Document:

Ex-10.11 2006 Equity Incentive Plan

 

EXHIBIT 10.11

HERITAGE FINANCIAL GROUP

2006 EQUITY INCENTIVE PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I PURPOSE
	 	 	3	 
	 
	 	 	 	 
	Section 1.1 General Purpose of the Plan
	 	 	 3	 
	 
	 	 	 	 
	ARTICLE II DEFINITIONS
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III AVAILABLE SHARES
	 	 	6	 
	 
	 	 	 	 
	Section 3.1 Shares Available Under the Plan
	 	 	 6	 
	Section 3.2 Shares Available for Options and Stock Appreciation Rights
	 	 	 6	 
	Section 3.3 Shares Available for Restricted Stock Awards
	 	 	 6	 
	Section 3.4 Additional OTS Restrictions
	 	 	 6	 
	Section 3.5 Computation of Shares Issued
	 	 	 7	 
	 
	 	 	 	 
	ARTICLE IV ADMINISTRATION
	 	 	7	 
	 
	 	 	 	 
	Section 4.1 Committee
	 	 	 7	 
	Section 4.2 Committee Powers
	 	 	 7	 
	 
	 	 	 	 
	ARTICLE V STOCK OPTIONS
	 	 	7	 
	 
	 	 	 	 
	Section 5.1 Grant of Options
	 	 	 7	 
	Section 5.2 Size of Option
	 	 	 8	 
	Section 5.3 Exercise Price
	 	 	 8	 
	Section 5.4 Exercise Period
	 	 	 8	 
	Section 5.5 Vesting Date
	 	 	 8	 
	Section 5.6 Additional Restrictions on Incentive Stock Options
	 	 	 9	 
	Section 5.7 Method of Exercise
	 	 	 9	 
	Section 5.8 Limitations on Options
	 	 	10	 
	Section 5.9 Prohibition Against Option Repricing
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI STOCK APPRECIATION RIGHTS
	 	 	11	 
	 
	 	 	 	 
	Section 6.1 Grant of Stock Appreciation Rights
	 	 	11	 
	Section 6.2 Size of Stock Appreciation Right
	 	 	11	 
	Section 6.3 Exercise Price
	 	 	11	 
	Section 6.4 Exercise Period
	 	 	11	 
	Section 6.5 Vesting Date
	 	 	12	 
	Section 6.6 Method of Exercise
	 	 	12	 
	Section 6.7 Limitations on Stock Appreciation Rights
	 	 	13	 
	Section 6.8 Prohibition Against Stock Appreciation Right Repricing
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VII RESTRICTED STOCK AWARDS
	 	 	13	 
	 
	 	 	 	 
	Section 7.1 In General
	 	 	13	 
	Section 7.2 Vesting Date
	 	 	14	 
	Section 7.3 Dividend Rights
	 	 	15	 
	Section 7.4 Voting Rights
	 	 	15	 
	Section 7.5 Designation of Beneficiary
	 	 	15	 
	Section 7.6 Manner of Distribution of Awards
	 	 	15	 
	 
	 	 	 	 
	ARTICLE VIII SPECIAL TAX PROVISION
	 	 	15	 
	 
	 	 	 	 
	Section 8.1 Tax Withholding Rights
	 	 	15	 
	 
	 	 	 	 
	ARTICLE IX AMENDMENT AND TERMINATION
	 	 	15	 
	 
	 	 	 	 
	Section 9.1 Termination
	 	 	15	 

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	 	 	Page	 
	Section 9.2 Amendment
	 	 	16	 
	Section 9.3 Adjustments in the Event of Business Reorganization
	 	 	16	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	16	 
	 
	 	 	 	 
	Section 10.1 Status as an Employee Benefit Plan
	 	 	16	 
	Section 10.2 No Right to Continued Employment
	 	 	16	 
	Section 10.3 Construction of Language
	 	 	17	 
	Section 10.4 Governing Law
	 	 	17	 
	Section 10.5 Headings
	 	 	17	 
	Section 10.6 Non-Alienation of Benefits
	 	 	17	 
	Section 10.7 Notices
	 	 	17	 
	Section 10.8 Approval of Shareholders
	 	 	17	 

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Heritage Financial Group

2006 Equity Incentive Plan

ARTICLE I

PURPOSE

     Section 1.1 General Purpose of the Plan.

     The purpose of the Plan is to promote the long-term growth and profitability of Heritage
Financial Group, to provide directors, advisory directors, officers and employees of Heritage
Financial Group and its affiliates with an incentive to achieve corporate objectives, to attract
and retain individuals of outstanding competence and to provide such individuals with an equity
interest in Heritage Financial Group.

ARTICLE II

DEFINITIONS

     The following definitions shall apply for the purposes of this Plan, unless a different
meaning is plainly indicated by the context:

     Affiliate means any “parent corporation” or “subsidiary corporation” of the Company, as those
terms are defined in Section 424(e) and (f) respectively, of the Code.

     Award means the grant by the Committee of an Incentive Stock Option, a Non-Qualified Stock
Option, a Stock Appreciation Right, a Restricted Stock Award or any other benefit under this Plan.

     Award Agreement means a written instrument evidencing an Award under the Plan and establishing
the terms and conditions thereof.

     Beneficiary means the Person designated by a Participant to receive any Shares subject to a
Restricted Stock Award made to such Participant that become distributable, or to have the right to
exercise any Options or Stock Appreciation Rights granted to such Participant that are exercisable,
following the Participant’s death.

     Board means the Board of Directors of Heritage Financial Group and any successor thereto.

     Change in Control means any of the following events:

     (a) any third person, including a “group” as defined in Section 13(d)(3) of
the Securities Exchange Act of 1934, becomes the beneficial owner of shares of the Company
with respect to which 25% or more of the total number of votes for the election of the Board
may be cast;

     (b) as a result of, or in connection with, any cash tender offer, merger or
other business combination, sale of assets or contested election, or combination of the
foregoing, the persons who were directors of the Company shall cease to constitute a
majority of the Board;

     (c) the stockholders of the Company approve an agreement providing either for
a transaction in which the Company will cease to be an independent publicly owned
corporation or for a sale or other disposition of all or substantially all the assets of the
Company; or

     (d) a tender offer or exchange offer for 25% or more of the total outstanding
Shares of the Company is commenced (other than such an offer by the Company).

     Code means the Internal Revenue Code of 1986, as amended from time to time.

     Committee means the Committee described in Article IV.

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     Company means Heritage Financial Group, a federal corporation, and any successor thereto.

     Disability means a condition of incapacity of a Participant which renders that person unable
to engage in the performance of his or her duties by reason of any medically determinable physical
or mental impairment which can be expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than twelve (12) months. Notwithstanding the
above, the term Disability in connection with Incentive Stock Options shall have the meaning
specified in Section 22(e)(3) of the Code.

     Effective Date means May 17, 2006, the date on which the Plan is approved by the stockholders
of Heritage Financial Group.

     Exchange Act means the Securities Exchange Act of 1934, as amended.

     Exercise Period means the period during which an Option or Stock Appreciation Right may be
exercised.

     Exercise Price means the price per Share at which Shares subject to an Option may be purchased
upon exercise of the Option and on the basis of which the Shares due upon exercise of a Stock
Appreciation Right is computed.

     Fair Market Value means, with respect to a Share on a specified date:

     (a) If the Shares are listed on any established stock exchange or traded on
the Nasdaq National Market or the Nasdaq SmallCap Market, the closing sales price for such
stock (or the closing bid, if no sales were reported) as quoted on the Composite Tape or
other comparable reporting system for the exchange or market on the applicable date, or if
the applicable date is not a trading day, on the trading day immediately preceding the
applicable date;

     (b) If the Shares are not traded on a national securities exchange but are
traded on the over-the-counter market, if sales prices are not regularly reported for the
Shares for the trading day referred to in clause (a), and if bid and asked prices for the
Shares are regularly reported, the mean between the bid and the asked price for the Shares
at the close of trading in the over-the-counter market on the applicable date, or if the
applicable date is not a trading day, on the trading day immediately preceding the
applicable date; and

     (c) In the absence of such markets for the Shares, the Fair Market Value
shall be determined in good faith by the Committee.

     Family Member means with respect to any Participant:

     (a) the lineal ascendants and lineal descendants of such Participant or his
spouse, or any one or more of them, or

     (b) an entity wholly owned by, including, but not limited to, a trust the
exclusive beneficiaries of which are, one or more of the lineal ascendants or lineal
descendants of such Participant or his spouse, or wholly owned jointly by one or more of
them and the Participant.

     Incentive Stock Option means a right to purchase Shares that is granted to an employee of the
Company or any Affiliate that is designated by the Committee to be an Incentive Stock Option and
that is intended to satisfy the requirements of Section 422 of the Code.

     Non-Qualified Stock Option means a right to purchase Shares that is not intended to qualify as
an Incentive Stock Option or does not satisfy the requirements of Section 422 of the Code.

     Option means either an Incentive Stock Option or a Non-Qualified Stock Option.

     Option Holder means, at any relevant time with respect to an Option, the person having the
right to exercise the Option.

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     Participant means any director, advisory director, officer or employee of the Company or any
Affiliate who is selected by the Committee to receive an Award.

     Permitted Transferee means, with respect to any Participant, a Family Member of the
Participant to whom an Award has been transferred as permitted hereunder.

     Person means an individual, a corporation, a partnership, a limited liability company, an
association, a joint-stock company, a trust, an estate, an unincorporated organization and any
other business organization or institution.

     Plan means the Heritage Financial Group 2006 Equity Incentive Plan, as amended from time to
time.

     Qualified Domestic Relations Order means a Domestic Relations Order that:

     (a) clearly specifies:

          (i) The name and last known mailing address of the Option Holder and of each person given
rights under such Domestic Relations Order;

          (ii) the amount or percentage of the Option Holder’s benefits under this Plan to be paid to
each person covered by such Domestic Relations Order;

          (iii) the number of payments or the period to which such Domestic Relations Order applies; and

          (iv) the name of this Plan; and

     (b) does not require the payment of a benefit in a form or amount that is:

          (i) not otherwise provided for under the Plan; or

          (ii) inconsistent with a previous Qualified Domestic Relations Order.

For the purposes of this Plan, a “Domestic Relations Order” means a judgment, decree or order,
including the approval of a property settlement, that is made pursuant to a state domestic
relations or community property law and relates to the provision of child support, alimony payments
or marital property rights to a spouse, child or other dependent of a Participant.

     Restricted Stock Award means an award of Shares or Share Units pursuant to Article VII.

     Service means, unless the Committee provides otherwise in an Award Agreement, service in any
capacity as a director, advisory director, officer or employee of the Company or any Affiliate.

     Share means a share of common stock, par value $.01 per share, of Heritage Financial Group.

     Share Unit means the right to receive a Share at a specified future date.

     Stock Appreciation Right means the right to receive a payment in Shares measured by the
increase in the Fair Market Value of a Share over the Exercise Price of that Stock Appreciation
Right.

     Stock Appreciation Right Holder means, at any relevant time with respect to a Stock
Appreciation Right, the person having the right to exercise the Stock Appreciation Right.

     Termination for Cause means termination upon an intentional failure to perform stated duties,
a breach of a fiduciary duty involving personal dishonesty which results in material loss to the
Company or one of its Affiliates or a willful violation of any law, rule or regulation (other than
traffic violations or similar offenses) or a final cease-and-desist order which results in material
loss to the Company or one of its Affiliates. Notwithstanding the above, if a Participant is

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subject to a different definition of termination for cause in an employment or severance or
similar agreement with the Company or any Affiliate, such other definition shall control.

     Vesting Date means the date or dates on which the grant of an Option or Stock Appreciation
Right is eligible to be exercised or the date or dates on which a Restricted Stock Award ceases to
be forfeitable.

ARTICLE III

AVAILABLE SHARES

     Section 3.1 Shares Available Under the Plan.

     Subject to adjustment under Article IX, the maximum aggregate number of Shares representing
Awards shall not exceed 771,149 Shares. Shares representing tandem Stock Appreciation Rights shall
for such purpose only be counted as either Shares representing Options outstanding or Stock
Appreciation Rights outstanding, but not as both.

     Section 3.2 Shares Available for Options and Stock Appreciation Rights.

     Subject to adjustment under Article IX and the limitations under Section 3.4 below, the
maximum aggregate number of Shares which may be issued upon exercise of Options and Stock
Appreciation Rights shall be 550,821 Shares, and the maximum aggregate number of Shares which may
be issued upon exercise of Options and Stock Appreciation Rights to any one individual in any
calendar year shall be 137,705 Shares.

     Section 3.3 Shares Available for Restricted Stock Awards.

     Subject to adjustment under Article IX and the limitations under Section 3.4 below, the
maximum number of Shares which may be issued upon award or vesting of Restricted Stock Awards under
the Plan shall be 220,328 Shares and the maximum aggregate number of Shares which may be issued
upon award or vesting of Restricted Stock Awards to any one individual in any calendar year shall
be 55,082.

     Section 3.4 Additional OTS Restrictions.

     As long as the Plan is subject to OTS regulations as applicable on the Effective Date, subject
to adjustment under Article IX, the following additional restrictions shall apply:

     (a) No Participant shall receive Options and Stock Appreciation Rights with
respect to more than 137,705 Shares.

     (b) No Participant shall receive Restricted Stock Awards with respect to more
than 55,082 Shares.

     (c) No director or advisory director who is not also an employee of the
Company or its Affiliates shall receive Options and Stock Appreciation Rights with respect
to more than 27,541 Shares, and all such directors and advisory directors as a group shall
not receive Options and Stock Appreciation Rights with respect to more than 165,246 Shares.

     (d) No director or advisory director who is not also an employee of the
Company or its Affiliates shall receive Restricted Stock Awards with respect to more than
11,016 Shares, and all such directors and advisory directors as a group shall not receive
Restricted Stock Awards with respect to more than 66,098 Shares.

     (e) No Award may vest beginning earlier than one year from the Effective Date
of the Plan and all Awards shall vest in annual installments of not more than 20% of the
total Award.

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     Section 3.5 Computation of Shares Issued.

     For purposes of this Article III, Shares shall be considered issued pursuant to the Plan only
if actually issued upon the exercise of an Option or Stock Appreciation Right or in connection with
a Restricted Stock Award. Any Award subsequently forfeited, in whole or in part, shall not be
considered issued.

ARTICLE IV

ADMINISTRATION

     Section 4.1 Committee.

     (a) The Plan shall be administered by a Committee appointed by the Board for that purpose and
consisting of not less than two (2) members of the Board. Each member of the Committee shall be an
“Outside Director” within the meaning of Section 162(m) of the Code or a successor rule or
regulation, a “Non-Employee Director” within the meaning of Rule 16b-3(b)(3)(i) under the Exchange
Act or a successor rule or regulation and an “Independent Director” under the corporate governance
rules and regulations imposing independence standards on committees performing similar functions
promulgated by any national securities exchange or quotation system on which Shares are listed.

     (b) The act of a majority of the members present at a meeting duly called and held shall be
the act of the Committee. Any decision or determination reduced to writing and signed by all
members shall be as fully effective as if made by unanimous vote at a meeting duly called and held.

     (c) The Committee’s decisions and determinations under the Plan need not be uniform and may be
made selectively among Participants, whether or not such Participants are similarly situated.

     Section 4.2 Committee Powers.

     Subject to the terms and conditions of the Plan and such limitations as may be imposed by the
Board, the Committee shall be responsible for the overall management and administration of the Plan
and shall have such authority as shall be necessary or appropriate in order to carry out its
responsibilities, including, without limitation, the authority:

     (a) to interpret and construe the Plan, and to determine all questions that
may arise under the Plan as to eligibility for participation in the Plan, the number of
Shares subject to Awards to be issued or granted, and the terms and conditions thereof;

     (b) with the consent of the Participant, to the extent deemed necessary by
the Committee, amend or modify the terms of any outstanding Award or accelerate or defer the
Vesting Date thereof;

     (c) to adopt rules and regulations and to prescribe forms for the operation
and administration of the Plan; and

     (d) to take any other action not inconsistent with the provisions of the Plan
that it may deem necessary or appropriate.

All decisions, determinations and other actions of the Committee made or taken in accordance with
the terms of the Plan shall be final and conclusive and binding upon all parties having an interest
therein.

ARTICLE V

STOCK OPTIONS

     Section 5.1 Grant of Options.

     (a) Subject to the limitations of the Plan, the Committee may, in its discretion, grant to a
Participant an Option to purchase Shares. An Option must be designated as either an Incentive
Stock Option or a Non-Qualified Stock

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Option and, if not designated as either, shall be a Non-Qualified Stock Option. Only
employees of the Company or its Affiliates may receive Incentive Stock Options.

     (b) Any Option granted shall be evidenced by an Award Agreement which shall:

          (i) specify the number of Shares covered by the Option;

          (ii) specify the Exercise Price;

          (iii) specify the Exercise Period;

          (iv) specify the Vesting Date; and

          (v) contain such other terms and conditions not inconsistent with the Plan as the Committee
may, in its discretion, prescribe.

     Section 5.2 Size of Option.

     Subject to the restrictions of the Plan, the number of Shares as to which a Participant may be
granted Options shall be determined by the Committee, in its discretion.

     Section 5.3 Exercise Price.

     The price per Share at which an Option may be exercised shall be determined by the Committee,
in its discretion, provided, however, that the Exercise Price shall not be less than the Fair
Market Value of a Share on the date on which the Option is granted.

     Section 5.4 Exercise Period.

     The Exercise Period during which an Option may be exercised shall commence on the Vesting
Date. It shall expire on the earliest of:

     (a) the date specified by the Committee in the Award Agreement;

     (b) the last day of the three-month period commencing on the date of the
Participant’s termination of Service, other than on account of death, Disability or a
Termination for Cause;

     (c) the last day of the one-year period commencing on the date of the
Participant’s termination of Service due to death or Disability;

     (d) as of the time and on the date of the Participant’s termination of
Service due to a Termination for Cause; or

     (e) the last day of the ten-year period commencing on the date on which the
Option was granted.

     An Option that remains unexercised at the close of business on the last day of the Exercise Period
shall be canceled without consideration at the close of business on that date.

     Section 5.5 Vesting Date.

     (a) The Vesting Date for each Option Award shall be determined by the Committee and specified
in the Award Agreement.

     (b) Unless otherwise determined by the Committee and specified in the Award Agreement:

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          (i) if the Participant of an Option Award terminates Service prior to the Vesting Date for any
reason other than death or Disability, any unvested Option shall be forfeited without
consideration;

          (ii) if the Participant of an Option Award terminates Service prior to the Vesting Date on
account of death or Disability, the Vesting Date shall be accelerated to the date of the
Participant’s termination of Service; and

          (iii) if a Change in Control occurs prior to the Vesting Date of an Option Award that is
outstanding on the date of the Change in Control, the Vesting Date shall be accelerated to the
earliest date of the Change in Control.

     Section 5.6 Additional Restrictions on Incentive Stock Options.

     An Option designated by the Committee to be an Incentive Stock Option shall be subject to the
following provisions:

     (a) Notwithstanding any other provision of this Plan to the contrary, no
Participant may receive an Incentive Stock Option under the Plan if such Participant, at the
time the award is granted, owns (after application of the rules contained in Section 424(d)
of the Code) stock possessing more than ten (10) percent of the total combined voting power
of all classes of stock of the Company or its Affiliates, unless (i) the option price for
such Incentive Stock Option is at least 110 percent of the Fair Market Value of the Shares
subject to such Incentive Stock Option on the date of grant and (ii) such Option is not
exercisable after the date five (5) years from the date such Incentive Stock Option is
granted.

     (b) Each Participant who receives Shares upon exercise of an Option that is
an Incentive Stock Option shall give the Company prompt notice of any sale of Shares prior
to a date which is two years from the date the Option was granted or one year from the date
the Option was exercised. Such sale shall disqualify the Option as an Incentive Stock
Option.

     (c) The aggregate Fair Market Value (determined with respect to each
Incentive Stock Option at the time such Incentive Stock Option is granted) of the Shares
with respect to which Incentive Stock Options are exercisable for the first time by a
Participant during any calendar year (under this Plan or any other plan of the Company or an
Affiliate) shall not exceed $100,000.

     (d) Any Option under this Plan which is designated by the Committee as an
Incentive Stock Option but fails, for any reason, to meet the foregoing requirements shall
be treated as a Non-Qualified Stock Option.

     Section 5.7 Method of Exercise.

     (a) Subject to the limitations of the Plan and the Award Agreement, an Option Holder may, at
any time on or after the Vesting Date and during the Exercise Period, exercise his or her right to
purchase all or any part of the Shares to which the Option relates; provided, however, that the
minimum number of Shares which may be purchased at any time shall be 100, or, if less, the total
number of Shares relating to the Option which remain un-purchased. An Option Holder shall exercise
an Option to purchase Shares by:

          (i) giving written notice to the Committee, in such form and manner as the Committee may
prescribe, of his or her intent to exercise the Option;

          (ii) delivering to the Committee full payment for the Shares as to which the Option is to be
exercised; and

          (iii) satisfying such other conditions as may be prescribed in the Award Agreement.

     (b) The Exercise Price of Shares to be purchased upon exercise of any Option shall be paid in
full:

          (i) in cash (by certified or bank check or such other instrument as the Company may accept);
or

9

 

          (ii) if and to the extent permitted by the Committee, in the form of Shares already owned by
the Option Holder for a period of more than six (6) months as of the exercise date and having an
aggregate Fair Market Value on the date the Option is exercised equal to the aggregate Exercise
Price to be paid; or

          (iii) by a combination thereof.

Payment for any Shares to be purchased upon exercise of an Option may also be made by delivering a
properly executed exercise notice to the Company, together with a copy of irrevocable instructions
to a broker to deliver promptly to the Company the amount of sale or loan proceeds to pay the
purchase price and applicable tax withholding amounts (if any), in which event the Shares acquired
shall be delivered to the broker promptly following receipt of payment.

     (c) When the requirements of this Section have been satisfied, the Committee shall take such
action as is necessary to cause the issuance of a stock certificate evidencing the Option Holder’s
ownership of such Shares. The Person exercising the Option shall have no right to vote or to
receive dividends, nor have any other rights with respect to the Shares, prior to the date the
Shares are transferred to such Person on the stock transfer records of the Company, and no
adjustments shall be made for any dividends or other rights for which the record date is prior to
the date as of which the transfer is effected.

     Section 5.8 Limitations on Options.

     (a) An Option by its terms shall not be transferable by the Option Holder other than by will
or the laws of descent and distribution, or pursuant to the terms of a Qualified Domestic Relations
Order, and shall be exercisable, during the life of the Option Holder, only by the Option Holder or
an alternate payee designated pursuant to such a Qualified Domestic Relations Order; provided,
however, that a Participant may, at any time at or after the grant of a Non-Qualified Stock Option
under the Plan, apply to the Committee for approval to transfer all or any portion of such
Non-Qualified Stock Option which is then unexercised to such Participant’s Family Member. The
Committee may approve or withhold approval of such transfer in its sole and absolute discretion. If
such transfer is approved, it shall be effected by written notice to the Company given in such form
and manner as the Committee may prescribe and actually received by the Company prior to the death
of the person giving it. Thereafter, the transferee shall have, with respect to such Non-Qualified
Stock Option, all of the rights, privileges and obligations which would attach thereunder to the
Participant. If a privilege of the Option depends on the life, Service or other status of the
Participant, such privilege of the Option for the transferee shall continue to depend upon the
life, Service or other status of the Participant. The Committee shall have full and exclusive
authority to interpret and apply the provisions of the Plan to transferees to the extent not
specifically addressed herein.

     (b) The Company’s obligation to deliver Shares with respect to an Option shall, if the
Committee so requests, be conditioned upon the receipt of a representation as to the investment
intention of the Option Holder to whom such Shares are to be delivered, in such form as the
Committee shall determine to be necessary or advisable to comply with the provisions of applicable
federal, state or local law. It may be provided that any such representation shall become
inoperative upon a registration of the Shares or upon the occurrence of any other event eliminating
the necessity of such representation. The Company shall not be required to deliver any Shares under
the Plan prior to:

          (i) the admission of such Shares to listing on any stock exchange or trading on any automated
quotation system on which Shares may then be listed or traded; or

          (ii) the completion of such registration or other qualification under any state or federal
law, rule or regulation as the Committee shall determine to be necessary or advisable.

     (c) An Option Holder may designate a Beneficiary to receive any Options that may be exercised
after his death. Such designation and any change or revocation of such designation shall be made in
writing in the form and manner prescribed by the Committee. In the event that the designated
Beneficiary dies prior to the Option Holder, or in the event that no Beneficiary has been
designated, any Options that may be exercised following the Option Holder’s death shall be
transferred to the Option Holder’s estate. If the Option Holder and his or her Beneficiary shall
die in circumstances that cause the Committee, in its discretion, to be uncertain which shall have
been the first to die, the Option Holder shall be deemed to have survived the Beneficiary.

10

 

     Section 5.9 Prohibition Against Option Repricing.

     Except as provided in Section 9.3, neither the Committee nor the Board shall have the right or
authority following the grant of an Option pursuant to the Plan to amend or modify the Exercise
Price of any such Option, or to cancel the Option at a time when the Exercise Price is less than
the Fair Market Value of the Shares, in exchange for another Option or Award.

ARTICLE VI

STOCK APPRECIATION RIGHTS

     Section 6.1 Grant of Stock Appreciation Rights.

     (a) Subject to the limitations of the Plan, the Committee may, in its discretion, grant to a
Participant a Stock Appreciation Right. A Stock Appreciation Right must be designated as either a
tandem Stock Appreciation Right or a stand-alone Stock Appreciation Right and, if not so
designated, shall be deemed to be a stand-alone Stock Appreciation Right. A tandem Stock
Appreciation Right may only be granted at the same time as the Option to which it relates. The
exercise of a tandem Stock Appreciation Right shall cancel the related Option for a like number of
Shares and the exercise of a related Option shall cancel a tandem Stock Appreciation Right for a
like number of Shares.

     (b) Any Stock Appreciation Right granted shall be evidenced by an Award Agreement which shall:

          (i) specify the number of Shares covered by the Stock Appreciation Right;

          (ii) specify the Exercise Price;

          (iii) specify the Exercise Period;

          (iv) specify the Vesting Date;

          (v) specify that the Stock Appreciation Right shall be settled in Shares; and

          (vi) contain such other terms and conditions not inconsistent with the Plan as the Committee
may, in its discretion, prescribe.

     Section 6.2 Size of Stock Appreciation Right.

     Subject to the restrictions of the Plan, the number of Shares as to which a Participant may be
granted Stock Appreciation Rights shall be determined by the Committee, in its discretion.

     Section 6.3 Exercise Price.

     The price per Share at which a Stock Appreciation Right may be exercised shall be determined
by the Committee, in its discretion, provided, however, that the Exercise Price shall not be less
than the Fair Market Value of a Share on the date on which the Stock Appreciation Right is granted.

     Section 6.4 Exercise Period.

     The Exercise Period during which a Stock Appreciation Right may be exercised shall commence on
the Vesting Date. It shall expire on the earliest of:

     (a) the date specified by the Committee in the Award Agreement;

     (b) the last day of the three-month period commencing on the date of the
Participant’s termination of Service, other than on account of death, Disability or a
Termination for Cause;

11

 

     (c) the last day of the one-year period commencing on the date of the
Participant’s termination of Service due to death or Disability;

     (d) as of the time and on the date of the Participant’s termination of
Service due to a Termination for Cause; or

     (e) the last day of the ten-year period commencing on the date on which the
Stock Appreciation Right was granted.

     A Stock Appreciation Right that remains unexercised at the close of business on the last day
of the Exercise Period shall be canceled without consideration at the close of business on that
date.

     Section 6.5 Vesting Date.

     (a) The Vesting Date for each Stock Appreciation Right Award shall be determined by the
Committee and specified in the Award Agreement.

     (b) Unless otherwise determined by the Committee and specified in the Award Agreement:

          (i) if the Participant of a Stock Appreciation Right Award terminates Service prior to the
Vesting Date for any reason other than death or Disability, any unvested Award shall be forfeited
without consideration;

          (ii) if the Participant of a Stock Appreciation Right Award terminates Service prior to the
Vesting Date on account of death or Disability, the Vesting Date shall be accelerated to the date
of the Participant’s termination of Service; and

          (iii) if a Change in Control occurs prior to the Vesting Date of a Stock Appreciation Right
Award that is outstanding on the date of the Change in Control, the Vesting Date shall be
accelerated to the earliest date of the Change in Control.

     Section 6.6 Method of Exercise.

     (a) Subject to the limitations of the Plan and the Award Agreement, a Participant may, at any
time on or after the Vesting Date and during the Exercise Period, exercise his or her Stock
Appreciation Right as to all or any part of the Shares to which the Stock Appreciation Right
relates; provided, however, that the minimum number of Shares as to which a Stock Appreciation
Right may be exercised shall be 100, or, if less, the total number of Shares relating to the Stock
Appreciation Right which remain unexercised. A Stock Appreciation Right Holder shall exercise a
Stock Appreciation Right by:

          (i) giving written notice to the Committee, in such form and manner as the Committee may
prescribe, of his or her intent to exercise the Stock Appreciation Right; and

          (ii) satisfying such other conditions as may be prescribed in the Award Agreement.

     (b) When the requirements of this Section have been satisfied, the Committee shall take such
action as is necessary to cause the remittance to the Stock Appreciation Right Holder (or, in the
event of his or her death, his or her Beneficiary) of a number of Shares with an aggregate Fair
Market Value equal to the excess (if any) of (i) the Fair Market Value of a Share on the date of
exercise over (ii) the Exercise Price per Share, times the number of Stock Appreciation Rights
exercised. The Person exercising the Stock Appreciation Right shall have no right to vote or to
receive dividends, nor have any other rights with respect to the Shares, prior to the date the
Shares are transferred to such Person on the stock transfer records of the Company, and no
adjustments shall be made for any dividends or other rights for which the record date is prior to
the date as of which the transfer is effected.

12

 

     Section 6.7 Limitations on Stock Appreciation Rights.

     (a) A Stock Appreciation Right by its terms shall not be transferable by the Stock
Appreciation Right Holder other than by will or the laws of descent and distribution, or pursuant
to the terms of a Qualified Domestic Relations Order, and shall be exercisable, during the life of
the Stock Appreciation Right Holder, only by the Stock Appreciation Right Holder or an alternate
payee designated pursuant to such a Qualified Domestic Relations Order; provided, however, that a
Participant may, at any time at or after the grant of a Stock Appreciation Right under the Plan,
apply to the Committee for approval to transfer all or any portion of such Stock Appreciation Right
which is then unexercised to such Participant’s Family Member. The Committee may approve or
withhold approval of such transfer in its sole and absolute discretion. If such transfer is
approved, it shall be effected by written notice to the Company given in such form and manner as
the Committee may prescribe and actually received by the Company prior to the death of the person
giving it. Thereafter, the transferee shall have, with respect to such Stock Appreciation Right,
all of the rights, privileges and obligations which would attach thereunder to the Participant. If
a privilege of the Stock Appreciation Right depends on the life, Service or other status of the
Participant, such privilege of the Stock Appreciation Right for the transferee shall continue to
depend upon the life, Service or other status of the Participant. The Committee shall have full and
exclusive authority to interpret and apply the provisions of the Plan to transferees to the extent
not specifically addressed herein.

     (b) The Company’s obligation to deliver Shares with respect to a Stock Appreciation Right
shall, if the Committee so requests, be conditioned upon the receipt of a representation as to the
investment intention of the Stock Appreciation Right Holder to whom such Shares are to be
delivered, in such form as the Committee shall determine to be necessary or advisable to comply
with the provisions of applicable federal, state or local law. It may be provided that any such
representation shall become inoperative upon a registration of the Shares or upon the occurrence of
any other event eliminating the necessity of such representation. The Company shall not be required
to deliver any Shares under the Plan prior to:

          (i) the admission of such Shares to listing on any stock exchange or trading on any automated
quotation system on which Shares may then be listed or traded; or

          (ii) the completion of such registration or other qualification under any state or federal
law, rule or regulation as the Committee shall determine to be necessary or advisable.

     (c) A Stock Appreciation Right Holder may designate a Beneficiary to receive any Stock
Appreciation Right that may be exercised after his death. Such designation and any change or
revocation of such designation shall be made in writing in the form and manner prescribed by the
Committee. In the event that the designated Beneficiary dies prior to the Stock Appreciation Right
Holder, or in the event that no Beneficiary has been designated, any Stock Appreciation Rights that
may be exercised following the Stock Appreciation Right Holder’s death shall be transferred to the
Stock Appreciation Right Holder’s estate. If the Stock Appreciation Right Holder and his or her
Beneficiary shall die in circumstances that cause the Committee, in its discretion, to be uncertain
which shall have been the first to die, the Stock Appreciation Right Holder shall be deemed to have
survived the Beneficiary.

     Section 6.8 Prohibition Against Stock Appreciation Right Repricing.

     Except as provided in Section 9.3, neither the Committee nor the Board shall have the right or
authority following the grant of a Stock Appreciation Right pursuant to the Plan to amend or modify
the Exercise Price of any such Stock Appreciation Right or to cancel the Stock Appreciation Right
at a time when the Exercise Price is less than the Fair Market Value of the Shares, in exchange for
another Stock Appreciation Right or Award.

ARTICLE VII

RESTRICTED STOCK AWARDS

     Section 7.1 In General.

     (a) Each Restricted Stock Award shall be evidenced by an Award Agreement which shall specify:

          (i) the number of Shares or Share Units covered by the Restricted Stock Award;

13

 

          (ii) the amount, if any, which the Participant shall be required to pay to the Company in
consideration for the issuance of such Shares or Share Units;

          (iii) the date of grant of the Restricted Stock Award;

          (iv) the Vesting Date for the Restricted Stock Award;

          (v) as to Restricted Stock Awards awarding Shares, the rights of the Participant with respect
to dividends, voting rights and other rights and preferences associated with such Shares; and

          (vi) as to Restricted Stock Awards awarding Share Units, the rights of the Participant with
respect to attributes of the Share Units which are the equivalent of dividends and other rights and
preferences associated with Shares and the circumstances, if any, prior to the Vesting Date
pursuant to which Share Units shall be converted to Shares;

and contain such other terms and conditions not inconsistent with the Plan as the Committee may, in
its discretion, prescribe.

     (b) All Restricted Stock Awards consisting of Shares shall be in the form of issued and
outstanding Shares that shall be registered in the name of the Participant and held by the
Committee, together with an irrevocable stock power executed by the Participant in favor of the
Committee or its designee, pending the vesting or forfeiture of the Restricted Stock Award. The
certificates evidencing the Shares shall at all times prior to the applicable Vesting Date bear the
following legend:

The common stock evidenced hereby is subject to the terms of an Award
Agreement between Heritage Financial Group and [Name of Participant]
dated [Award Date] made pursuant to the terms of the Heritage Financial
Group 2006 Equity Incentive Plan, copies of which are on file at the
executive offices of Heritage Financial Group, and may not be sold,
encumbered, hypothecated or otherwise transferred, except in accordance
with the terms of such Plan and Award Agreement.

or such other restrictive legend as the Committee, in its discretion, may specify.

     (c) Unless otherwise set forth in the Award Agreement, a Restricted Stock Award by its terms
shall not be transferable by the Participant other than by will or by the laws of descent and
distribution, and the Shares distributed pursuant to such Award shall be distributable, during the
lifetime of the Participant, only to the Participant.

     Section 7.2 Vesting Date.

     (a) The Vesting Date for each Restricted Stock Award shall be determined by the Committee and
specified in the Award Agreement.

     (b) Unless otherwise determined by the Committee and specified in the Award Agreement:

     (i) if the Participant of a Restricted Stock Award terminates Service prior to the Vesting
Date for any reason other than death or Disability, any unvested Shares or Share Units shall be
forfeited without consideration;

     (ii) if the Participant of a Restricted Stock Award terminates Service prior to the Vesting
Date on account of death or Disability, the Vesting Date shall be accelerated to the date of
termination of the Participant’s Service with the Company; and

     (iii) if a Change in Control occurs prior to the Vesting Date of a Restricted Stock Award that
is outstanding on the date of the Change in Control, the Vesting Date shall be accelerated to the
earliest date of the Change in Control.

14

 

     Section 7.3 Dividend Rights.

     Unless otherwise set forth in the Award Agreement, any dividends or distributions declared and
paid with respect to Shares subject to a Restricted Stock Award, whether or not in cash, or an
equivalent amount in the case of a Restricted Stock Award awarding Share Units, shall be paid to
the Participant at the same time they are paid to all other shareholders of the Company.

     Section 7.4 Voting Rights.

     Unless otherwise set forth in the Award Agreement, voting rights appurtenant to the Shares
subject to the Restricted Stock Award shall be exercised by the Participant.

     Section 7.5 Designation of Beneficiary.

     A Participant who has received a Restricted Stock Award may designate a Beneficiary to receive
any unvested Shares or Shares distributed in satisfaction of any unvested Share Units that become
vested on the date of the Participant’s death. Such designation (and any change or revocation of
such designation) shall be made in writing in the form and manner prescribed by the Committee. In
the event that the Beneficiary designated by a Participant dies prior to the Participant, or in the
event that no Beneficiary has been designated, any vested Shares that become available for
distribution on the Participant’s death shall be paid to the executor or administrator of the
Participant’s estate.

     Section 7.6 Manner of Distribution of Awards.

     The Company’s obligation to deliver Shares with respect to a Restricted Stock Award shall, if
the Committee so requests, be conditioned upon the receipt of a representation as to the investment
intention of the Participant or Beneficiary to whom such Shares are to be delivered, in such form
as the Committee shall determine to be necessary or advisable to comply with the provisions of
applicable federal, state or local law. It may be provided that any such representation shall
become inoperative upon a registration of the Shares or upon the occurrence of any other event
eliminating the necessity of such representation. The Company shall not be required to deliver any
Shares under the Plan prior to (i) the admission of such Shares to listing on any stock exchange or
trading on any automated quotation system on which Shares may then be listed or traded, or (ii) the
completion of such registration or other qualification under any state or federal law, rule or
regulation as the Committee shall determine to be necessary or advisable.

ARTICLE VIII

SPECIAL TAX PROVISION

     Section 8.1 Tax Withholding Rights.

     Where any Person is entitled to receive Shares, the Company shall have the right to require
such Person to pay to the Company the amount of any tax which the Company is required to withhold
with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a
sufficient number of Shares to cover the minimum amount required to be withheld.

ARTICLE IX

AMENDMENT AND TERMINATION

     Section 9.1 Termination

     The Board may suspend or terminate the Plan in whole or in part at any time prior to the tenth
anniversary of the Effective Date by giving written notice of such suspension or termination to the
Committee. Unless sooner terminated, the Plan shall terminate automatically on the tenth
anniversary of the Effective Date. In the event of any suspension or termination of the Plan, all
Awards previously granted under the Plan that are outstanding on the date of such suspension or
termination of the Plan shall remain outstanding and exercisable for the period and on the terms
and conditions set forth in the Award Agreements evidencing such Awards.

15

 

     Section 9.2 Amendment.

     The Board may amend or revise the Plan in whole or in part at any time; provided, however,
that, to the extent required to comply with Section 162(m) of the Code or the corporate governance
standards imposed under the listing or trading requirements imposed by any national securities
exchange or automated quotation system on which the Company lists or seeks to list or trade Shares,
no such amendment or revision shall be effective if it amends a material term of the Plan unless
approved by the holders of a majority of the votes cast on a proposal to approve such amendment or
revision. To the extent OTS regulations are changed subsequent to the Effective Date, the Board
shall have the right but not the obligation, to amend or revise the Plan without shareholder
approval to conform to the revised regulations.

     Section 9.3 Adjustments in the Event of Business Reorganization.

     In the event any recapitalization, forward or reverse split, reorganization, merger,
consolidation, spin-off, combination, exchange of Shares or other securities, stock dividend or
other special and nonrecurring dividend or distribution (whether in the form of cash, securities or
other property), liquidation, dissolution, or other similar corporate transaction or event, affects
the Shares such that an adjustment is appropriate in order to prevent dilution or enlargement of
the rights of Participants under the Plan, then the Committee shall, in such manner as it may deem
equitable, adjust any or all of:

          (i) the number and kind of securities deemed to be available thereafter for grants of Awards
in the aggregate to all Participants;

          (ii) the number and kind of securities that may be delivered or deliverable in respect of
outstanding Awards; and

          (iii) the Exercise Price of Options and Stock Appreciation Rights.

     In addition, the Committee is authorized to make adjustments in the terms and conditions of,
and the criteria included in, Awards (including, without limitation, cancellation of Awards in
exchange for the in-the-money value, if any, of the vested portion thereof, or substitution of
Awards using stock of a successor or other entity) in recognition of unusual or nonrecurring events
(including, without limitation, events described in the preceding sentence) affecting the Company
or any Affiliate or the financial statements of the Company or any Affiliate, or in response to
changes in applicable laws, regulations, or accounting principles.

ARTICLE X

MISCELLANEOUS

     Section 10.1 Status as an Employee Benefit Plan.

     This Plan is not intended to satisfy the requirements for qualification under Section 401(a)
of the Code or to satisfy the definitional requirements for an “employee benefit plan” under
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. It is intended to
be a non-qualified incentive compensation program that is exempt from the regulatory requirements
of the Employee Retirement Income Security Act of 1974, as amended. The Plan shall be construed and
administered so as to effectuate this intent.

     Section 10.2 No Right to Continued Employment.

     Neither the establishment of the Plan nor any provisions of the Plan nor any action of the
Board or Committee with respect to the Plan shall be held or construed to confer upon any
Participant any right to a continuation of his or her position as a director, advisory director or
employee of the Company. The Company reserves the right to remove any participating member of the
Board or dismiss any Participant or otherwise deal with any Participant to the same extent as
though the Plan had not been adopted.

16

 

     Section 10.3 Construction of Language.

     Whenever appropriate in the Plan, words used in the singular may be read in the plural, words
used in the plural may be read in the singular, and words importing the masculine gender may be
read as referring equally to the feminine or the neuter. Any reference to an Article or Section
number shall refer to an Article or Section of this Plan unless otherwise indicated.

     Section 10.4 Governing Law.

     The Plan shall be construed, administered and enforced according to the laws of the State of
Georgia without giving effect to the conflict of laws principles thereof, except to the extent that
such laws are preempted by federal law. The federal and state courts located in the County or
contiguous counties in which the Company’s headquarters are located shall have exclusive
jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By
accepting any Award granted under this Plan, the Participant, and any other person claiming any
rights under the Plan, agrees to submit himself, and any such legal action as he shall bring under
the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such
disputes.

     Section 10.5 Headings.

     The headings of Articles and Sections are included solely for convenience of reference. If
there is any conflict between such headings and the text of the Plan, the text shall control.

     Section 10.6 Non-Alienation of Benefits.

     The right to receive a benefit under the Plan shall not be subject in any manner to
anticipation, alienation or assignment, nor shall such right be liable for or subject to debts,
contracts, liabilities, engagements or torts.

     Section 10.7 Notices.

     Any communication required or permitted to be given under the Plan, including any notice,
direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be
deemed to have been given at such time as it is delivered personally or three (3) days after
mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested,
addressed to such party at the address listed below, or at such other address as one such party may
by written notice specify to the other party:

     (a) If to the Committee:

Heritage Financial Group

310 W. Oglethorpe Blvd.

Albany, GA 31705

Attention: Corporate Secretary

     (b) If to a Participant, to such person’s address as shown in the Company’s records.

     Section 10.8 Approval of Shareholders.

     The Plan shall be subject to approval by the Company’s shareholders within twelve (12) months
before or after the date the Board adopts the Plan.

17Ex-4.7(b) Amendment No. 1 to Credit Agreement

 

Exhibit 4.7(b)

     AMENDMENT No. 1, dated as of February 16, 2007 (this “Amendment”), to the Credit
Agreement, dated as of November 17, 2006 (as amended, restated, supplemented or otherwise modified,
refinanced or replaced from time to time, the “Credit Agreement”), among HCA Inc. (the
“Company” or the “Parent Borrower”), HCA UK Capital Limited (the “European
Subsidiary Borrower” and, collectively with the Parent Borrower, the “Borrowers”), the
lending institutions from time to time parties thereto (each a “Lender” and, collectively,
the “Lenders”), Bank of America, N.A., as Administrative Agent, Swingline Lender and Letter
of Credit Issuer, JPMorgan Chase Bank, N.A. and Citicorp North America, Inc., as Co-Syndication
Agents, Banc of America Securities LLC, J.P. Morgan Securities Inc., Citigroup Global Markets Inc.
and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Joint Lead Arrangers and Bookrunners,
Deutsche Bank Securities Inc. and Wachovia Capital Markets LLC, as Joint Bookrunners, and Merrill
Lynch Capital Corporation, as Documentation Agent. Capitalized terms used but not defined herein
having the meaning provided in the Credit Agreement (as amended hereby).

     WHEREAS, Section 14.1 of the Credit Agreement permits amendment with the written consent of
the Administrative Agent, the affected Borrowers and the Lenders providing the relevant Replacement
Term Loans (as defined below) to permit the refinancing of all outstanding Term Loans of any Class
(“Refinanced Term Loans”) with a replacement term loan tranche (“Replacement Term
Loans”) thereunder;

     WHEREAS, the Borrowers desire to create a new tranche of term loans consisting of Tranche A-1
Term Loans (as defined in Section 1) pursuant to amendments authorized by Section 14.1 of the
Credit Agreement which Tranche A-1 Term Loans shall, except with respect to the definitions of
“Applicable ABR Margin” and “Applicable LIBOR Margin”, have identical terms as the Tranche A Term
Loans and shall be in a like principal amount as the outstanding Tranche A Term Loans and the
proceeds of which would be used to refinance all of the Tranche A Term Loans all as more fully set
forth in Section 1;

     WHEREAS, the Borrowers desire to create a new tranche of term loans consisting of Tranche B-1
Term Loans (as defined in Section 1) pursuant to amendments authorized by Section 14.1 of the
Credit Agreement which Tranche B-1 Term Loans shall, except with respect to the definitions of
“Applicable ABR Margin” and “Applicable LIBOR Margin”, have identical terms as the Tranche B Term
Loans and shall be in a like principal amount as the outstanding Tranche B Term Loans and the
proceeds of which would be used to refinance all of the Tranche B Term Loans all as more fully set
forth in Section 1;

     WHEREAS, the Borrowers desire to create a new tranche of term loans consisting of European-1
Tranche Term Loans (as defined in Section 1) pursuant to amendments authorized by Section 14.1 of
the Credit Agreement which European-1 Tranche Term Loans shall, except with respect to the
definition of “Applicable LIBOR Margin”, have identical terms as the European Tranche Term Loans
and shall be in a like principal amount as the outstanding European Tranche Term Loans and the
proceeds of which would be used to refinance all of the European Tranche Term Loans all as more
fully set forth in Section 1;

 

 

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     WHEREAS, upon the effectiveness of this Amendment, each Tranche A Term Loan Lender that shall
have executed and delivered a signature page to this Amendment as a Tranche A-1 Term Loan Lender
shall be deemed to have exchanged its Tranche A Term Loans (which Tranche A Term Loans shall
thereafter no longer be deemed to be outstanding) for Tranche A-1 Term Loans in the same aggregate
principal amount as such Tranche A Term Loan Lender’s Tranche A Term Loans, and such Tranche A Term
Loan Lender shall thereafter become a Tranche A-1 Term Loan Lender;

     WHEREAS, upon the effectiveness of this Amendment, each Tranche B Term Loan Lender that shall
have executed and delivered a signature page to this Amendment as a Tranche B-1 Term Loan Lender
shall be deemed to have exchanged its Tranche B Term Loans (which Tranche B Term Loans shall
thereafter no longer be deemed to be outstanding) for Tranche B-1 Term Loans in the same aggregate
principal amount as such Tranche B Term Loan Lender’s Tranche B Term Loans, and such Tranche B Term
Loan Lender shall thereafter become a Tranche B-1 Term Loan Lender;

     WHEREAS, upon the effectiveness of this Amendment, each European Tranche Term Loan Lender that
shall have executed and delivered a signature page to this Amendment as a European-1 Tranche Term
Loan Lender shall be deemed to have exchanged its European Tranche Term Loans (which European
Tranche Term Loans shall thereafter no longer be deemed to be outstanding) for European-1 Tranche
Term Loans in the same aggregate principal amount as such European Tranche Term Loan Lender’s
European Tranche Term Loans, and such European Tranche Term Loan Lender shall thereafter become a
European -1 Tranche Term Loan Lender;

     WHEREAS, upon the effectiveness of this Amendment, each Person who executes and delivers a
signature page to this Amendment as an Additional Tranche A-1 Term Loan Lender (as defined in
Section 1) will make Tranche A-1 Term Loans to the Parent Borrower in Dollars, the proceeds of
which will be used by the Parent Borrower to repay in full the outstanding principal amount of
Tranche A Term Loans that are not exchanged for Tranche A-1 Term Loans and the Parent Borrower
shall pay to each Tranche A Term Loan Lender all accrued and unpaid interest on the Tranche A Term
Loans to, but not including, the date of effectiveness of the Amendment;

     WHEREAS, upon the effectiveness of this Amendment, each Person who executes and delivers a
signature page to this Amendment as an Additional Tranche B-1 Term Loan Lender (as defined in
Section 1) will make Tranche B-1 Term Loans to the Parent Borrower in Dollars, the proceeds of
which will be used by the Parent Borrower to repay in full the outstanding principal amount of
Tranche B Term Loans that are not exchanged for Tranche B-1 Term Loans and the Parent Borrower
shall pay to each Tranche B Term Loan Lender all accrued and unpaid interest on the Tranche B Term
Loans to, but not including, the date of effectiveness of the Amendment;

     WHEREAS, upon the effectiveness of this Amendment, each Person who executes and delivers a
signature page to this Amendment as an Additional European-1 Tranche Term Loan Lender (as defined
in Section 1) will make European-1 Tranche Term Loans to the European Subsidiary Borrower in Euro,
the proceeds of which will be used by the European Subsidiary Borrower to repay in full the
outstanding principal amount of European Tranche Term Loans that are not exchanged for European-1
Tranche Term Loans and the European Subsidiary Borrower shall pay to each European Tranche Term
Loan Lender all accrued and unpaid interest on the European-1 Tranche Term Loans to, but not
including, the date of effectiveness of the Amendment;

 

 

-3-

     WHEREAS, Banc of America Securities LLC, J.P. Morgan Securities Inc., Citigroup Global Markets
Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated are joint lead arrangers and joint
bookrunners for the Tranche A-1 Term Loans, the Tranche B-1 Term Loans and the European-1 Tranche
Term Loans; and

     WHEREAS, the Agents under the Credit Agreement shall continue in their respective roles as
Agents under the Credit Agreement as amended by this Amendment;

     NOW, THEREFORE, in consideration of the premises and covenants contained herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound hereby, agree as follows:

     Section 1. Amendments. The Credit Agreement is hereby amended effective as of the
Amendment No. 1 Effective Date as follows:

     (a) The following defined terms shall be added to Section 1.1 of the Credit Agreement:

     “Additional European-1 Tranche Term Loan” shall mean a Loan in Euro that is
made pursuant to Section 2.1(g) on the Amendment No. 1 Effective Date.

     “Additional European-1 Tranche Term Loan Commitment” shall mean, with respect
to an Additional European-1 Tranche Term Loan Lender, the commitment of such Additional
European-1 Tranche Term Loan Lender to make Additional European-1 Tranche Term Loans on the
Amendment No. 1 Effective Date, in an amount set forth on Schedule I to Amendment
No. 1. The aggregate amount of the Additional European-1 Tranche Term Loan Commitments
shall equal the outstanding principal amount of European Tranche Term Loans of
Non-Consenting European Tranche Term Loan Lenders.

     “Additional European-1 Tranche Term Loan Lender” shall mean a Person with an
Additional European-1 Tranche Term Loan Commitment on the Amendment No. 1 Effective Date.

 

 

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     “Additional Tranche A-1 Term Loan” shall mean a Loan in Dollars that is made
pursuant to Section 2.1(e) on the Amendment No. 1 Effective Date.

     “Additional Tranche A-1 Term Loan Commitment” shall mean, with respect to an
Additional Tranche A-1 Term Loan Lender, the commitment of such Additional Tranche A-1 Term
Loan Lender to make Additional Tranche A-1 Term Loans on the Amendment No. 1 Effective Date,
in an amount set forth on Schedule I to Amendment No. 1. The aggregate amount of
the Additional Tranche A-1 Term Loan Commitments shall equal the outstanding principal
amount of Tranche A Term Loans of Non-Consenting Tranche A Term Loan Lenders.

     “Additional Tranche A-1 Term Loan Lender” shall mean a Person with an
Additional Tranche A-1 Term Loan Commitment on the Amendment No. 1 Effective Date.

     “Additional Tranche B-1 Term Loan” shall mean a Loan in Dollars that is made
pursuant to Section 2.1(f) on the Amendment No. 1 Effective Date.

     “Additional Tranche B-1 Term Loan Commitment” shall mean, with respect to an
Additional Tranche B-1 Term Loan Lender, the commitment of such Additional Tranche B-1 Term
Loan Lender to make Additional Tranche B-1 Term Loans on the Amendment No. 1 Effective Date,
in an amount set forth on Schedule I to Amendment No. 1. The aggregate amount of
the Additional Tranche B-1 Term Loan Commitments shall equal the outstanding principal
amount of Tranche B Term Loans of Non-Consenting Tranche B Term Loan Lenders.

     “Additional Tranche B-1 Term Loan Lender” shall mean a Person with an
Additional Tranche B-1 Term Loan Commitment on the Amendment No. 1 Effective Date.

     “Amendment No. 1” shall mean Amendment No. 1 to this Agreement dated as of
February 16, 2007.

     “Amendment No. 1 Effective Date” shall mean February 16, 2007, the first
Business Day on which all conditions precedent set forth in Section 3 of Amendment No. 1 are
satisfied.

     “European-1 Tranche Term Loan” shall mean, collectively, (i) a Loan in Euro
made pursuant to Section 2.1(g) on the Amendment No. 1 Effective Date and (ii) each
Additional European-1 Tranche Term Loan.

     “European-1 Tranche Term Loan Commitment” shall mean, with respect to a
European Tranche Term Loan Lender, the agreement of such European Tranche Term Loan Lender
to exchange its European Tranche Term Loans for an equal aggregate principal amount of
European-1 Tranche Term Loans on the Amendment No. 1 Effective

 

 

-5-

Date, as evidenced by such European Tranche Term Loan Lender executing and delivering
Amendment No. 1.

     “European-1 Tranche Term Loan Facility” shall mean the Credit Facility
consisting of the European-1 Tranche Term Loan Commitments and the European-1 Tranche Term
Loans.

     “European-1 Tranche Term Loan Lender” shall mean, collectively, (i) each
European Tranche Term Loan Lender that executes and delivers Amendment No. 1 on or prior to
the Amendment No. 1 Effective Date and (ii) each Additional European-1 Tranche Term Loan
Lender.

     “Non-Consenting European Tranche Term Loan Lender” shall mean each European
Tranche Term Loan Lender that did not execute and deliver a counterpart of Amendment No. 1
on or prior to the Amendment No. 1 Effective Date.

     “Non-Consenting Tranche A Term Loan Lender” shall mean each Tranche A Term Loan
Lender that did not execute and deliver a counterpart of Amendment No. 1 on or prior to the
Amendment No. 1 Effective Date.

     “Non-Consenting Tranche B Term Loan Lender” shall mean each Tranche B Term Loan
Lender that did not execute and deliver a counterpart of Amendment No. 1 on or prior to the
Amendment No. 1 Effective Date.

     “Tranche A-1 Term Loan” shall mean, collectively, (i) a Loan in Dollars made
pursuant to Section 2.1(e) on the Amendment No. 1 Effective Date and (ii) each
Additional Tranche A-1 Term Loan.

     “Tranche A-1 Term Loan Commitment” shall mean, with respect to a Tranche A Term
Loan Lender, the agreement of such Tranche A Term Loan Lender to exchange its Tranche A Term
Loans for an equal aggregate principal amount of Tranche A-1 Term Loans on the Amendment No.
1 Effective Date, as evidenced by such Tranche A Term Loan Lender executing and delivering
Amendment No. 1.

     “Tranche A-1 Term Loan Facility” shall mean the Credit Facility consisting of
the Tranche A-1 Term Loan Commitments and the Tranche A-1 Term Loans.

     “Tranche A-1 Term Loan Lender” shall mean, collectively, (i) each Tranche A
Term Loan Lender that executes and delivers Amendment No. 1 on or prior to the Amendment No.
1 Effective Date and (ii) each Additional Tranche A-1 Term Loan Lender.

 

 

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     “Tranche B-1 Term Loan” shall mean, collectively, (i) a Loan in Dollars made
pursuant to Section 2.1(f) on the Amendment No. 1 Effective Date and (ii) each
Additional Tranche B-1 Term Loan.

     “Tranche B-1 Term Loan Commitment” shall mean, with respect to a Tranche B Term
Loan Lender, the agreement of such Tranche B Term Loan Lender to exchange its Tranche B Term
Loans for an equal aggregate principal amount of Tranche B-1 Term Loans on the Amendment No.
1 Effective Date, as evidenced by such Tranche B Term Loan Lender executing and delivering
Amendment No. 1.

     “Tranche B-1 Term Loan Facility” shall mean the Credit Facility consisting of
the Tranche B-1 Term Loan Commitments and the Tranche B-1 Term Loans.

     “Tranche B-1 Term Loan Lender” shall mean, collectively, (i) each Tranche B
Term Loan Lender that executes and delivers Amendment No. 1 on or prior to the Amendment No.
1 Effective Date and (ii) each Additional Tranche B-1 Term Loan Lender.

          (b) Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of
“Applicable ABR Margin” contained therein and replacing it with the following:

               “ “Applicable ABR Margin” shall mean at any date, with respect to each ABR Loan
that is a Tranche A-1 Term Loan, Tranche B-1 Term Loan, Revolving Credit Loan or Swingline
Loan, the applicable percentage per annum set forth below based upon the Status in effect on
such date:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Status	 	Applicable ABR Margin for:
	 	 	Tranche A-1	 	Tranche B-1	 	Revolving Credit and
	 	 	Term Loans	 	Term Loans	 	Swingline Loans
	Level I Status
	 	 	1.25	%	 	 	1.25	%	 	 	1.50	%
	Level II Status
	 	 	1.00	%	 	 	1.25	%	 	 	1.25	%
	Level III Status
	 	 	0.75	%	 	 	1.25	%	 	 	1.00	%
	Level IV Status
	 	 	0.50	%	 	 	1.25	%	 	 	0.75	%
	Level V Status
	 	 	0.25	%	 	 	1.25	%	 	 	0.50	%

Notwithstanding the foregoing, Level I Status shall apply during the period from and
including the Closing Date to but excluding the Trigger Date.”

          (c) Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of
“Applicable LIBOR Margin” contained therein and replacing it with the following:

               “ “Applicable LIBOR Margin” shall mean, at any date, with respect to each LIBOR
Loan that is a Tranche A-1 Term Loan, Tranche B-1 Term Loan, European-

 

 

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1 Tranche Term Loan or Revolving Credit Loan, the applicable percentage per annum set
forth below based upon the Status in effect on such date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Status	 	Applicable LIBOR Margin for:
	 	 	 	 	 	 	 	 	 	 	European-1	 	Revolving
	 	 	Tranche A-1	 	Tranche B-1	 	Tranche	 	Credit
	 	 	Term Loans	 	Term Loans	 	Term Loans	 	Loans
	Level I Status
	 	 	2.25	%	 	 	2.25	%	 	 	2.25	%	 	 	2.50	%
	Level II Status
	 	 	2.00	%	 	 	2.25	%	 	 	2.00	%	 	 	2.25	%
	Level III Status
	 	 	1.75	%	 	 	2.25	%	 	 	2.00	%	 	 	2.00	%
	Level IV Status
	 	 	1.50	%	 	 	2.25	%	 	 	2.00	%	 	 	1.75	%
	Level V Status
	 	 	1.25	%	 	 	2.25	%	 	 	2.00	%	 	 	1.50	%

Notwithstanding the foregoing, Level I Status shall apply during the period from and
including the Closing Date to but excluding the Trigger Date.”

          (d) Section 1.1 of the Credit Agreement is hereby amended by deleting clause (b) of the
definition of “Reserve Amount” contained therein and replacing it with the following:

     “(b) (A) with respect to any Tranche B-1 Term Loan for any period, zero and (B) with
respect to any European-1 Tranche Term Loan for any period, (i) if Level I Status is in
effect as of the beginning of such period, an amount equal to 0.25% per annum on the average
aggregate principal amount of such Loan over such period and (ii) if Level II Status, Level
III Status, Level IV Status or Level V Status is in effect as of the beginning of such
period, zero;”

          (e) Section 2.1 of the Credit Agreement is hereby amended by adding the following clause (e)
to such Section.

     “(e) (i) Subject to and upon the terms and conditions herein set forth, each
Tranche A Term Loan Lender with a Tranche A Term Loan that has executed a
counterpart of Amendment No. 1 as a Tranche A-1 Term Loan Lender severally agrees to
exchange its Tranche A Term Loan for a like principal amount of Tranche A-1 Term
Loans on the Amendment No. 1 Effective Date. Notwithstanding anything to the
contrary contained herein, the Interest Period then in effect (and the LIBOR Rate
thereunder) prior to any exchange of Tranche A Term Loans for Tranche A-1 Term Loans
shall remain in effect following any such exchange.

               (ii) Subject to and upon the terms and conditions herein set forth, each
Additional Tranche A-1 Term Loan Lender severally agrees to make Additional Tranche
A-1 Term Loans in Dollars to the Parent Borrower on the Amendment No. 1 Effective
Date in a principal amount not to exceed its Addi-

 

 

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tional Tranche A-1 Term Loan Commitment on the Amendment No. 1 Effective Date. The
Parent Borrower shall prepay all Tranche A Term Loans of Non-Consenting Tranche A
Term Loan Lenders with the gross proceeds of the Additional Tranche A-1 Term Loans.
The Interest Period then in effect (and the LIBOR Rate thereunder) for the Tranche A
Term Loans of Non-Consenting Tranche A Term Loan Lenders shall remain in effect for
the Additional Tranche A-1 Term Loans following any such repayment.

               (iii) The Parent Borrower shall pay all accrued and unpaid interest on the
Tranche A Term Loans to the Tranche A Term Loan Lenders to, but not including, the
Amendment No. 1 Effective Date on such Amendment No. 1 Effective Date.

               (iv) The Tranche A-1 Term Loans shall have the same terms as the Tranche A
Term Loans as set forth in the Credit Agreement and Credit Documents, except as
modified by Amendment No. 1. For avoidance of doubt, the Tranche A-1 Term Loans
(and all principal, interest and other amounts in respect thereof) will constitute
“U.S. Obligations” under the Credit Agreement and the other Credit Documents and,
except as set forth in Amendment No. 1, shall have the same rights and obligations
under the Credit Agreement and Credit Documents as the Tranche A Term Loans.”

          (f) Section 2.1 of the Credit Agreement is hereby amended by adding the following clause (f)
to such Section.

     “(f) (i) Subject to and upon the terms and conditions herein set forth, each
Tranche B Term Loan Lender with a Tranche B Term Loan that has executed a
counterpart of Amendment No. 1 as a Tranche B-1 Term Loan Lender severally agrees to
exchange its Tranche B Term Loan for a like principal amount of Tranche B-1 Term
Loans on the Amendment No. 1 Effective Date. Notwithstanding anything to the
contrary contained herein, the Interest Period then in effect (and the LIBOR Rate
thereunder) prior to any exchange of Tranche B Term Loans for Tranche B-1 Term Loans
shall remain in effect following any such exchange.

               (ii) Subject to and upon the terms and conditions herein set forth, each
Additional Tranche B-1 Term Loan Lender severally agrees to make Additional Tranche
B-1 Term Loans in Dollars to the Parent Borrower on the Amendment No. 1 Effective
Date in a principal amount not to exceed its Additional Tranche B-1 Term Loan
Commitment on the Amendment No. 1 Effective Date. The Parent Borrower shall prepay
all Tranche B Term Loans of Non-Consenting Tranche B Term Loan Lenders with the
gross proceeds of the Additional Tranche B-1 Term Loans. The Interest Period then
in effect (and the LIBOR Rate thereunder) for the Tranche B Term Loans of
Non-Consenting Tranche B Term Loan

 

 

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Lenders shall remain in effect for the Additional Tranche B-1 Term Loans following
any such repayment.

               (iii) The Parent Borrower shall pay all accrued and unpaid interest on the
Tranche B Term Loans to the Tranche B Term Loan Lenders to, but not including, the
Amendment No. 1 Effective Date on such Amendment No. 1 Effective Date.

               (iv) The Tranche B-1 Term Loans shall have the same terms as the Tranche B
Term Loans as set forth in the Credit Agreement and Credit Documents, except as
modified by Amendment No. 1. For avoidance of doubt, the Tranche B-1 Term Loans
(and all principal, interest and other amounts in respect thereof) will constitute
“U.S. Obligations” under the Credit Agreement and the other Credit Documents and,
except as set forth in Amendment No. 1, shall have the same rights and obligations
under the Credit Agreement and Credit Documents as the Tranche B Term Loans.”

          (g) Section 2.1 of the Credit Agreement is hereby amended by adding the following clause (g)
to such Section.

     “(g) (i) Subject to and upon the terms and conditions herein set forth, each
European Tranche Term Loan Lender with a European Tranche Term Loan that has
executed a counterpart of Amendment No. 1 as a European-1 Tranche Term Loan Lender
severally agrees to exchange its European Tranche Term Loan for a like principal
amount of European-1 Tranche Term Loans on the Amendment No. 1 Effective Date.
Notwithstanding anything to the contrary contained herein, the Interest Period then
in effect (and the LIBOR Rate thereunder) prior to any exchange of European Tranche
Term Loans for European-1 Tranche Term Loans shall remain in effect following any
such exchange.

               (ii) Subject to and upon the terms and conditions herein set forth, each
Additional European-1 Tranche Term Loan Lender severally agrees to make Additional
European-1 Tranche Term Loans in Euro to the European Subsidiary Borrower on the
Amendment No. 1 Effective Date in a principal amount not to exceed its Additional
European Tranche Term Loan Commitment on the Amendment No. 1 Effective Date. The
European Subsidiary Borrower shall prepay all European Tranche Term Loans of
Non-Consenting European Tranche Term Loan Lenders with the gross proceeds of the
Additional European-1 Tranche Term Loans. The Interest Period then in effect (and
the LIBOR Rate thereunder) for the European Tranche Term Loans of Non-Consenting
European Tranche Term Loan Lenders shall remain in effect for the Additional
European-1 Tranche Term Loans following any such repayment.

 

 

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               (iii) The European Subsidiary Borrower shall pay all accrued and unpaid
interest on the European Tranche Term Loans to the European Tranche Term Loan
Lenders to, but not including, the Amendment No. 1 Effective Date on such Amendment
No. 1 Effective Date.

               (iv) The European-1 Tranche Term Loans shall have the same terms as the
European Tranche Term Loans as set forth in the Credit Agreement and Credit
Documents, except as modified by Amendment No. 1. For avoidance of doubt, the
European-1 Tranche Term Loans (and all principal, interest and other amounts in
respect thereof) will constitute “European Obligations” under the Credit Agreement
and the other Credit Documents and, except as set forth in Amendment No. 1, shall
have the same rights and obligations under the Credit Agreement and Credit Documents
as the European Tranche Term Loans.”

          (h) Section 5.1 of the Credit Agreement is hereby amended by deleting the section in its
entirety and replacing it with the following:

          “(a) Each Borrower shall have the right to prepay its Term Loans, Revolving
Credit Loans and Swingline Loans, in each case, without premium or penalty (except
as set forth in clause (b) of this Section 5.1), in whole or in part
from time to time on the following terms and conditions: (a) such Borrower shall
give the Administrative Agent at the Administrative Agent’s Office written notice
(or telephonic notice promptly confirmed in writing) of its intent to make such
prepayment, the amount of such prepayment and (in the case of LIBOR Loans) the
specific Borrowing(s) pursuant to which made, which notice shall be given by such
Borrower no later than 12:00 noon (New York City time) (i) in the case of LIBOR
Loans denominated in Dollars, three Business Days prior to, (ii) in the case of
Loans denominated in an Alternative Currency, four Business Days prior to, (iii) in
the case of ABR Loans (other than Swingline Loans), one Business Day prior to or
(iv) in the case of Swingline Loans, on, the date of such prepayment and shall
promptly be transmitted by the Administrative Agent to each of the Lenders or the
Swingline Lender, as the case may be; (b) each partial prepayment of (i) any
Borrowing of LIBOR Loans denominated in Dollars shall be in a minimum amount of
$10,000,000 and in multiples of $1,000,000 in excess thereof, (ii) any ABR Loans
(other than Swingline Loans) shall be in a minimum amount of $1,000,000 and in
multiples of $1,000,000 in excess thereof, (iii) any Loans denominated in Euro shall
be in a minimum amount of €10,000,000 and in multiples of €1,000,000 in excess
thereof, (iv) any Loans denominated in Sterling shall be in a minimum amount of
£5,000,000 and in multiples of £1,000,000 in excess thereof and (v) Swingline Loans
shall be in a minimum amount of $500,000 and in multiples of $100,000 in excess
thereof, provided that no partial prepayment of LIBOR Loans made pursuant to
a single Borrowing shall reduce the outstanding LIBOR Loans made pursuant to such
Borrowing to an amount less than the appli-

 

 

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cable Minimum Borrowing Amount for such LIBOR Loans and (c) any prepayment of LIBOR
Loans pursuant to this Section 5.1(a) on any day other than the last day of
an Interest Period applicable thereto shall be subject to compliance by the Parent
Borrower with the applicable provisions of Section 2.11. Each prepayment in
respect of any Term Loans pursuant to this Section 5.1(a) shall be (a)
applied to the Class or Classes of Term Loans as the Parent Borrower may specify and
(b) applied to reduce Tranche A-1 Repayment Amounts, Tranche B-1 Repayment Amounts,
European-1 Tranche Repayment Amounts and/or any New Term Loan Repayment Amounts, as
the case may be, in such order as the Parent Borrower may specify. At the Parent
Borrower’s election in connection with any prepayment pursuant to this Section
5.1(a), such prepayment shall not be applied to any Term Loan or Revolving
Credit Loan of a Defaulting Lender.

          (b) Notwithstanding the foregoing, any mandatory or voluntary prepayment of the
Tranche B-1 Term Loans or the European-1 Tranche Term Loans, as the case may be,
that results in the prepayment of all, but not less than all, of the outstanding
Tranche B-1 Term Loans or European-1 Tranche Term Loans, as the case may be, prior
to the one year anniversary of the Amendment No. 1 Effective Date with the proceeds
of new term loans (including without limitation any Replacement Term Loans) under
this Agreement that have an applicable margin that is less than the Applicable ABR
Margin or the Applicable LIBOR Margin, as the case may be, for Tranche B-1 Term
Loans or the European-1 Tranche Term Loans, as the case may be, as of the Amendment
No. 1 Effective Date may only be made if each Tranche B-1 Term Loan Lender and
European-1 Tranche Term Loan Lender, as the case may be, is paid a prepayment
premium of 1.0% of the principal amount of such Lender’s Tranche B-1 Term Loans or
European-1 Tranche Term Loans, as the case may be.”

          (i) Section 5.2 of the Credit Agreement is hereby amended by adding to the end of such Section
new clause (i) as follows:

          “(i) Notwithstanding anything to the contrary contained in Section 5.1
and this Section 5.2, (i) 100% of the proceeds of all Additional Tranche A-1
Term Loans shall be used to repay Tranche A Term Loans of the Non-Consenting Tranche
A Term Loan Lenders, (ii) 100% of the proceeds of all Additional Tranche B-1 Term
Loans shall be used to repay Tranche B Term Loans of the Non-Consenting Tranche B
Term Loan Lenders and (iii) 100% of the proceeds of all Additional European-1
Tranche Term Loans shall be used to repay European Tranche Term Loans of the
Non-Consenting European Tranche Term Loan Lenders.”

          (j) Section 14.7(b) of the Credit Agreement is hereby amended by adding to the end of such
Section a new sentence as follows:

 

 

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“Notwithstanding the foregoing, this Section 14.7(b) may only be utilized with
respect to a Non-Consenting Lender in respect of any amendment to this Agreement
after the Amendment No. 1 Effective Date and prior to the one year anniversary of
the Amendment No. 1 Effective Date that has the effect of reducing the Applicable
ABR Margin and the Applicable LIBOR Margin for the Tranche B-1 Term Loans or
European-1 Tranche Term Loans, as the case may be, if such Non-Consenting Lender is
paid a fee equal to 1.0% of the principal amount of such Lender’s Tranche B-1 Term
Loans or European-1 Tranche Term Loans, as the case may be, being replaced and
repaid.”

          (k) All references to “Adjusted Total European Tranche Term Loan Commitment”, “Adjusted Total
Tranche A Term Loan Commitment”, “Adjusted Total Tranche B Term Loan Commitment”, “European Tranche
Repayment Amount”, “European Tranche Repayment Date”, “European Tranche Term Loan”, “European
Tranche Term Loan Commitment”, “European Tranche Term Loan Facility”, “European Tranche Term Loan
Lender”, “European Tranche Term Loan Maturity Date”, “Required European Tranche Term Loan Lenders”,
“Required Tranche A Term Loan Lenders”, “Required Tranche B Term Loan Lenders”, “Total European
Tranche Term Loan Commitment”, “Total Tranche A Term Loan Commitment”, “Total Tranche B Term Loan
Commitment”, “Tranche A Repayment Amount”, “Tranche A Repayment Date”, “Tranche A Term Loan”,
“Tranche A Term Loan Commitment”, “Tranche A Term Loan Facility”, “Tranche A Term Loan Lender”,
“Tranche A Term Loan Maturity Date”, “Tranche B Repayment Amount”, “Tranche B Repayment Date”,
“Tranche B Term Loan”, “Tranche B Term Loan Commitment”, “Tranche B Term Loan Facility”, “Tranche B
Term Loan Lender” and “Tranche B Term Loan Maturity Date” (except any such references appearing in
the provisions of clauses (a), (e), (f), (g) and (i) of Section 1 of this Amendment and Section
2.1(a) of the Credit Agreement) in the Credit Agreement and the Credit Documents shall be deemed to
be references to “Adjusted Total European-1 Tranche Term Loan Commitment”, “Adjusted Total Tranche
A-1 Term Loan Commitment”, “Adjusted Total Tranche B-1 Term Loan Commitment”, “European-1 Tranche
Repayment Amount”, “European-1 Tranche Repayment Date”, “European-1 Tranche Term Loan”, “European-1
Tranche Term Loan Commitment”, “European-1 Tranche Term Loan Facility”, “European-1 Tranche Term
Loan Lender”, “European-1 Tranche Term Loan Maturity Date”, “Required European Tranche-1 Term Loan
Lenders”, “Required Tranche A-1 Term Loan Lenders”, “Required Tranche B-1 Term Loan Lenders”,
“Total European-1 Tranche Term Loan Commitment”, “Total Tranche A-1 Term Loan Commitment”, “Total
Tranche B-1 Term Loan Commitment”, “Tranche A-1 Repayment Amount”, “Tranche A-1 Repayment Date”,
“Tranche A-1 Term Loan”, “Tranche A-1 Term Loan Commitment”, “Tranche A-1 Term Loan Facility”,
“Tranche A-1 Term Loan Lender”, “Tranche A-1 Term Loan Maturity Date”, “Tranche B-1 Repayment
Amount”, “Tranche B-1 Repayment Date”, “Tranche B-1 Term Loan”, “Tranche B-1 Term Loan Commitment”,
“Tranche B-1 Term Loan Facility”, “Tranche B-1 Term Loan Lender” and “Tranche B-1 Term Loan
Maturity Date,” respectively.

          (l) (a) The Additional European-1 Tranche Term Loan Commitments, Additional Tranche A-1 Term
Loan Commitments and Additional Tranche B-1 Term Loan Commit-

 

 

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ments shall not be treated as New Term Loan Commitments as such term is defined in Section
2.14(a); (b) the Additional European-1 Tranche Term Loans, Additional Tranche A-1 Term Loans
and Additional Tranche B-1 Term Loans shall not be treated as New Term Loans as such term is
defined in Section 2.14(c); (c) the Additional European-1 Tranche Term Loan Lenders,
Additional Tranche A-1 Term Loan Lenders and Additional Tranche B-1 Term Loan Lenders shall not be
treated as New Term Loan Lenders as such term is defined in Section 2.14(c); and (d) clause
(k) of Section 1 of this Amendment shall not apply where the context clearly requires otherwise.

     Section 2. Representations and Warranties. Each Borrower represents and warrants to
the Lenders as of the date hereof and as of the Amendment No. 1 Effective Date that:

     (a) The execution and delivery of this Amendment by the Borrowers has been duly
authorized.

     (b) The execution, delivery and performance by each of the Borrowers of this Amendment,
will not (a) contravene any applicable provision of any material law, statute, rule,
regulation, order, writ, injunction or decree of any court or governmental instrumentality,
(b) result in any breach of any of the terms, covenants, conditions or provisions of, or
constitute a default under, or result in the creation or imposition of (or the obligation to
create or impose) any Lien upon any of the property or assets of any Credit Party or any of
the Restricted Subsidiaries (other than Liens created under the Credit Documents or Liens
subject to the Intercreditor Agreements) pursuant to, the terms of any material indenture,
loan agreement, lease agreement, mortgage, deed of trust, agreement or other material
instrument to which such Credit Party or any of the Restricted Subsidiaries is a party or by
which it or any of its property or assets is bound or (c) violate any provision of the
certificate of incorporation, by-laws or other organizational documents of such Credit Party
or any of the Restricted Subsidiaries.

     (c) The representations and warranties set forth in the Credit Agreement and in the
other Credit Documents are true and correct in all material respects with the same effect as
if made on the Amendment No. 1 Effective Date, except to the extent such representations and
warranties expressly relate to an earlier date, in which case such representations and
warranties shall have been true and correct in all material respects as of such earlier
date.

     (d) At the time of and after giving effect to this Amendment, no Default or Event of
Default has occurred and is continuing.

     Section 3. Conditions to Effectiveness of Amendment. This Amendment shall become
effective on the first Business Day (the “Amendment No. 1 Effective Date”) on which each of
the following conditions is satisfied:

 

 

-14-

     (a) The Administrative Agent shall have received (i) from each European Tranche Term Loan
Lender with a European-1 Tranche Term Loan Commitment and from Additional European-1 Tranche Term
Loan Lenders having Additional European-1 Tranche Term Loan Commitments equal in principal amount
to the amount of European Tranche Term Loans held by Non-Consenting European Tranche Term Loan
Lenders, (ii) from each Tranche A Term Loan Lender with a Tranche A-1 Term Loan Commitment and from
Additional Tranche A-1 Term Loan Lenders having Additional Tranche A-1 Term Loan Commitments equal
in principal amount to the amount of Tranche A Term Loans held by Non-Consenting Tranche A Term
Loan Lenders, (iii) from each Tranche B Term Loan Lender with a Tranche B-1 Term Loan Commitment
and from Additional Tranche B-1 Term Loan Lenders having Additional Tranche B-1 Term Loan
Commitments equal in principal amount to the amount of Tranche B Term Loans held by Non-Consenting
Tranche B Term Loan Lenders, (iv) from the Administrative Agent and (v) from each Borrower and
each Guarantor, either (x) a counterpart of this Amendment signed on behalf of such party or (y)
written evidence satisfactory to the Administrative Agent (which may include telecopy transmission
of a signed signature page of this Amendment) that such party has signed a counterpart of this
Amendment;

     (b) The Parent Borrower shall have provided the Administrative Agent with a Notice of
Borrowing two Business Days prior to the Amendment No. 1 Effective Date with respect to the
borrowing of Tranche A-1 Term Loans and Tranche B-1 Term Loans on the Amendment No. 1 Effective
Date;

     (c) The European Subsidiary Borrower shall have provided the Administrative Agent with a
Notice of Borrowing three Business Days prior to the Amendment No. 1 Effective Date with respect to
the borrowing of European-1 Tranche Term Loans on the Amendment No. 1 Effective Date;

     (d) Each Tranche A-1 Term Loan Lender shall have received, if requested at least three
Business Days prior to the date on which each of the other conditions to the Amendment No. 1
Effective Date have been met, one or more Tranche A-1 Term Notes payable to the order of such
Lender duly executed by the Parent Borrower in substantially the form of Exhibit K-1 to the
Credit Agreement, as modified by this Amendment, evidencing its Tranche A-1 Term Loans;

     (e) Each Tranche B-1 Term Loan Lender shall have received, if requested at least three
Business Days prior to the date on which each of the other conditions to the Amendment No. 1
Effective Date have been met, one or more Tranche B-1 Term Notes payable to the order of such
Lender duly executed by the Parent Borrower in substantially the form of Exhibit K-2 to the
Credit Agreement, as modified by this Amendment, evidencing its Tranche B-1 Term Loans;

     (f) Each European-1 Tranche Term Loan Lender shall have received, if requested at least three
Business Days prior to the date on which each of the other conditions to the Amendment No. 1
Effective Date have been met, one or more European-1 Tranche Term Notes

 

 

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payable to the order of such Lender duly executed by the Parent Borrower in substantially the
form of Exhibit K-4 to the Credit Agreement, as modified by this Amendment, evidencing its
European-1 Tranche Term Loans;

     (g) The Parent Borrower shall have paid to all Tranche A Term Loan Lenders on the Amendment
No. 1 Effective Date, simultaneously with the making of Tranche A-1 Term Loans under the Credit
Agreement, all accrued and unpaid interest (including any Reserve Amount) on the Tranche A Term
Loans to, but not including, the Amendment No. 1 Effective Date;

     (h) The Parent Borrower shall have paid to all Tranche B Term Loan Lenders on the Amendment
No. 1 Effective Date, simultaneously with the making of Tranche B-1 Term Loans under the Credit
Agreement, all accrued and unpaid interest (including any Reserve Amount) on the Tranche B Term
Loans to, but not including, the Amendment No. 1 Effective Date;

     (i) The European Subsidiary Borrower shall have paid to all European Tranche Term Loan Lenders
on the Amendment No. 1 Effective Date, simultaneously with the making of European-1 Tranche Term
Loans under the Credit Agreement, all accrued and unpaid interest (including any Reserve Amount) on
the European Tranche Term Loans to, but not including, the Amendment No. 1 Effective Date;

     (j) The Administrative Agent shall have received the executed legal opinions, in form and
substance reasonably satisfactory to the Administrative Agent, of (a) Simpson Thacher & Bartlett
LLP, special New York counsel to the Parent Borrower, (b) Robert A. Waterman, General Counsel of
the Parent Borrower and (c) Bass, Berry & Sims PLC, special Tennessee counsel to certain of the
U.S. Guarantors;

     (k) The Borrowers shall have paid (i) the Agents the fees in the amounts previously agreed in
writing to be received on the Amendment No. 1 Effective Date and (ii) the Administrative Agent all
reasonable costs and expenses (including, without limitation the reasonable fees, charges and
disbursements of Cahill Gordon & Reindel llp, counsel for the Agents, and local counsel
for the Agents) of the Administrative Agent for which invoices have been presented prior to the
Closing Date; and

     (l) At the time of and immediately after giving effect to the Amendment no Default or Event of
Default has occurred and is continuing.

     Section 4. Counterparts. This Amendment may be executed in any number of counterparts
and by different parties hereto on separate counterparts, each of which when so executed and
delivered shall be deemed to be an original, but all of which when taken together shall constitute
a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by
facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

 

 

-16-

     Section 5. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY, CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     Section 6. Headings. The headings of this Amendment are for purposes of reference
only and shall not limit or otherwise affect the meaning hereof.

     Section 7. Effect of Amendment. Except as expressly set forth herein, this Amendment
shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the
rights and remedies of the Lenders or the Agents under the Credit Agreement or any other Credit
Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions,
obligations, covenants or agreements contained in the Credit Agreement or any other provision of
the Credit Agreement or any other Credit Document, all of which are ratified and affirmed in all
respects and shall continue in full force and effect. The Required Lenders agree that the
Borrowers and the Administrative Agent may enter into an Amended and Restated Credit Agreement
after the Amendment No. 1 Effective Date in form and substance satisfactory to the Administrative
Agent to give effect to this Amendment. By executing and delivering a copy hereof, each Borrower
and each Guarantor hereby agrees and confirms that all Obligations (including, without limitation,
the Tranche A-1 Term Loans, the Tranche B-1 Term Loans and the European-1 Tranche Term Loans) shall
be fully guaranteed by the U.S. Guarantors pursuant to the U.S. Guarantee and the European
Obligations (including, without limitation, the European-1 Tranche Term Loans) shall be fully
guaranteed by the European Guarantors pursuant to the European Guarantee, and, in each case, shall
be fully secured pursuant to the applicable Security Documents (including, without limitation, the
Mortgages required to be delivered under Section 9.14 of the Credit Agreement) securing the
applicable Obligations of the Credit Parties.

     Section 8. European Security Documents. Within 30 days following the Amendment No. 1
Effective Date (or such longer period as to which the Administrative Agent may consent), the
Administrative Agent shall have received:

     (a) executed legal opinions, in form and substance reasonably satisfactory to the
Administrative Agent, of local counsel in the jurisdictions of the United Kingdom and Switzerland;

     (b) amended European Security Documents executed by the applicable European Loan Parties, in a
form and substance reasonably satisfactory to the Administrative Agent;

     (c) evidence of all applicable corporate approval documentation, in form and substance
reasonably satisfactory to the Administrative Agent, consistent with the Credit Agreement and as
required pursuant to the amended European Security Documents; and

     (d) evidence of all applicable registrations as required pursuant to the amended European
Security Documents.

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	HCA INC.

 	 
	 	By:  	/s/ Keith M. Giger
 	 
	 	 	Name:  	Keith M. Giger 	 
	 	 	Title:  	Vice President-Finance 	 
	 

	 	 	 	 	 
	 	HCA UK CAPITAL LIMITED

 	 
	 	By:  	/s/ Keith M. Giger
 	 
	 	 	Name:  	Keith M. Giger 	 
	 	 	Title:  	Vice President-Finance 	 
	 

	 	 	 	 	 
	 	Each of the U.S. GUARANTORS listed on

Schedule II hereto

 	 
	 	By:  	/s/ John M. Franck II
 	 
	 	 	Name:  	John M. Franck II 	 
	 	 	Title:  	Vice President and Assistant Secretary 	 
	 

	 	 	 	 	 
	 	Each of the EUROPEAN GUARANTORS listed on

Schedule III hereto

 	 
	 	By:  	/s/
Michael Neeb
 	 
	 	 	Name:  	Michael Neeb 	 
	 	 	Title:  	CEO 	 
	 

[Amendments No. 1 to

HCA Inc. Credit Agreement]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Administrative Agent,

Collateral Agent, Swingline Lender, Letter of Credit

Issuer and a Lender

 	 
	 	By:  	/s/ John A. Fulton
 	 
	 	 	Name:  	John A. Fulton 	 
	 	 	Title:  	Vice President 	 
	 

[Amendments No. 1 to

HCA Inc. Credit Agreement]

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