Document:

Exhibit 10.1

 

Form of Restricted Stock Agreement

to be Used Under 2015 Equity Incentive Plan

 

BELLEROPHON THERAPEUTICS, INC.
  RESTRICTED STOCK AGREEMENT

 

Bellerophon Therapeutics, Inc. (the “Company”) hereby grants the following restricted stock award pursuant to its 2015 Equity Incentive Plan.  The terms and conditions attached hereto are also a part hereof.

 

Notice of Grant

 

	
Name of recipient (the “Participant”):
    	
 
    	
 
    
	
Grant Date of this restricted stock award (the “Grant Date”):
    	
 
    	
 
    
	
Number of shares of the Company’s Common Stock subject to this   restricted stock award (the “Restricted Shares”):
    	
 
    	
 
    
	
Number, if any, of Restricted Shares that vest immediately on   the Grant Date:
    	
 
    	
 
    
	
Restricted Shares that are subject to vesting schedule:
    	
 
    	
 
    
	
Vesting Schedule:
    	
 
    	
 
    

 

This restricted stock award satisfies in full all commitments that the Company has to the Participant with respect to the issuance of stock, stock options or other equity securities.

 

	
 
    	
 
    	
BELLEROPHON   THERAPEUTICS, INC.
    
	
 
    	
 
    	
 
    
	
Signature   of Participant
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Street   Address
    	
 
    	
 
    	
Name of   Officer: 
    
	
 
    	
 
    	
 
    	
Title:
    
	
City/State/Zip   Code
    	
 
    	
 
    

 

 

BELLEROPHON THERAPEUTICS, INC.

 

Restricted Stock Agreement

Incorporated Terms and Conditions

 

The terms and conditions of the award of shares of restricted common stock of the Company (the “Restricted Shares”) made to the Participant, as set forth on the Notice of Grant to which these terms and conditions are attached (the “Notice of Grant”), and subject to the terms and conditions set forth in the Company’s 2015 Equity Incentive Plan (the “Plan”) are as follows:

 

1.                                      Issuance of Restricted Shares.

 

(a)                                 The number of Restricted Shares set forth in the Notice of Grant are issued to the Participant, effective as of the Grant Date (as set forth on the Notice of Grant), in consideration of employment services rendered and to be rendered by the Participant to the Company.

 

(b)                                 The Restricted Shares will initially be issued by the Company in book entry form only, in the name of the Participant.  Following the vesting of any Restricted Shares pursuant to Section 2 below, the Company shall, if requested by the Participant, issue and deliver to the Participant a certificate representing the vested Restricted Shares.  The Participant agrees that the Restricted Shares shall be subject to the forfeiture provisions set forth in Section 3 of this Agreement and the restrictions on transfer set forth in Section 4 of this Agreement.

 

2.                                      Vesting Schedule.

 

Unless otherwise provided in this Agreement or the Plan, the Restricted Shares shall vest in accordance with Vesting Table set forth in the Notice of Grant (the “Vesting Table”), and upon vesting the transferability restrictions and forfeiture provisions applicable to such number of Restricted Shares set forth opposite each vesting date shall terminate and the shares of Common Stock shall be free from such restrictions and provisions, provided that, on such vesting date, the Participant is an employee of the Company or any other entity the employees of which are eligible to receive restricted stock grants under the Plan (an “Eligible Participant”).  Any fractional number of Restricted Shares resulting from the application of the percentages in the Vesting Table shall be rounded down to the nearest whole number of Restricted Shares.

 

3.                                      Forfeiture of Unvested Restricted Shares Upon Employment Termination.

 

In the event that the Participant ceases to be an Eligible Participant for any reason or no reason, with or without cause, all of the Restricted Shares that are unvested as of the time of such cessation shall be forfeited immediately and automatically to the Company, without the payment of any consideration to the Participant, effective as of such cessation of Eligible Participant status.  The Participant shall have no further rights with respect to any Restricted Shares that are so forfeited.

 

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4.                                      Restrictions on Transfer.

 

The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise encumber, by operation of law or otherwise (collectively “transfer”) any Restricted Shares, or any interest therein, until such Restricted Shares have vested, except to the extent permitted by the Plan.  The Company shall not be required (i) to transfer on its books any of the Restricted Shares which have been transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Restricted Shares or to pay dividends to any transferee to whom such Restricted Shares have been transferred in violation of any of the provisions of this Agreement.

 

5.                                      Adjustments.

 

The Plan contains provisions covering the treatment of Restricted Shares in a number of contingencies such as stock splits. Provisions in the Plan for adjustment with respect to this Award and the related provisions with respect to successors to the business of the Company are hereby made applicable hereunder and are incorporated herein by reference.

 

6.                                      Restrictive Legends.

 

The book entry account reflecting the issuance of the Restricted Shares in the name of the Participant shall bear a legend or other notation upon substantially the following terms:

 

“These shares of stock are subject to forfeiture provisions and restrictions on transfer set forth in a certain Restricted Stock Agreement between the corporation and the registered owner of these shares (or his or her predecessor in interest), and such Agreement is available for inspection without charge at the office of the Secretary of the corporation.”

 

7.                                      Rights as a Stockholder.

 

Except as otherwise provided in this Agreement, for so long as the Participant is the registered owner of the Restricted Shares, the Participant shall have all rights as a stockholder with respect to the Restricted Shares, whether vested or unvested, including, without limitation, rights to vote the Restricted Shares and act in respect of the Restricted Shares at any meeting of shareholders; provided that, as provided in the Plan, the payment of dividends on unvested Restricted Shares shall be deferred until after such shares vest.

 

8.                                      Tax Matters.

 

The Participant acknowledges and agrees that any income or other taxes due from the Participant with respect to the issuance or vesting of the Restricted Shares pursuant to this Agreement shall be the Participant’s responsibility.  At such time as the Participant is not aware of any material nonpublic information about the Company or the Common Stock, the Participant shall execute the instructions set forth in Annex A attached hereto (the “Automatic Sale Instructions”) as the means of satisfying such tax obligation.  If the Participant does not execute the Automatic Sale Instructions prior to an applicable vesting date, then the Participant agrees that if under applicable law the Participant will owe taxes at such vesting date on the portion of the Award then vested the Company shall be entitled to immediate payment from the Participant

 

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of the amount of any tax required to be withheld by the Company.  The Company shall not deliver any shares of Common Stock to the Participant until it is satisfied that all required withholdings have been made.

 

9.                                      Confidential Information; Noncompetition; Work Product.

 

By accepting this restricted stock award, Participant is hereby acknowledging and agreeing to the provisions set forth in the Confidentiality and Noncompetition Agreement attached hereto as Exhibit A related to confidential information, noncompetition and work product.  Without limitation to any other remedies available under law or those set forth in Exhibit A, the Participant agrees that if Participant breaches any of the provisions of Exhibit A, then (i) the Participant shall not be entitled to any further vesting of this restricted stock award, (ii) any portion of the restricted stock award that remains outstanding, whether vested or unvested, will be immediately and automatically forfeited exchange for no consideration, (iii) any Shares acquired by the Participant upon the vesting of the restricted stock award that continue to be held by the Participant shall be required to be surrendered immediately and automatically to the Company in exchange for no consideration and (iv) if the Participant has sold, transferred or otherwise disposed of any shares of Common Stock received upon the vesting of the Restricted Shares, then the Participant shall be required to pay to the Company, in cash, within thirty (30) days of a written request by the Company for such payment, the amount for which the Participant sold the Shares.

 

10.                               Provisions of the Plan.

 

This restricted stock award is subject to the provisions of the Plan (including the provisions relating to amendments to the Plan), a copy of which is furnished to the Participant with this Agreement.

 

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Annex A

 

Automatic Sale Instructions

 

The undersigned hereby consents and agrees that any taxes due on a vesting date as a result of the vesting of Restricted Shares on such date shall be paid through an automatic sale of shares as follows:

 

(a)                                 Upon any vesting of any Restricted Shares pursuant to Section 2 hereof, the Company shall sell, or arrange for the sale of, such number of the Restricted Shares no longer subject to the transferability restrictions and forfeiture provisions under Section 2 as is sufficient to generate net proceeds sufficient to satisfy the Company’s minimum statutory withholding obligations with respect to the income recognized by the Participant upon the lapse of the transfer restrictions and forfeiture provisions (based on minimum statutory withholding rates for all tax purposes, including payroll and social security taxes, that are applicable to such income), and the Company shall retain such net proceeds in satisfaction of such tax withholding obligations.

 

(b)                                 The Participant hereby appoints the Chief Executive Officer of the Company his attorney in fact to sell the Participant’s shares in accordance with this Annex A.  The Participant agrees to execute and deliver such documents, instruments and certificates as may reasonably be required in connection with the sale of the Shares pursuant to this Annex A.

 

(c)                                  The Participant represents to the Company that, as of the date hereof, he or she is not aware of any material nonpublic information about the Company or the Common Stock.  The Participant and the Company have structured this Agreement, including this Annex A, to constitute a “binding contract” relating to the sale of Common Stock, consistent with the affirmative defense to liability under Section 10(b) of the Securities Exchange Act of 1934 under Rule 10b5-1(c) promulgated under such Act.

 

The Company shall not deliver any shares of Common Stock to the Participant until it is satisfied that all required withholdings have been made.

 

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Participant   Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
 
    
				

 

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EXHIBIT A

 

CONFIDENTIALITY AND NONCOMPETITION AGREEMENT

 

I.                                        The Participant acknowledges that the Participant’s employment by or other service to the Company will, throughout such employment or service period, bring the Participant into close contact with the confidential affairs of the Company and its subsidiaries, including access to information about their client and customer lists and information concerning proprietary manufacturing formulations and processes, costs, profits, real estate, markets, sales, products, key personnel, pricing policies, operational methods, patents, research and development, technical processes, and other business affairs and methods, plans for future product development and other information not readily available to the public.  The Participant further acknowledges that the services to be performed by the Participant are of a special, unique, unusual, extraordinary and intellectual character.  The Participant further acknowledges that the business of the Company and its subsidiaries is international in scope, that the Company and its subsidiaries competes in nearly all of their business activities with other entities that are or could be located in nearly any part of the world and that the nature of the Participant’s services, position and expertise are such that the Participant is capable of competing with the Company and its subsidiaries from nearly any location in the world.  In recognition of the foregoing, the Participant covenants and agrees:

 

1.  For Participants Resident in States Other Than California, Wisconsin, Texas, and Louisiana:

 

(a)                                 The Participant, at all times while the Participant is an employee of or service provider to the Company and thereafter, shall hold in a fiduciary capacity for the benefit of the Company all secret, trade, proprietary or confidential information, knowledge or data relating to the Company or any of its affiliated companies and shareholders, and their respective businesses, that the Participant obtains during the Participant’s employment by the Company or any of its affiliated companies and that is not public knowledge (other than as a result of the Participant’s violation of this Section (a)) (“Confidential Information”).  The Participant shall not communicate, divulge or disseminate Confidential Information at any time during or after the Participant’s employment with or service to the Company, except with the prior written consent of the Company or as otherwise required by law or legal process.  Nothing in this paragraph diminishes or limits any protection granted by law to trade secrets or relieves the Participant of any duty not to disclose, use, or misappropriate any information that is a trade secret, for as long as such information remains a trade secret.

 

(b)                                 During the “Noncompetition Period,” the Participant shall not, without the prior written consent of the Board, engage in or become associated with a “Competitive Activity.”  For purposes of these provisions:  (i) the “Noncompetition Period” means the period commencing on the Grant Date (set forth in the Notice of Grant) and ending on the twelve-month anniversary of the date upon which Participant’s employment with or service to the Company is terminated for any reason (the “Date of Termination”); (ii) a “Competitive Activity” means any business or other endeavor that engages in clinical or pre-clinical research or development, manufacturing, marketing, sales, or commercialization of products or services that directly or indirectly compete with, or are a therapeutic alternative to, either (x) the products of, or services engaged in by, the

 

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Company or any of its subsidiaries at the Date of Termination in any geographic location in the United States or, if different, the country in which the Participant primarily performs services for the Company or (y) the products proposed to be developed or commercialized, or services proposed to be engaged in, by the Company or any of its subsidiaries at the Date of Termination in any geographic location in the United States or, if different, the country in which the Participant primarily performs services for the Company (provided that clause (y) shall apply only to any proposed business activity as to which the Company or any of its subsidiaries has devoted significant and documented efforts at the Date of Termination, whether internally or through acquisition, licensing or other business development activities); provided, however, that the Participant shall not be engaged in a Competitive Activity if the Participant is providing services to a division or subsidiary of a multi-division entity or holding company, so long as no division or subsidiary to which the Participant provides services is in competition with the Company or its subsidiaries, and the Participant does not otherwise engage in a Competitive Activity on behalf of the multi-division entity or any competing division or subsidiary; and (iii) the Participant shall be considered to have become “associated with a Competitive Activity” if the Participant becomes directly or indirectly involved as an owner, investor (other than a passive stockholder of less than five percent (5%) of a corporation the securities of which are traded on a national securities exchange), employee, officer, director, consultant, independent contractor, agent, partner, advisor, or in any other capacity in a role where Participant may draw upon the goodwill of the Company or where Participant’s knowledge of the Confidential Information of the Company is likely to affect Participant’s decisions or actions with regard to the Competitive Activity, to the detriment of Company.

 

(c)                                  During the Noncompetition Period, the Participant shall not, on the Participant’s own behalf or on behalf of any other person, firm or entity (x) directly or indirectly hire, solicit, induce or attempt to solicit or induce any employee of the Company or any of its subsidiaries to terminate his employment with the Company or any of its subsidiaries, or to provide any assistance whatsoever to any person, firm or entity engaged in a Competitive Activity, or (y) directly or indirectly induce any business, entity or person with which the Company or any of their subsidiaries has a business relationship to terminate or alter such business relationship.

 

(d)                                 In addition to such other rights and remedies as the Company may have at equity or in law with respect to any breach of these provisions, if the Participant commits a material breach of any of these provisions, the Company shall have the right to seek to have such provisions specifically enforced by any court having equity jurisdiction (without any obligation to post a bond or other security); it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages alone will not provide an adequate remedy to the Company.

 

(e)                                  The Participant acknowledges that while the Participant is an employee of or service provider to the Company, the Participant may conceive of, discover, invent or create inventions, improvements, new contributions, literary property, computer programs and software material, ideas and discoveries, whether patentable or copyrightable or not (all of the foregoing being collectively referred to herein as “Work Product”), and that various business opportunities shall be presented to the Participant by reason of the Participant’s employment by the Company.  The Participant acknowledges that all of the foregoing shall be owned by and belong exclusively to

 

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the Company and that the Participant shall have no personal interest therein and the Participant does hereby assign all rights, title and interest therein to the Company; provided that they are either related in any manner to the business (commercial or experimental) of the Company or any of its subsidiaries, or are, in the case of Work Product, conceived or made on the Company’s time or with the use of the Company’s facilities or materials, or, in the case of business opportunities, are presented to the Participant for the possible interest or participation of the Company or any of its subsidiaries.  The Participant agrees that the Participant will not assert any rights to any Work Product or business opportunity as having been made or acquired by the Participant prior to the date hereof.

 

(f)                                   The Participant acknowledges and agrees that these provisions are necessary to protect the business operations and affairs of the Company and its subsidiaries.  The Participant understands that the restrictions set forth in these provisions may limit the Participant’s ability to earn a livelihood in a business similar that of the Company, but the Participant nevertheless believes that the Participant has received and will receive sufficient consideration and other benefits as an employee of or service provider to the Company, including without limitation, the restricted stock award granted by the Company and memorialized in the Agreement to which these provisions are attached, to justify clearly such restrictions which, in any event (given the Participant’s education, skills and ability), the Participant does not believe would prevent the Participant from earning a livelihood.

 

2.  For Participants Resident in California:

 

(a)                              The Participant, at all times while the Participant is an employee of or service provider to the Company and thereafter, shall hold in a fiduciary capacity for the benefit of the Company all secret, trade, proprietary or confidential information, knowledge or data relating to the Company or any of its subsidiaries companies and shareholders, and their respective businesses, that the Participant obtains during the Participant’s employment by the Company or any of its subsidiaries and that is not public knowledge (other than as a result of the Participant’s violation of this Section (a)) (“Confidential Information”).  The Participant shall not communicate, divulge or disseminate Confidential Information at any time during or after the Participant’s employment with or service to the Company, except with the prior written consent of the Company or as otherwise required by law or legal process.

 

(b)                                 During the “Noncompetition Period,” the Participant shall not, without the prior written consent of the Board, engage in or become associated with a “Competitive Activity.”  For purposes of these provisions:  (i) the “Noncompetition Period” means the period commencing on the Grant Date (set forth in the Notice of Grant) and ending on the date upon which Participant’s employment with or service to the Company is terminated for any reason (the “Date of Termination”); (ii) a “Competitive Activity” means any business or other endeavor that engages in clinical or pre-clinical research or development, manufacturing, marketing, sales, or commercialization of products or services that directly or indirectly compete with, or are a therapeutic alternative to, either (x) the products of, or services engaged in by, the Company or any of its subsidiaries during the Noncompetition Period in any geographic location in the United States or, if different, the country in which the Participant primarily performs services for the Company or (y) the products proposed to be developed or commercialized, or services proposed

 

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to be engaged in, by the Company or any of its subsidiaries during the Noncompetition Period in any geographic location in the United States or, if different, the country in which the Participant primarily performs services for the Company (provided that clause (y) shall apply only to any proposed business activity as to which the Company or any of its subsidiaries has devoted significant and documented efforts during the Noncompetition Period, whether internally or through acquisition, licensing or other business development activities); provided, however, that the Participant shall not be engaged in a Competitive Activity if the Participant is providing services to a division or subsidiary of a multi-division entity or holding company, so long as no division or subsidiary to which the Participant provides services is in competition with the Company or its subsidiaries, and the Participant does not otherwise engage in a Competitive Activity on behalf of the multi-division entity or any competing division or subsidiary; and (iii) the Participant shall be considered to have become “associated with a Competitive Activity” if the Participant becomes directly or indirectly involved as an owner, investor (other than a passive stockholder of less than five percent (5%) of a corporation the securities of which are traded on a national securities exchange), employee, officer, director, consultant, independent contractor, agent, partner, advisor, or in any other capacity calling for the rendition of the Participant’s personal services, with any individual, partnership, corporation or other organization that is engaged directly or indirectly in a Competitive Activity.

 

(c)                                  During both the Noncompetition Period and the twelve-month period following the Date of Termination, the Participant shall not, on the Participant’s own behalf or on behalf of any other person, firm or entity, directly or indirectly, solicit, induce or attempt to solicit or induce any employee of the Company or any of its subsidiaries to terminate his employment with the Company or any of its subsidiaries, or to provide any assistance whatsoever to any person, firm or entity engaged in a Competitive Activity.  During the Noncompetition Period, the Participant shall not directly or indirectly induce any business, entity or person with which the Company or any of its subsidiaries has a business relationship to terminate or alter such business relationship.

 

(d)                                 In addition to such other rights and remedies as the Company may have at equity or in law with respect to any breach of these provisions, if the Participant commits a material breach of any of these provisions, the Company shall have the right to seek to have such provisions specifically enforced by any court having equity jurisdiction (without any obligation to post a bond or other security); it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages alone will not provide an adequate remedy to the Company.

 

(e)                                  The Participant agrees to assign and does hereby assign to the Company (or any person or entity designated by the Company) all his/her right, title and interest in and to all inventions, improvements, new contributions, literary property, computer programs and software material, ideas and discoveries, whether patentable or copyrightable or not (all of the foregoing being collectively referred to herein as “Work Product”) and all related patents, patent applications, copyrights and copyright applications to the maximum extent permitted by Section 2870 of the California Labor Code or any like statute of any other state.  The Participant hereby also waives all claims to moral rights in any Work Product.  The Participant understands that the provisions of this Agreement requiring assignment of Work Product to the Company do not apply to any invention which qualifies fully under the provisions of California Labor Code Section 2870

 

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(attached hereto as Appendix A).  The Participant agrees to advise the Company promptly in writing of any invention that he/she believes meets the criteria in Section 2870 and is not otherwise disclosed on Appendix B.

 

(f)                                   The Participant acknowledges and agrees that these provisions are necessary to protect the business operations and affairs of the Company and its subsidiaries.  The Participant understands that the restrictions set forth in these provisions may limit the Participant’s ability to earn a livelihood in a business similar that of the Company, but the Participant nevertheless believes that the Participant has received and will receive sufficient consideration and other benefits as an employee of or service provider to the Company, including without limitation, the restricted stock award granted by the Company and memorialized in the Agreement to which these provisions are attached, to justify clearly such restrictions which, in any event (given the Participant’s education, skills and ability), the Participant does not believe would prevent the Participant from earning a livelihood.

 

3.                                      For Participants Resident in Wisconsin and Texas

 

(a)                                 Company will provide Participant with access to secret, trade, proprietary or confidential information relating to Company and its subsidiaries and shareholders that is not readily available outside Company or its subsidiaries and that Company and its subsidiaries take steps to protect (“Confidential Information”).  (“Confidential Information” shall not include information that Participant can prove (i) was in the public domain, being publicly and openly known through lawful and proper means, (ii) was independently developed or acquired by Participant without reliance in any way on other Confidential Information of Company or any subsidiary or (iii) was approved by Company for use and disclosure by Participant without restriction.)  The Participant shall not communicate, divulge, or disseminate Confidential Information where such disclosure would be detrimental to the interests of Company (except as required by law), but only for so long as such Confidential Information continues to be not generally known to, and not readily ascertainable through proper means by, Company’s competitors.  The promises contained in this paragraph are not intended to preclude Participant from being gainfully employed by another or on his or her own, but are intended to prohibit him or her from using the confidential or proprietary information described herein in a manner that is not for the financial benefit of Company.  Nothing in this paragraph diminishes or limits any protection granted by law to trade secrets or relieves the Participant of any duty not to disclose, use, or misappropriate any information that is a trade secret, for as long as such information remains a trade secret.

 

(b)                                 Independent of any other restriction, the Participant during the “Noncompetition Period” shall not, for him(her)self, or on behalf of any other person or entity, directly or indirectly provide services to a “Direct Competitor” in a role where Participant will be expected to draw upon the customer goodwill he gained while with Company or where Participant’s knowledge of “Confidential Information” is likely to affect Participant’s decisions or actions for the Direct Competitor to the detriment of Company.  For purposes of this provision:  (i) the “Noncompetition Period” means the period commencing on the Grant Date (set forth in the Notice of Grant) and ending on the twelve-month anniversary of the date upon which Participant’s employment with or service to the Company is terminated for any reason (the “Date of Termination”); (ii) a “Direct Competitor” means any business or other endeavor that engages

 

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in clinical or pre-clinical research or development, manufacturing, marketing, sales, or commercialization of “Competitive Products or Services” in any geographic location in the United States (except that “Direct Competitor” does not include any business which the parties have agreed in writing to exclude from the definition, and Company will not unreasonably or arbitrarily withhold such agreement); and (iii) “Competitive Products or Services” means products or services that serve the same function as or are a therapeutic alternative to products or services that Company or its subsidiaries offered at the Date of Termination, or to products or services under development or commercialization by Company or its subsidiaries at the Date of Termination (with development or commercialization demonstrated by significant and documented efforts, whether internally or through acquisition, licensing or other business development activities).

 

(c)                                  Independent of any other restriction, for a period of one year after Participant’s employment with or service to the Company is terminated for any reason, the Participant shall not, on the Participant’s own behalf or on behalf of any other person, firm or entity, directly or indirectly induce any business, entity or person with which the Company or its subsidiaries has a business relationship (collectively, “Business Associates”) to terminate or alter such business relationship (provided that clause (y) shall apply only to those Business Associates who did business with the Company within the last six months of Participant’s employment or service and (1) about whom Participant, as a result of his or her employment or service, had access to confidential information or goodwill that would assist in solicitation of such Person, or (2) with whom Participant personally dealt on behalf of Company in the twelve months immediately preceding the last day of Participant’s employment or service and that Participant was introduced to or otherwise had business contact with such Business Associate as a result of his or her employment or service with the Company).

 

(d)                                 Independent of any other restriction, Participant shall not, either personally or in conjunction with others, either (a) solicit, interfere with, or endeavor to cause any employee of Company or its subsidiaries to leave such employment or (b) otherwise induce or attempt to induce any such employee to terminate employment with Company or its subsidiaries.  Nothing in this paragraph is meant to prohibit an employee of Company or its subsidiaries who is not a party to this Agreement from becoming employed by another organization or person.

 

(e)                                  In addition to such other rights and remedies as the Company may have at equity or in law with respect to any breach of these provisions, if the Participant commits a material breach of any of these provisions, the Company shall have the right to seek to have such provisions specifically enforced by any court having equity jurisdiction (without any obligation to post a bond or other security); it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages alone will not provide an adequate remedy to the Company.

 

(f)                                   The Participant acknowledges that while the Participant is an employee of or service provider to the Company, the Participant may conceive of, discover, invent or create inventions, improvements, new contributions, literary property, computer programs and software material, ideas and discoveries, whether patentable or copyrightable or not (all of the foregoing being collectively referred to herein as “Work Product”), and that various business opportunities shall

 

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be presented to the Participant by reason of the Participant’s employment by the Company.  The Participant acknowledges that all of the foregoing shall be owned by and belong exclusively to the Company and that the Participant shall have no personal interest therein and the Participant does hereby assign all rights, title and interest therein to the Company; provided that they are either related in any manner to the business (commercial or experimental) of the Company or any of its subsidiaries, or are, in the case of Work Product, conceived or made on the Company’s time or with the use of the Company’s facilities or materials, or, in the case of business opportunities, are presented to the Participant for the possible interest or participation of the Company or any of its subsidiaries.  The Participant agrees that the Participant will not assert any rights to any Work Product or business opportunity as having been made or acquired by the Participant prior to the date hereof.

 

(g)                                  The Participant acknowledges and agrees that these provisions are necessary to protect the business operations and affairs of the Company and its subsidiaries.  The Participant understands that the restrictions set forth in these provisions may limit the Participant’s ability to earn a livelihood in a business similar that of the Company, but the Participant nevertheless believes that the Participant has received and will receive sufficient consideration and other benefits as an employee of or service provider to the Company, including without limitation, the restricted stock award granted by the Company and memorialized in the Agreement to which these provisions are attached, to justify clearly such restrictions which, in any event (given the Participant’s education, skills and ability), the Participant does not believe would prevent the Participant from earning a livelihood.

 

4.                                      For Participants Resident in Louisiana

 

(a)                                 Company will provide Participant with access to secret, trade, proprietary or confidential information relating to Company and its subsidiaries and shareholders that is not readily available outside Company or its subsidiaries and that Company and its subsidiaries take steps to protect (“Confidential Information”).  (“Confidential Information” shall not include information that Participant can prove (i) was in the public domain, being publicly and openly known through lawful and proper means, (ii) was independently developed or acquired by Participant without reliance in any way on other Confidential Information of Company or any subsidiary or (iii) was approved by Company for use and disclosure by Participant without restriction.)  The Participant shall not communicate, divulge or disseminate Confidential Information at any time during or after the Participant’s employment with or service to the Company, except with the prior written consent of the Company or as otherwise required by law or legal process.  Nothing in this paragraph diminishes or limits any protection granted by law to trade secrets or relieves the Participant of any duty not to disclose, use, or misappropriate any information that is a trade secret, for as long as such information remains a trade secret.

 

(b)                                 During the “Noncompetition Period,” the Participant shall not, without the prior written consent of the Board, engage in or become associated with a “Competitive Activity” in West Baton Rouge Parish or any parish or county in the United States where Company does business.  For purposes of these provisions:  (i) the “Noncompetition Period” means the period commencing on the Grant Date (set forth in the Notice of Grant) and ending on the twelve-month anniversary of the date upon which Participant’s employment with or service to the Company is

 

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terminated for any reason (the “Date of Termination”); (ii) a “Competitive Activity” means any business or other endeavor that engages in clinical or pre-clinical research or development, manufacturing, marketing, sales, or commercialization of products or services that directly or indirectly compete with, or are a therapeutic alternative to, either (x) the products of, or services engaged in by, the Company or any of its subsidiaries at the Date of Termination or (y) the products proposed to be developed or commercialized, or services proposed to be engaged in, by the Company or any of its subsidiaries at the Date of Termination (provided that clause (y) shall apply only to any proposed business activity as to which the Company or any of its subsidiaries has devoted significant and documented efforts at the Date of Termination, whether internally or through acquisition, licensing or other business development activities); provided, however, that the Participant shall not be engaged in a Competitive Activity if the Participant is providing services to a division or subsidiary of a multi-division entity or holding company, so long as no division or subsidiary to which the Participant provides services is in competition with the Company or its subsidiaries, and the Participant does not otherwise engage in a Competitive Activity on behalf of the multi-division entity or any competing division or subsidiary; and (iii) the Participant shall be considered to have become “associated with a Competitive Activity” if the Participant becomes directly or indirectly involved as an owner, investor (other than a passive stockholder of less than five percent (5%) of a corporation the securities of which are traded on a national securities exchange), employee, officer, director, consultant, independent contractor, agent, partner, advisor, or in any other capacity in a role where Participant’s ability to draw upon the goodwill or Confidential Information of the Company is likely to affect Participant’s decisions or actions with regard to the Competitive Activity, to the detriment of Company.

 

(c)                                  During the Noncompetition Period, the Participant shall not, on the Participant’s own behalf or on behalf of any other person, firm or entity (x) directly or indirectly hire, solicit, induce or attempt to solicit or induce any employee of the Company or any of its subsidiaries to terminate his employment with the Company or any of its subsidiaries, or to provide any assistance whatsoever to any person, firm or entity engaged in a Competitive Activity, or (y) directly or indirectly induce any business, entity or person with which the Company or any of their subsidiaries has a business relationship to terminate or alter such business relationship.

 

(d)                                 In addition to such other rights and remedies as the Company may have at equity or in law with respect to any breach of these provisions, if the Participant commits a material breach of any of these provisions, the Company shall have the right to seek to have such provisions specifically enforced by any court having equity jurisdiction (without any obligation to post a bond or other security); it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages alone will not provide an adequate remedy to the Company.

 

(e)                                  The Participant acknowledges that while the Participant is an employee of or service provider to the Company, the Participant may conceive of, discover, invent or create inventions, improvements, new contributions, literary property, computer programs and software material, ideas and discoveries, whether patentable or copyrightable or not (all of the foregoing being collectively referred to herein as “Work Product”), and that various business opportunities shall be presented to the Participant by reason of the Participant’s employment by the Company.  The

 

13

 

Participant acknowledges that all of the foregoing shall be owned by and belong exclusively to the Company and that the Participant shall have no personal interest therein and the Participant does hereby assign all rights, title and interest therein to the Company; provided that they are either related in any manner to the business (commercial or experimental) of the Company or any of its subsidiaries, or are, in the case of Work Product, conceived or made on the Company’s time or with the use of the Company’s facilities or materials, or, in the case of business opportunities, are presented to the Participant for the possible interest or participation of the Company or any of its subsidiaries.  The Participant agrees that the Participant will not assert any rights to any Work Product or business opportunity as having been made or acquired by the Participant prior to the date hereof.

 

(f)                                   The Participant acknowledges and agrees that these provisions are necessary to protect the business operations and affairs of the Company and its subsidiaries.  The Participant understands that the restrictions set forth in these provisions may limit the Participant’s ability to earn a livelihood in a business similar that of the Company, but the Participant nevertheless believes that the Participant has received and will receive sufficient consideration and other benefits as an employee of or service provider to the Company, including without limitation, the restricted stock award granted by the Company and memorialized in the Agreement to which these provisions are attached, to justify clearly such restrictions which, in any event (given the Participant’s education, skills and ability), the Participant does not believe would prevent the Participant from earning a livelihood.

 

II.                                   To the extent permitted by law, any restriction set forth in this Agreement that is found by any court of competent jurisdiction to be unreasonable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, may be interpreted to extend only over the maximum period of time, range of activities or geographic area deemed to be reasonable.

 

III.                              To the extent permitted by law, the invalidity of any provision of this Agreement will not and shall not be deemed to affect the validity of any other provision.  In the event that any provision of this Agreement is held to be invalid, it shall be considered expunged, and the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

 

14

 

APPENDIX A

TO CONFIDENTIALITY AND NONCOMPETITION AGREEMENT

 

CALIFORNIA LABOR CODE SECTION 2870

 

(a)                                 Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:

 

(1)                                 Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or

 

(2)                                 Result from any work performed by the employee for the employer.

 

(b)                                 To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

 

15

 

APPENDIX B

TO CONFIDENTIALITY AND NONCOMPETITION AGREEMENT

 

LIST OF PRIOR INVENTIONS AND ORIGINAL WORKS OF AUTHORSHIP:

 

	
Title
    	
 
    	
Date
    	
 
    	
Identifying Number or Brief Description
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

16Nobilis Health Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

THIRD AMENDMENT TO CREDIT AGREEMENT 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”), is made and entered into as of November 30, 2015 (the
“Third Amendment Effective Date”), among NORTHSTAR HEALTHCARE
ACQUISITIONS, L.L.C., a Delaware limited liability company (the
“Borrower”), the other Credit Parties party hereto, the financial
institutions party hereto from time to time (collectively, the “Lenders”
and individually each a “Lender”), and HEALTHCARE FINANCIAL SOLUTIONS,
LLC, a Delaware limited liability company (as the successor in interest to
GENERAL ELECTRIC CAPITAL CORPORATION), as administrative agent for the
Secured Parties (in such capacity, the “Agent”), and as a Lender, and
Swingline Lender.

W I T
N E S
S E T
H: 

WHEREAS, the Borrower, the other Credit Parties party
thereto, the Lenders party thereto and Agent are parties to that certain Credit
Agreement, dated as of March 31, 2015 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), pursuant
to which the Lenders committed to make certain loans and other financial
accommodations to the Borrower upon the terms and conditions set forth therein;

WHEREAS, the Borrower and the other Credit Parties have
requested that Agent and the Lenders (a) amend the form of Compliance
Certificate set forth in the Credit Agreement and (b) amend certain provisions
of the Credit Agreement as more fully described herein; and 

WHEREAS, Agent and the Lenders are willing to amend
certain provisions of the Credit Agreement, all subject to and in accordance
with the terms and conditions specified herein. 

NOW, THEREFORE, in consideration of the foregoing, and
the respective agreements, warranties and covenants contained herein, the
parties hereto agree, covenant, and warrant as follows: 

SECTION 1. DEFINITIONS. 

1.1   
 Interpretation. All capitalized terms used herein
(including the recitals hereto) shall have the respective meanings assigned
thereto in the Credit Agreement unless otherwise defined herein. 

SECTION 2. AMENDMENTS. 

Subject to the terms and conditions of this Amendment,
including, without limitation, the representations, warranties, and covenants in
Section 5 hereof and the conditions precedent to the effectiveness of
this Amendment in Section 6 hereof, effective as of the date hereof, the
Credit Agreement is hereby amended as follows: 

2.1     Form of Compliance
Certificate. Exhibit 4.2(b) to the Credit Agreement is hereby amended
and restated in its entirety with the form of Exhibit 4.2(b) attached
hereto. 

SECTION 3. ACKNOWLEDGMENTS 

3.1     Acknowledgment of
Obligations. All Obligations, together with interest accrued and accruing
thereon, and fees, costs, expenses and other charges now or hereafter payable by
the Credit Parties to the Lenders, are unconditionally owing by the Credit
Parties, all without offset, defense or counterclaim of any kind, nature or
description whatsoever. 

3.2     Acknowledgment of
Liens. Each of the Credit Parties hereby acknowledges, confirms and agrees
that Agent on behalf of the Lenders has and shall continue to have valid,
enforceable and perfected first priority Liens (subject to certain Permitted
Liens) upon and security interests in the Collateral heretofore granted by the
Credit Parties to Agent on behalf of the Lenders pursuant to the Loan Documents.

3.3     Binding Effect of
Documents. Each of the Credit Parties hereby acknowledges, confirms and
agrees that: (a) each of the Loan Documents to which it is a party has been duly
executed and delivered to Agent, and each is in full force and effect as of the
date hereof, (b) the agreements and obligations of each Credit Party contained
in the Loan Documents and in this Amendment constitute the legal, valid and
binding obligations of such Credit Party, enforceable against it in accordance
with their respective terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally or by equitable
principles relating to enforceability, and no Credit Party has a valid defense
to the enforcement of such obligations and (c) Agent and the Lenders are and
shall be entitled to the rights, remedies and benefits provided for them in the
Loan Documents and applicable law. 

SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS

Borrower and each of the other Credit Parties hereby further
represent, warrant, and covenant with and to Agent and the Lenders as follows:

4.1     Representations
and Warranties. After giving effect to this Amendment, each of the
representations and warranties made by or on behalf of the Credit Parties to
Agent and the Lenders in all of the Loan Documents was true and correct in all
material respects when made and is true and correct in all material respects on
and as of the date of this Amendment with the same full force and effect as if
each of such representations and warranties had been made by such Person on the
date hereof and in this Amendment, except to the extent that such representation
and warranty expressly relates to an earlier date and except for changes therein
expressly permitted or expressly contemplated by the Credit Agreement. 

4.2     Binding Effect of
Documents. This Amendment and the other Loan Documents have been duly
executed and delivered to Agent and the Lenders by the Borrower and each of the
other Credit Parties and are in full force and effect, as modified hereby. 

4.3     No Conflict, Etc.
The execution and delivery and performance of this Amendment by the Borrower
and each of the other Credit Parties will not violate any federal, state or any
other material law, rule, regulation or order or material contractual obligation
of such Person in any material respect and will not result in, or require, the
creation or imposition of any Lien (other than the Liens created by the
Collateral Documents) on any of its Properties or revenues. 

4.4     Events of
Default. Immediately after giving effect to this Amendment, no Events of
Default are continuing as of the date hereof. The parties hereto acknowledge,
confirm, and agree that any material misrepresentation by any Credit Party or
any failure of any Credit Party to comply with the covenants, conditions and
agreements contained in this Amendment shall constitute an Event of Default
under the Credit Agreement. 

SECTION 5. CONDITIONS TO EFFECTIVENESS

The effectiveness of the terms and provisions of this Amendment
shall be subject to each of the following conditions precedent having been
satisfied as determined in Agent’s sole discretion prior to the Third Amendment
Effective Date: 

-2- 

(a)     Agent shall have received one or
more counterparts of this Amendment, duly executed and delivered by the Credit
Parties and the Lenders; and 

(b)     All reasonable out-of-pocket costs
and expenses referenced in Section 9.5 of the Credit Agreement that have
been invoiced to the Borrower shall have been paid or reimbursed by the
Borrower, including, without limitation, those relating to this Amendment. 

SECTION 6. PROVISIONS OF GENERAL APPLICATION 

6.1     Effect of this
Amendment. Except for the amendments expressly set forth and referred to in
Section 2, no other changes or modifications to the Loan Documents are
intended or implied and in all other respects the Loan Documents are hereby
specifically ratified and confirmed by all parties hereto as of the date hereof.
In the event of any conflict between the terms of this Amendment and the other
Loan Documents, the terms of this Amendment shall control. Nothing in this
Amendment is intended, or shall be construed, to constitute a novation or an
accord and satisfaction of any Credit Party’s Obligations under or in connection
with the Credit Agreement or any of the other Loan Documents or to modify,
affect or impair the perfection or continuity of Agent’s security interests in,
security titles to or other Liens on any Collateral for the Obligations. The
Credit Agreement and this Amendment shall be read and construed as one
agreement. Agent and Lenders hereby notify the Credit Parties that, effective
from and after the date of this Amendment, Agent, and Lenders intend to enforce
all of the provisions of the Loan Documents and that Agent and Lenders expect
that the Credit Parties will strictly comply with the terms of the Loan
Documents from and after this date. 

6.2     Costs and
Expenses. The Credit Parties absolutely and unconditionally agree to pay to
Agent, on demand by Agent at any time and as often as the occasion therefore may
require, all reasonable fees and out-of-pocket disbursements of any counsel to
Agent in connection with the preparation, negotiation, execution, or delivery of
this Amendment and any agreements delivered in connection herewith and expenses
which shall at any time be incurred or sustained by Agent or any participant of
Agent or any of its respective directors, officers, employees or agents as a
consequence of or in any way in connection with the preparation, negotiation,
execution, or delivery of this Amendment and any agreements prepared,
negotiated, executed or delivered in connection herewith. 

6.3     Further
Assurances. The parties hereto shall execute and deliver such additional
documents and take such additional action as may be necessary or desirable to
effectuate the provisions and purposes of this Amendment. 

6.4     Binding Effect.
This Amendment shall be binding upon and inure to the benefit of each of the
parties hereto and their respective successors and assigns. 

6.5     Survival of
Representations and Warranties. All representations and warranties made in
this Amendment or any other document furnished in connection with this Amendment
shall survive the execution and delivery of this Amendment and the other
documents, and no investigation by Agent or any Lender shall affect the
representations and warranties or the right of Agent or the Lenders to rely upon
them. 

6.6     Releases by Credit
Parties. As a material inducement to Agent and the Lenders to enter into
this Amendment and to grant concessions to the Credit Parties, all in accordance
with and subject to the terms and conditions of this Amendment, each Credit
Party: 

(a)     Does hereby remise, release,
acquit, satisfy and forever discharge Agent and the Lenders and their
subsidiaries and affiliates, and all of their respective past, present and
future officers, directors, employees, agents, attorneys, representatives,
participants, heirs, successors and assigns (each a “Releasee” and
collectively, the “Releasees”) from any and all manner of debts,
accountings, bonds, warranties, representations, covenants, promises, contracts,
controversies, arguments, liabilities, obligations, expenses, damages,
judgments, executions, actions, claims, demands and causes of action of any
nature whatsoever, whether at law or in equity, either now accrued or hereafter
maturing or whether known or unknown, which any Credit Party now has or
hereafter can, shall or may have by reason of any manner, cause or things, from
the beginning of the world to and including the date of this Amendment, with
respect to matters arising out of, in connection with or related to:  

-3- 

(i)     any and all obligations owed or
owing to any Releasee under any document evidencing financial arrangements by,
among and between such Releasee and any Credit Party, relating to the Credit
Agreement, and including, but not limited to, the administration or funding
thereof; 

(ii)     the Credit Agreement and
indebtedness evidenced and secured thereby; or 

(iii)     any other agreement or
  transaction between any Credit Party and any Releasee entered into in connection
  with the Credit Agreement. 

(b)      Does hereby covenant and
agree never to institute or cause to be instituted or continued prosecution of
any suit or other form of action or proceeding of any kind or nature whatsoever
against any Releasee by reason of or in connection with any of the foregoing
matters, claims or causes of action; provided, however, that the
foregoing release and covenant not to sue shall not apply to any claim arising
after the date of this Amendment with respect to acts, occurrences or events
after the date of this Amendment; and, further provided that the
foregoing release and covenant not to sue shall not apply to any rights or
claims, if any, of any third party creditors of any Credit Party. If any Credit
Party or any of its successors, assigns or other legal representations violates
the foregoing covenant, such Credit Party and its successors, assigns and legal
representatives, jointly and severally agree to pay, in addition to such other
damages as any Releasee may sustain as a result of such violation, all
attorneys’ fees and costs incurred by any Releasee as a result of such
violation. 

(c)      Does hereby expressly
acknowledge and agree that the covenants and agreements of Agent and the Lenders
contained in this Amendment shall not be construed as an admission of any
wrongdoing, liability or culpability on the part of Agent or any Lender or as
any admission by Agent or any Lender of the existence of claims by any Credit
Party against Agent, the Lenders or any other Releasee. Each Credit Party, Agent
and the Lenders acknowledge and agree that the value to the Credit Parties of
the covenants, consents and agreements on the part of Agent and the Lenders
contained in this Amendment substantially and materially exceed any and all
value of any kind or nature whatsoever of any claims or other liabilities waived
or released by the Credit Parties. 

(d)      Notwithstanding anything
contained in this Amendment, the general release set forth in this Amendment
shall not extend to and shall not include any duties or obligations of Agent or
the Lenders in the Credit Agreement as modified by this Amendment or in any of
the Loan Documents. 

6.7      Entire
Agreement. This Amendment expresses the entire understanding and agreement
of the parties hereto with respect to the subject matter hereof and supersedes
all prior understandings, negotiations, correspondence and agreements of the
parties regarding such subject matter. 

6.8      GOVERNING
LAW. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN ALL MATTERS ARISING OUT
OF, IN CONNECTION WITH OR RELATING TO THIS AMENDMENT, INCLUDING, ITS VALIDITY,
INTERPRETATION, CONSTRUCTION, PERFORMANCE AND ENFORCEMENT (INCLUDING, ANY CLAIMS
SOUNDING IN CONTRACT OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND
ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST).

-4- 

6.9     Incorporation of
Credit Agreement Provisions. The provisions contained in Sections 9.13,
9.14, 9.16, 9.18(b), 9.18(c), 9.18(d), 9.19, 9.23, and 9.24 of the Credit
Agreement are incorporated herein by reference to the same extent as if
reproduced herein in their entirety.

6.10     Counterparts.
This Amendment may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement. Signature pages may be detached
from multiple separate counterparts and attached to a single counterpart.
Delivery of an executed signature page of this Amendment by facsimile
transmission or Electronic Transmission shall be as effective as delivery of a
manually executed counterpart hereof. 

[Signature Pages to Follow] 

-5- 

IN WITNESS WHEREOF, the parties have caused this
Amendment to be duly executed by their respective duly authorized officers, as
of the date first above written. 

	 	HEALTHCARE FINANCIAL
      SOLUTIONS, 
	 	LLC (as the successor in
      interest to GENERAL 
	 	ELECTRIC CAPITAL CORPORATION),
    
	 	as Administrative Agent, a Lender,
      and Swingline 
	 	Lender 
	 	  
	 	  
	 	By: 	/s/ R.
      Hanes Whiteley  
	 	Name: R. Hanes Whiteley 
	 	Title: Duly Authorized Signatory
  

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
THIRD AMENDMENT TO
CREDIT AGREEMENT 
SIGNATURE PAGE

	 	BORROWER: 
	 	 
	 	NORTHSTAR HEALTHCARE 
	 	ACQUISITIONS, L.L.C. 
	 	 
	 	 
	 	By: 	/s/
      Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
THIRD AMENDMENT TO
CREDIT AGREEMENT 
SIGNATURE PAGE 

	 	CREDIT PARTIES: 
	 	  
	 	NORTHSTAR HEALTHCARE HOLDINGS, INC.
  
	 	  
	 	By: _/s/ Kenneth
      Klein______________________ 
	 	Name: Kenneth Klein 
	 	Title: Chief Financial
      Officer______________ 
	 	  
	 	NOBILIS HEALTH CORP. 
	 	  
	 	By: _/s/ Kenneth
      Klein_______________________ 
	 	Name: _Kenneth
      Klein_______________________ 
	 	Title: Chief Financial
      Officer_________________ 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
THIRD AMENDMENT TO
CREDIT AGREEMENT 
SIGNATURE PAGE

	 	NORTHSTAR HEALTHCARE NORTHWEST 
	 	HOUSTON MANAGEMENT, LLC 
	 	  
	 	           
             By: Northstar Healthcare Acquisitions, L.L.C.,
    
	 	           
             its sole manager 
	 	  
	 	           
             By:_/s/ Kenneth Klein_________________
    
	 	           
             Name: Kenneth Klein_________________
  
	 	           
             Title: Chief Financial Officer_________
    
	 	  
	 	NORTHSTAR HEALTHCARE MANAGEMENT 
	 	COMPANY, LLC 
	 	  
	 	           
             By: Northstar Healthcare Acquisitions, L.L.C.,
    
	 	           
             its sole member 
	 	  
	 	           
             By:__/s/ Kenneth Klein_________________
    
	 	           
             Name: Kenneth Klein___________________
    
	 	           
             Title: Chief Financial
      Officer____________ 
	 	  
	 	NORTHSTAR HEALTHCARE SURGERY 
	 	CENTER – HOUSTON, LLC 
	 	  
	 	           
             By: Northstar Healthcare Acquisitions, L.L.C.,
    
	 	           
             its sole member 
	 	  
	 	           
             By:_/s/ Kenneth Klein__________________
    
	 	           
             Name: Kenneth Klein__________________
  
	 	           
             Title: _Chief Financial Officer_________ 
	 	  
	 	NORTHSTAR HEALTHCARE SURGERY 
	 	CENTER – SCOTTSDALE, LLC 
	 	  
	 	           
             By: Northstar Healthcare Acquisitions, L.L.C.,
    
	 	           
             its sole manager 
	 	  
	 	           
             By:_/s/ Kenneth Klein_________________
    
	 	           
             Name: _Kenneth Klein_________________
  
	 	           
             Title: Chief Financial Officer__________
    
	 	  
	 	NORTHSTAR HEALTHCARE SUBCO, L.L.C.

	 	  
	 	By: _/s/ Kenneth
      Klein______________________ 
	 	Name: _Kenneth
      Klein_____________________ 
	 	Title: Chief Financial
      Officer_______________ 
	 	  
	 	NORTHSTAR HEALTHCARE LIMITED 
	 	PARTNER, L.L.C. 
	 	  
	 	By: _/s/ Kenneth
      Klein______________________ 
	 	Name: Kenneth
      Klein________________________ 
	 	Title: Chief Financial
      Officer_________________ 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
THIRD AMENDMENT TO
CREDIT AGREEMENT 
SIGNATURE PAGE

	 	NORTHSTAR HEALTHCARE GENERAL
    
	 	PARTNER, L.L.C. 
	 	  
	 	By: /s/ Kenneth
      Klein_______________________ 
	 	Name: Kenneth
      Klein_______________________ 
	 	Title: Chief Financial
      Officer________________ 
	 	  
	 	THE PALLADIUM FOR SURGERY –
      DALLAS, 
	 	LTD. 
	 	  
	 	                   By:
      Northstar Healthcare General Partner, 
	 	         
               L.L.C., its sole general partner 
	 	  
	 	                   By:_/s/
      Kenneth Klein________________ 
	 	         
               Name: _Kenneth
      Klein________________ 
	 	         
               Title: Chief Financial
      Officer__________ 
	 	  
	 	ATHAS HEALTH LLC 
	 	  
	 	         
               By: Northstar Healthcare Subco, L.L.C.,
      its sole 
	 	         
               member 
	 	  
	 	                   By:
      _/s/ Kenneth Klein_______________ 
	 	                   Name:
      _Kenneth Klein_______________ 
	 	         
               Title: Chief Financial
      Officer__________ 
	 	  
	 	ATHAS ADMINISTRATIVE LLC

	 	  
	 	                   By:
      Athas Health LLC, its sole member 
	 	  
	 	         
               By: /s/ Kenneth
      Klein__________________ 
	 	         
               Name: Kenneth
      Klein__________________ 
	 	         
               Title: Chief Financial
      Officer___________ 
	 	  
	 	ATHAS HOLDINGS LLC 
	 	  
	 	                   By:
      Athas Health LLC, its sole member 
	 	  
	 	         
               By: /s/ Kenneth
      Klein__________________ 
	 	         
               Name: _Kenneth
      Klein__________________ 
	 	                   Title:
      _Chief Financial Officer__________ 
	 	  
	 	FIRST NOBILIS HOSPITAL
      MANAGEMENT, 
	 	LLC 
	 	  
	 	By: 	/s/ Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief Financial Officer  

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
THIRD AMENDMENT TO
CREDIT AGREEMENT 
SIGNATURE PAGE 

	 	NOBILIS HEALTH MARKETING, LLC
    
	 	 
	 	By: 	/s/
      Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  
	 	 
	 	PEAK SURGEON INNOVATIONS, LLC
    
	 	 
	 	By: 	/s/
      Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  
	 	 
	 	PEAK NEUROMONITORING 
	 	MANAGEMENT, LLC 
	 	 
	 	By:	 /s/ Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  
	 	 
	 	PEAK NEUROMONITORING ASSOCIATES
      – 
	 	TEXAS II, LLC 
	 	 
	 	By:	 /s/ Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  
	 	 
	 	PEAK NEUROMONITORING ASSOCIATES
      – 
	 	LOUISIANA, LLC 
	 	 
	 	By: 	/s/ Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief Financial Officer  
	 	 
	 	PEAK NEUROMONITORING ASSOCIATES
      – 
	 	FLORIDA, LLC 
	 	 
	 	By:	 /s/ Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  
	 	 
	 	PEAK NEUROMONITORING ASSOCIATES
      – 
	 	OHIO, LLC 
	 	 
	 	By: 	/s/
      Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
THIRD AMENDMENT TO
CREDIT AGREEMENT 
SIGNATURE PAGE 

	 	PEAK NEUROMONITORING ASSOCIATES
      – 
	 	MICHIGAN, LLC 
	 	 
	 	By: 	/s/
      Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  
	 	 
	 	NOBILIS SURGICAL ASSIST, LLC
    
	 	 
	 	By: 	/s/
      Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  
	 	 
	 	SOUTHWEST HOUSTON SURGICAL
  
	 	ASSIST, LLC 
	 	 
	 	By: 	/s/
      Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  
	 	 
	 	SOUTHWEST FREEWAY SURGERY
  
	 	CENTER, LLC 
	 	 
	 	By: 	/s/
      Kenneth Klein  
	 	Name: 	Kenneth Klein  
	 	Title: 	Chief
      Financial Officer  

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
THIRD AMENDMENT TO
CREDIT AGREEMENT 
SIGNATURE PAGE 

FORM OF
 EXHIBIT 4.2(b) 
COMPLIANCE CERTIFICATE

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 

Date: _______________, 20__ 

This Compliance Certificate (this “Certificate”) is
given by NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C., a Delaware limited liability
company (the “Borrower”), pursuant to Section 4.2(b) of that certain
Credit Agreement dated as of March 31, 2015, among the Borrower, the other
Credit Parties party thereto from time to time, HEALTHCARE FINANCIAL SOLUTIONS,
LLC, a Delaware limited liability company (as the successor in interest to
GENERAL ELECTRIC CAPITAL CORPORATION), as administrative agent for the Secured
Parties (in such capacity, the “Agent”), and the Lenders party thereto
(as such agreement may be amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”). Capitalized terms used herein
without definition shall have the meanings set forth in the Credit Agreement.

The officer executing this Certificate is a Responsible Officer
of the Borrower and Parent and as such is duly authorized to execute and deliver
this Certificate on behalf of the Borrower. By executing this Certificate, such
officer hereby certifies to Agent, the Lenders and the L/C Issuers, on behalf of
the Borrower and Parent, that: 

(a)     the financial statements delivered
with this Certificate in accordance with Section 4.1(a) and/or Section 4.1(b) of
the Credit Agreement are correct and complete and fairly present, in all
material respects, in accordance with GAAP the financial position and the
results of operations of Parent the Borrower and its Subsidiaries as of
the dates of and for the periods covered by such financial statements (subject,
in the case of interim financial statements, to normal year-end adjustments and
the absence of footnote disclosure); 

(b)     [Borrower Note: Include this
paragraph only with respect to Certificates delivered for the last fiscal month
of each Fiscal Quarter] Annex A hereto includes a correct
calculation of EBITDA. Adjusted EBITDA, Cash Flow and Net Interest Expense for
the relevant periods ended ___________, 20__; Annex B includes a correct
calculation of each of the financial covenants contained in Article VI of
the Credit Agreement for the relevant periods ended ____________, 20__]
[Borrower Note: Include following re Excess Cash Flow only for Certificate
delivered for end of applicable Fiscal Years] [and Excess Cash Flow
(including a correct calculation of any required prepayment) for the Fiscal Year
ended [December 31, 20__]; 

(c)     [Borrower Note: Include this
paragraph only with respect to Certificates delivered for the last fiscal month
of each Fiscal Quarter] as of ___________, 20__, no Credit Party or any
Subsidiary of any Credit Party owns any Margin Stock [, except as specified
on Annex C attached hereto]. 

(d)     to the best of such officer’s
knowledge, no Default or Event of Default exists [except as specified on
Annex C attached hereto]; and 

(f)     since the Closing Date and except
as disclosed in prior Certificates delivered to Agent, no Credit Party and no
Subsidiary of any Credit Party has: 

1 

(i)     changed its legal name, identity,
jurisdiction of incorporation, organization or formation or organizational
structure or formed or acquired any Subsidiary except as follows:
____________________________________; 

(ii)     acquired all or substantially all of
the assets of, or merged or consolidated with or into, any Person, except as
follows:_____________________________________; or 

(iii)   changed its address or otherwise relocated,
acquired fee simple title to any real property or entered into any real property
leases, except as follows:
___________________________________________________. 

IN WITNESS WHEREOF, the Borrower has caused this Certificate to
be executed by one of its Responsible Officers this _____day of _______________,
20__. 

	 	 
	 	 
	 	Name: 	 
	 	Title: 	 

Note: Unless otherwise specified, all financial covenants are
calculated for the Defined Financial Group in accordance with GAAP. All
calculations are without duplication. 

2 

	ANNEX A 
	TO COMPLIANCE CERTIFICATE 
	Selected Financial Definitions and Calculations
  

	I. 	
      Definition/Calculation of EBITDA/Adjusted
      EBITDA

EBITDA is defined as follows: 

	A. 	
      Net income (or loss) for the applicable period of
      measurement of the Defined Financial Group determined in accordance with
      GAAP
	 	 

Less (or plus), to the extent included above in net income (or
loss) for such period: 

	 	(1) 	
      the income (or loss) of any Person accrued prior to the
      date it becomes a Credit Party or is merged into or consolidated with the
      Borrower or any other Credit Party or that Person’s assets are acquired by
      the Borrower or any other Credit Party
	 	 
	 	 	 	 	 
	 	(2) 	
      gains (or losses) from the sale, exchange, transfer or
      other disposition of Property or assets not in the Ordinary Course of
      Business of the Defined Financial Group, and related tax effects in
      accordance with GAAP
	 	 
	 	 	 	 	 
	 	(3) 	
      any other extraordinary gains (or losses) of the Defined
      Financial Group, and related tax effects in accordance with GAAP
	 	 
	 	 	 	 	 
	 	(4) 	
      income tax refunds received, in excess of income tax
      liabilities for such period
	 	 

	B. 	
      Total exclusions from (additions to) net income (sum of
      (1)-(5) above) 
	 	 

Plus, without duplication, to the extent included in the
calculation of net income (or loss) for such period: 

	 	(1) 	
      Depreciation and amortization 
	 	 
	 	 	 	 	 
	 	(2) 	
      Interest expense (less interest income) (net of realized
      gains and losses under permitted Rate Contracts with respect
    thereto)
	 	 
	 	 	 	 	 
	 	(3) 	
      All taxes on or measured by income (excluding income tax
      refunds) including, without duplication, Tax Distributions paid in cash in
      accordance with Section 5.11(d) of the Credit Agreement
	 	 
	 	 	 	 	 
	 	(4) 	
      All non-cash losses or expenses (or minus non-cash income
      or gain), including, without limitation, non-cash adjustments resulting
      from the application of purchase accounting, non-cash expenses arising
      from grants of stock appreciation rights, stock options or restricted
      stock, non-cash impairment of good will and other long term intangible
      assets, unrealized non-cash losses (or minus unrealized non-cash gains)
      under Rate Contracts, unrealized non-cash losses (or minus unrealized
      non-cash gains) in such period due solely to fluctuations in currency
      values, but excluding any non- cash loss or expense (a) that is an accrual
      of a reserve for a cash expenditure or payment to be made, or anticipated
      to be made, in a future period or (b)
	 	 
	 	 	 	 	 
	 		
      relating to a write-down, write off or reserve with
      respect to Accounts and Inventory
	 	 
	 	 	 	 	 
	 	(5) 	
      Fees and expenses incurred in connection with the
      negotiation, execution and delivery on the Closing Date of the Loan
      Documents, to the extent that such fees and expenses do not exceed $630,143 in the aggregate
for all fees and expenses and are disclosed to Agent 
	 	 

A-1 

	ANNEX A 
	TO COMPLIANCE CERTIFICATE 
	Selected Financial Definitions and Calculations
  

	 	(6) 	
      Fees and reasonable and documented out-of-pocket expenses
      incurred in connection with any amendments or waivers to the Credit
      Agreement and the other Loan Documents to the extent such fees and
      expenses have been disclosed to Agent 
	 	 
	 	 	 	 	 
	 	(7) 	
      Fees and expenses incurred in connection with (i) a
      Permitted Acquisition (including any refinancing of (or amendment to) any
      Indebtedness acquired or assumed in connection therewith) or an Investment
      not in the ordinary course of business, (ii) a Disposition not in the
      ordinary course of business, (iii) Indebtedness incurred or Stock issued,
      in each instance in the foregoing clauses (i), (ii) and
      (iii), to the extent consummated and permitted under the Credit
      Agreement, and/or (iv) an Event of Loss, to the extent all such fees and
      expenses described in this clause (7) do not exceed $500,000 in
      the aggregate for any four consecutive Fiscal Quarter period
	 	 
	 	 	 	 	 
	 	(8) 	
      Fees and expenses (such fees and expenses described in
      this clause (8), collectively, “Unconsummated Transaction
      Fees”) incurred in connection with (i) a contemplated Permitted
      Acquisition or a contemplated Investment not in the ordinary course of
      business, (ii) a proposed incurrence of Indebtedness or proposed issuance
      of Stock, or (iii) a proposed Disposition not in the ordinary course of
      business, in each instance in the foregoing clauses (i), (ii)
      or (iii) which is not consummated and which is permitted under
      the Credit Agreement, to the extent all such Unconsummated Transaction
      Fees (a) do not exceed $250,000 in the aggregate for any four consecutive
      Fiscal Quarter period, and (b) are certified as such in a certificate of a
      Responsible Officer of the Borrower to Agent describing such fees and
      expenses in reasonable detail
	 	 
	 	 	 	 	 
	 	(9) 	
      One-time non-recurring or unusual expenses including,
      without limitation, severance costs, lease termination costs, relocation
      costs, restructuring charges and other one-time expenses not otherwise
      added back to EBITDA and certified as such in a certificate of a
      Responsible Officer of the Borrower describing such expenses in reasonable
      detail (collectively, “Non- Recurring Expenses”) in an
      aggregate amount not to exceed ten percent (10%) of EBITDA (calculated
      before the addback for Non-Recurring Expenses) in the aggregate for any
      four consecutive Fiscal Quarter period 
	 	 
	 	 	 	 	 
	 	(10) 	
      Proceeds of business interruption insurance received in
      cash during such period to the extent not included in the calculation of
      net income (or loss) for such period
	 	 
	 	 	 	 	 
	 	(11) 	
      Pro forma incremental earnings related to the Athas
      acquisition, which, for each of the trailing twelve month periods ended as
      of the date set forth below, shall not exceed the amounts set forth
      opposite such date:
	 	 

	 	January 31, 2015 	$ 8,146,204.84 	 	 	 
	 	 	 	 	 	 
	 	February 28, 2015 	$ 7,550,691.07 	 	 	 
	 	 	 	 	 	 
	 	March 31, 2015 	$ 6,947,702.22 	 	 	 
	 	 	 	 	 	 
	 	April 30, 2015 	$ 6,157,836.67 	 	 	 
	 	 	 	 	 	 
	 	May 31, 2015 	$ 5,512,489.11 	 	 	 
	 	 	 	 	 	 
	 	June 30, 2015 	$ 4,755,887.62 	 	 	 
	 	 	 	 	 	 
	 	July 31, 2015 	$ 4,101,320.80 	 	 	 
	 	 	 	 	 	 
	 	August 31, 2015 	$ 3,381,222.56 	 	 	 
	 	 	 	 	 	 
	 	September 30, 2015 	$ 2,631,224.04 	 	 	 
	 	 	 	 	 	 
	 	October 31, 2015 	$ 1,766,607.81 	 	 	 
	 	 	 	 	 	 
	 	November 30, 2015 	$ 1,039,034.49 	 	 	 
	 	 	 	 	 	 
	 	December 31, 2015 	$ 0.00 	 	 	 
	 	 	 	 	 	 

A-2 

	ANNEX A 
	TO COMPLIANCE CERTIFICATE 
	Selected Financial Definitions and Calculations
  

	 	(12) 	
      One-time write-down of Accounts taken in November 2014 in
      an amount equal to $2,656,462.50 
	 	 
	 	 	 	 	 
	 	(13) 	
      Such other addbacks acceptable to Agent in its sole
      discretion 
	 	 

	C. 	
      Total add backs to net income (sum of (1)-(13)
      above): 
	 	 
	 	 	 	 
	D. 	
      EBITDA (result of A minus B plus C above)
      
	 	 

Adjusted EBITDA is defined as follows: 

	 	(i) 	
      EBITDA (per D above) 
	 	 
	 	 	 	 	 
	 	(ii) 	
      with respect to Targets owned by the Borrower for which
      the Agent has received financial statements pursuant to Section 4.1(b) for
      less than twelve (12) months, Pro Forma EBITDA allocated to each period
      prior to the acquisition thereof included in the trailing twelve (12)
      month period for which Adjusted EBITDA is being calculated;
      [Borrower Note: If more than one Target has been acquired, attach
      calculation of Pro Forma EBITDA for each Target]
	 	 
	 	 	 	 	 
	 	(iii) 	
      with respect to any Disposition consummated within the
      period in question, EBITDA attributable to the Subsidiary, profit centers,
      or other asset which is the subject of such Disposition from the beginning
      of such period until the date of consummation of such Disposition
	 	 

	Adjusted EBITDA (result of (i) plus (ii) minus
      (iii) above) 	 	 
	 	 	 
	“Pro Forma EBITDA” means, with respect to any Target,
      EBITDA for such Target for the most recent twelve (12) month period
    preceding the acquisition thereof.
	 	 

A-3 

	ANNEX A 
	TO COMPLIANCE CERTIFICATE 
	Selected Financial Definitions and Calculations
  

	II. 	
      Definition/Calculation of Cash
  Flow

Cash Flow (used for calculating Excess Cash Flow and Fixed
Charge Coverage Ratio) is defined as: 

	A. 	
      EBITDA (per definition I above) 
	 	 

Less unfinanced net capital expenditures: 

	(1) 	
      Gross capital expenditures: the aggregate of all
      expenditures and other obligations for the period of measurement which
      should be capitalized under GAAP
	 	 

Less, in each case, to the extent included in (1) above:

	 	(a) 	
      Net Proceeds from Dispositions 
	 	 
	 	 	 	 	 
	 	(b) 	
      Expenditures financed with cash proceeds from Stock
      issuances 
	 	 
	 	 	 	 	 
	 	(c) 	
      All insurance proceeds and condemnation awards received
      on account of any Event of Loss to the extent any such amounts are
      actually applied to replace, repair or reconstruct the damaged Property or
      Property affected by the condemnation or taking in connection with such
      Event of Loss
	 	 
	 	 	 	 	 
	 	(d) 	
      That portion of the purchase price of a Target in a
      Permitted Acquisition that constitutes a capital expenditure under
    GAAP
	 	 

	 	(2) 	
      Total deductions from gross capital expenditures (sum of
      (a)-(d) above) 
	 	 
	 	 	 	 	 
	 	(3) 	
      Net capital expenditures (result of (1) minus (2)
      above) 
	 	 
	 	 	 	 	 
	 	(4) 	
      Less: Portion of capital expenditures financed under
      Capital Leases or other Indebtedness (Indebtedness, for this purpose, does
      not include drawings under the Revolving Loan Commitment)
	 	 

	B. 	
      Unfinanced capital expenditures (result of (3) minus
      (4) above) 
	 	 

	Cash Flow (result of A minus B above) 	 	 

A-4 

	ANNEX A 
	TO COMPLIANCE CERTIFICATE 
	Selected Financial Definitions and Calculations
  

	III. 	
      Definition/Calculation of Net Interest
    Expense

Net Interest Expense (used for calculating Fixed Charge
Coverage Ratio and Excess Cash Flow) is defined as1: 

	 	A. 	
      Gross interest expense for such period paid or required
      to be paid in cash (including all commissions, discounts, fees and other
      charges in connection with letters of credit and similar instruments and
      net amounts paid or payable and/or received or receivable under permitted
      Rate Contracts in respect of interest rates) for Holdings and its
      Subsidiaries on a consolidated basis
	 	 
	 	 	 	 	 
	 	B. 	
      Less: Interest income for such period 
	 	 

	Net Interest Expense (result of A minus B above) 	 	 

---------------------------------
1          
Net Interest Expense (a) for the measurement period ending on March 31, 2015,
shall be deemed to equal $854,000, (b) for the measurement period ending on June
30, 2015, shall equal Net Interest Expense during the period from April 1, 2015
through June 30, 2015 multiplied by 4, (c) for the measurement period
ending on September 30, 2015, shall equal Net Interest Expense during the period
from July 1, 2015 through September 30, 2015 multiplied by 2, and (d) for
the measurement period ending on December 31, 2015, shall equal Net Interest
Expense during the period from October 1, 2015 through December 31, 2015
multiplied by 4/3. 

A-5 

	ANNEX B 
	TO COMPLIANCE CERTIFICATE 
	Financial Covenant and Excess Cash Flow Calculations
  

	I. 	
      Section 6.1: Leverage
Ratio

Leverage Ratio is defined as follows: 

	A. 	
      The aggregate balance of outstanding Revolving Loans and
      Swing Loans as of the date of measurement
	 	 

Plus: 

	 	(1) 	
      L/C Reimbursement Obligations as of date of measurement
      then due and payable
	 	 
	 	 	 	 	 
	 	(2) 	
      Outstanding principal balance of the Term Loan as of date
      of measurement
	 	 
	 	 	 	 	 
	 	(3) 	
      Principal portion of Capital Lease Obligations and
      Indebtedness secured by purchase money Liens as of date of
    measurement
	 	 
	 	 	 	 	 
	 	(4) 	
      Subordinated Indebtedness as of date of measurement
    
	 	 
	 	 	 	 	 
	 	(5) 	
      Without duplication, all other Funded Indebtedness of the
      Defined Financial Group as of date of measurement
	 	 

	B. 	
      Consolidated Total Indebtedness (sum of A plus sum
      of (1)-(5) above) 
	 	 
	 	 	 	 
	C. 	
      Adjusted EBITDA for the twelve month period ending on the
      date of measurement (per I of Annex A)
	 	 

	Leverage Ratio (result of B divided by C above) 	 	 
    
	 	 	 
	Permitted maximum Leverage Ratio 	 	 
    
	 	 	 
	In Compliance 	 	Yes/No 

B-1 

	ANNEX B 
	TO COMPLIANCE CERTIFICATE 
	Financial Covenant and Excess Cash Flow Calculations
  

	II. 	
      Section 6.2: Fixed Charge Coverage
  Ratio

Fixed Charge Coverage Ratio is defined as follows: 

	A. 	
      Cash Flow (per II of Annex A) 
	 	 
	 	 	 	 
	B. 	
      Taxes on or measured by income paid or payable in cash
      with respect to such period including, without duplication, Tax
      Distributions paid in cash in accordance with Section 5.11(d) of the
      Credit Agreement
	 	 
	 	 	 	 
	C. 	
      Net Cash Flow (result of A minus B above) 
	 	 

Fixed charges are defined as: 

	D. 	
      Net Interest Expense (per III of Annex A)
      
	 	 

Plus: 

	 	(1) 	
      Scheduled principal payments of Indebtedness during such
      period reduced by prepayments as permitted by the Credit Agreement
	 	 
	 	 	 	 	 
	 	(2) 	
      Restricted Payments paid in cash in accordance with
      Section 5.11(b) during such period
	 	 

	E. 	
      Total fixed charges (result of D plus (1) and
      (2) above) 
	 	 

	Fixed Charge Coverage Ratio (result of C divided by
      E above) 	 	 
    
	 	 	 
	Required minimum Fixed Charge Coverage Ratio 	 	 
    
	 	 	 
	In Compliance 	 	Yes/No 

For purposes of calculating Fixed Charge Coverage Ratio as of
any date on or prior to June 30, 2016, fixed charges shall be calculated as
follows: 

a.      Scheduled principal payments
of the Term Loans shall be deemed to be $1,000,000 for each such measurement
period. 

b.      (i) Scheduled principal
payments of all Indebtedness other than the Term Loans and Prior Indebtedness,
(ii) Taxes on or measured by income paid or required to be paid in cash, and
(iii) Restricted Payments described in Section 5.11(b) of the Credit Agreement
shall, in each case, be calculated in each case using the actual amounts paid in
cash in respect thereof during each such measurement period. 

B-2 

	ANNEX B 
	TO COMPLIANCE CERTIFICATE 
	Financial Covenant and Excess Cash Flow Calculations
  

	III. 	
      Excess Cash Flow Calculation [Borrower Note:
      Include ECF calculation only for Certificate delivered for end of
      applicable Fiscal
  Years.]2

Excess Cash Flow is defined as follows: 

	A. 	
      Cash Flow (per II of Annex A) 
	 	 

Less, without duplication, and to the extent actually paid in
cash, in each case to the extent not financed with proceeds of Stock issuances
or Indebtedness (other than Revolving Loans): 

	 	(1) 	
      Scheduled principal payments with respect to Indebtedness
      
	 	 
	 	 	 	 	 
	 	(2) 	
      Net Interest Expense (per III of Annex A)
      
	 	 
	 	 	 	 	 
	 	(3) 	
      Taxes on or measured by income (including, without
      duplication, Tax Distributions permitted pursuant to Section 5.11(d) of
      the Credit Agreement)
	 	 
	 	 	 	 	 
	 	(4) 	
      Restricted payments permitted by Section 5.11(b) of the
      Credit Agreement 
	 	 
	 	 	 	 	 
	 	(5) 	
      Increase in working capital (if any) (see Working Capital
      Calculation below)
	 	 
	 	 	 	 	 
	 	(6) 	
      The purchase price paid in cash for all Permitted
      Acquisitions and other Investments permitted pursuant to Section 5.4(j) of
      the Credit Agreement (other than any Investments in any Person which was
      already a Subsidiary or Investments in cash and Cash Equivalents)
	 	 
	 	 	 	 	 
	 	(7) 	
      Voluntary prepayments of the Term Loan during such
      period, to the extent such prepayments are applied in the same manner as
      mandatory prepayments
	 	 
	 	 	 	 	 
	 	(8) 	
      Voluntary prepayments of Revolving Loans during such
      period accompanied by a permanent reduction of the Revolving Loan
      Commitment
	 	 
	 	 	 	 	 
	 	(9) 	
      Cash addbacks to net income specified in clauses
      (6), (7), (8) and (9) in the calculation of
      EBITDA to the extent not reimbursed by a third person
	 	 

	B. 	Total deductions from Cash Flow (sum of
      (1)-(9) above) 	 	 
    
	 	 	 	 
	C. 	Decrease in working capital (if any) (see
      Working Capital Calculation below) 	 	 
    
	 	 	 	 
	D. 	Excess Cash Flow (result of A minus B
      plus C above) 	 	 
    
	 	 	 	 
	E. 	Required prepayment percentage (see Section
      1.8(e) of the Credit Agreement for percentage) 		[____%]
	 	 	 	 
	F. 	Required prepayment amount (result of D
      multiplied by E above) 	 	 
    

-----------------------------------------------------
2
For purposes of calculating Excess Cash Flow, the Excess Cash Flow for the
Fiscal Year ending December 31, 2015 shall be calculated for the Fiscal Quarters
commencing on April 1, 2015 through and including December 31, 2015. 

B-3 

	ANNEX B 
	TO COMPLIANCE CERTIFICATE 
	Financial Covenant and Excess Cash Flow Calculations
  

	IV. 	
      Working Capital
Calculation

Decrease (increase) in working capital, for the purposes of the
calculation of Excess Cash Flow, means the following: 

	  	 	Beg. of Period 	 	 	End of Period 	 
	 	 	 	 	 	 	 
	Current assets: 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Less (to the extent included
      in current Assets): 	 	  	 	 	  	 
	 	 	 	 	 	 	 
	       
                 Cash 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Cash Equivalents 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Deferred tax assets 	$		 	$		 
	 	 	 	 	 	 	 
	Adjusted current assets 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Current liabilities: 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Less (to the extent included
      in current liabilities): 	 	  	 	 	  	 
	 	 	 	 	 	 	 
	       
                 Revolving Loans 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Swing Loans 	$		 	$		 
	 	 	 	 	 	 	 
	       
                 Current portion of Indebtedness    	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Deferred tax liabilities 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Unearned revenue 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Adjusted current liabilities    	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Working capital (adjusted
      current assets minus adjusted current liabilities) 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Decrease (Increase) in
      working capital (beginning of period minus end of period working
      capital) 				$ 		

To the extent any of the Defined Financial Group consummates an
acquisition during such period, beginning of period working capital shall be
recalculated on a pro forma basis to include working capital acquired in such
acquisition. 

B-4

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