Document:

Exhibit 10.1

 

EXECUTION VERSION

 

AMENDMENT

 

This AMENDMENT NO. 1 (this “Amendment”) dated as of June 2, 2017 is by and among HANGER, INC., a Delaware corporation (“Borrower”), the Guarantors identified on the signature pages hereto, the Lenders identified on the signature pages hereto and WILMINGTON TRUST, NATIONAL ASSOCIATION, in its capacity as administrative agent (in such capacity, the “Agent”).

 

RECITALS

 

WHEREAS, Borrower, the Lenders and the Agent are parties to the Credit Agreement dated as of August 1, 2016  (as amended, modified, supplemented, increased and extended from time to time prior to the date hereof, the “Credit Agreement”); and

 

WHEREAS, Borrower has requested that the Lenders agree, and the Lenders whose signatures appear below have agreed, to amend the Credit Agreement on the terms and subject to the conditions set forth herein.

 

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

 

1.             Defined Terms.  Capitalized terms defined in the Credit Agreement and used herein without other definition shall have the meanings ascribed to such terms in the Credit Agreement.

 

2.             Amendments to Credit Agreement.  Effective on the Amendment No. 1 Effective Date (as defined below), the Credit Agreement is amended as follows:

 

(a)           Each of Sections 7.01(a), 7.01(c) and 9.01(c)(ii) of the Credit Agreement is hereby amended by replacing each reference to “August 15, 2017” with “February 15, 2018”.

 

(b)           Section 7.01(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(b)           as soon as available, but not later than 45 days (or, in the case of the fiscal quarters ending September 30, 2016 and March 31, 2017, 60 days) after the end of each of the first three fiscal quarters of each fiscal year, a copy of the unaudited consolidated balance sheet of Borrower and its Subsidiaries as of the end of such fiscal quarter and the related consolidated statements of income and cash flows for the period commencing on the first day and ending on the last day of such fiscal quarter, and certified by a Responsible Officer as fairly presenting, in accordance with GAAP (subject to good faith year-end and audit adjustments and the absence of footnotes), the financial position and the results of operations of Borrower and its Subsidiaries;

 

3.             Amendment Fee.  In consideration of the Lenders’ agreements set forth herein, Borrower agrees to pay to the Agent, for the account of each Consenting Lender (defined below), an amendment fee (the “Amendment Fee”) in an amount equal to fifty (50) basis points (0.50%) of the outstanding principal amount of the Loan held by such Consenting Lender on the Amendment No. 1 Effective Date (after giving effect to any repayments on or prior to such date).  The Amendment Fee shall be fully-earned, payable and non-refundable as of the Amendment No. 1 Effective Date.  As used herein, “Consenting Lender” means a Lender that executes and delivers to the Lead Arranger a signature page to this Amendment at or prior to 12:00 p.m. New York City time on June 2, 2017 (or, as to any Lender, such

 

 

later time or date as may be agreed by the Lead Arranger and Borrower) and that does not revoke or otherwise withdraw such signature page on or prior to the Amendment No. 1 Effective Date.

 

4.             Effectiveness; Conditions Precedent.  This Amendment, other than the amendments to the Credit Agreement set forth in Section 2 of this Amendment, shall become effective as of the date when the Agent and the Lead Arranger shall have received counterparts of this Amendment duly executed by Borrower and each of the Required Lenders.  The amendments to the Credit Agreement set forth in Section 2 of this Amendment shall become effective as of the date (the “Amendment No. 1 Effective Date”) when, and only when, each of the following conditions shall have been satisfied (or, in the case of clause (b) below, will be substantially contemporaneously satisfied on such date):

 

(a)           The Lead Arranger shall have received the Amendment Fee.

 

(b)           An amendment to the Senior Secured Credit Agreement has, or on the Amendment No. 1 Effective Date will, become effective in accordance with the terms thereof which amends the Senior Secured Credit Agreement to provide for:

 

(i)                                     a minimum Consolidated Interest Coverage Ratio (as defined in the Senior Secured Credit Agreement) of (a) 2.25:1.00 or greater as of the end of the fiscal quarters of Borrower ending on June 30, 2017, September 30, 2017 and December 31, 2017, and (b) 2.00:1.00 or greater as of the end of any fiscal quarter of Borrower ending thereafter;

 

(ii)                                  a maximum Consolidated Leverage Ratio (as defined in the Senior Secured Credit Agreement) of  5.00:1.00 or less as of the end of the fiscal quarter of Borrower ending on June 30, 2017, and any fiscal quarter of Borrower ending thereafter;

 

(iii)                               a deadline for the delivery of the Required Financial Information (as defined in the Fifth Amendment and Waiver, dated as of July 15, 2016, to the Senior Secured Credit Agreement, and including, without limitation, for the avoidance of doubt, the 2016 Audited Financial Information as defined in such Fifth Amendment and Waiver) extended from August 15, 2017 to no earlier than February 15, 2018; and

 

(iv)                              an aggregate amount of professional fees and expenses that may be added back pursuant to clause (e) of the definition of “Consolidated EBITDA” in the Senior Secured Credit Agreement of not greater than each of the following specified amounts:  (a) $37,000,000 for the period of four consecutive fiscal quarters ending on June 30, 2017, (b) $35,000,000 for the period of four consecutive fiscal quarters ending on September 30, 2017, (c) $31,000,000 for the period of four consecutive fiscal quarters ending on December 31, 2017, (d) $25,000,000 for the period of four consecutive fiscal quarters ending on March 31, 2018 and (e) for any period of four consecutive fiscal quarters ending thereafter, 15.0% of Consolidated EBITDA for such period, calculated without giving the effect to any add back of professional fees and expenses pursuant to this clause.

 

For the avoidance of doubt, such amendment may also amend the Senior Secured Credit Agreement in any other manner that does not conflict with the foregoing and does not conflict with the Credit Agreement.

 

2

 

(c)           Borrower shall have paid all reasonable fees, costs and expenses of the Agent and the Lead Arranger incurred in connection with this Amendment, to the extent invoiced to Borrower at least one Business Day prior to the Amendment No. 1 Effective Date.

 

(d)           The Agent and the Lead Arranger shall have received such other documents, instruments and certificates as the Agent, the Lead Arranger or any Lender may reasonably request.

 

5.             Effect of Amendment.  Except as expressly set forth herein, this Amendment 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 Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  As of the Amendment No. 1 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder,” “thereof” and words of like import), shall mean and be a reference to the Credit Agreement as amended hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument.  This Amendment shall constitute a Loan Document.

 

6.             Representations and Warranties. The Loan Parties hereby represent and warrant to the  Agent, Lead Arranger and the Lenders as follows as of the Amendment No. 1 Effective Date:

 

(a)           Each Loan Party has the corporate or other legal entity power and authority to execute,  deliver and perform its obligations under this Amendment.

 

(b)           The execution, delivery and performance by each Loan Party of this Amendment have been duly authorized by all necessary corporate or other legal entity action.

 

(c)           This Amendment has been duly executed and delivered by such Loan Party.

 

(d)           This Amendment constitutes a legal, valid and binding obligation of each Loan Party  enforceable against such Loan Party in accordance with its terms, except as enforceability may be  limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally  or by equity principles relating to enforceability.

 

(e)           The execution, delivery and performance by each Loan Party of this Amendment does not and will not (i) contravene the terms of any of such Person’s Organization Documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, any document evidencing any material Contractual Obligation to which such Person is a party or any order, injunction, writ or decree of any Governmental Authority to which such Person or its property is subject or (iii) violate any Requirement of Law.

 

(f)            No approval, consent, exemption, authorization or other action by, or notice to, or filing  with, any court Governmental Authority or any other Person (except those that have been obtained and remain in effect and disclosure filings that are required to be made with the SEC) is necessary or required to be made or obtained by any Loan Party in connection with the execution, delivery or performance by, or enforcement against, such Loan Party of this Amendment.

 

(g)           After giving effect to this Amendment, (i) the representations and warranties of the Loan  Parties contained in the Loan Documents are true and correct in all material respects on and as of  the date hereof to the same extent as though made on and as of the date hereof except to the extent such representations and warranties specifically relate to an earlier date, in which case such

 

3

 

representations and warranties shall be true and correct in all material respects as of such earlier date, and (ii) no Default has occurred and is continuing.

 

If any representation and warranty set forth in this Section 6 is incorrect on and as of the date  hereof then such incorrect representation and warranty shall constitute a new and immediate Event of Default without regard to any otherwise applicable notice, cure or grace period.

 

7.             Entirety.  This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.  This Amendment and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.

 

8.             Counterparts; Electronic Delivery.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and it shall not be necessary in making proof of this Amendment to produce or account for more than one such counterpart.  Delivery of an executed counterpart of this Amendment by facsimile or other electronic means shall be effective as an original.

 

9.             Governing Law.  This Amendment and the rights and obligations of the parties hereunder shall be governed by, and construed in accordance with, the law of the State of New York.

 

10.          Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Sections 11.15 and 11.16 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

11.          Miscellaneous. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.  Except as otherwise provided in this Amendment, if any provision contained in this Amendment is in conflict with, or inconsistent with, any provision in the Loan Documents, the provision contained in this Amendment shall govern and control.

 

12.          Roles.  It is agreed that Merrill, Lynch, Pierce, Fenner & Smith Incorporated shall act as the sole lead arranger in connection with the Amendment (in such capacity, together with any of its designated affiliates in such capacity, the “Lead Arranger”).

 

[Signature Pages Follow]

 

4

 

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

 

	
BORROWER:
    	
HANGER, INC., a   Delaware corporation
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas E. Kiraly
    	
 
    
	
 
    	
Name:
    	
Thomas E. Kiraly
    	
 
    
	
 
    	
Title:
    	
Executive Vice   President and Chief Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
GUARANTORS:
    	
ACCELERATED CARE PLUS   CORP.
    	
 
    
	
 
    	
ACCELERATED CARE PLUS   LEASING, INC.
    	
 
    
	
 
    	
ADVANCED PROSTHETICS OF   AMERICA, INC.
    	
 
    
	
 
    	
CREATIVE   ORTHOTICS & PROSTHETICS, INC.
    	
 
    
	
 
    	
DIBELLO’S DYNAMIC   ORTHOTICS AND PROSTHETICS, INC.
    	
 
    
	
 
    	
DOSTEON WA   HOLDING, INC.
    	
 
    
	
 
    	
FAITH   PROSTHETIC-ORTHOTIC SERVICES, INC.
    	
 
    
	
 
    	
GENESIS MEDICAL GROUP,   LLC
    	
 
    
	
 
    	
HANGER   PROSTHETICS & ORTHOTICS, INC.
    	
 
    
	
 
    	
HANGER PROSTHETICS &   ORTHOTICS EAST, INC.
    	
 
    
	
 
    	
HANGER   PROSTHETICS & ORTHOTICS WEST, INC.
    	
 
    
	
 
    	
INNOVATIVE   NEUROTRONICS, INC.
    	
 
    
	
 
    	
LINKIA, LLC
    	
 
    
	
 
    	
MK   PROSTHETIC & ORTHOTIC SERVICES, INC.
    	
 
    
	
 
    	
NASCOTT, INC.
    	
 
    
	
 
    	
ORTHO-MEDICAL   PRODUCTS, INC.
    	
 
    
	
 
    	
ORTHOTIC &   PROSTHETIC TECHNOLOGIES, INC.
    	
 
    
	
 
    	
SCOPE   ORTHOTICS & PROSTHETICS, INC.
    	
 
    
	
 
    	
SOUTHERN PROSTHETIC   SUPPLY, INC.
    	
 
    
	
 
    	
THE BRACE SHOP   PROSTHETIC ORTHOTIC CENTERS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas E. Kiraly
    	
 
    
	
 
    	
Name:
    	
  Thomas E. Kiraly
    	
 
    
	
 
    	
Title:
    	
   Executive   Vice President
    	
 
    

 

 

	
AGENT:
    	
WILMINGTON TRUST, NATIONAL ASSOCIATION
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Cora Holland-Koller
    	
 
    
	
 
    	
Name:
    	
Cora Holland-Koller
    	
 
    
	
 
    	
Title:
    	
Banking Officer
    	
 
    

 

 

	
LENDERS:
    	
APOLLO THUNDER PARTNERS, L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Thunder Management,   LLC,
    	
 
    
	
 
    	
its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APOLLO UNION STREET PARTNERS,   L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Union Street   Management, LLC,
    	
 
    
	
 
    	
its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name: 
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title: 
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APOLLO TACTICAL VALUE SPN   INVESTMENTS, L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Tactical   Value SPN Management, LLC,
   its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title: 
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APOLLO ZEUS STRATEGIC   INVESTMENTS, L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Zeus   Strategic Management, LLC,
    	
 
    
	
 
    	
its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AESI (HOLDINGS) II, L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo European   Strategic Management, L.P.,
   its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo European   Strategic Management GP, LLC,
   its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    

 

 

	
 
    	
APOLLO CENTRE STREET   PARTNERSHIP, L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Centre   Street Management, LLC,
    	
 
    
	
 
    	
its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APOLLO KINGS ALLEY CREDIT FUND,   L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Kings Alley   Credit Fund Management, LLC,
   its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APOLLO MOULTRIE CREDIT FUND,   L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Moultrie   Credit Fund Management, LLC,
   its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APOLLO CREDIT OPPORTUNITY   TRADING FUND III
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Credit   Opportunity Fund (Offshore) III L.P.,
   its General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Credit   Opportunity Management III LLC,
   its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Moultrie   Credit Fund Management LLC,
    	
 
    
	
 
    	
its General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Credit   Opportunity Management III LLC,
   its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    

 

 

	
 
    	
APOLLO HERCULES PARTNERS, L.P.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: Apollo Hercules   Management, LLC,
    	
 
    
	
 
    	
its Investment Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    	
 
    
	
 
    	
Name:
    	
Joseph D. Glatt
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Benefit Street Partners SMA C   LP, as a lender
    
	
 
    	
 
    
	
 
    	
By: Benefit Street   Partners L.L.C., its investment advisor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nina Baryski
    
	
 
    	
 
    	
Name: Nina Baryski
    
	
 
    	
 
    	
Title: Director
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Providence Debt Fund III LP,   as a lender
    
	
 
    	
 
    
	
 
    	
By: Providence Debt   Fund III GP L.P., its general partner
    
	
 
    	
 
    
	
 
    	
By: Providence Debt   Fund III Ultimate GP Ltd., its general partner,
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nina Baryski
    
	
 
    	
 
    	
Name:   Nina Baryski
    
	
 
    	
 
    	
Title:   Authorized Signer
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Providence Debt Fund III Master (Non-US) LP,   as a lender
    
	
 
    	
 
    
	
 
    	
By: Providence Debt   Fund III GP L.P., its general partner
    
	
 
    	
 
    
	
 
    	
By: Providence Debt   Fund III Ultimate GP Ltd., its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nina Baryski
    
	
 
    	
 
    	
Name:   Nina Baryski
    
	
 
    	
 
    	
Title:   Authorized Signer
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Benefit Street Partners SMA LM LP,   as a lender
    
	
 
    	
 
    
	
 
    	
By: Benefit Street   Partners SMA LM GP L.P, its general partner
    
	
 
    	
 
    
	
 
    	
By: Benefit Street   Partners SMA LM Ultimate GP LLC its general partner,
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nina Baryski
    
	
 
    	
 
    	
Name:   Nina Baryski
    
	
 
    	
 
    	
Title:   Authorized Signer
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Delta Master Trust,
   as a Lender
    
	
 
    	
 
    
	
 
    	
By: Guggenheim Partners   Investment Management, LLC as Investment Manager
    
	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kaitlin Trinh
    
	
 
    	
 
    	
Name: Kaitlin Trinh
    
	
 
    	
 
    	
Title: Authorized   Person
    
	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Guggenheim Credit   Allocation Fund,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By: Guggenheim Partners   Investment Management, LLC, as Sub-Adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kaitlin Trinh
    
	
 
    	
 
    	
Name: Kaitlin Trinh
    
	
 
    	
 
    	
Title: Authorized   Person
    
	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Guggenheim   Funds Trust — Guggenheim High Yield Fund,
    
	
 
    	
as a   Lender
    
	
 
    	
 
    
	
 
    	
By:   Security Investors, LLC as Investment Adviser
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kaitlin Trinh
    
	
 
    	
 
    	
Name:   Kaitlin Trinh
    
	
 
    	
 
    	
Title:   Authorized Person
    
	
 
    	
 
    
	
 
    	
If a   second signature is necessary:
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Guggenheim Strategic   Opportunities Fund,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By: Guggenheim Partners   Investment Management, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kaitlin Trinh
    
	
 
    	
 
    	
Name: Kaitlin Trinh
    
	
 
    	
 
    	
Title: Authorized   Person
    
	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Hamilton Finance, LLC,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By: Guggenheim Partners   Investment Management, LLC as Sub-Adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kaitlin Trinh
    
	
 
    	
 
    	
Name: Kaitlin Trinh
    
	
 
    	
 
    	
Title: Authorized   Person
    
	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Maverick   Enterprises, Inc,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By: Guggenheim Partners   Investment Management, LLC as Investment Manager
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kaitlin Trinh
    
	
 
    	
 
    	
Name: Kaitlin Trinh
    
	
 
    	
 
    	
Title: Authorized   Person
    
	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
NZC Guggenheim Master   Fund Limited,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By: Guggenheim Partners Investment Management, LLC   as Manager
    
	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kaitlin Trinh
    
	
 
    	
 
    	
Name: Kaitlin Trinh
    
	
 
    	
 
    	
Title: Authorized   Person
    
	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Public   Employees Retirement Association of New Mexico,
    
	
 
    	
as a   Lender
    
	
 
    	
 
    
	
 
    	
By: Guggenheim Partners Investment Management, LLC   as Contractor
    
	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kaitlin Trinh
    
	
 
    	
 
    	
Name:   Kaitlin Trinh
    
	
 
    	
 
    	
Title:   Authorized Person
    
	
 
    	
 
    
	
 
    	
If a   second signature is necessary:
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
MERCER QIF FUND PLC —   MERCER INVESTMENT FUND 1, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
DDJ Capital Management,   LLC, in its capacity as Sub-Investment Manager of, and on behalf of, Mercer   Investment Fund 1, a sub-fund of Mercer QIF Fund plc
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
STATE-BOSTON RETIREMENT   SYSTEM, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC in its capacity as investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CATERPILLAR INC. MASTER   RETIREMENT TRUST, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, on behalf of Caterpillar Inc. Master Retirement Trust, in its capacity   as investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
CATERPILLAR INVESTMENT   TRUST, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, on behalf of Caterpillar Investment Trust, in its capacity as investment   manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    

 

[Signature Page to Hanger Agreement]

 

 

	
 
    	
DISTRICT OF COLUMBIA   RETIREMENT BOARD, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, in its capacity as Investment Manger
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
STICHTING PENSIOENFONDS   HOOGOVENS, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, on behalf of Stichting Pensioenfonds Hoogovens, in its capacity as   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
HOUSTON MUNICIPAL   EMPLOYEES PENSION SYSTEM, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, in its capacity as Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
DDJ CAPITAL MANAGEMENT   GROUP TRUST — HIGH YIELD INVESTMENT FUND, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, in its capacity as Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
STICHTING BEWAARDER   SYNTRUS ACHMEA GLOBAL HIGH YIELD POOL, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Achmea Investment   Management, as asset manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, as subadvisor
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    

 

[Signature Page to Hanger Agreement]

 

 

	
 
    	
J.C. PENNEY   CORPORATION, INC. PENSION PLAN TRUST, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
DDJ Capital Management,   LLC, on behalf of J.C. Penney Corporation, Inc. Pension Plan Trust, in   its capacity as investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
NATIONAL RAILROAD   RETIREMENT INVESTMENT TRUST, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
DDJ Capital Management,   LLC, in its capacity as Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J. Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
NORTHERN MULTI-MANAGER   HIGH YIELD OPPORTUNITY FUND, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
DDJ Capital Management,   LLC, in its capacity as Sub-Adviser
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
PRINCIPAL   FUNDS, INC. — GLOBAL DIVERSIFIED INCOME FUND, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
DDJ Capital Management,   LLC, in its capacity as Sub-Advisor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
SEARS HOLDINGS PENSION   TRUST, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
DDJ Capital Management,   LLC, in its capacity as Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    

 

[Signature Page to Hanger Agreement]

 

 

	
 
    	
THE 1199SEIU HEALTH CARE   EMPLOYEES PENSION FUND, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, in its capacity as Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
DDJ STRATEGIC INCOME   PLUS FUND, L.P., as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ/GP Strategic Income   Plus, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
STICHTING PENSIOENFONDS   VOOR FYSIOTHERAPEUTEN, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, in its capacity as investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    
	
 
    	
 
    	
 
    
	
 
    	
DDJ/TAF STRATEGIC   INCOME FUND, L.P., as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ/GP TAF Strategic Income,   LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
DDJ Capital Management,   LLC, Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Breazzano
    
	
 
    	
 
    	
Name: David J.   Breazzano
    
	
 
    	
 
    	
Title: President
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
UAW RETIREE MEDICAL   BENEFITS TRUST, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
State Street Bank and   Trust Company, solely in its capacity as Trustee for UAW Retiree Medical   Benefits Trust, as directed by DDJ Capital Management, LLC, and not in its   individual capacity
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Janet Fennessy
    
	
 
    	
 
    	
Name: Janet Fennessy
    
	
 
    	
 
    	
Title: Vice President
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
GN3 SIP Limited, 
   as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GoldenTree Asset   Management, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Weber
    
	
 
    	
 
    	
Name: Karen Weber
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
GoldenTree 2004 Trust,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GoldenTree Asset   Management, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Weber
    
	
 
    	
 
    	
Name: Karen Weber
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
GoldenTree Insurance   Fund Series Interests of the SALI Multi-Series Fund, L.P.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GoldenTree Asset   Management, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Weber
    
	
 
    	
 
    	
Name: Karen Weber
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
GT NM, L.P.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GoldenTree Asset   Management, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Weber
    
	
 
    	
 
    	
Name: Karen Weber
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
High Yield and Bank   Loan Series Trust,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GoldenTree Asset   Management, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Weber
    
	
 
    	
 
    	
Name: Karen Weber
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
Louisiana State   Employees’ Retirement System,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GoldenTree Asset   Management, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Weber
    
	
 
    	
 
    	
Name: Karen Weber
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

The undersigned Lender hereby irrevocably and unconditionally consents to this Amendment.

 

	
 
    	
San Bernardino County   Employees’ Retirement Association,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
GoldenTree Asset   Management, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Karen Weber
    
	
 
    	
 
    	
Name: Karen Weber
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Hanger Agreement]

 

 

	
LENDERS:
    	
Stonehill Master Fund   Ltd.
    
	
 
    	
By: Stonehill Capital   Management LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Malek
    	
 
    
	
 
    	
Name: 
    	
Paul Malek
    
	
 
    	
Title:
    	
General Counsel
    

 

 

	
LENDERS:
    	
Stonehill Institutional   Partners, L.P.
    
	
 
    	
By: Stonehill Capital   Management LLC, its advisor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Malek
    	
 
    
	
 
    	
Name:
    	
Paul Malek
    
	
 
    	
Title:
    	
General CounselExhibit 10.2

 

EXECUTION VERSION

 

SIXTH AMENDMENT

 

This SIXTH AMENDMENT (this “Amendment”) dated as of June 22, 2017 is by and among HANGER, INC., a Delaware corporation (“Borrower”), the Guarantors identified on the signature pages hereto, the Lenders identified on the signature pages hereto and BANK OF AMERICA, N.A., in its capacity as Agent (in such capacity, the “Agent”).

 

RECITALS

 

WHEREAS, the Borrower, the Lenders and the Agent are parties to the Credit Agreement dated as of June 17, 2013, as amended by the First Amendment and Waiver dated as of June 19, 2015, the Second Amendment and Waiver dated as of September 11, 2015, the Third Amendment and Waiver dated as of November 13, 2015, the Fourth Amendment and Waiver dated as of February 10, 2016 and the Fifth Amendment and Waiver dated as of July 15, 2016 (as further amended, modified, supplemented, increased and extended from time to time, the “Credit Agreement”);

 

WHEREAS, the Borrower has requested that the Agent and Lenders (a) extend the date by which it must deliver to the Agent the Required Financial Information (as defined in the Fifth Amendment and Waiver) from August 15, 2017 to February 15, 2018 and (b) amend the Credit Agreement as set forth herein.

 

WHEREAS, the Agent and the Lenders have agreed to the requested extension and amendments on the terms and conditions set forth herein.

 

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

 

1.                                      Defined Terms.  Capitalized terms defined in the Credit Agreement and used herein without other definition shall have the meanings ascribed to such terms in the Credit Agreement.

 

2.                                      Estoppel, Acknowledgement and Reaffirmation.  Each of the Loan Parties acknowledges and confirms that as of June 15, 2017: (a) the aggregate outstanding principal amount of the Term A Loans is $174,375,000.00 and (b) the Total Revolving Usage is $24,050,000.00, each of which amounts constitutes a valid and subsisting obligation of the Loan Parties to the Lenders that is not subject to any credits, offsets, defenses, claims, counterclaims or adjustments of any kind (it being understood that the undrawn portion of the Stated Amount of outstanding Letters of Credit included in the Total Revolving Usage, if any, constitutes a contingent obligation for so long as the Loan Parties are not required to cash collateralize such obligation in accordance with the Credit Agreement).  Each of the Loan Parties hereby acknowledges its obligations under the respective Loan Documents to which it is a party, reaffirms that each of the Liens created and granted in or pursuant to the Collateral Documents is valid and subsisting and agrees that this Amendment shall in no manner impair or otherwise adversely affect such obligations or Liens, except as explicitly set forth herein.

 

3.                                      Required Financial Information Deliverable Extension.  Notwithstanding anything to the contrary in the Fifth Amendment and Waiver, the Borrower shall deliver the Required Financial Information (as defined in the Fifth Amendment and Waiver) to the Agent for distribution to the Lenders promptly as soon as such information is filed with the SEC, but in no event later than February 15, 2018.  For the avoidance of doubt, the paragraph addressing delivery of financial statements and related materials immediately following Section 7.02(e) of the Credit Agreement shall apply to the foregoing delivery requirement.

 

 

4.                                      Amendments to Credit Agreement.  The Credit Agreement is amended as follows:

 

(a)                                 The following new definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:

 

“Sixth Amendment” means the Sixth Amendment to this Agreement dated as of June 22, 2017.

 

“Sixth Amendment Effective Date” means June 22, 2017.

 

(b)                                 Clause (e) of the definition of “Consolidated EBITDA” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(e) any extraordinary, unusual or non-recurring expenses or losses (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, losses on sales of assets outside of the ordinary course of business and loss on early retirement of debt); provided that (i) the aggregate amount of professional fees and expenses (excluding the aggregate amount of professional fees and expenses reimbursed by the Loan Parties in accordance with the Second Amendment and Waiver, which are not subject to the limitation set forth in this proviso) that may be added back pursuant to this clause (e) for any period of four consecutive fiscal quarters shall not exceed, for the period of four consecutive fiscal quarters ending on or prior to (1) March 31, 2016, $30,000,000; (2) June 30, 2016, $36,000,000; (3) September 30, 2016, $35,000,000; (4) December 31, 2016, $31,000,000; (5) March 31, 2017, $25,000,000; (6) June 30, 2017, $37,000,000; (7) September 30, 2017, $35,000,000; (8) December 31, 2017, $31,000,000; and (9) March 31, 2018, $25,000,000, and (ii) this clause (e) may not be used to add back the write-down of current assets; provided further that, with respect to the applicable four consecutive fiscal quarter period, the amounts set forth in (6), (7), (8), and (9) above shall be reduced by an amount, if any, equal to the amount by which the Prior Period Adjustment Amount (as defined in Section 7.02(f)) exceeds $815,000.

 

(c)                                  Section 7.02 of the Credit Agreement is hereby amended (i) by deleting the word “and” at the end of clause (d) of such section, (ii) replacing the period at the end of clause (e) of such section with “; and” and (iii) adding the following new clause (f) to such section:

 

(f)                                   concurrently with the delivery of the financial statements referred to in Sections 7.01(a) and (b), a certificate executed by a Responsible Officer stating the amount of professional fees and expenses incurred by the Loan Parties from and after March 31, 2017 that are to be allocated to any fiscal quarter ended on or prior to March 31, 2017 as adjustments in accordance with GAAP of such professional fee and expense amounts previously included within the underlying financial statements provided to the Lenders with the Borrower’s Compliance Certificate, relating to the period ended March 31, 2017, dated as of May 12, 2017 (such amount, the “Prior Period Adjustment Amount”).

 

(d)                                 Section 8.09 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

2

 

8.09                        Consolidated Leverage Ratio.

 

The Borrower shall not permit the Consolidated Leverage Ratio to exceed (a) 5.00:1.00 as of the end of the fiscal quarter of the Borrower ending on June 30, 2016; (b) 5.75:1.00 as of the end of the fiscal quarter of the Borrower ending on September 30, 2016; and (c) 5.00:1.00 as of the end of any fiscal quarter of the Borrower ending thereafter.

 

(e)                                  Section 8.10 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

8.10                        Consolidated Interest Coverage Ratio.

 

The Borrower shall not permit the Consolidated Interest Coverage Ratio to be less than (a) 3.50:1.00 as of the end of the fiscal quarter of the Borrower ending on June 30, 2016; (b) 2.25:1.00 as of the end of any fiscal quarter of the Borrower ending on September 30, 2016, December 31, 2016, March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017; and (c) 2.00:1.00 as of the end of any fiscal quarter of the Borrower ending thereafter.

 

(f)                                   Section 9.01(c) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(c)                                  Specific Defaults.  The Borrower fails to perform or observe any term, covenant or agreement contained in Section 7.03(a), 7.04 (with respect to the Borrower), 7.11, Article VIII, the First Amendment and Waiver (giving effect to the subsequent amendments and waivers), the Second Amendment and Waiver (giving effect to the subsequent amendments and waivers), the Third Amendment and Waiver (giving effect to the subsequent amendments and waivers), the Fourth Amendment and Waiver (giving effect to the subsequent amendments and waivers), the Fifth Amendment and Waiver or the Sixth Amendment; provided, a Default under Section 8.17 shall not become an Event of Default unless such Default remains unremedied for three (3) Business Days after the occurrence of such Default; or

 

5.                                      Amendment Fee.  In consideration of the Lenders’ agreements set forth herein, the Borrower agrees to pay to the Agent, for the account of each Consenting Lender (defined below), an amendment fee (the “Sixth Amendment Fee”) in an amount equal to fifty (50) basis points (0.50%) of the outstanding principal amount of the Term A Loan held by such Consenting Lender plus the amount of such Lender’s Revolving Commitments.  The Sixth Amendment Fee shall be fully-earned, payable and non-refundable as of the Sixth Amendment Effective Date (defined below).  As used herein, “Consenting Lender” means a Lender that executes and delivers to the Agent a signature page to this Amendment on or prior to 4:00 p.m. Central Time on June 22, 2017 (or, as to any Lender, such later time or date as may be agreed by the Agent and the Borrower) and that does not revoke or otherwise withdraw such signature page prior to the effectiveness of this Amendment on the Sixth Amendment Effective Date.

 

6.                                      Effectiveness; Conditions Precedent.  This Amendment shall become effective as of the date hereof (the “Sixth Amendment Effective Date”) when, and only when, each of the following conditions shall have been satisfied or waived (or, in the case of clause (d) below, will be substantially contemporaneously satisfied on such date), in the sole discretion of the Agent and the Required Lenders:

 

3

 

(a)                                 The Agent shall have received counterparts of this Amendment duly executed by each of the Loan Parties and each of the Required Lenders;

 

(b)                                 The Agent shall have received the Sixth Amendment Fee;

 

(c)                                  The Loan Parties shall have paid all reasonable fees, costs and expenses of the Agent (including, without limitation, fees, costs and expenses of counsel and of the Agent Financial Advisor) incurred in connection with this Amendment, to the extent invoiced to the Borrower at least one Business Day prior to the Sixth Amendment Effective Date; and

 

(d)                                 The Agent shall have received such other documents, instruments and certificates as the Agent or any Lender may reasonably request.

 

7.                                      Incorporation of Amendment.  Except as specifically modified herein, the terms of the Loan Documents shall remain in full force and effect.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent under the Loan Documents, or constitute a waiver or amendment of any provision of the Loan Documents, except as expressly set forth herein.  This Amendment shall constitute a Loan Document.

 

8.                                      Representations and Warranties.  The Loan Parties hereby represent and warrant to the Agent and the Lenders as follows as of the Sixth Amendment Effective Date:

 

(a)                                 Each Loan Party has the corporate or other legal entity power and authority to execute, deliver and perform its obligations under this Amendment.

 

(b)                                 The execution, delivery and performance by each Loan Party of this Amendment have been duly authorized by all necessary corporate or other legal entity action.

 

(c)                                  This Amendment has been duly executed and delivered by such Loan Party.

 

(d)                                 This Amendment constitutes a legal, valid and binding obligation of each Loan Party enforceable against such Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally or by equity principles relating to enforceability.

 

(e)                                  The execution, delivery and performance by each Loan Party of this Amendment does not and will not (i) contravene the terms of any of such Person’s Organization Documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, any document evidencing any material Contractual Obligation to which such Person is a party or any order, injunction, writ or decree of any Governmental Authority to which such Person or its property is subject or (iii) violate any Requirement of Law.

 

(f)                                   No approval, consent, exemption, authorization or other action by, or notice to, or filing with, any court Governmental Authority or any other Person (except those that have been obtained and remain in effect and disclosure filings that are required to be made with the SEC) is necessary or required to be made or obtained by any Loan Party in connection with the execution, delivery or performance by, or enforcement against, such Loan Party of this Amendment.

 

(g)                                  After giving effect to this Amendment, (i) the representations and warranties of the Loan Parties contained in the Loan Documents are true and correct in all material respects on and as of the date hereof to the same extent as though made on and as of the date hereof except to the

 

4

 

extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date, and (ii) no Default has occurred and is continuing.

 

(h)                                 The Liens held by the Agent in the Collateral continue to be valid, binding and enforceable perfected Liens in accordance with the Collateral Documents that secure the Obligations subject only to the Permitted Liens.

 

If any representation and warranty set forth in this Section 8 is incorrect on and as of the date hereof then such incorrect representation and warranty shall constitute a new and immediate Event of Default without regard to any otherwise applicable notice, cure or grace period.

 

9.                                      Release.  In consideration of the Agent’s and the Required Lenders’ willingness to enter into this Amendment, each of the Loan Parties hereby releases and forever discharges the Agent, the Lenders and each of the Agent’s and the Lenders’ predecessors, successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the “Lender Group”), from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, in each case to the extent arising in connection with the Loan Documents or any of the negotiations, activities, events or circumstances arising out of or related to the Loan Documents through the date of this Amendment, whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted, which each of the Loan Parties may have or claim to have against any member of the Lender Group.

 

10.                               No Third Party Beneficiaries.  This Amendment and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and their respective successors and assigns.  No other Person shall have or be entitled to assert rights or benefits under this Amendment.

 

11.                               Entirety.  This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.  This Amendment and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.

 

12.                               Counterparts; Electronic Delivery.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and it shall not be necessary in making proof of this Amendment to produce or account for more than one such counterpart.  Delivery of an executed counterpart of this Amendment by facsimile or other electronic means shall be effective as an original.

 

13.                               No Actions, Claim.  As of the date hereof, each Loan Party hereby acknowledges and confirms that it has no actual knowledge of any actions, causes of action, claims, demands, damages or liabilities of whatever kind or nature, in law or in equity, against any of the Lender Group arising from any action by such Persons or failure of such Persons to act under the Loan Documents on or prior to the date hereof.

 

14.                               Governing Law.  This Amendment and the rights and obligations of the parties hereunder shall be governed by, and construed in accordance with, the law of the State of New York.

 

5

 

15.                               Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Sections 11.15 and 11.16 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

16.                               Further Assurances.  Each of the Loan Parties agrees to execute and deliver, or to cause to be executed and delivered, all such instruments that are consistent with the terms of this Amendment as may reasonably be requested by the Agent to effectuate the intent and purposes, and to carry out the terms, of this Amendment.

 

17.                               Miscellaneous.

 

(a)                                 Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(b)                                 Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

 

(c)                                  Except as otherwise provided in this Amendment, if any provision contained in this Amendment is in conflict with, or inconsistent with, any provision in the Loan Documents, the provision contained in this Amendment shall govern and control.

 

[Signature Pages Follow]

 

6

 

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

 

	
BORROWER:
    	
HANGER, INC., a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Paul A. Severt
    	
 
    
	
 
    	
Name:
    	
Paul A. Severt
    	
 
    
	
 
    	
Title: 
    	
Vice President,   Treasurer and Assistant Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
GUARANTORS:
    	
ACCELERATED CARE PLUS   CORP., a Delaware corporation
    
	
 
    	
ACCELERATED CARE PLUS   LEASING, INC., a Delaware corporation
    
	
 
    	
ADVANCED PROSTHETICS OF   AMERICA, INC., a Florida corporation
    
	
 
    	
CREATIVE   ORTHOTICS & PROSTHETICS, INC., a New York corporation
    
	
 
    	
DIBELLO’S DYNAMIC   ORTHOTICS AND PROSTHETICS, INC.,
    
	
 
    	
a Texas corporation
    
	
 
    	
DOSTEON WA   HOLDING, INC., a Washington corporation
    
	
 
    	
FAITH   PROSTHETIC-ORTHOTIC SERVICES, INC.,
    
	
 
    	
a North Carolina   corporation
    
	
 
    	
GENESIS MEDICAL GROUP,   LLC, an Oregon limited liability company
    
	
 
    	
HANGER   PROSTHETICS & ORTHOTICS, INC., a Delaware corporation
    
	
 
    	
HANGER   PROSTHETICS & ORTHOTICS EAST, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
HANGER   PROSTHETICS & ORTHOTICS WEST, INC.,
    
	
 
    	
a California   corporation
    
	
 
    	
INNOVATIVE NEUROTRONICS, INC.,   a Delaware corporation
    
	
 
    	
LINKIA, LLC, a Maryland   limited liability company
    
	
 
    	
MK   PROSTHETIC & ORHTOTIC SERVICES, INC., a Texas corporation
    
	
 
    	
NASCOTT, INC., a   Delaware corporation
    
	
 
    	
ORTHO-MEDICAL   PRODUCTS, INC., a New York corporation
    
	
 
    	
ORTHOTIC &   PROSTHETIC TECHNOLOGIES, INC., a Texas corporation
    
	
 
    	
SCOPE   ORTHOTICS & PROSTHETICS, INC., a California corporation
    
	
 
    	
SOUTHERN PROSTHETIC   SUPPLY, INC., a Georgia corporation
    
	
 
    	
THE BRACE SHOP   PROSTHETIC ORTHOTIC CENTERS, INC.,
    
	
 
    	
an Ohio corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Paul A. Severt
    	
 
    
	
 
    	
Name:
    	
Paul A. Severt
    	
 
    
	
 
    	
Title: 
    	
Treasurer and Assistant   Secretary of each of the foregoing Guarantors
    	
 
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
AGENT:
    	
BANK OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Christine Trotter
    	
 
    
	
 
    	
Name: Christine Trotter
    
	
 
    	
Title: Assistant Vice   President
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
ASSOCIATED BANK,   NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ C. James Munhofen
    	
 
    
	
 
    	
Name: C. James Munhofen
    
	
 
    	
Title: Senior Vice   President
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
BANK OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Heath Lipson
    	
 
    
	
 
    	
Name: 
    	
Heath Lipson
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
BOKF, NA dba Bank of   Texas
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brynna Sehelbar
    	
 
    
	
 
    	
Name:
    	
Brynna Sehelbar
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
BRANCH BANKING AND   TRUST COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mary McElwain
    	
 
    
	
 
    	
Name:
    	
Mary McElwain
    
	
 
    	
Title:
    	
Senior Vice President
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
COMPASS BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon McCurdy
    	
 
    
	
 
    	
Name:
    	
Jon McCurdy
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
FIFTH THIRD BANK
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jennifer Camp
    	
 
    
	
 
    	
Name: 
    	
Jennifer Camp
    
	
 
    	
Title: 
    	
V.P.
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
PROSPERITY BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Chris Giacomazzi
    	
 
    
	
 
    	
Name:
    	
Chris Giacomazzi
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
REGIONS BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mike Zingraf
    	
 
    
	
 
    	
Name:
    	
Mike Zingraf
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
ROYAL BANK OF CANADA
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ H. Christopher DeCotiis
    	
 
    
	
 
    	
Name:
    	
H. Christopher DeCotiis
    
	
 
    	
Title:
    	
Attorney-in-Fact
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
SUMITOMO MITSUI BANKING   CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Toshitake Funaki
    	
 
    
	
 
    	
Name:
    	
Toshitake Funaki
    
	
 
    	
Title:
    	
General Manager
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
SUNTRUST BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jared Cohen
    	
 
    
	
 
    	
Name:
    	
Jared Cohen
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page

Hanger Sixth Amendment

 

 

	
LENDERS:
    	
WELLS FARGO BANK, NATIONAL   ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kirk Tesch
    	
 
    
	
 
    	
Name:
    	
Kirk Tesch
    
	
 
    	
Title:
    	
Managing Director
    

 

Signature Page

Hanger Sixth Amendment

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]