and markets high-energy power and
communication systems including, among other things, a variety of non-rechargeable and
rechargeable batteries, charging systems and accessories for use in military products and
applications. At all relevant times herein, Ultralife has sold its BA5390 lithium-manganese
dioxide non-rechargeable battery to the United States, including sales pursuant to Contract Nos.
DAAB07-03-C-A214; DAAB07-03-C-A220; and W15P7T-04-C-C002.

     B.
The United States contends that it has certain civil claims against Ultralife arising
from Ultralife’s failure to furnish accurate, complete, and current cost or pricing data to the
United States pursuant 10 U.S.C. § 2306a for Contract Nos. DAAB07-03-C-A214; DAAB07-03-
C-A220; and W15P7T-04-C-C002. As a result, the United States contends that Ultralife
overstated material costs for several direct material items, and the United States was overcharged
under Contract Nos. DAAB07-03-C-A214; DAAB07-03-C-A220; and W15P7T-04-C-C002
during the period from May 15, 2003 through March 14, 2005. That conduct is referred to below
as the Covered Conduct.

Execution Copy

Page 1 of 12

 

     C.
This Settlement Agreement is neither an admission of liability by Ultralife nor a
concession by the United States that its claims are not well founded. By entering into
this Agreement, Ultralife does not admit to any impropriety, wrongdoing or liability of any sort.

     To avoid the delay, uncertainty, inconvenience, and expense of protracted litigation of the
above claims, and in consideration of the mutual promises and obligations of this Settlement
Agreement, the Parties agree and covenant as follows:

TERMS AND CONDITIONS

     1.
Ultralife shall pay to the United States the sum of two million, seven hundred
thousand ($2,700,000) (the “Settlement Amount”), plus interest accrued thereon at the rate of
2.625% per annum from May 6, 2011, and continuing until and including the day before the final
payment is made under this Agreement. On the Effective Date of this Agreement, this sum shall
constitute a debt due and immediately owing to the United States. The Settlement Amount shall
be paid as follows:

          a.
Ultralife shall pay to the United States the Settlement Amount plus interest
accrued thereon at the rate of 2.625% per annum, in accordance with the payment schedule
attached hereto as Exhibit A (“Payment Schedule”). Within 7 business days after the Effective
Date of this Agreement, Ultralife shall pay the United States the initial fixed payment in the
amount of $1,000,000 and thereafter make principal payments with interest according to the
schedule in Exhibit A.

          b.
All payments set forth in Paragraph 1(a) shall be made to the United States
by electronic funds transfer pursuant to written instructions to be provided by the Office of the
United States Attorney for the Western District of New York to Peter F. Comerford, Esq.,
counsel for Ultralife. The entire balance of the Settlement Amount, or any portion thereof, plus

Execution Copy

Page 2 of 12

 

any interest accrued on the principal as of the date of any prepayment, may be prepaid without
penalty.

     2.
If Ultralife fails to make any of the payments described in Paragraph 1(a) above at
the specified time, upon written notice to Ultralife of this default, Ultralife shall have ten (10)
calendar days to cure the default. If the default is not cured within the ten-day period: (a) the
remaining unpaid principal portion of the Settlement Amount shall become accelerated and
immediately due and payable, with interest at a simple rate of 2.625% from the Effective Date of
this Agreement to the date of default, and at a simple rate of 12% per annum from the date of
default until the date of payment; (b) the United States may pursue any and all actions for
collection as it may choose, including, without limitation, filing an action for specific
performance of this Agreement; and (c) the United States may offset the remaining unpaid
balance of the Settlement Amount (inclusive of interest) from any amounts due and owing to
Ultralife by any department, agency, or agent of the United States. Ultralife agrees not to
contest
any collection action undertaken by the United States pursuant to this Paragraph 2, and to pay the
United States all reasonable costs incurred in any such collection action, including attorney’s
fees and expenses.

     3.
Subject to the exceptions in Paragraph 4 (concerning excluded claims) below, and
conditioned upon Ultralife’s full payment of the Settlement Amount, the United States releases
Ultralife, together with its current and former parent corporations; direct and indirect
subsidiaries; brother or sister corporations; divisions; current or former owners,officers,
directors, and affiliates; and the successors and assigns of any of them, from any civil or
administrative monetary claim the United States has for the Covered Conduct under the False
Claims Act, 31 U.S.C. §§ 3729-3733; the Program Fraud Civil Remedies Act, 31 U.S.C. §§

Execution Copy

Page 3 of 12

 

3801-3812; the Truth in Negotiations Act, 10 U.S.C. § 2306a; the anti-fraud section of the
Contract Disputes Act, as amended, 41 U.S.C. § 7101(c); or the common law theories of breach
of contract, payment by mistake, unjust enrichment, and fraud.

     4.
Notwithstanding the release given in paragraph 3 of this Agreement, or any other
term of this Agreement, the following claims of the United States are specifically reserved and
are not released:

	 	a.	 	Any liability arising under Title 26, U.S. Code (Internal Revenue Code);
	 
	 	b.	 	Any criminal liability;
	 
	 	c.	 	Any administrative liability, including the suspension and debarment
rights of any federal agency;
	 
	 	d.	 	Any liability to the United States (or its agencies) for any conduct other
than the Covered Conduct;
	 
	 	e.	 	Any liability based upon obligations created by this Agreement;
	 
	 	f.	 	Any liability for express or implied warranty claims or other claims for
defective or deficient products or services, including quality of goods and
services;
	 
	 	g.	 	Any liability for failure to deliver goods or services due; and
	 
	 	h.	 	Any liability for personal injury or property damage or for other
consequential damages arising from the Covered Conduct.

     5.
Ultralife waives and shall not assert any defenses Ultralife may have to any
criminal prosecution or administrative action relating to the Covered Conduct that may be based
in whole or in part on a contention that, under the Double Jeopardy Clause in the Fifth
Amendment of the Constitution, or under the Excessive Fines Clause in the Eighth Amendment

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of the Constitution, this Agreement bars a remedy sought in such criminal prosecution or
administrative action. Nothing in this paragraph or any other provision of this Agreement
constitutes an agreement by the United States concerning the characterization of the Settlement
Amount for purposes of the Internal Revenue laws, Title 26 of the United States Code.

     6.
Ultralife fully and finally releases the United States, its agencies, officers, agents,
employees, and servants, from any claims (including attorney’s fees, costs, and expenses of
every kind and however denominated) that Ultralife has asserted, could have asserted, or may
assert in the future against the United States, its agencies, officers, agents, employees, and
servants, related to the Covered Conduct and the United States’ investigation and prosecution
thereof.

     7.
Ultralife agrees to the following:

     a.
Unallowable Costs Defined: All costs (as defined in the Federal Acquisition
Regulation, 48 C.F.R. § 31.205-47) incurred by or on behalf of Ultralife, and its present or
former officers, directors, employees, shareholders, and agents in connection with:

	 	(1)	 	the matters covered by this Agreement;
	 
	 	(2)	 	the United States’ audit(s) and civil and criminal investigations of
the matters covered by this Agreement;
	 
	 	(3)	 	Ultralife’s investigation, defense, and corrective actions
undertaken in response to the United States’ audit(s) and civil and
any criminal investigations in connection with the matters covered
by this Agreement (including attorney’s fees);
	 
	 	(4)	 	the negotiation and performance of this Agreement;

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	 	(5)	 	the payment Ultralife makes to the United States pursuant to this
Agreement,
are unallowable costs for government contracting purposes (hereinafter referred to as
Unallowable Costs).

     b.
Future Treatment of Unallowable Costs: Unallowable Costs will be separately
determined and accounted for by Ultralife, and Ultralife shall not charge such Unallowable Costs
directly or indirectly to any contract with the United States.

     c. Treatment of Unallowable Costs Previously Submitted for Payment: Within 90 days of the
Effective Date of this Agreement, Ultralife shall identify and repay by adjustment to future
claims for payment or otherwise any Unallowable Costs included in payments previously sought by
Ultralife or any of its subsidiaries or affiliates from the United States. Ultralife agrees that the United States,
at a minimum, shall be entitled to recoup from Ultralife any overpayment plus applicable interest and penalties as a result of
the inclusion of such Unallowable Costs on previously-submitted requests for payment. The United States, including the Department
of Justice and/or the affected agencies, reserves its rights to audit, examine, or re-examine Ultralife’s books and records and
to disagree with any calculations submitted by Ultralife or any of its subsidiaries or affiliates regarding any Unallowable
Costs included in payments previously sought by Ultralife, or the effect of any such Unallowable Costs on the amount of such payments.

     8.
Ultralife warrants that it has reviewed its financial situation and that it currently is
solvent within the meaning of 11 U.S.C. §§ 547(b)(3) and 548(a)(1)(B)(ii)(I), and shall remain
solvent following payment to the United States of the Settlement Amount. Further, the Parties
warrant that, in evaluating whether to execute this Agreement, they (a) have intended that the

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mutual promises, covenants, and obligations set forth constitute a contemporaneous exchange
for
new value given to Ultralife, within the meaning of 11 U.S.C. § 547(c)(1); and (b) conclude that
these mutual promises, covenants, and obligations do, in fact, constitute such a contemporaneous
exchange. Further, the Parties warrant that the mutual promises, covenants, and obligations set
forth herein are intended to and do, in fact, represent a reasonably equivalent exchange of value
that is not intended to hinder, delay, or defraud any entity to which Ultralife was or became
indebted to on or after the date of this transfer, within the meaning of 11 U.S.C. § 548(a)(1).

     9.
If within 91 days of the Effective Date of this Agreement or of any payment made
under this Agreement, Ultralife commences, or a third party commences, any case, proceeding,
or other action under any law relating to bankruptcy, insolvency, reorganization, or relief of
debtors (a) seeking to have any order for relief of Ultralife’s debts, or seeking to adjudicate
Ultralife as bankrupt or insolvent; or (b) seeking appointment of a receiver, trustee, custodian,
or
other similar official for Ultralife or for all or any substantial part of Ultralife’s assets,
Ultralife
agrees as follows:

     a.
Ultralife’s obligations under this Agreement may not be avoided pursuant to 11
U.S.C. § 547, and Ultralife shall not argue or otherwise take the position in any such case,
proceeding, or action that: (i) Ultralife’s obligations under this Agreement may be avoided
under 11 U.S.C. § 547; (ii) Ultralife was insolvent at the time this Agreement was entered into,
or became insolvent as a result of the payment made to the United States; or (iii) the mutual
promises, covenants, and obligations set forth in this Agreement do not constitute a
contemporaneous exchange for new value given to Ultralife.

     b.
If Ultralife’s obligations under this Agreement are avoided for any reason,
including, but not limited to, through the exercise of a trustee’s avoidance powers under the

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Bankruptcy Code, the United States, at its sole option,
may rescind the releases in this Agreement and bring any civil and/or administrative claim, action, or
proceeding against Ultralife for the claims that would otherwise be covered by the releases provided
in Paragraph 3, above. Ultralife agrees that (i) any such claims, actions, or proceedings
brought by the United States (including any proceedings to exclude Ultralife
from participation in) are not subject to an “automatic stay” pursuant to 11 U.S.C. § 362(a) as a
result of the action, case, or proceedings described in the first clause of this Paragraph, and
Ultralife shall not argue or otherwise contend that the United States’ claims, actions,
or proceedings are subject to an automatic stay; (ii) Ultralife shall not plead, argue,
or otherwise raise any defenses under the theories of statute of limitations, laches, estoppel, or
similar theories, to any such civil or administrative claims, actions, or proceeding that are
brought by the United States within 60 calendar days of written notification to Ultralife that
the releases have been rescinded pursuant to this Paragraph, except to the extent such defenses
were available on April 16, 2010; and (iii) the United States has a valid claim against
Ultralife in an amount not less than $2,700,000, and the United States may pursue its claim in the case,
action, or proceeding referenced in the first clause of this Paragraph, as well as in any other case, action, or proceeding.

     c.
Ultralife acknowledges that its agreements in this Paragraph are provided in
exchange for valuable consideration provided in this Agreement.
This Agreement is intended to be for the benefit of the Parties only.

     10.
Each Party shall bear its own legal and other costs incurred in connection with
this matter, including the preparation and performance of this Agreement.

     11.
Each party and signatory to this Agreement represents that it freely and
voluntarily enters in to this Agreement without any degree of duress or compulsion.

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     12.
This Agreement is governed by the laws of the United States. The exclusive
jurisdiction and venue for any dispute relating to this Agreement is the United States District
Court for the Western District of New York. For purposes of construing this Agreement, this
Agreement shall be deemed to have been drafted by all Parties to this Agreement and shall not,
therefore, be construed against any Party for that reason in any subsequent dispute.

     13.
This Agreement constitutes the complete agreement between the Parties. This
Agreement may not be amended except by written consent of the Parties.

     14.
The undersigned counsel represent and warrant that they are fully authorized to
execute this Agreement on behalf of the persons and entities indicated below.

     15.
This Agreement may be executed in counterparts, each of which constitutes an
original and all of which constitute one and the same Agreement.

     16.
This Agreement is binding on Ultralife’s successors, transferees, heirs, and
assigns.

     17.
All parties consent to the United States’ disclosure of this Agreement, and
information about this Agreement, to the public.

     18.
This Agreement is effective on the date of signature of the last signatory to the
Agreement (Effective Date of this Agreement). Facsimiles of signatures shall constitute
acceptable, binding signatures for purposes of this Agreement.

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THE UNITED STATES OF AMERICA

	 	 	 	 	 
	 	 	 
	DATED:  June 1, 2011 	/s/ Robert G. Trusiak
 	 
	 	Robert G. Trusiak 	 
	 	Assistant U.S. Attorney

Western District of New York 	 
	 
	 	and

 	 
	DATED: June 1, 2011 	/s/ Colin M. Huntley
 	 
	 	Colin M. Huntley 	 
	 	Trial Attorney

Commercial Litigation Branch

Civil Division

United States Department of Justice 	 
	 

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ULTRALIFE CORPORATION

Formerly Known As Ultralife Batteries, Inc.

	 	 	 	 	 
	 	 	 
	DATED: 1 June 2011 	/s/ Peter F. Comerford
 	 
	 	Peter F. Comerford	 
	 	Vice President of Administration & General Counsel

Ultralife Corporation 	 
	 
	 	 	 
	DATED: 6/1/2011 	/s/ Thomas A. DeSimon
 	 
	 	Thomas A. DeSimon 	 
	 	Harris Beach PLLC

Counsel to Ultralife Corporation 	 
	 

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EXHIBIT A

SETTLEMENT PAYMENT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date	 	Payment	 	Interest (2.625%)	 	Principal	 	Balance
	 
	06-08-2011
	 	$	1,005,048.63	 	 	$	5,048.63	 	 	$	1,000,000	 	 	$	1,700,000	 
	12-01-2011
	 	$	588,979.50	 	 	$	22,312.50	 	 	$	566,667.00	 	 	$	1,133,333.00	 
	06-01-2012
	 	$	581,542.00	 	 	$	14,875.00	 	 	$	566,667.00	 	 	$	566,666.00	 
	12-01-2012
	 	$	574,103.49	 	 	$	7,437.49	 	 	$	566,666.00	 	 	$	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	$	2,749,673.62	 	 	$	49,673.62	 	 	$	2,700,000.00	 	 	 	 	 

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