Document:

Exhibit 10.6

 

This CONSULTING AGREEMENT, dated as of May 25, 2011 (this “Agreement”), is entered into by and among, CDRT Holding Corporation, a Delaware corporation (the “Company”), Emergency Medical Services Corporation, a Delaware corporation (“Opco”), and Clayton, Dubilier & Rice, LLC, a Delaware limited liability company (“Manager”).

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, Manager organized CDRT Acquisition Corporation, a Delaware corporation (“Parent”), a wholly-owned subsidiary of the Company, to enter into the Agreement and Plan of Merger, dated as of February 13, 2011, among Parent, CDRT Merger Sub, Inc., a Delaware corporation (“Merger Sub”), and Opco (as the same may be amended from time to time in accordance with the terms thereof, the “Acquisition Agreement”), pursuant to which the Company, indirectly through Parent, acquired Opco, on the date hereof, by means of a merger of Merger Sub with and into Opco (the “Acquisition”).

 

WHEREAS, Manager has performed financial, investment banking, management advisory and other services for the Company in connection with the Acquisition, including without limitation assistance in connection with (a) the preparation, negotiation, execution and delivery of the Acquisition Agreement, (b) the retention of legal, accounting, insurance, investment banking, financial and other advisors and consultants in connection with the Acquisition, (c) the preparation, negotiation, execution and delivery of equity commitment letters, fee and engagement letters, subscription agreements, registration rights agreements and agreements, instruments and documents relating to the financing of the Acquisition and the Company, (d) the preparation and circulation of information and offering memoranda and other materials in connection with the financing of the Acquisition and (e) the structuring, implementation and consummation of the Acquisition (such services collectively, the “Initial Services”);

 

WHEREAS, prior to or concurrently with the execution and delivery of this Agreement, the Company, Manager, Opco, Clayton, Dubilier & Rice Fund VIII, L.P., CD&R EMS Co-Investor, L.P. and certain other parties have entered into an Indemnification Agreement, dated as of May 25, 2011 (as the same may be amended from time to time in accordance with its terms, the “Indemnification Agreement”); and

 

WHEREAS, the Company desires that it and its subsidiaries (together, the “Company Group”) receive future financial, investment banking, management advisory and other services from Manager, and Manager desires to provide such services to the members of the Company Group;

 

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

 

 

1.            Engagement.  The Company hereby confirms that Manager has performed the Initial Services as a consultant to the Company.  The Company hereby engages Manager (on behalf of the members of the Company Group) as a consultant, and Manager hereby agrees to provide Consulting Services (as defined below) and Transaction Services (as defined below) to the Company and the other members of the Company Group on the terms and subject to the conditions set forth below.

 

2.            Scope of Future Services.

 

(a)           Consulting Services.  Manager hereby agrees, during the term of this Agreement, to provide the members of the Company Group with such financial, investment banking, management, advisory and other services in connection with the operations of the Company as may reasonably be requested from time to time by the board of directors (the “Board”) of the Company (collectively, the “Consulting Services”), including assistance (i) developing and implementing corporate and business strategy and planning for the Company Group, including plans and programs for improving operating, marketing and financial performance, (ii) recruiting key management employees, (iii) establishing and maintaining banking, legal and other business relationships, (iv) arranging future debt and equity financings and refinancings for corporate purposes and (v) providing professional employees to serve as directors or officers of the members of the Company Group (“Manager Designees”).

 

(b)           Transaction Services.  In addition to, and without duplication of, the Initial Services and the Consulting Services, Manager hereby agrees, during the term of this Agreement, to provide the members of the Company Group with financial, investment banking, management advisory and other services as may reasonably be agreed from time to time by the Company and Manager with respect to proposed transactions, including, without limitation, any proposed acquisition, merger, full or partial recapitalization, structural reorganization (including any divestiture of one or more subsidiaries or operating divisions of any member of the Company Group), reorganization of the shareholdings or other ownership structure of the Company Group, sales or dispositions of assets or any other similar transaction (each, a “Transaction”) directly or indirectly involving the members of the Company Group (collectively, the “Transaction Services”).

 

(c)           Services Non-Exclusive.  Manager will devote such time and efforts to the performance of the services contemplated hereby as Manager deems reasonably necessary or appropriate, provided that no minimum number of hours is required to be devoted on a weekly, monthly, annual or other basis.  The Company and Opco (on behalf of themselves and the other members of the Company Group) hereby acknowledge that Manager’s services are not exclusive to the Company Group and that Manager will render similar services to other persons and entities.

 

(d)           Applicability of Indemnification Agreement.  The Company and Opco (on behalf of themselves and the other members of the Company Group) hereby acknowledge and agree that the services provided by Manager hereunder, including the Initial Services,

 

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the Consulting Services and the Transaction Services, are being provided subject to the terms of this Agreement (including, without limitation, Section 7) and the Indemnification Agreement.

 

3.            Compensation; Reimbursement of Expenses.

 

(a)                     Compensation for Initial Services.  As compensation for the Initial Services, immediately following the later of the date of this Agreement and the date of the consummation of the Acquisition, the Company shall, or shall cause one or more other members of the Company Group to, on behalf of the members of the Company Group, pay Manager a fee of $40,000,000.

 

(b)           Compensation for Consulting Services.  As compensation for the Consulting Services, the Company shall, or shall cause one or more other members of the Company Group to, on behalf of the members of the Company Group, pay Manager a fee of $4,500,000 per year (together, the “Consulting Fee”), one quarter of which shall be payable quarterly in advance on the first day of each January, April, July and October (each, a “Consulting Services Payment Date”).  The Consulting Fee shall begin accruing immediately following the consummation of the Acquisition, and the amount of the Consulting Fee accrued prior to the next succeeding Consulting Services Payment Date shall be payable on such Consulting Services Payment Date, together with the regular installment of the Consulting Fee payable on such Consulting Services Payment Date.  If an employee of Manager or any of its Affiliates is appointed to an executive management position (or a position of comparable responsibility) with the Company or any other member of the Company Group, then, for the period of such employee’s service in such position, the Consulting Fee shall be increased by an amount to be reasonably determined by Manager but not to exceed 100% of the Consulting Fee then in effect.  The Consulting Fee may not be decreased without the prior written consent of Manager. For purposes of this Agreement, “Affiliate” shall mean, with respect to any person or entity, any other person or entity directly or indirectly controlling, controlled by or under common control with, such person or entity; for the avoidance of doubt, with respect to Manager, Affiliate shall not include any member of the Company Group.

 

(c)           Compensation for Transaction Services.  As compensation for the Transaction Services, in connection with each Transaction that is consummated, the Company shall, or shall cause one or more other members of the Company Group to, on behalf of the members of the Company Group, pay Manager a fee (a “Transaction Fee”) equal to 1.0% of the Transaction Value, or such lesser amount as Manager and the Company, on behalf of the members of the Company Group, may agree.  The Company, on behalf of the members of the Company Group, may agree to pay a Transaction Fee in excess of 1.0% of the Transaction Value of a Transaction.  As used herein, “Transaction Value” means the total value of the applicable Transaction, including, without duplication, (x) in the case of any Transaction involving an acquisition, merger, sale or disposition of assets or equity interests of any member of the Company Group or any

 

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other similar Transaction, the aggregate purchase price payable in connection with such Transaction, including, without limitation, the aggregate amount of the cash funds and the aggregate value of the other securities or obligations required to complete such Transaction (excluding any fees payable pursuant to this Section 3(c)), including any indebtedness, guarantees, capital stock or similar items issued or made to facilitate, and the amount of any revolving credit or other liquidity facilities or arrangements established in connection with, such Transaction or assumed, refinanced or left outstanding in connection with or immediately following such Transaction and (y) in connection with any capital raising Transaction, the aggregate proceeds of such Transaction (including the unfunded portion of any revolving credit or other liquidity facilities or arrangements established in connection with such Transaction).  For purposes of calculating a Transaction Fee, the value of any securities included in the Transaction Value will be determined by the average of the last sales prices for such securities on the five trading days ending five days prior to the consummation of the applicable Transaction, provided that if such securities do not have an existing public trading market, the value of the securities shall be their fair market value as mutually reasonably agreed between Manager and the Company, on behalf of the members of the Company Group, on the day prior to consummation of such Transaction.

 

(d)           Reimbursement of Expenses.  The Company shall, or shall cause one or more other members of the Company Group to, on behalf of the members of the Company Group, reimburse Manager for such reasonable travel and other out-of-pocket expenses (“Expenses”) as may be incurred by Manager and its Affiliates and its and their respective employees and agents in the course or on account of rendering any services under this Agreement, including but not limited to any applicable fees and expenses of any legal, accounting or other professional advisors to Manager and its subsidiaries and Affiliates and any expenses incurred by any Manager Designee in connection with the performance of his or her duties to any member of the Company Group, including the cost of all air travel, whether on commercial or private aircraft.  Manager may submit monthly expense statements to the Company or any other such member of the Company Group, which statements shall be payable within thirty days.  Nothing in this Section 3 shall limit any obligations of any member of the Company Group to reimburse any costs and expenses to Manager or any Manager Affiliate (as defined below) under the Indemnification Agreement or the Registration Rights Agreement, dated as of May 25, 2011, among the Company, certain affiliates of Manager and the other stockholders of the Company party thereto (as the same may be amended from time to time, the “Registration Rights Agreement”).

 

(e)           Allocation of Payments.  The Company shall not agree with its independent accountants to allocate the amounts paid to Manager pursuant to this Agreement to specific services provided hereunder without the consent of Manager (not to be unreasonably withheld).

 

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(f)            Obligations Joint and Several.  Opco and the Company (on behalf of themselves and the other members of the Company Group) hereby agree that the obligations of the Company under this Section 3 shall be borne jointly and severally by each member of the Company Group.

 

4.             Term, etc.

 

(a)           This Agreement shall be in effect until, and shall terminate upon, the tenth anniversary of the date hereof, and may be earlier terminated by Manager on thirty days’ prior written notice to the Company.  The provisions of this Agreement shall survive any termination hereof, provided that, notwithstanding the foregoing, Sections 1 and 2 (other than Section 2(d)) shall not survive any termination hereof and provided, further, that Section 3 shall survive any termination hereof solely as to any portion of any Consulting Fee, Transaction Fee or Expenses not paid or reimbursed prior to such termination and not required to be paid or reimbursed thereafter pursuant to Section 4(c).

 

(b)           Upon any consolidation or merger of the Company, or any conveyance, transfer or lease of all or substantially all of the assets of any member of the Company Group, whether in connection with the Acquisition or otherwise, the entity formed by such consolidation, or into which such member of the Company Group is merged or to which such conveyance, transfer or lease is made (each, a “Successor Entity”), shall succeed to and be substituted for the Company or such member of the Company Group, as applicable, under this Agreement with the same effect as if the Successor Entity had been a party hereto.  No such consolidation, merger or conveyance, transfer or lease shall have the effect of terminating this Agreement or of releasing any member of the Company Group or any Successor Entity from its obligations hereunder.

 

(c)           Upon any termination of this Agreement, the Company agrees immediately to pay or reimburse (or cause one or more other members of the Company Group to pay or reimburse), as the case may be, in cash to Manager (i) any accrued and unpaid installment of the Consulting Fee or portion thereof, (ii) any accrued and unpaid Transaction Fee or portion thereof, plus (iii) any unpaid and unreimbursed Expenses that shall have been incurred prior to such termination (whether or not such Expenses shall then have become payable).  If, at any time, no member of the Company Group is permitted to make any payment or reimbursement due to Manager under this Agreement under the terms of any credit agreement or other financing agreement to which any member of the Company Group is a party, such obligations shall accrue as provided herein, but payment or reimbursement thereof shall be deferred until such time as (x) such payments are no longer prohibited under the terms of the applicable agreement, or (y) the loan amount due thereunder is repaid in full.  In the event of the liquidation of the Company, all amounts due Manager under this Agreement shall be paid to Manager before any liquidating distributions or similar payments are made to stockholders of the Company.

 

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5.             Information; Confidentiality; Other Consulting Agreements.

 

(a)           The Company will, and will cause each member of the Company Group to, use its reasonable best efforts to furnish, or to cause their respective subsidiaries, employees and agents to furnish, Manager with such information (the “Information”) as Manager reasonably believes appropriate to its engagement hereunder.  The Company acknowledges and agrees that (i) Manager will rely on the Information and on information available from generally recognized public sources in performing the Consulting Services and the Transaction Services and (ii) Manager does not assume responsibility for the accuracy or completeness of the Information and such other information.

 

(b)           The Company and Opco (on behalf of themselves and the other members of the Company Group) hereby consent to the Manager and any Manager Affiliate (as defined below) sharing any information it receives from the Company Group with any other Manager Affiliates (other than other portfolio companies) and to the internal use by Manager and such Manager Affiliates of any information received from the Company Group, subject, however, to (i) Manager maintaining adequate procedures to prevent such information from being used in connection with the purchase or sale of securities of the Company in violation of applicable law and (ii) the recipient of such information being subject to an agreement (or being under a duty of trust or confidence) to maintain the shared information in confidence.

 

(c)           Any advice or opinions provided by Manager or Manager Affiliates may not be disclosed or referred to publicly or to any third party (other than the Company Group’s legal, tax, financial or other advisors), except in accordance with Manager’s prior written consent.

 

6.             Independent Contractor Status.  The parties acknowledge and agree that Manager has performed the Initial Services and shall perform the Consulting Services and the Transaction Services as an independent contractor, retaining control over and responsibility for its own operations and personnel and those of its controlled Affiliates.  The Company further acknowledges and agrees that Manager may, in its sole discretion, remove or substitute any of the members of, or add members to, the team of professional employees of Manager and its Affiliates that will be providing services pursuant to this Agreement, and that any such removal, substitution or addition shall not in any way modify or affect any of the obligations of the Company hereunder, including, without limitation, its obligation to pay the any fee or reimburse any Expenses.  Neither Manager nor any Manager Affiliate shall, solely by virtue of this Agreement or the arrangements hereunder, be considered employees or agents of any member of the Company Group, nor shall any of them have authority hereunder to contract in the name of or bind any member of the Company Group, except (i) to the extent that any professional employee of Manager or any of its Affiliates may be serving as a director or an officer of any member of the Company Group or (ii) as expressly agreed to in writing by such member

 

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of the Company Group.  Any duties of Manager arising out of its engagement to perform services hereunder shall be owed solely to the members of the Company Group.  Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties hereto or their respective successors and assigns, any rights or remedies under or by reason of this Agreement.  Without limiting the generality of the foregoing, the parties acknowledge that nothing in this Agreement, expressed or implied, is intended to confer on any present or future holders of any securities of the Company or its Affiliates, or any present or future creditor of the Company or its Affiliates, any rights or remedies under or by reason of this Agreement or any performance hereunder.

 

7.            Limitation on Liability.  Except in cases of gross negligence or willful misconduct, Manager shall have no liability of any kind whatsoever to any member of the Company Group for any damages, losses or expenses (including, without limitation, special, punitive, incidental or consequential damages and interest, penalties and fees and disbursements of attorneys, accountants, investment bankers and other professional advisors) with respect to the provision of the Initial Services, the Consulting Services and the Transaction Services and in no event shall any such liability be in excess of the fees received by Manager hereunder.  Each of the Company and Opco (on behalf of itself and the other members of the Company Group), by its acceptance of the benefits hereof, covenants, agrees and acknowledges that no person other than Manager shall have any obligation hereunder and that it has no rights of recovery against, and no recourse hereunder or under any documents or instruments delivered in connection herewith shall be had against, any former, current or future officer, agent, Affiliate or employee of Manager (or any of their successors or permitted assignees), against any former, current or future general or limited partner, member or stockholder of Manager (or any of its successors or permitted assignees) or against any former, current or future director, officer, agent, employee, Affiliate, general or limited partner, stockholder, manager or member of any of the foregoing (collectively, “Manager Affiliates”), whether by or through attempted piercing of the corporate veil, by or through a claim by or on behalf of the Company against Manager Affiliates, by the enforcement of any judgment or assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law, or otherwise.

 

8.            Outside Activities.  In recognition that Manager and Manager Affiliates currently have, and will in the future have or will consider acquiring, investments in numerous companies with respect to which Manager or Manager Affiliates may serve as an advisor, a director or in some other capacity, and in recognition that Manager or Manager Affiliates have myriad duties to various investors and partners, and in anticipation that the Company Group, on the one hand, and Manager or Manager Affiliates, on the other hand, may engage in the same or similar activities or lines of business and have an interest in the same areas of corporate opportunities, and in recognition of the benefits to be derived by the Company Group hereunder and in recognition of the difficulties which may confront any advisor who desires and endeavors fully to satisfy such advisor’s duties in determining the full scope of such duties in any

 

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particular situation, the provisions of this Section 8 are set forth to regulate, define and guide the conduct of certain affairs of the Company Group as they may involve Manager.  Except as Manager may otherwise agree in writing after the date hereof:

 

(a)           Manager and Manager Affiliates shall have the right:  (i) to directly or indirectly engage in any business (including, without limitation, any business activities or lines of business that are the same as or similar to those pursued by, or competitive with, any member of the Company Group), (ii) to directly or indirectly do business with any client or customer of the Company Group, (iii) to take any other action that Manager believes in good faith is necessary to or appropriate to fulfill its obligations as described in the first sentence of this Section 8 and (iv) not to present potential transactions, matters or business opportunities to any member of the Company Group, and to pursue, directly or indirectly, any such opportunity for itself, and to direct any such opportunity to another person.

 

(b)           Manager and Manager Affiliates shall have no duty (contractual or otherwise) to communicate or present any corporate opportunities to the Company Group or any of their Affiliates or to refrain from any actions specified in Section 8(a), and the Company, on its own behalf and on behalf of the other members of the Company Group, hereby renounces and waives any right to require Manager or any Manager Affiliate to act in a manner inconsistent with the provisions of this Section 8.

 

(c)           None of Manager or any Manager Affiliate shall be liable to any member of the Company Group or any of their Affiliates for breach of any duty (contractual or otherwise) by reason of any activities or omissions of the types referred to in this Section 8 or of any such person’s participation therein.

 

9.            Notice.  All notices and other communications to be given to any party hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered by hand, courier or overnight delivery service, or three days after being mailed by certified or registered mail, return receipt requested, with appropriate postage prepaid, or when received in the form of a facsimile (receipt confirmation requested), and shall be directed to the address set forth below (or at such other address or facsimile number as such party shall designate by like notice):

 

If to the Company or Opco:

 

	
 
    	
CDRT   Holding Corporation
    
	
 
    	
c/o   Emergency Medical Services Corporation
    
	
 
    	
6200   South Syracuse Way, Suite 200
    
	
 
    	
Greenwood,   CO 80111
    
	
 
    	
Attention:   General Counsel
    
	
 
    	
Facsimile:   303-495-1800
    

 

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If to Manager:
    	
Clayton, Dubilier & Rice, LLC 
   375 Park Avenue
   18th Floor
   New York, New York 10152
   Attention: Theresa A. Gore
   Facsimile:  (212) 407-5252
    
	
 
    	
 
    
	
with a copy to
   (which shall not constitute notice):
    	
Debevoise & Plimpton LLP 
   919 Third Avenue 
   New York, New York 10022
   Attention:   Paul S. Bird, Esq.
                    Jonathan E.   Levitsky, Esq.
   Facsimile:   (212) 909-6836
    

 

10.          Entire Agreement; Severability; No Representations or Warranties.  This Agreement, the Registration Rights Agreement and the Indemnification Agreement (a) contain the complete and entire understanding and agreement between Manager and the Company with respect to the subject matter hereof and (b) supersede all prior and contemporaneous understandings, conditions and agreements, whether written or oral, express or implied, in respect of the subject matter hereof.  If any term, provision, covenant or restriction of this Agreement is held to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto.  Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.  To the extent permitted by applicable law, the parties hereto waive any provision of law that renders any term or provision of this agreement invalid or unenforceable in any respect.  The Company acknowledges and agrees that Manager makes no representations or warranties in connection with this Agreement or its provision of the Initial Services, the Consulting Services and the Transaction Services.  The Company agrees that any acknowledgment or agreement made by the Company in this Agreement is made on behalf of the Company and the other members of the Company Group.

 

11.          Counterparts; Amendments and Waivers.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and which together shall constitute one agreement.  This Agreement may be executed by facsimile signatures.  This Agreement may not be amended, restated, supplemented or otherwise modified, and no provision of this Agreement may be waived, other than in a writing duly executed by the parties hereto.

 

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12.          Binding Effect; Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns; provided that (i) except as provided in clause (ii) and (iii) of this proviso, neither this Agreement nor any right, interest or obligation hereunder may be assigned by either party, whether by operation of law or otherwise, without the express written consent of the other party hereto, (ii) any assignment by Manager of its rights but not the obligations under this Agreement to any entity directly or indirectly controlling, controlled by or under common control with Manager shall be expressly permitted hereunder and shall not require the prior written consent of the Company and (iii) Manager may assign all of its rights, interests and obligations under this Agreement to a third party in connection with the transfer to such third party of substantially all of Manager’s investment management business without the prior written consent of the Company.  This Agreement is not intended to confer any right or remedy hereunder upon any person or entity other than the parties to this Agreement and their respective successors and assigns.

 

13.          Governing Law; Jurisdiction.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS TO THE EXTENT THAT SUCH PRINCIPLES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

14.          Arbitration.

 

(a)           Any dispute, claim or controversy arising out of, relating to, or in connection with this Agreement, or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, shall be finally determined by arbitration.  The arbitration shall be administered by JAMS.  If the disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees, the JAMS Comprehensive Arbitration Rules and Procedures (“JAMS Comprehensive Rules”) in effect at the time of the arbitration shall govern the arbitration, except as they may be modified herein or by mutual written agreement of the parties.  If no disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees, the JAMS Streamlined Arbitration Rules and Procedures (“JAMS Streamlined Rules”) in effect at the time of the arbitration shall govern the arbitration, except as they may be modified herein or by mutual written agreement of the parties.

 

(b)           The seat of the arbitration shall be New York, New York.  The parties submit to jurisdiction in the state and federal courts of the State of New York for the limited purpose of enforcing this agreement to arbitrate.

 

(c)           The arbitration shall be conducted by one neutral arbitrator unless the parties agree otherwise.  The parties agree to seek to reach agreement on the identity of the arbitrator within thirty days after the initiation of arbitration.  If the parties are unable 

 

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to reach agreement on the identity of the arbitrator within such time, then the appointment of the arbitrator shall be made in accordance with the process set forth in JAMS Comprehensive Rule 15.

 

(d)           The arbitration award shall be in writing, state the reasons for the award, and be final and binding on the parties.  The arbitrator may, in the award, allocate all or part of the costs of the arbitration, including the fees of the arbitrator and the attorneys’ fees of the prevailing party.  Judgment on the award may be entered by any court having jurisdiction thereof or having jurisdiction over the relevant party or its assets.  Notwithstanding applicable state law, the arbitration and this agreement to arbitrate shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1, et seq.

 

(e)           The parties agree that the arbitration shall be kept confidential and that the existence of the proceeding and any element of it (including but not limited to any pleadings, briefs or other documents submitted or exchanged, any testimony or other oral submissions, and any awards) shall not be disclosed beyond the tribunal, JAMS, the parties, their counsel, accountants and auditors, insurers and re-insurers, and any person necessary to the conduct of the proceeding.  The confidentiality obligations shall not apply (i) if disclosure is required by law, or in judicial or administrative proceedings, or (ii) as far as disclosure is necessary to enforce the rights arising out of the award.

 

[The remainder of this page left intentionally blank.]

 

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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above written.

 

	
 
    	
CLAYTON,   DUBILIER & RICE, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Theresa A. Gore
    
	
 
    	
 
    	
Name:
    	
Theresa   A. Gore
    
	
 
    	
 
    	
Title:
    	
Vice   President, Treasurer and Assistant Secretary
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CDRT   HOLDING CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William A. Sanger
    
	
 
    	
 
    	
Name:
    	
William   A. Sanger
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMERGENCY   MEDICAL SERVICES CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William A. Sanger
    
	
 
    	
 
    	
Name:
    	
William   A. Sanger
    
	
 
    	
 
    	
Title:
    	
Chief   Executive OfficerExhibit 10.7

 

INDEMNIFICATION AGREEMENT

 

This INDEMNIFICATION AGREEMENT, dated as of May 25, 2011 (this “Agreement”), is among CDRT Holding Corporation, a Delaware corporation (the “Company”), Emergency Medical Services Corporation, a Delaware corporation (“Opco” and, together with the Company, the “Company Entities”), Clayton, Dubilier & Rice Fund VIII, L.P., a Cayman Islands exempted limited partnership (the “Fund”), CD&R EMS Co-Investor, L.P., a Cayman Islands exempted limited partnership (“Co-Investor”), CD&R Advisor Fund VIII Co-Investor, L.P., a Cayman Islands exempted limited partnership (“Advisor”), CD&R Friends and Family Fund VIII, L.P., a Cayman Islands exempted limited partnership (together with Co-Investor and Advisor, the “Other Investors”), and Clayton, Dubilier & Rice, LLC, a Delaware limited liability company (“Manager”).  Capitalized terms used herein without definition have the meanings set forth in Section 1 of this Agreement.

 

RECITALS

 

A.            The Fund is managed by Manager, the general partner of the Fund (and the Other Investors) is CD&R Associates VIII, Ltd., a Cayman Islands exempted company (the “GP of the Fund”), and the special limited partner of the Fund is CD&R Associates VIII, L.P., a Cayman Islands exempted limited partnership (together with the GP of the Fund and any other investment vehicle that is a direct or indirect stockholder in the Company and managed by Manager or its Affiliates, “Manager Associates”).

 

B.            CDRT Acquisition Corporation, a Delaware corporation (“Parent”), is an acquisition vehicle formed by Manager, that has executed an Agreement and Plan of Merger, dated as of February 13, 2011, among Parent, CDRT Merger Sub, Inc., a Delaware corporation (“Merger Sub”)  and Opco (as the same may be amended from time to time in accordance with its terms, the “Merger Agreement”), pursuant to which the Company, indirectly through Parent, acquired Opco, on the date hereof, by means of the merger of Merger Sub with and into Opco (the “Acquisition”).

 

C.            In connection with the Acquisition, the Fund has entered into a Commitment Letter, dated as of February 13, 2011 (the “Commitment Letter”), with Parent, pursuant to which the Fund has agreed, subject to the conditions set forth therein, to purchase common stock of Parent for an aggregate purchase price up to the amount of its Commitment (as defined in the Commitment Letter).  Furthermore, the Fund and the Company have entered into an Assignment and Assumption Agreement, dated as of May 23, 2011 (the “Assignment and Assumption Agreement”), pursuant to which the Fund has agreed to assign, transfer and set over unto the Company the obligation to fund the Commitment and the right to receive common stock of Parent in consideration therefor, and the Company has accepted and assumed such obligation and right.

 

 

D.            Concurrently with the execution and delivery of this Agreement, the Company Entities have entered into a Consulting Agreement with Manager, dated as of the date hereof (as the same may be amended from time to time, the “Consulting Agreement”).

 

E.             In order to finance the Acquisition and related transactions, the Company is selling shares of its common stock, par value $0.01 per share (“Shares”), to the Fund, the Other Investors and any other co-investors that otherwise become stockholders of the Company prior to the Acquisition (the “Equity Offering”).

 

F.             In order to finance the Acquisition, the Company and/or one or more of its wholly-owned Subsidiaries intend (i) to enter into a senior secured credit term loan facility, (ii) to enter into a senior secured asset based revolving credit facility and (iii) to issue senior unsecured notes pursuant to an indenture dated as of the date hereof (collectively, the “Acquisition Financings”).

 

G.            Manager (or its Affiliates) has performed the Initial Services (as defined in the Consulting Agreement) for the Company.

 

H.            The Company or one or more of its Subsidiaries from time to time in the future may (i) offer and sell or cause to be offered and sold equity or debt securities or instruments (such offerings, collectively, the “Subsequent Offerings”), including without limitation (x) offerings of shares of capital stock of the Company or any of its Subsidiaries, and/or options to purchase such shares or other equity-linked instruments to employees, directors, managers, dealers, franchisees, affiliated physicians and consultants of and to the Company or any of its Subsidiaries (any such offering, a “Management Offering”), and (y) one or more offerings of debt securities or instruments for the purpose of refinancing any indebtedness of the Company or any of its Subsidiaries or for other corporate purposes, (ii) repurchase, redeem or otherwise acquire certain securities or instruments of the Company or any of its Subsidiaries or engage in recapitalization or structural reorganization transactions relating thereto (any such repurchase, redemption, acquisition, recapitalization or reorganization, a “Redemption”) (iii) incur or assume indebtedness for borrowed money, assume, guarantee, endorse or otherwise become liable or responsible for (whether directly or contingently or otherwise) for the obligations of any other Person or make any loan or advance to any other Person (such indebtedness, assumptions, guarantees, endorsements, loans, advances and liabilities, collectively, “Subsequent Financings”).

 

I.              The parties hereto recognize the possibility that claims might be made against and liabilities incurred by Manager, the Fund, the Other Investors, Manager Associates or related Persons or Affiliates under applicable securities laws or otherwise in connection with the Transactions (including the Initial Services) or the Offerings, or the Financings, or relating to other actions or omissions of or by members of the

 

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Company Group, or relating to the provision of financial, investment banking, management, advisory, consulting, monitoring or other services, including service as an officer or director of any member of the Company Group (collectively, “Services”) to the Company Group by such Persons, and the parties hereto accordingly wish to provide for Manager, the Fund, the Other Investors, Manager Associates and related Persons and Affiliates to be indemnified in respect of any such claims and liabilities.

 

NOW, THEREFORE, in consideration of the foregoing premises, and the mutual agreements and covenants and provisions herein set forth, the parties hereto hereby agree as follows:

 

1.             Definitions.

 

(a)           “Acquisition” has the meaning specified in the Recitals to this Agreement.

 

(b)           “Acquisition Financings” has the meaning specified in the Recitals to this Agreement.

 

(c)           “Advisor” has the meaning specified in the first paragraph of this Agreement.

 

(d)           “Affiliate” means, with respect to any Person, (i) any other Person directly or indirectly Controlling, Controlled by or under common Control with, such Person (ii) any Person directly or indirectly owning or Controlling 10% or more of any class of outstanding voting securities of such Person or (iii) any officer, director, general partner, special limited partner or trustee of any such Person described in clauses (i) or (ii).

 

(e)           “Assignment and Assumption Agreement” has the meaning specified in the Recitals to this Agreement.

 

(f)            “Claim” means, with respect to any Indemnitee, any claim by or against such Indemnitee involving any Obligation with respect to which such Indemnitee may be entitled to be indemnified by any member of the Company Group under this Agreement.

 

(g)           “Commission” means the United States Securities and Exchange Commission or any successor entity thereto.

 

(h)           “Commitment Letter” has the meaning specified in the Recitals to this Agreement.

 

(i)            “Company” has the meaning specified in the first paragraph of this Agreement.

 

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(j)            “Company Entities” has the meaning specified in the first paragraph of this Agreement.

 

(k)           “Company Group” means the Company and each of its Subsidiaries.

 

(l)            “Co-Investor” has the meaning specified in the first paragraph of this Agreement.

 

(m)          “Consulting Agreement” has the meaning specified in the Recitals to this Agreement.

 

(n)           “Control” of any Person means the power to direct the management and policies of such Person (whether through the ownership of voting securities, by contract, as trustee or executor, as general partner, or otherwise).

 

(o)           “Equity Offering” has the meaning specified in the Recitals to this Agreement.

 

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

 

(q)           “Expenses” means all attorneys’ fees and expenses, retainers, court, arbitration and mediation costs, transcript costs, fees and expenses of experts, witness and public relations consultants, bonds, costs of collecting and producing documents, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements, costs or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, appealing or otherwise participating in a Proceeding.

 

(r)            “Financings” means the Acquisition Financings and any Subsequent Financing.

 

(s)           “Fund” has the meaning specified in the first paragraph of this Agreement.

 

(t)            “GP of the Fund” has the meaning specified in the Recitals to this Agreement.

 

(u)           “Indemnitee” means each of Manager, the Fund, the Other Investors, Manager Associates, their respective Affiliates (other than any member of the Company Group), their respective successors and assigns, and the respective directors, officers, partners, members, employees, agents, advisors, consultants, representatives and controlling persons (within the meaning of the Securities Act) of each of them, or of their partners, members and controlling persons, and each other person who is or becomes a

 

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director or an officer of any member of the Company Group and who is or becomes an employee of, or is nominated or designated to serve as a director or officer by, any of the foregoing, in each case irrespective of the capacity in which such person acts.

 

(v)           “Initial Services” has the meaning specified in the Consulting Agreement.

 

(w)          “Management Offering” has the meaning specified in the Recitals to this Agreement.

 

(x)           “Manager” has the meaning specified in the first paragraph of this Agreement.

 

(y)           “Manager Associates” has the meaning specified in the Recitals to this Agreement.

 

(z)           “Merger Agreement” has the meaning specified in the Recitals to this Agreement.

 

(aa)         “Notice of Advances” has the meaning specified in Section 4(b) of this Agreement.

 

(bb)        “Notice of Claim” has the meaning specified in Section 4(a) of this Agreement.

 

(cc)         “Notice of Payment” has the meaning specified in Section 4(c) of this Agreement.

 

(dd)        “Obligations” means, collectively, any and all claims, obligations, liabilities, causes of actions, Proceedings, investigations, judgments, decrees, losses, damages (including punitive, consequential, special and exemplary damages), fees, fines, penalties, amounts paid in settlement, costs and Expenses (including without limitation interest, taxes, assessments and other charges in connection therewith and disbursements of attorneys, accountants, investment bankers and other professional advisors), in each case incurred, arising or existing with respect to third parties or otherwise, at any time or from time to time.

 

(ee)         “Offerings” means the Equity Offering, any Management Offering, any Redemption, any offering in relation to the Acquisition Financings and any Subsequent Offering.

 

(ff)          “Opco” has the meaning specified in the first paragraph of this Agreement.

 

(gg)        “Other Investors” has the meaning specified in the first paragraph of this Agreement.

 

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(hh)        “Parent” has the meaning specified in the Recitals to this Agreement.

 

(ii)           “Person” means an individual, corporation, limited liability company, limited or general partnership, trust or other entity, including a governmental or political subdivision or an agency or instrumentality thereof.

 

(jj)           “Proceeding” means a threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation a claim, demand, discovery request, formal or informal investigation, inquiry, administrative hearing, arbitration or other form of alternative dispute resolution, including an appeal from any of the foregoing.

 

(kk)         “Redemption” has the meaning specified in the Recitals to this Agreement.

 

(ll)           “Related Document” means any agreement, certificate, instrument or other document to which any member of the Company Group may be a party or by which it or any of its properties or assets may be bound or affected from time to time relating in any way to the Transactions or any Offering or Financing or any of the transactions contemplated thereby, including without limitation, in each case as the same may be amended from time to time, (i) any registration statement filed by or on behalf of any member of the Company Group with the Commission in connection with the Transactions or any Offering or Financing, including all exhibits, financial statements and schedules appended thereto, and any submissions to the Commission in connection therewith, (ii) any prospectus, preliminary, final, free writing or otherwise, included in such registration statements or otherwise filed by or on behalf of any member of the Company Group in connection with the Transactions or any Offering or used to offer or confirm sales of their respective securities or instruments in any Offering, (iii) any private placement or offering memorandum or circular, information statement or other information or materials distributed by or on behalf of any member of the Company Group or any placement agent or underwriter in connection with the Transactions or any Offering or Financing, (iv) any federal, state or foreign securities law or other governmental or regulatory filings or applications made in connection with any Offering, the Transactions or any of the transactions contemplated thereby, (v) any dealer-manager, underwriting, subscription, purchase, stockholders, option or registration rights agreement or plan entered into or adopted by any member of the Company Group in connection with the Transactions or any Offering or Financing, (vi) any purchase, repurchase, redemption, recapitalization or reorganization or other agreement entered into by any member of the Company Group in connection with any Redemption, (vii) any quarterly, annual or current reports or other filing filed, furnished or supplementally provided by any member of the Company Group with or to the Commission or any securities exchange, including all exhibits, financial statements and schedules appended thereto, and any submission to the Commission or any securities exchange in connection

 

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therewith, (viii) any paying agent agreement entered into by any member of the Company Group relating to the payment of Merger Consideration (as defined in the Merger Agreement) or (ix) any paymaster agreement entered into by members of the Company Group, the Fund and the Other Investors relating to the efficient payment of funds in connection with the Offering and the Acquisition.

 

(mm)       “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(nn)        “Services” has the meaning specified in the Recitals to this Agreement.

 

(oo)        “Shares” has the meaning specified in the Recitals to this Agreement.

 

(pp)        “Subsequent Financings” has the meaning specified in the Recitals to this Agreement.

 

(qq)        “Subsequent Offerings” has the meaning specified in the Recitals to this Agreement.

 

(rr)          “Subsidiary” means each corporation or other Person in which a Person owns or Controls, directly or indirectly, capital stock or other equity interests representing more than 50% of the outstanding voting stock or other equity interests.

 

(ss)         “Transactions” means the Acquisition, the Equity Offering, the Acquisition Financings and any other transaction for which Services are or have been provided to any member of the Company Group.

 

2.             Indemnification.

 

(a)           Each of the Company Entities (each, an “Indemnifying Party” and collectively, the “Indemnifying Parties”), jointly and severally, agrees to indemnify, defend and hold harmless each Indemnitee, to the fullest extent permitted by law, from and against any and all Obligations in any way resulting from, arising out of or in connection with, based upon or relating to (i) the Securities Act, the Exchange Act or any other applicable securities or other laws, in connection with the Transactions, any other Offering, any other Financing, any Related Document or any of the transactions contemplated thereby, (ii) any other action or failure to act of any member of the Company Group or any of their predecessors, whether such action or failure has occurred or is yet to occur, or (iii) the performance or failure to perform by Manager or its Affiliates of Services for any member of the Company Group (whether prior to the date hereof or hereafter and whether pursuant to the Consulting Agreement or otherwise), (iv) the fact that such Indemnitee is or was a stockholder, director or officer of any member of

 

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the Company Group, or (v) any breach or alleged breach by such Indemnitee of any duty imposed on a stockholder, officer or director.

 

(b)           Without in any way limiting the foregoing Section 2(a), each of the Indemnifying Parties agrees, jointly and severally, to indemnify, defend and hold harmless each Indemnitee from and against any and all Obligations resulting from, arising out of or in connection with, based upon or relating to liabilities under the Securities Act, the Exchange Act or any other applicable securities or other laws, rules or regulations in connection with (i) the inaccuracy or breach of or default under any representation, warranty, covenant or agreement in any Related Document, or any allegation thereof, (ii) any untrue statement or alleged untrue statement of a material fact contained in any Related Document or (iii) any omission or alleged omission to state in any Related Document a material fact required to be stated therein or necessary to make the statements therein not misleading.  Notwithstanding the foregoing, the Indemnifying Parties shall not be obligated to indemnify such Indemnitee from and against any such Obligation to the extent that such Obligation arises out of or is based upon an untrue statement or omission made in such Related Document in reliance upon and in conformity with written information furnished to the Company Entities by such Indemnitee in an instrument duly executed by such Indemnitee and specifically stating that it is for use in the preparation of such Related Document.

 

(c)           Without in any way limiting the foregoing, in the event that any Proceeding is initiated by an Indemnitee, any member of the Company Group or any other Person to enforce or interpret this Agreement or the Consulting Agreement, any rights of such Indemnitee to indemnification or advancement of Expenses (or related obligations of such Indemnitee) under any member of the Company Group’s certificate of incorporation or bylaws, any other agreement to which Indemnitee and any member of the Company Group are party, any vote of directors of any member of the Company Group, the Delaware General Corporation Law, any other applicable law or any liability insurance policy, or any rights or obligations under the Consulting Agreement, the Indemnifying Parties shall indemnify such Indemnitee against all costs and Expenses incurred by such Indemnitee or on such Indemnitee’s behalf (including but not limited to by any Manager Associates for all costs and Expenses incurred by it on such Indemnitee’s behalf) in connection with such Proceeding, whether or not such Indemnitee is successful in such Proceeding, except to the extent that the Person presiding over such Proceeding determines that material assertions made by such Indemnitee in such proceeding were in bad faith or were frivolous.

 

3.             Contribution.

 

(a)           If for any reason the indemnity specifically provided for in Section 2 is unavailable or is insufficient to hold harmless any Indemnitee from any Obligation covered by such indemnity, then the Indemnifying Parties, jointly and severally, shall

 

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contribute to the amount paid or payable by such Indemnitee as a result of such Obligation in such proportion as is appropriate to reflect (i) the relative fault of each of the members of the Company Group, on the one hand, and such Indemnitee, on the other, in connection with the state of facts giving rise to such Obligation, (ii) the relative benefits received by the members of the Company Group, on the one hand, and such Indemnitee, on the other, from the Transaction, Offering, Financing or other circumstances giving rise to such Obligation and (iii) if required by applicable law, any other relevant equitable considerations.

 

(b)           For purposes of Section 3(a), the relative fault of each member of the Company Group, on the one hand, and of an Indemnitee, on the other, shall be determined by reference to, among other things, (i) their respective relative intent, knowledge, access to information and opportunity to correct the state of facts giving rise to such Obligation, (ii) in the case of Section 2(b), whether the information whose inclusion in or omission from a Related Document resulted in the actual or alleged inaccuracy or breach of or default under any representation, warranty, covenant or agreement therein, or which is or is alleged to be untrue, required to be stated therein or necessary to make the statements therein not misleading, was supplied or should have been supplied by the members of the Company Group, on the one hand, or by such Indemnitee, on the other, and (iii) applicable law, and the relative benefits received by each member of the Company Group, on the one hand, and an Indemnitee, on the other, shall be determined by weighing the direct monetary proceeds to the Company Group, on the one hand, and such Indemnitee, on the other, from the Transaction, Offering, Financing or other circumstances giving rise to such Obligation.

 

(c)           The parties hereto acknowledge and agree that it would not be just and equitable if the Indemnifying Parties’ contributions pursuant to Section 3 were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in such Section.  No Indemnitee shall be entitled to contribution from any Indemnifying Party with respect to any Obligation covered by the indemnity specifically provided for in Section 2(b) in the event that such Indemnitee is finally determined to be guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such Obligation and the Indemnifying Parties are not guilty of such fraudulent misrepresentation.

 

4.             Indemnification Procedures.

 

(a)           Whenever any Indemnitee shall have actual knowledge of the assertion of a Claim against it, Manager (acting on its own behalf or, if requested by any such Indemnitee other than itself, on behalf of such Indemnitee) or such Indemnitee shall notify the appropriate member of the Company Group in writing of the Claim (a “Notice of Claim”) with reasonable promptness after such Indemnitee has such knowledge relating to such Claim and has notified Manager thereof, provided the failure or delay of

 

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Manager or such Indemnitee to give such Notice of Claim shall not relieve any Indemnifying Party of its indemnification obligations under this Agreement except to the extent that such omission results in a failure of actual notice to it and it is materially injured as a result of the failure to give such Notice of Claim.  The Notice of Claim shall specify all material facts known to Manager (or if given by such Indemnitee, such Indemnitee) relating to such Claim and the monetary amount or an estimate of the monetary amount of the Obligation involved if Manager (or if given by such Indemnitee, such Indemnitee) has knowledge of such amount or a reasonable basis for making such an estimate.  The Indemnifying Parties shall, at their expense, undertake the defense of such Claim with attorneys of their own choosing reasonably satisfactory in all respects to Manager, subject to the right of Manager to undertake such defense as hereinbelow provided.  Manager may participate in such defense with counsel of Manager’s choosing at the expense of the Indemnifying Parties.  In the event that the Indemnifying Parties do not undertake the defense of the Claim within a reasonable time after Manager (or if given by such Indemnitee, such Indemnitee) has given the Notice of Claim, or in the event that Manager shall in good faith determine that the defense of any Claim by the Indemnifying Parties is inadequate or may conflict with the interest of any Indemnitee (including, without limitation, Claims brought by or on behalf of any member of the Company Group), Manager may, at the expense of the Indemnifying Parties, undertake the defense of the Claim and compromise or settle the Claim, all for the account of and at the risk of the Indemnifying Parties.  In the defense of any Claim against an Indemnitee, no Indemnifying Party shall, except with the prior written consent of Manager, consent to entry of any judgment or enter into any settlement that includes any injunctive or other non-monetary relief or any payment of money by such Indemnitee, or that does not include as an unconditional term thereof the giving by the Person or Persons asserting such Claim to such Indemnitee of an unconditional release from all liability on any of the matters that are the subject of such Claim and an acknowledgement that such Indemnitee denies all wrongdoing in connection with such matters.  The Indemnifying Parties shall not be obligated to indemnify an Indemnitee against amounts paid in settlement of a Claim if such settlement is effected by such Indemnitee without the prior consent of the Company (on behalf of all Indemnifying Parties), which shall not be unreasonably withheld or delayed.  In each case, Manager and each other Indemnitee seeking indemnification hereunder will cooperate with the Indemnifying Parties, so long as an Indemnifying Party is conducting the defense of the Claim, in the preparation for and the prosecution of the defense of such Claim, including making available evidence within the control of Manager or such Indemnitee, as the case may be, and persons needed as witnesses who are employed by Manager or such Indemnitee, as the case may be, in each case as reasonably needed for such defense and at cost, which cost, to the extent reasonably incurred, shall be paid by the Indemnifying Parties.

 

(b)           The Manager shall notify the Indemnifying Parties in writing of the amount requested for advances (a “Notice of Advances”).  Each of the Indemnifying Parties, jointly and severally, agrees to advance all Expenses incurred by Manager (acting

 

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on its own behalf or, if requested by any such Indemnitee other than itself, on behalf of such Indemnitee) or any Indemnitee in connection with any Claim (but not for any Claim initiated or brought voluntarily by an Indemnitee other than a Proceeding contemplated by Section 2(c)) in advance of the final disposition of such Claim without regard to whether Indemnitee will ultimately be entitled to be indemnified for such Expenses upon receipt of an undertaking by or on behalf of Manager or such Indemnitee to repay amounts so advanced if it shall ultimately and finally be determined, including through all challenges, if any, to the award rendered therein, that Manager or such Indemnitee is not entitled to be indemnified by any Indemnifying Party as authorized by this Agreement.  Such repayment undertaking shall be unsecured and shall not bear interest.  No Indemnifying Party shall impose on any Indemnitee additional conditions to advancement or require from such Indemnitee additional undertakings regarding repayment.  The Indemnifying Parties shall make payment of such advances no later than 10 days after the receipt of the Notice of Advances.

 

(c)           Manager shall notify the Indemnifying Parties in writing of the amount of any Obligation actually paid by Manager or any Indemnitee on whose behalf Manager is acting (a “Notice of Payment”).  The amount of any Obligation actually paid by Manager or such Indemnitee shall bear simple interest at the rate equal to the JPMorgan Chase Bank, N.A. prime rate as of the date of such payment plus 2% per annum, from the date any Indemnifying Party receives the Notice of Payment to the date on which any Indemnifying Party shall repay the amount of such Obligation plus interest thereon to Manager or such Indemnitee.  The Indemnifying Parties shall make indemnification payments to Manager no later than 30 days after receipt of the Notice of Payment.

 

(d)           Presumptions; Burden and Standard of Proof.  In connection with any determination regarding the entitlement of any Indemnitee to be indemnified, or any review of any such determination, by any Person:

 

(i)            It shall be a presumption that such Indemnitee has met any applicable standard of conduct and that indemnification of such Indemnitee is proper in the circumstances.

 

(ii)           The burden of proof shall be on the Indemnifying Parties to overcome the presumption set forth in the preceding clause (i), and such presumption shall only be overcome if the Indemnifying Parties establish that there is no reasonable basis to support it.

 

(iii)          The termination of any Proceeding by judgment, order, finding, award, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that indemnification is not proper or that an Indemnitee did not meet any

 

11

 

applicable standard of conduct or that a court has determined that indemnification is not permitted by this Agreement or otherwise.

 

5.             Certain Covenants.  The rights of each Indemnitee to be indemnified under any other agreement, document, certificate or instrument, by-laws or other organizational agreement or instrument, insurance policy or applicable law are independent of and in addition to any rights of such Indemnitee to be indemnified under this Agreement, provided that to the extent that an Indemnitee is entitled to be indemnified by the Indemnifying Parties under this Agreement and by any other Indemnitee under any other agreement, document, certificate, by-law or instrument, or by any insurer under a policy maintained by any other Indemnitee, the obligations of the Indemnifying Parties hereunder shall be primary, and the obligations of such other Indemnitee or insurer secondary, and the Indemnifying Parties shall not be entitled to contribution or indemnification from or subrogation against such other Indemnitee or insurer.  Notwithstanding the foregoing, any Indemnitee may choose to seek indemnification from any potential source of indemnification regardless of whether such indemnitor is primary or secondary.  An Indemnitee’s election to seek advancement of indemnified sums from any secondary indemnifying party will not limit the right of such Indemnitee, or any secondary indemnitor proceeding under subrogation rights or otherwise, from seeking indemnification from the Indemnifying Parties to the extent that the obligations of the Indemnifying Parties are primary, and each of the Indemnifying Parties jointly and severally agrees to indemnify each Indemnitee from and against, and to pay to each Indemnitee, any amount paid or reimbursed by such Indemnitee to or on behalf of another indemnitee, pursuant to indemnification arrangements or otherwise, in respect of an Obligation referred to in Section 2.  The rights of each Indemnitee and the obligations of each Indemnifying Party hereunder shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnitee.  Following the Acquisition, each of the Company Entities, and each of their corporate successors, shall implement and maintain in full force and effect any and all corporate charter and by-law provisions that may be necessary or appropriate to enable it to carry out its obligations hereunder to the fullest extent permitted by applicable law, including without limitation a provision of its certificate of incorporation (or comparable organizational document under its jurisdiction of incorporation) eliminating liability of a director for breach of fiduciary duty to the fullest extent permitted by applicable law, as amended from time to time.  So long as the Company or any other member of the Company Group maintains liability insurance for any directors, officers, employees or agents of any such person, the Indemnifying Parties shall ensure that each Indemnitee serving or that has served in such capacity is covered by such insurance in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s and the Company Group’s then current directors and officers.  No Indemnifying Party shall seek or agree to any order of any court or other governmental authority that would prohibit or otherwise interfere, and shall not take or fail to take any other action if such action or failure would reasonably be expected to have the effect of prohibiting or

 

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otherwise interfering, with the performance of any of the Indemnifying Parties’ indemnification, advancement or other obligations under this Agreement.

 

6.             Notices.  All notices and other communications hereunder shall be in writing and shall be delivered by certified or registered mail (first class postage prepaid and return receipt requested), telecopier, overnight courier or hand delivery, as follows:

 

(a) If to any Company Entity, to:

 

CDRT Holding Corporation
 c/o Emergency Medical Services Corporation
 6200 South Syracuse Way, Suite 200
 Greenwood, CO 80111
 Attention: General Counsel
 Facsimile 303-495-1800

 

with a copy to (which shall not constitute notice):

 

Clayton, Dubilier & Rice, LLC
 375 Park Avenue
 18th Floor
 New York, New York  10152
 Attention:  Mr. Richard J. Schnall
 Facsimile:  (212) 893-7061

 

(b) If to Manager, to:

 

Clayton, Dubilier & Rice, LLC
 375 Park Avenue
 18th Floor
 New York, New York  10152
 Attention:  Mr. Richard J. Schnall
 Facsimile:  (212) 893-7061

 

(c) If to the Fund, to:

 

Clayton, Dubilier & Rice Fund VIII, L.P.
 c/o Clayton, Dubilier & Rice, LLC
 375 Park Avenue
 18th Floor
 New York, New York 10152
 Attention: Mr. Donald J. Gogel
 Facsimile: 212-407-5252

 

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(d) If to the Other Investors, to the notice address set forth on such party’s signature page;

 

or to such other address or such other person as the Company Entities, Manager, the Fund or the Other Investors, as the case may be, shall have designated by notice to the other parties hereto.  All communications hereunder shall be effective upon receipt by the party to which they are addressed.  A copy of any notice or other communication given under this Agreement shall also be given to:

 

Debevoise & Plimpton LLP
 919 Third Avenue
 New York, New York  10022
 Attention:  Paul S. Bird, Esq.

Jonathan E. Levitsky, Esq.

Facsimile:  (212) 909-6836

 

7.             Arbitration

 

(a)           Any dispute, claim or controversy arising out of, relating to, or in connection with this contract, or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be finally determined by arbitration.  The arbitration shall be administered by JAMS.  If the disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees, the JAMS Comprehensive Arbitration Rules and Procedures (“JAMS Comprehensive Rules”) in effect at the time of the arbitration shall govern the arbitration, except as they may be modified herein or by mutual written agreement of the parties.  If no disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees, the JAMS Streamlined Arbitration Rules and Procedures (“JAMS Streamlined Rules”) in effect at the time of the arbitration shall govern the arbitration, except as they may be modified herein or by mutual written agreement of the parties.

 

(b)           The seat of the arbitration shall be New York, New York.  The parties submit to jurisdiction in the state and federal courts of the State of New York for the limited purpose of enforcing this agreement to arbitrate.

 

(c)           The arbitration shall be conducted by one neutral arbitrator unless the parties agree otherwise.  The parties agree to seek to reach agreement on the identity of the arbitrator within 30 days after the initiation of arbitration.  If the parties are unable to reach agreement on the identity of the arbitrator within such time, then the appointment of the arbitrator shall be made in accordance with the process set forth in JAMS Comprehensive Rule 15.

 

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(d)           The arbitration award shall be in writing, state the reasons for the award, and be final and binding on the parties.  Subject to Section 2(c), the arbitrator may, in the award, allocate all or part of the fees incurred in and costs of the arbitration, including the fees of the arbitrator and the attorneys’ fees of the prevailing party.  Judgment on the award may be entered by any court having jurisdiction thereof or having jurisdiction over the relevant party or its assets.  Notwithstanding applicable state law, the arbitration and this agreement to arbitrate shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1, et seq.

 

(e)           The parties agree that the arbitration shall be kept confidential and that  the existence of the proceeding and any element of it (including but not limited to any pleadings, briefs or other documents submitted or exchanged, any testimony or other oral submissions, and any awards) shall not be disclosed beyond the tribunal, JAMS, the parties, their counsel, accountants and auditors, insurers and re-insurers, and any person necessary to the conduct of the proceeding.  The confidentiality obligations shall not apply (i) if disclosure is required by law, or in judicial or administrative proceedings, or (ii) as far as disclosure is necessary to enforce the rights arising out of the award.

 

8.             Governing Law.  This Agreement shall be governed in all respects, including validity, interpretation and effect, by the law of the State of Delaware, regardless of the law that might be applied under principles of conflict of laws to the extent such principles would require or permit the application of the laws of another jurisdiction.

 

9.             Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

10.           Successors; Binding Effect.  Each Indemnifying Party will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business and assets of such Indemnifying Party, by agreement in form and substance satisfactory to Manager, expressly to assume and agree to perform this Agreement in the same manner and to the same extent as such Indemnifying Party (which shall not be released from its obligations).  This Agreement shall be binding upon and inure to the benefit of each party hereto and its successors and permitted assigns, and each other Indemnitee, but neither this Agreement nor any right, interest or obligation hereunder shall be assigned, whether by operation of law or otherwise, by the Company Entities without the prior written consent of Manager.  Insofar as any Indemnitee transfers all or substantially all of its assets to a third party, such third party shall thereupon be deemed an additional Indemnitee for all purposes of this Agreement, with the same effect as if it were a signatory to this Agreement in such capacity.

 

15

 

11.           Miscellaneous.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  This Agreement is not intended to confer any right or remedy hereunder upon any Person other than each of the parties hereto and their respective successors and permitted assigns and each other Indemnitee (each of whom is an intended third party beneficiary of this Agreement).  Neither the waiver by any of the parties hereto or by any other Indemnitee of a breach of or a default under any of the provisions of this Agreement, nor the failure by any such party or Indemnitee, on one or more occasions, to enforce any of the provisions of this Agreement or to exercise any right or privilege hereunder, shall be construed as a waiver of any other breach or default of a similar nature, or as a waiver of any of such provisions, rights or privileges.  No amendment, modification, supplement or discharge of this Agreement, and no waiver hereunder, shall be valid and binding unless set forth in writing and duly executed by the Company (acting on behalf of the Company Entities) and the Manager (acting on its own behalf and on behalf of each other Indemnitee).  This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

 

[The remainder of this page has been left blank intentionally.]

 

16

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement by their authorized representatives as of the date first above written.

 

 

	
 
    	
CLAYTON,   DUBILIER & RICE, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Theresa A. Gore
    
	
 
    	
 
    	
Name:
    	
Theresa   A. Gore
    
	
 
    	
 
    	
Title:
    	
Vice   President, Treasurer and
    
	
 
    	
 
    	
 
    	
Assistant   Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CLAYTON,   DUBILIER & RICE FUND VIII, L.P.
    
	
 
    	
By:
    	
CD&R   Associates VIII Ltd., its general 
    
	
 
    	
 
    	
partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Theresa A. Gore
    
	
 
    	
 
    	
Name:
    	
Theresa   A. Gore
    
	
 
    	
 
    	
Title:
    	
Vice   President, Treasurer and
   Assistant Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CD&R   EMS CO-INVESTOR, L.P.
    
	
 
    	
By:
    	
CD&R   Associates VIII, Ltd., its general
    
	
 
    	
 
    	
partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Theresa A. Gore
    
	
 
    	
 
    	
Name:
    	
Theresa   A. Gore
    
	
 
    	
 
    	
Title:
    	
Vice   President, Treasurer and
    
	
 
    	
 
    	
 
    	
Assistant   Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CD&R   FRIENDS & FAMILY FUND VIII, L.P.
    
	
 
    	
By:
    	
CD&R   Associates VIII, Ltd., its general
    
	
 
    	
 
    	
partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Theresa A. Gore
    
	
 
    	
 
    	
Name:
    	
Theresa   A. Gore
    
	
 
    	
 
    	
Title:
    	
Vice   President, Treasurer and
    
	
 
    	
 
    	
 
    	
Assistant   Secretary
    

 

 

	
 
    	
CD&R   ADVISOR FUND VIII CO-INVESTOR, L.P.
    
	
 
    	
By:
    	
CD&R   Associates VIII, Ltd., its general
    
	
 
    	
 
    	
partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Theresa A. Gore
    
	
 
    	
 
    	
Name:   
    	
Theresa   A. Gore
    
	
 
    	
 
    	
Title:
    	
Vice   President, Treasurer and
    
	
 
    	
 
    	
 
    	
Assistant   Secretary
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Notice Address for the Other Investors:

 

[Name   of Other Investor]
   c/o Clayton, Dubilier & Rice, LLC

375   Park Avenue
   18th Floor

New   York, New York 10152

Attention:   Mr. Donald J. Gogel

Facsimile:   212-407-5252
    

 

 

	
 
    	
CDRT   HOLDING CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William A. Sanger
    
	
 
    	
Name:
    	
William   A. Sanger
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMERGENCY   MEDICAL SERVICES CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William A. Sanger
    
	
 
    	
Name:
    	
William   A. Sanger
    
	
 
    	
Title:
    	
Chief   Executive Officer

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