Document:

Exhibit 10.22

 

FORM OF INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”) is dated as of                    , and is between GMS Inc., a Delaware corporation (the “Company”), and                    (“Indemnitee”).

 

RECITALS

 

A. Indemnitee’s service to the Company substantially benefits the Company.

 

B. Individuals are reluctant to serve as directors or officers of corporations or in certain other capacities unless they are provided with adequate protection through insurance or indemnification against the risks of claims and actions against them arising out of such service.

 

C. Indemnitee does not regard the protection currently provided by applicable law, the Company’s governing documents and any insurance as adequate under the present circumstances, and Indemnitee may not be willing to serve as a director or officer without additional protection.

 

D. In order to induce Indemnitee to continue to provide services to the Company, it is reasonable, prudent and necessary for the Company to contractually obligate itself to indemnify, and to advance expenses on behalf of, Indemnitee as permitted by applicable law.

 

E. This Agreement is a supplement to and in furtherance of the indemnification provided in the Company’s certificate of incorporation and bylaws, and any resolutions adopted pursuant thereto, and this Agreement shall not be deemed a substitute therefor, nor shall this Agreement be deemed to limit, diminish or abrogate any rights of Indemnitee thereunder.

 

The parties therefore agree as follows:

 

1. Definitions.

 

(a) “Change in Control” shall be deemed to occur upon (i) the approval by stockholders (or, in the absence of such approval, the occurrence) of a complete liquidation of the Company or the sale, lease, license, transfer, conveyance or other disposition, in one transaction or a series of related transactions (including by way of merger, consolidation, recapitalization, reorganization or transfer of securities of one or more of the Company’s subsidiaries), to an unaffiliated third party of all or substantially all of the assets of the Company and its subsidiaries on a consolidated basis, (ii) a transaction or series of related transactions (including by way of merger, consolidation, recapitalization, reorganization or sale of securities by the holders of common stock of the Company), the result of which is that the holders of common stock of the Company immediately prior to such transaction or series of related transactions are (after giving effect to such transaction or series of related transactions) no longer, in the aggregate, the Beneficial Owners, directly or indirectly through one or more intermediaries, of more than 50% in voting power of the common stock of the Company immediately following such transaction or series of related transactions or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Company’s board of directors, together with any new

 

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directors whose election by the Company’s board of directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination was previously so approved, cease for any reason to constitute a majority of the Company’s board of directors.

 

For purposes of this Section 1(a), the following terms shall have the following meanings:

 

(1) “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended; provided, however, that “Person” shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

 

(2) “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Securities Exchange Act of 1934, as amended; provided, however, that “Beneficial Owner” shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

 

(b) “Corporate Status” describes the status of a person who is or was a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or any other Enterprise.

 

(c) “DGCL” means the General Corporation Law of the State of Delaware.

 

(d) “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

 

(e) “Enterprise” means the Company and any other corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary, including as a deemed fiduciary thereto.

 

(f) “Expenses” include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees and costs of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond or other appeal bond or their equivalent, and (ii) for purposes of Section 12(d), Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the

 

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Company. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments, penalties or fines against Indemnitee.

 

(g) “Independent Counsel” means a law firm, or a partner or member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than as Independent Counsel with respect to matters concerning Indemnitee under this Agreement, or other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

(h) “Proceeding” means any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, and whether formal or informal, including any appeal therefrom and including without limitation any such Proceeding pending as of the date of this Agreement, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party witness or otherwise by reason of (i) the fact that Indemnitee is or was a director or officer of the Company, (ii) any action taken by Indemnitee or any action or inaction on Indemnitee’s part while acting as a director or officer of the Company, or (iii) the fact that he or she is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or any other Enterprise, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification or advancement of expenses can be provided under this Agreement.

 

(i) Reference to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on a person with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he or she reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

2. Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 2 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 2, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not

 

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opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

 

3. Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened with being made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company. If required by applicable law, no indemnification for Expenses shall be made under this Section 3 in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged by a court of competent jurisdiction to be liable to the Company, unless and only to the extent that the Delaware Court of Chancery (the “Chancery”) or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, indemnification may be made.

 

4. Indemnification for Expenses of a Party Who is Wholly or Partly Successful. In addition to the indemnification provided pursuant to Sections 2 and 3, to the extent that Indemnitee is a party to or a participant in and is successful (on the merits or otherwise) in defense of any Proceeding or any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. To the extent permitted by applicable law, if Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, in defense of one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with (a) each successfully resolved claim, issue or matter and (b) any claim, issue or matter related to any such successfully resolved claim, issue or matter. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

5. Indemnification for Expenses of a Witness. To the extent that Indemnitee, by reason of his or her Corporate Status, has prepared to serve or has served as a witness or is made to respond to discovery requests in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified to the extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

 

6. Additional Indemnification.

 

(a) Notwithstanding any limitation in Sections 2, 3, 4 or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her behalf in connection with the Proceeding or any claim, issue or matter therein (including a Proceeding by or in the right of the Company), including, without limitation, all liability arising

 

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out of the negligence or active or passive wrongdoing of Indemnitee. The only limitation that shall exist upon the Company’s indemnification obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions, set forth in Sections 10, 11, and 12 hereof) by a court of competent jurisdiction to be unlawful.

 

(b) For purposes of Section 6(a), the meaning of the phrase “to the fullest extent permitted by applicable law” shall include, but not be limited to:

 

(i) the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL; and

 

(ii) the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

 

7. Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any Proceeding (or any part of any Proceeding):

 

(a) for which payment has actually been made to or on behalf of Indemnitee under any statute, insurance policy procured by the Company, indemnity provision, vote or otherwise, except with respect to any excess beyond the amount paid;

 

(b) for an accounting or disgorgement of profits pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of federal, state or local statutory law or common law, if Indemnitee is held liable therefor (including pursuant to any settlement arrangements to which the Indemnitee has consented);

 

(c) for any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Securities Exchange Act of 1934, as amended (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “SOX Act”) or Section 954 of the Dodd—Frank Wall Street Reform and Consumer Protection Act, or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the SOX Act), if Indemnitee is held liable therefor (including pursuant to any settlement arrangements to which the Indemnitee has consented);

 

(d) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees, agents or other indemnitees (not by way of defense), unless (i) the Company’s board of directors authorized the Proceeding (or the relevant part of the Proceeding) prior to its initiation, (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law, (iii) otherwise authorized in Section 12(d) or (iv) otherwise required by applicable law; or

 

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(e) if a court of competent jurisdiction determines that such indemnification is prohibited by applicable law in a final judgment from which there is no further right of appeal.

 

8. Advances of Expenses.

 

(a) Notwithstanding any other provisions of this Agreement to the contrary, the Company shall advance the Expenses incurred by Indemnitee or on behalf of the Indemnitee in connection with any Proceeding through the final disposition of such Proceeding, and such advancement shall be made as soon as reasonably practicable, but in any event no later than 30 days, after the receipt by the Company of a written statement or statements requesting such advances from time to time (which shall include invoices received by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice). Advances shall be unsecured and interest free and made without regard to Indemnitee’s ability to repay such advances.

 

(b) Indemnitee hereby undertakes to repay any advance to the extent that it is ultimately determined by final judgment from which there is no further right of appeal that Indemnitee is not entitled to be indemnified by the Company. No other form of undertaking shall be required of Indemnitee other than the execution of this Agreement.

 

(c) This Section 8 shall not apply to the extent advancement is prohibited by law and shall not apply to any Proceeding for which indemnity is not permitted under this Agreement, but shall apply to any Proceeding referenced in Section 7(b), 7(c), or 7(e) prior to a determination that Indemnitee is not entitled to be indemnified by the Company.

 

9. Procedures for Notification and Defense of Claim.

 

(a) Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses as soon as reasonably practicable following the receipt by Indemnitee of notice thereof. The written notification to the Company shall include, in reasonable detail, a description of the nature of the Proceeding and the facts underlying the Proceeding. The failure by Indemnitee to notify the Company will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights, except to the extent that such failure or delay actually and materially prejudices the Company.

 

(b) If, at the time of the receipt of a notice of a Proceeding pursuant to the terms hereof, the Company has directors’ and officers’ liability insurance in effect, the Company shall give prompt notice of the commencement of the Proceeding to the insurers in accordance with the procedures set forth in the applicable policies. The Company shall thereafter take all commercially reasonable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

 

(c) In the event the Company may be obligated to make any indemnity in connection with a Proceeding, the Company shall be entitled to assume the defense of such Proceeding with counsel approved by Indemnitee, which approval shall not be unreasonably withheld, upon the

 

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delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee for any fees or expenses of separate counsel subsequently incurred by Indemnitee with respect to the same Proceeding. Notwithstanding the Company’s assumption of the defense of any such Proceeding, the Company shall be obligated to pay the fees and expenses of Indemnitee’s counsel to the extent (i) the employment of counsel by Indemnitee is authorized by the Company, (ii) counsel for the Company or Indemnitee shall have reasonably concluded that there is a conflict of interest between the Company and Indemnitee in the conduct of any such defense, (iii) the Company is not financially or legally able to perform its indemnification obligations or (iv) the Company shall not have retained, or shall not continue to retain, such counsel to defend such Proceeding. The Company shall have the right to conduct such defense as it sees fit in its sole discretion. Regardless of any provision in this Agreement, Indemnitee shall have the right to employ counsel in any Proceeding other than at the Company’s expense. The Company shall not be entitled, without the consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

 

(d) Indemnitee shall give the Company such information and cooperation in connection with the Proceeding as may be reasonably appropriate.

 

(e) The Company shall not be liable to indemnify Indemnitee for any settlement of any Proceeding (or any part thereof) without the Company’s prior written consent. The Company shall not, without Indemnitee’s prior written consent, settle any Proceeding (or any part thereof) in any manner that would attribute to Indemnitee any individual admission of liability or wrongdoing or that would impose any penalty, fine or other obligation or restriction on Indemnitee. Neither the Indemnitee nor the Company will unreasonably withhold his, her, or its consent to any proposed settlement.

 

10. Procedures upon Application for Indemnification.

 

(a) To obtain indemnification, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and as is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of the Proceeding. The Company shall, as soon as reasonably practicable after receipt of such a request for indemnification, advise the board of directors that Indemnitee has requested indemnification. Any delay in providing the request will not relieve the Company from its obligations under this Agreement, except to the extent such failure actually and materially prejudices the interests of the Company.

 

(b) Upon written request by Indemnitee for indemnification pursuant to Section 10(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by

 

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Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Company’s board of directors, by the stockholders of the Company. The Indemnitee shall be presumed to be entitled to indemnification under this Agreement unless a determination is made that the Indemnitee is not entitled to indemnification under this Agreement, the certificate of incorporation, bylaws, applicable law or otherwise by one of the methods set forth in the preceding sentence. To the fullest extent permitted by DGCL or other applicable law, the Company’s assumption of the defense of a Proceeding in accordance with Section 9(c) will constitute an irrevocable acknowledgement by the Company that the Company shall indemnify Indemnitee, pursuant to Sections 2, 3, 4, 5, and/or 6, as applicable, for any losses suffered by, or incurred by or on behalf of, Indemnitee in connection therewith (subject, however, to the Company’s right to bring an action in a court of competent jurisdiction seeking a determination that such indemnification is not permitted by applicable law). If it is determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making the determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information that is not privileged or otherwise protected from disclosure and that is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company, to the extent permitted by applicable law.

 

(c) In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(b), the Independent Counsel shall be selected as provided in this Section 10(c). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Company’s board of directors, and the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Company’s board of directors, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within ten days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within 20 days after the later of (i) submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof and (ii) the final disposition of the Proceeding, the parties have not agreed upon an Independent Counsel, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by

 

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the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 10(b) hereof.

 

(d) The Company agrees to pay the reasonable fees and expenses of any Independent Counsel and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

(e) If a determination pursuant to Section 10(b) is required by law, such determination shall be made as soon as practicable, and in no event later than 30 days following the Company’s receipt of a request for indemnification in accordance with Section 10(a). If the determination of whether to grant Indemnitee’s indemnification request is not made within such 30-day period, the determination of entitlement to indemnification shall, subject to Section 7, be deemed to have been made and Indemnitee shall be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that (1) such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person, persons or entity making such determination pursuant to Section 10(b) in good faith require such additional time to obtain or evaluate documentation and/or information relating thereto, (2) the foregoing provisions of this Section 10(e) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 10(b)(ii)(D) and if (A) within 15 days after receipt by the Company of the request for such determination, the Company’s board of directors or the Disinterested Directors, if appropriate, resolve to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within 75 days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within 15 days after such receipt for the purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called and such determination is made thereat and (3) if either the Company or Indemnitee petitions a court of competent jurisdiction for a decision with respect to Independent Counsel in accordance with to Section 10(b) in good faith, the period of such court’s consideration of such petition shall not be counted as part of such 30-day period. Notwithstanding the foregoing or anything else in this Agreement to the contrary, no determination as to Indemnitee’s entitlement to indemnification shall be required to be made prior to the final disposition of the underlying Proceeding.

 

(f) Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any Independent Counsel, member of the Company’s board of directors or stockholder of the Company shall act reasonably and in good faith in making a determination regarding Indemnitee’s entitlement to indemnification under this Agreement. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective

 

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of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

11. Presumptions and Effect of Certain Proceedings.

 

(a) In making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by such person, persons or entity of any determination contrary to that presumption.

 

(b) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

(c) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith to the extent Indemnitee’s action is based on (i) the records or books of account of the Enterprise, including financial statements, (ii) information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, (iii) the advice of legal counsel for the Enterprise or its board of directors or counsel selected by any committee of the board of directors or (iv) information or records given or reports made to the Enterprise by an independent certified public accountant, an appraiser, investment banker or other expert selected with reasonable care by the Enterprise or its board of directors or any committee of the board of directors. The provisions of this Section 11(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. Whether or not the foregoing provisions of this Section 11(c) are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall, to the fullest extent not prohibited by law, have the burden of proof to overcome such presumption.

 

(d) Neither the knowledge, actions nor failure to act of any other director, officer, agent or employee of the Enterprise shall be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

12. Remedies of Indemnitee.

 

(a) In the event that (i) a determination is made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 or 12(d) of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10 of this Agreement within 90 days after the later of the receipt by the Company of the request for

 

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indemnification or the final disposition of the Proceeding, (iv) payment of indemnification pursuant to this Agreement is not made (A) within ten days after a determination has been made that Indemnitee is entitled to indemnification or (B) with respect to indemnification pursuant to Sections 4, 5 and 12(d) of this Agreement, within 30 days after receipt by the Company of a written request therefor, or (v) the Company or any other person or entity takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of competent jurisdiction of his or her entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his or her option, may seek an award in arbitration with respect to his or her entitlement to such indemnification or advancement of Expenses, to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his or her rights under Section 4 of this Agreement. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration in accordance with this Agreement.

 

(b) Neither (i) the failure of the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor (ii) an actual determination by the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders that Indemnitee has not met the applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct. In the event that a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 12, the Company shall, to the fullest extent not prohibited by law, have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

 

(c) To the fullest extent not prohibited by law, the Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. If a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statements not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

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(d) To the extent not prohibited by law, the Company shall indemnify Indemnitee against all Expenses that are reasonably incurred by Indemnitee in connection with any action for indemnification or advancement of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company to the extent Indemnitee is successful in such action, and, if requested by Indemnitee, shall (as soon as reasonably practicable, but in any event no later than 60 days, after receipt by the Company of a written request therefor) advance such Expenses to Indemnitee.

 

(e) The Company and Indemnitee agree that a monetary remedy for breach of this Agreement may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance, without any necessity of showing actual damage or irreparable harm, and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which he or she may be entitled. The Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by the Court, and the Company hereby waives any such requirement of a bond or undertaking.

 

13. Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amounts incurred by Indemnitee, whether for Expenses, judgments, penalties, fines or amounts paid or to be paid in settlement, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the events and transactions giving rise to such Proceeding; and/or (ii) the relative fault of Indemnitee and the Company (and its other directors, officers, employees and agents) in connection with such events and transactions. The relative fault of the Company and Indemnitee shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses.

 

14. Non-exclusivity. The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s certificate of incorporation or bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Company’s certificate of incorporation and bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change, subject to the restrictions expressly set forth herein or therein. Except as expressly set forth herein, no right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity

 

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or otherwise. Except as expressly set forth herein, the assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

15. Primary Responsibility. Reserved.

 

16. No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received payment for such amounts under any insurance policy procured by the Company, contract, agreement or otherwise.

 

17. Insurance. To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, trustees, general partners, managing members, officers, employees, agents or fiduciaries of the Company or any other Enterprise, Indemnitee shall be covered by such policy or policies to the same extent as the most favorably-insured persons under such policy or policies in a comparable position. Further, in the event of a Change in Control or the Company’s becoming insolvent—including being placed into receivership or entering the federal bankruptcy process—the Company shall maintain in force any and all insurance policies then maintained by the Company in providing insurance (directors’ and officers’ liability, fiduciary, employment practices or otherwise) in respect of Indemnitee, for a fixed period of six years thereafter (otherwise known as a “tail policy”), and such coverage shall be placed by the incumbent broker using the policies that were in place at the time of the Change in Control, and shall be placed with an insurance carrier with an AM Best rating that is the same or better than the AM Best ratings of the expiring policies.

 

18. Subrogation. In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

19. Services to the Company. Indemnitee agrees to serve as a director or officer of the Company or, at the request of the Company, as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of another Enterprise, for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is removed from such position. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position. This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. Indemnitee specifically acknowledges that any employment with the Company (or any of its subsidiaries or any Enterprise) is at will, and Indemnitee may be discharged at any time for any reason, with or without cause, with or without notice, except as may be otherwise expressly provided in any executed, written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), any existing formal severance policies adopted by the Company’s board of directors or, with respect to service as a director or officer of the Company, the Company’s certificate of

 

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incorporation or bylaws or the DGCL. No such document shall be subject to any oral modification thereof.

 

20. Duration. This Agreement shall continue until and terminate upon the later of (a) ten years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of any other Enterprise, as applicable; or (b) one year after the final termination of any Proceeding, including any appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement relating thereto.

 

21. Successors. This Agreement shall be binding upon the Company and its successors and assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by written agreement, expressly to assume and agree to perform this Agreement and to indemnify Indemnitee to the fullest extent permitted by law.

 

22. Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order or decision, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (i) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (ii) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (iii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

23. Enforcement. The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

 

24. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Company’s certificate of incorporation and bylaws and applicable law.

 

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25. Modification and Waiver. No supplement, modification or amendment to this Agreement shall be binding unless executed in writing by the parties hereto. No amendment, alteration or repeal of this Agreement shall adversely affect any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal. No waiver of any of the provisions of this Agreement shall constitute or be deemed a waiver of any other provision of this Agreement nor shall any waiver constitute a continuing waiver.

 

26. Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand, messenger or courier service addressed:

 

(a) if to Indemnitee, to Indemnitee’s address, facsimile number or electronic mail address as shown on the signature page of this Agreement or in the Company’s records, as may be updated in accordance with the provisions hereof; or

 

(b) if to the Company, to the attention of the Chief Executive Officer or Chief Financial Officer of the Company at 100 Crescent Centre Parkway, Suite 800, Tucker, Georgia 30084, or at such other current address as the Company shall have furnished to Indemnitee, with a copy (which shall not constitute notice) to Andrew B. Barkan, Fried, Frank, Harris, Shriver & Jacobson LLP, One New York Plaza, New York, New York 10004.

 

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid, specifying next-business-day delivery, one business day after deposit with the courier), (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if sent via electronic mail, upon non-automated confirmation of delivery when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day.

 

27. Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 12(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery, and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Chancery for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Chancery, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Chancery has been brought in an improper or inconvenient forum.

 

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28. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. This Agreement may also be executed and delivered by facsimile signature and in counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

29. Captions. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

 

(signature page follows)

 

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The parties are signing this Indemnification Agreement as of the date stated in the introductory sentence.

 

 

	
 
    	
GMS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Print name)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Title)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[INSERT INDEMNITEE NAME]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Print name)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Street address)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(City, State and ZIP)
    

 

17Nobilis Health Corp. : Exhibit 10.1 - Filed by newsfilecorp.com

FIRST AMENDMENT TO LOAN AGREEMENT 

     This FIRST AMENDMENT TO LOAN
AGREEMENT (this “Amendment”) is made and entered into as of May 18, 2016,
by and between MARSH LANE SURGICAL HOSPITAL, LLC, a Texas limited liability
company (“Borrower”), and LEGACYTEXAS BANK, successor to ViewPoint Bank,
N.A. (“Lender”), and acknowledged and agreed to by Guarantor. 

W I T N E S S E T H: 

     WHEREAS, Lender and Borrower
previously entered into that certain Loan Agreement, dated as of July 30, 2015
(as amended, restated, supplemented, modified or replaced from time to time, the
“Loan Agreement”) pursuant to which Lender agreed to make certain Loans
to Borrower as described therein; and WHEREAS, Borrower has requested that
certain terms of the Loan Agreement be amended in the manner set forth herein,
including, without limitation, to add a revolving credit facility thereto, and
Lender, subject to the terms and conditions contained herein, has agreed to such
amendments, to be effective as of the date hereof. 

     NOW, THEREFORE, in consideration
of the mutual covenants and the fulfillment of the conditions set forth herein,
the parties hereby agree as follows: 

     1. Definitions.
Capitalized terms used herein but not otherwise defined herein shall have the
meanings assigned to such terms in the Loan Agreement. 

     2. Amendments to the Loan
Agreement. Subject to the conditions hereof and upon satisfaction of the
terms set forth in Section 5 herein, the Loan Agreement is hereby amended
as follows: 

     (a)
Amendments to Section 1.1.

               (i)
The following definitions in Section 1.1 of the Loan Agreement are hereby
amended and restated in their entirety to read as follows: “Advance”
means any advance by Lender to Borrower pursuant to Article II. 

     “Notes” means, collectively,
any and all promissory notes, including but not limited to the Term Note and the
Revolving Credit Note, executed at any time by Borrower and payable to the order
of Lender, as amended, renewed, replaced, extended, supplemented, consolidated,
restated, modified, otherwise changed and/or increased from time to time (and
“Note” means any of such Notes). 

     “Payment Date” means (a) with
respect to the Term Loan, the third Business Day of each calendar month and the
Term Loan Maturity Date, and (b) with respect to Revolving Credit Advances, the
third Business Day of each calendar month and the Revolving Maturity Date. 

     (ii)
Clause (iii) of the definition of “Interest Period” in Section 1.1 of the
Loan Agreement is hereby amended and restated to read as follows: 

     (iii) no
Interest Period shall extend beyond the applicable maturity date of such Loan.

     (iii) The
following definitions are hereby added to Section 1.1 of the Loan
Agreement, in proper alphabetical order thereto: “Account” means any
right of a Person to payment for goods sold or leased or for services rendered,
but shall not include interest or service charges. 

     “Account Debtor” means a
Person who is obligated on or under an Account. 

     “Advance Request Form” means
a certificate, substantially in the form of Exhibit B attached hereto,
properly completed and signed by a Responsible Officer of Borrower providing
notice of a borrowing of a Revolving Credit Advance. 

     “Borrowing Base” means, at
any time, an amount equal to the sum of seventy percent (70%) of Eligible
Accounts.

     “Borrowing Base Report” means
a certificate setting forth the Borrowing Base, substantially in the form of
Exhibit C attached hereto, prepared by and certified by a Responsible
Officer of Borrower. 

     “Commitments” means,
collectively, the Revolving Credit Commitment, and any other commitment of
Lender from time to time hereunder (and each individually, a
“Commitment”).

     “Eligible Accounts” means, at
any time, all Accounts of the Loan Parties created in the ordinary course of
business which satisfy each of the following conditions: 

     (a) The
Account complies with all applicable laws, rules, and regulations, including,
without limitation, usury laws, the Federal Truth in Lending Act, and Regulation
Z of the Board of Governors of the Federal Reserve System; 

     (b) The
Account has not been outstanding for more than one hundred and twenty (120) days
past the original date of invoice; 

     (c) The
Account does not represent a commission, and the Account is owed as a result of
(i) the sale of goods by a Loan Party in the ordinary course of business and
such sale has been consummated and such goods have been
shipped and delivered and received by the Account Debtor, or (ii) services
performed or to be performed by a Loan Party in the ordinary course of business; 

– 2 – 

     (d) The
Account arises from an enforceable contract; 

     (e) The
Account does not arise from the sale of any good that is on a bill-and-hold,
guaranteed sale, sale-or-return, sale on approval, consignment, or any other
repurchase or return basis; 

     (f) A
Loan Party has good and indefeasible title to the Account and the Account is not
subject to any Lien except Liens in favor of Lender; 

     (g) The
Account does not arise out of a contract with or order from, an Account Debtor
that, by its terms, prohibits or makes void or unenforceable the grant of a
security interest by a Loan Party to Lender in and to such Account; 

     (h) The
Account is not subject to any setoff, counterclaim, defense, dispute,
recoupment, or adjustment other than normal discounts for prompt payment; 

     (i) The
Account Debtor is not insolvent or the subject of any bankruptcy or insolvency
proceeding and has not made an assignment for the benefit of creditors,
suspended normal business operations, dissolved, liquidated, terminated its
existence, ceased to pay its debts as they become due, or suffered a receiver or
trustee to be appointed for any of its assets or affairs; 

     (j) The
Account is not evidenced by chattel paper or an instrument; 

     (k) No
default exists under the Account by any party thereto; 

     (l) The
Account Debtor has not returned or refused to retain, or otherwise notified any
Loan Party of any dispute concerning, or claimed nonconformity of, any of the
goods from the sale of which the Account arose; 

     (m) The
Account is not owed by an Affiliate, employee, officer, director or shareholder
of any Loan Party; 

     (n) The
Account is payable in Dollars by the Account Debtor; 

– 3 – 

     (o) The
Account Debtor is domiciled in the United States of America or if the Account
Debtor is domiciled outside of the United States of America, the Accounts of
such Account Debtor are backed by letters of credit in form and substance
satisfactory to Lender; 

     (p) The
Account Debtor is any Person other than the United States of America or any
state, department, agency, or instrumentality thereof, including (i) the United
States of America acting under the Medicaid or Medicare programs or any other
federal health care program, (ii) any state, territory or the District of
Columbia acting pursuant to a health plan adopted pursuant to the Medicaid or
Medicare programs, or any other state health care program or (iii) any agent,
carrier, administrator or intermediary for any of the foregoing; 

     (q) The
Account does not represent a “self-pay” claim; or 

     (r) The
Account is otherwise acceptable in the sole discretion of Lender; provided that
Lender shall have the right to create and adjust eligibility standards and
related reserves from time to time in its good faith credit judgment. 

     The
amount of the Eligible Accounts owed by an Account Debtor to a Loan Party shall
be reduced by the amount of all “contra accounts” (not including Accounts owed
to any Loan Party by Lender) and other obligations owed by a Loan Party to such
Account Debtor. 

     “First Amendment Effective
Date” means May 16, 2016. 

     “Revolving Credit Advance”
means any Advance made by Lender to Borrower pursuant to Section 2.5 of
this Agreement. 

     “Revolving Credit Commitment”
means the obligation of Lender to make Revolving Credit Advances pursuant to
Section 2.5, in an aggregate principal amount at any time outstanding up
to but not exceeding Three Million and No/100 Dollars ($3,000,000.00), subject,
however, to termination pursuant to Section 10.2, reduction or
termination pursuant to Section 2.5(a)(v), or increase pursuant to
Section 2.5(a)(vi). 

     “Revolving Credit Note” means
that certain Revolving Credit Note, dated as of the First Amendment Effective
Date, in the principal amount of the Revolving Credit Commitment in effect as of
the First Amendment Effective Date, executed by Borrower and payable to the
order of Lender, and all amendments, extensions, renewals, replacements,
increases and modifications thereof. 

– 4 – 

     “Revolving Maturity Date”
means May 16, 2017, or such earlier date on which the Revolving Credit
Commitment terminates and such amounts thereunder become due and payable as
provided in this Agreement. 

     (b) Amendments to Section
2.2(b). Section 2.2(b) is hereby amended and restated to read in its
entirety as follows: 

     (b)
Applicable Rate. Subject to the provisions of subsections (c),
(f), and (g) below, (i) the Term Loan shall bear interest on the
outstanding principal amount thereof from the Closing Date at a rate per annum
equal to the lesser of (A) the Maximum Lawful Rate and (B) the Applicable Rate,
and (ii) each Revolving Credit Advance shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date thereof at a rate
per annum equal to the lesser of (i) the Maximum Lawful Rate and (ii) the
Applicable Rate. 

     (c) Amendments to Section
2.2(j). Section 2.2(j) is hereby amended and restated to read in its
entirety as follows: 

     (j)
Survival. All of Borrower’s obligations under this Section 2.2
shall survive termination of the Commitments and repayment in full of all
Obligations hereunder. 

     (d) Amendments to Section
2.3. Section 2.3 of the Loan Agreement is hereby amended by adding
the following sentence to the end thereof: 

“The proceeds of the Revolving Credit
Advances shall be used by Borrower for working capital and general corporate
purposes in the ordinary course of business.” 

     (e)
Addition of New Section 2.5. A new Section 2.5 is hereby added to
the Loan Agreement, immediately following Section 2.4 thereof, to read in its
entirety as follows: 

     Section
2.5 Revolving Credit Advances. 

     (a)
Revolving Credit Advances. Subject to the terms and conditions of this
Agreement, Lender agrees to make one or more Revolving Credit Advances to
Borrower from time to time from the First Amendment Effective Date to, but not
including, the Revolving Maturity Date in an aggregate principal amount at any
time outstanding up to, but not exceeding, the amount of the Revolving Credit
Commitment; provided that the aggregate principal amount of all Revolving
Credit Advances at any time outstanding shall not exceed the lesser of (i) the
Revolving Credit Commitment or (ii) the Borrowing Base. Subject to the foregoing
limitations, and the other terms and provisions of this Agreement, Borrower may
borrow, repay, and reborrow under this Section 2.5(a). Revolving Credit
Advances shall bear interest as set forth in Section 2.2(b). 

– 5 – 

     (i)
The Revolving Credit Note. The obligation of Borrower to repay the
Revolving Credit Advances and interest thereon shall be evidenced by the
Revolving Credit Note. 

     (ii)
Repayment of Revolving Credit Advances. Borrower shall repay the
outstanding principal amount of all Revolving Credit Advances on the Revolving
Maturity Date, unless sooner due by reason of acceleration by Lender as provided
in this Agreement. 

     (iii)
Interest on Revolving Credit Advances. Interest on each Revolving Credit
Advance shall be due and payable in arrears on each Payment Date applicable
thereto, commencing with the first such date to occur after the First Amendment
Effective Date, and at such other times as may be specified herein. Interest
hereunder shall be due and payable in accordance with the terms hereof before
and after judgment, and before and after the commencement of any proceeding
under any Debtor Relief Law. 

     (iv)
Borrowings of Revolving Credit Advances. 

     (A) Each
borrowing of a Revolving Credit Advance shall be made upon Borrower’s
irrevocable notice to Lender, which may be given by telephone. Each such notice
must be received by Lender not later than 2:00 p.m. three (3) Business Days
prior to the requested date of any borrowing. Each such telephonic notice must
be confirmed promptly by delivery to Lender of a written Advance Request Form,
appropriately completed and signed by a Responsible Officer of Borrower. Each
Advance Request Form (whether telephonic or written) shall specify (1) the
requested date of the borrowing (which shall be a Business Day) and (2) the
principal amount of the Revolving Credit Advance to be borrowed. Subject to the
terms and conditions of this Agreement, each Revolving Credit Advance shall be
made available to Borrower by depositing the same, in immediately available
funds, in an account of Borrower designated by Borrower and maintained with
Lender at the Principal Office. 

     (B)
Revolving Credit Advances shall be in a minimum amount of $25,000 (or such
lesser amount that exhausts any remaining availability under the Revolving
Credit Commitment). 

     (C)
Borrower may request a Revolving Credit Advance no more frequently than once per
week. 

     (D)
Lender shall have no liability to Borrower for any loss or damage suffered by
Borrower as a result of Lender’s honoring of any requests, execution of any
instructions, authorizations or agreements or reliance on any reports
communicated to it telephonically, by facsimile or electronically and purporting
to have been sent to Lender by Borrower and Lender shall have no duty to verify
the origin of any such communication or the identity or authority of the Person
sending it. 

– 6 – 

     (E) Upon
satisfaction of all applicable conditions, Lender shall make the proceeds of
each Revolving Credit Advance available to Borrower in accordance with
instructions provided to (and reasonably acceptable to) Lender by Borrower. 

     (v)
Reduction or Termination of Revolving Credit Commitment. Borrower shall
have the right to terminate in whole or reduce in part the unused portion of the
Revolving Credit Commitment upon at least three (3) Business Days prior notice
(which notice shall be irrevocable) to Lender specifying the effective date
thereof, whether a termination or reduction is being made, and the amount of any
partial reduction, provided that each partial reduction shall be in the amount
of $50,000 or an integral multiple thereof (or the entire remaining amount) and
Borrower shall simultaneously prepay the amount by which the unpaid principal
amount of Revolving Credit Advances exceeds the lesser of (i) the Revolving
Credit Commitment or (ii) the Borrowing Base (after giving effect to such
notice), plus accrued and unpaid interest on the principal amount so
prepaid. The Revolving Credit Commitment may not be reinstated after it has been
terminated or reduced. All unused fees accrued until the effective date of any
termination of the Revolving Credit Commitment shall be paid on the effective
date of such termination. 

     (vi)
Increase of Revolving Credit Commitment. Provided no Default or Event of
Default exists, Borrower may, on a one-time basis, request in writing that the
amount of the Revolving Credit Commitment be increased by an amount not
exceeding $2,000,000.00. Promptly after delivery of such request, Borrower shall
deliver to Lender such documents as Lender may reasonably request, including, at
a minimum, the audited financial statements of Parent for the 2015 fiscal year.
Within a reasonable time after receipt of such request, Lender shall notify
Borrower whether or not it consents to such increase of the Revolving Credit
Commitment. Any election by Lender to increase the amount of the Revolving
Credit Commitment shall be made in its sole and absolute discretion. If Lender
consents to such increase, Borrower shall deliver to Lender, as a condition
precedent to such increase, such documents as Lender or its legal counsel may
reasonably request, including, without limitation, (1) an amended and restated
Revolving Credit Note, dated as of the effective date of such increase, in the
maximum principal amount of the Revolving Credit Commitment after giving effect
to such increase, (2) a certificate of Borrower, dated as of the effective date
of such increase and signed by a Responsible Officer of Borrower, (x) certifying
and attaching the resolutions adopted by Borrower approving or consenting to
such increase, and (y) certifying that, both before and after giving effect to
such increase, the conditions specified in Section 5.2(b) and (c)
have been satisfied, and (3) a written consent of Healthcare Financial
Solutions, LLC, as the successor in interest to General Electric Capital
Corporation (“GECC”), to such increase, if and to the extent such consent
is required by the terms of that certain Subordination Agreement, dated as of
July 30, 2015, by and between Lender and GECC. 

– 7 – 

     (vii)
Unused Fee. Borrower agrees to pay to Lender an unused fee equal to 0.50%
times the actual daily amount by which the Revolving Credit Commitment
exceeds the aggregate principal amount of all Revolving Credit Advances at any
time outstanding. The unused fee shall accrue at all times from the First
Amendment Effective Date through and including the Revolving Maturity Date and
shall be due and payable monthly in arrears on each Payment Date applicable
thereto, commencing with the first such date to occur after the First Amendment
Effective Date, and on the Revolving Maturity Date. 

     (f) Amendments to Section
3.2(a). Section 3.2(a) is hereby amended and restated to read in its
entirety as follows: 

     (a)
Voluntary Prepayments. Borrower may, upon notice to Lender, at any time
or from time to time voluntarily prepay the Term Loan or Revolving Credit
Advances in whole or in part without premium or penalty; provided that, and
notwithstanding anything to the contrary contained in this Agreement, such
notice must be received by Lender not later than 2:00 p.m. three Business Days
prior to the date of prepayment. Each such notice shall specify the date and
amount of such prepayment. If such notice is given by Borrower, Borrower shall
make such prepayment and the payment amount specified in such notice shall be
due and payable on the date specified therein. Any prepayment of a LIBOR Rate
Loan shall be accompanied by all accrued interest thereon. Any prepayment of the
Term Loan shall be applied thereto in inverse order of scheduled maturities.

     (g) Amendments to Section
3.2(b)(v).

     (i)
Section 3.2(b)(v) is hereby amended and restated to read in its entirety
as follows: 

     (v)
Application of Prepayments. Each prepayment of Loans pursuant to the
foregoing clauses of this Section 3.2(b) shall be applied first to prepay
the Term Loan in inverse order of scheduled maturities until the Term Loan has
been repaid in full, and then to prepay Revolving Credit Advances. 

     (ii)
Section 3.2(b) is hereby amended by adding a new clause (vi) thereto,
immediately following clause (v) thereof, to read in its entirety as follows:

     (vi)
Revolving Credit Overadvance. If for any reason the aggregate principal
amount of all Revolving Credit Advances at any time exceeds the lesser of (A)
the Revolving Credit Commitment or (B) the Borrowing Base, Borrower shall
immediately prepay Revolving Credit Advances in an aggregate amount equal to
such excess. 

     (h) Amendments to Section
3.3(c). The last sentence of Section 3.3(c) is hereby amended and
restated to read in its entirety as follows: 

– 8 – 

     “This
indemnity shall survive termination of the Commitments and repayment in full of
all Obligations hereunder.”

      (i) Amendments to
Section 3.3(e). Section 3.3(e) is hereby amended and restated to read
in its entirety as follows: (e) Without prejudice to the survival of any other
agreement of Borrower hereunder, the agreements and obligations of Borrower
contained in this Section 3.3 shall survive termination of the
Commitments and repayment in full of all Obligations hereunder. 

     (j) Addition of New Section
5.2. A new Section 5.2 is hereby added to the Loan Agreement,
immediately following Section 5.1 thereof, to read in its entirety as follows:

     Section
5.2 Conditions Precedent to Revolving Credit Advances. The obligation of
Lender to make any Revolving Credit Advance is subject to the following
conditions precedent: 

     (a)
Request for Advance; Borrowing Base Report. With respect to any request
for a Revolving Credit Advance, Lender shall have received, in accordance with
this Agreement, (i) an Advance Request Form and (ii) a Borrowing Base Report,
each dated the date of such Revolving Credit Advance and executed by a
Responsible Officer of Borrower; 

     (b)
No Default, Material Adverse Effect. No Default or Material Adverse
Effect shall have occurred and be continuing, or would result from or after
giving effect to such Revolving Credit Advance; and 

     (c)
Representations and Warranties. All of the representations and warranties
contained in Article VI hereof and in the other Loan Documents shall be true and
correct in all material respects on and as of the date of such Revolving Credit
Advance with the same force and effect as if such representations and warranties
had been made on and as of such date, except to the extent such representations
and warranties speak to a specific date. 

     (k) Amendments to Article
VII.

     (i) The
lead-in sentence to Article VII is hereby amended and restated to read in its
entirety as follows: 

“Borrower covenants and agrees that,
as long as the Obligations (other than contingent indemnification and
reimbursement obligations in respect of which no claim for payment has yet been
asserted by the Person entitled thereto) or any part thereof are outstanding or
Lender has any Commitment hereunder, Borrower will perform and observe the
following affirmative covenants, unless Lender shall otherwise consent in
writing:” 

– 9 – 

     (ii)
Section 7.1(a) is hereby amended and restated to read in its entirety as
follows: 

(a) Annual Financial Statements of
Parent. As soon as available, and in any event within 120 days after the end
of each fiscal year of Parent, a copy of the annual audit report of Parent and
its Subsidiaries for such fiscal year containing, on a consolidated basis,
balance sheets and statements of income, retained earnings, and cash flow as at
the end of such fiscal year and for the fiscal year then ended, in each case
setting forth in comparative form the figures for the preceding fiscal year, all
in reasonable detail and audited and certified by independent certified public
accountants of recognized standing acceptable to Lender, to the effect that such
report has been prepared in accordance with GAAP and containing no material
qualifications or limitations on scope; 

     (iii)
Section 7.1 is hereby amended by adding a new subsection (l) thereto,
immediately following subsection (k) thereof, to read in its entirety as
follows: 

     (l)
Borrowing Base Report. (1) In connection with any request for a Revolving
Credit Advance, and (2) as soon as available, and in any event within twenty
(20) days after the end of each calendar month, a duly completed Borrowing Base
Report, together with each of: 

     (i) an
account receivable aging, classifying the Loan Parties’ accounts receivable in
categories of 0-30, 31-60, 61-90, 91- 120, and over 120 days from date of
invoice, in such form and detail as Lender shall require; and 

     (ii) an
account payable aging, classifying the Loan Parties’ accounts payable in
categories of 0-30, 31-60, 61-90, 91-120, and over 120 days from date of
invoice, in such form and detail as Lender shall require. 

     (l) Amendments to Article
VIII. The lead-in sentence to Article VIII is hereby amended and
restated to read in its entirety as follows: 

“Borrower covenants and agrees that, as
long as the Obligations (other than contingent indemnification and reimbursement
obligations in respect of which no claim for payment has yet been asserted by
the Person entitled thereto) or any part thereof are outstanding or Lender has
any Commitment hereunder, Borrower will perform and observe the following
negative covenants, unless Lender shall otherwise consent in writing:” 

     (m)
Amendments to Article IX. The lead-in sentence to Article IX is
hereby amended and restated to read in its entirety as follows: 

– 10 – 

     “Borrower
covenants and agrees that, as long as the Obligations or any part thereof are
outstanding or Lender has any Commitment hereunder, Borrower will, at all times,
perform and observe the following financial covenants, unless Lender shall
otherwise consent in writing:” 

     (n) Amendments to Section
10.2. Section 10.2 is hereby amended and restated to read in its
entirety as follows: 

     Section 10.2 Remedies Upon
Default. If any Event of Default occurs and is continuing, Lender may take
any or all of the following actions: 

     (a)
declare any Commitment, or all of them, to be terminated, whereupon each such
Commitment shall be terminated; 

     (b)
declare the unpaid principal amount of all outstanding Loans, all interest
accrued and unpaid thereon, and all other amounts owing or payable hereunder or
under any other Loan Document to be immediately due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by Borrower; and 

     (c)
exercise all rights and remedies available to it under the Loan Documents or
applicable law; 

provided, however, that
upon the occurrence of an actual or deemed entry of an order for relief with
respect to Borrower under the Bankruptcy Code of the United States, the
Commitments shall automatically terminate, and the unpaid principal amount of
all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, in each case without further act of
Lender. 

     (o) Amendments to Section
11.9. The last sentence of Section 11.9 is hereby amended and
restated to read in its entirety as follows: 

“Without prejudice to the survival of
any other obligation of Borrower hereunder, the obligations of Borrower under
Sections 11.1 and 11.2 shall survive termination of the
Commitments and repayment in full of all Obligations hereunder.” 

     (p) Amendment to Lender’s
Notice Address. Lender’s address for notices delivered pursuant to the Loan
Agreement and the other Loan Documents shall be amended to the following: 

	Address for Notices: 	LegacyTexas Bank 
	  	8411 Preston Road, Suite 600 
	  	Dallas, Texas 75225 
	Fax No.: 	(214) 473-2331 
	Telephone No.: 	(214) 217-7044 
	Attention: 	Lindsey Burris 

– 11 – 

	e-mail: 	Lindsey.Burris@legacytexas.com

     (q)
Addition of New Exhibit B. A new Exhibit B is hereby added to the
Loan Agreement as the Exhibit B attached hereto for all purposes under
the Loan Agreement, and any reference to Exhibit B in any Loan Document
shall refer to the Exhibit B attached hereto. 

     (r)
Addition of New Exhibit C. A new Exhibit C is hereby added to the
Loan Agreement as the Exhibit C attached hereto for all purposes under
the Loan Agreement, and any reference to Exhibit C in any Loan Document
shall refer to the Exhibit C attached hereto. 

     3. Full Force and Effect of
Agreement. Except as hereby specifically amended, modified or supplemented,
Borrower hereby acknowledges and agrees that the Loan Agreement and all of the
other Loan Documents are hereby confirmed and ratified in all respects and shall
remain in full force and effect according to their respective terms. 

     4. Representations and
Warranties. Borrower hereby certifies that after giving effect to this
Amendment: 

     (a) All
of the representations and warranties in the Loan Agreement and in the other
Loan Documents are true and correct in all material respects on and as of the
date hereof with the same force and effect as if such representations and
warranties had been made on and as of the date hereof, except to the extent such
representations and warranties speak to a specific date; 

     (b) This
Amendment has been duly authorized, executed and delivered by Borrower and
Guarantor and constitutes a legal, valid and binding obligation of such parties,
enforceable against such parties in accordance with its terms, except as limited
by Debtor Relief Laws and general principles of equity; and 

     (c) No
Default or Material Adverse Effect exists. 

     5. Conditions to
Effectiveness. This Amendment shall not be effective until the following
conditions precedent have been satisfied: 

     (a)
Lender shall have received, in form and substance satisfactory to Lender, each
of the following: 

     (i)
counterparts of this Amendment executed by Borrower and Lender and
ratified by Guarantor; 

     (ii) the
Revolving Credit Note executed by Borrower; 

     (iii) a
written consent of Healthcare Financial Solutions, LLC, as the successor in
interest to General Electric Capital Corporation (“GECC”), to the transactions contemplated by this
Amendment, as required by the terms of that certain Subordination Agreement,
dated as of July 30, 2015, by and between Lender and GECC; 

– 12 – 

     (iv)
resolutions of the governing body of each of Borrower and Guarantor certified by
a Responsible Officer of such Person, which authorize the execution, delivery,
and performance by such Person of this Amendment and the other Loan Documents to
be executed by such Person in connection herewith;

      (v) a certificate of
incumbency certified by a Responsible Officer of each of Borrower and Guarantor
certifying (A) the names of the individuals or other Persons authorized to sign
this Amendment and the other Loan Documents to be executed by such Person in
connection herewith on behalf of such Person, together with specimen signatures
of such Persons, and (B) that the Constituent Documents of such Person have not
been amended, modified, or repealed in any respect since the Closing Date and
are in full force and effect as of the date hereof; 

     (vi)
certificates of the appropriate government officials of the state of
incorporation or organization of each of Borrower and Guarantor as to the
existence and good standing of such Person, each dated as of a date acceptable
to Lender; 

     (vii) a
commitment fee equal to 1.00% times the Revolving Credit Commitment; and 

     (viii)
such other documents, instruments and certificates as reasonably requested by
Lender; 

     (b)
Lender shall have received payment or evidence of payment of (i) all costs, fees
and expenses owed by Borrower to Lender including, without limitation, the
reasonable fees and expenses of Winstead PC, counsel to Lender; and (ii) all
other fees agreed to be paid; 

     (c)
Lender shall have received evidence, in form and substance reasonably
satisfactory to Lender, that all actions required to be taken by Borrower in
connection with the transactions contemplated by this Amendment have been taken;
and 

     (d) the
representations and warranties set forth in Section 4 hereof shall be
true and correct in all material respects as of the date hereof. 

Upon the satisfaction of the conditions
set forth in this Section 5, this Amendment shall be effective as of the
date hereof. 

     6. Counterparts. This
Amendment may be executed in one or more counterparts, each of which shall be
deemed an original (including facsimile and electronic copies), but all of which
together shall constitute one and the same instrument. 

– 13 – 

     7. Governing Law. This
Amendment shall in all respects be governed by, and construed in accordance
with, the laws of the State of Texas. 

     8. Severability. Any
provision of this Amendment held by a court of competent jurisdiction to be
invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision held to be
invalid or illegal. 

     9. No Novation. This
Amendment is given as an amendment and modification of, and not as a payment of,
the obligations of Borrower and Guarantor under the Loan Agreement and each
other Loan Document and is not intended to constitute a novation of the Loan
Agreement or any other Loan Document. All of the indebtedness, liabilities and
obligations owing by Borrower and Guarantor under the Loan Agreement and the
other Loan Documents shall continue. 

     10. Loan Document. This
Amendment is a Loan Document and is subject to the terms of the Loan Agreement.

     11. Successors and
Assigns. This Amendment shall be binding upon and inure to the benefit of
Borrower and Lender and their respective successors and assigns, except that
Borrower may not assign or transfer any of its rights or obligations under this
Amendment without the prior written consent of Lender. 

     12. ENTIRE AGREEMENT. THIS
AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES. 

[Remainder of Page Intentionally Left Blank. Signature Pages
Follow.] 

– 14 – 

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

	 	BORROWER: 
	 	 
	 	MARSH LANE SURGICAL
      HOSPITAL, LLC, 
	 	a Texas limited
      liability company 
	 	 	 
	 	 	By: 	NORTHSTAR HEALTHCARE SUBCO, L.L.C., 
	 	 	 	a Delaware limited liability company, 
	 	 	 	its sole Manager 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	By: 	/s/
      Kenneth Klein 
	 	 	 	Kenneth Klein 
	 	 	 	Chief Financial Officer 

First Amendment to Loan Agreement – Signature Page 

	 	LENDER: 
	 	  	  
	 	LEGACYTEXAS BANK, 
	 	successor to ViewPoint Bank, N.A.
  
	 	  	  
	 	  	  
	 	By: 	 
                     /s/ Lindsey
      Burris 
	 	  	Lindsey Burris 
	 	  	Corporate Healthcare Banking Officer
  

First Amendment to Loan Agreement – Signature Page 

REAFFIRMATION OF GUARANTY 

     By signing below, Guarantor (a)
acknowledges, consents and agrees to the execution, delivery and performance by
Borrower of this Amendment, (b) acknowledges and agrees that its obligations in
respect of its Guaranty are not released, diminished, waived, modified, impaired
or affected in any manner by this Amendment or any of the provisions
contemplated herein, (c) ratifies and confirms its obligations under its
Guaranty, (d) acknowledges and agrees that it has no claims or offsets against,
or defenses or counterclaims to, its Guaranty, and (e) acknowledges and agrees
that the term “Guaranteed Obligations” as defined in its Guaranty now includes,
without limitation, the Revolving Credit Advances. 

	 	GUARANTOR: 
	 	  	  
	 	  	  
	 	NOBILIS HEALTH CORP., 
	 	a corporation formed under the laws
      of the 
	 	province of British Columbia 
	 	  	  
	 	  	  
	 	  	  
	 	By: 	/s/
      Kenneth Klein 
	 	  	Kenneth Klein 
	 	  	Chief Financial Officer 

First Amendment to Loan Agreement – Signature Page 

Exhibit B 

[See attached.] 

ADVANCE REQUEST FORM 

	To: LegacyTexas Bank 
	8411 Preston Road, Suite 600 
	Dallas, Texas 75225 
	Attention: Lindsey Burris 

     Ladies and Gentlemen: 

     The undersigned is a Responsible
Officer of Marsh Lane Surgical Hospital, LLC, a Texas limited liability company
(“Borrower”) and is authorized to make and deliver this certificate
pursuant to that certain Loan Agreement, dated as of July 30, 2015 (as the same
may be amended, restated, supplemented or modified from time to time, the
“Loan Agreement”) between Borrower and LegacyTexas Bank, successor
to ViewPoint Bank, N.A. (“Lender”). All terms defined in the Loan
Agreement shall have the same meaning herein. In accordance with the Loan
Agreement, Borrower hereby requests a Revolving Credit Advance (the
“Requested Advance”): 

A. On __________________________ (a Business Day). 

B. In the principal amount of $ ________________. 

     In connection with the foregoing
and pursuant to the terms and provisions of the Loan Agreement, the undersigned
hereby certifies that the following statements are true and correct as of the
date hereof: 

     (i) No Default or Material
Adverse Effect has occurred and is continuing or would result from or after
giving effect to the Requested Advance. 

     (ii) All of the representations
and warranties contained in Article VI of the Loan Agreement and in the
other Loan Documents are true and correct in all material respects on and as of
the date hereof with the same force and effect as if made on and as of such
date, except to the extent such representations and warranties speak to a
specific date. 

     (iii) The amount of the Requested
Advance, when added to the aggregate principal amount of all Revolving Credit
Advances outstanding as of the date hereof, shall not exceed the lesser of (a)
the Revolving Credit Commitment or (b) the Borrowing Base. 

     (iv) All information supplied
below is true, correct, and complete as of the date hereof. 

[Continued on next page] 

Advance Request Form – Page 2 

ADVANCE REQUEST INFORMATION 

	  	  	(a) 	(a) 	Revolving Credit Commitment: 	  	$ 
	  	  	(b) 	(b) 	Current Borrowing Base: 	  	$ 
	  	  	(c) 	(c) 	Outstanding principal amount of  Revolving
      Credit Advances: 		$ 
	  		 	 	 	  	  
	(d) 	(d) 	Net availability for the Requested
      Advance [lesser ofline (a) or (b) minus line (c)]: 	 	$ 
	  		 	 	 	  	  
	  	  	(e) 	(e) 	Amount of Requested Advance: 	  	$ 
	  	  	(f) 	(f) 	Date of Requested Advance: 	  	  

Advance Request Form – Page 3 

	 	BORROWER: 	  
	 	  	  	  
	 	MARSH LANE SURGICAL
      HOSPITAL, LLC, 	  
	 	a Texas limited
      liability company 	  
	 	  	 
	 	 By: 	NORTHSTAR HEALTHCARE SUBCO, L.L.C.,
    
	 	  	a Delaware limited liability company,
    
	 	  	its sole Manager 
	 	  	 
	 	  	  	  
	 	  	By: 	 
    
	 	  	Name: 	 
    
	 	  	Its: 	 
    

Borrowing Base Report - 4 

Exhibit C 

[See attached.] 

BORROWING BASE REPORT 

For the month ended _____________, 20___ (the “Subject Period”)

	LENDER: 	LegacyTexas Bank 
	 	 
	BORROWER: 	Marsh Lane Surgical Hospital, LLC, a Texas
      limited liability company 

This certificate is delivered pursuant to Section 7.1(k)
of that certain Loan Agreement, dated as of July 30, 2015 (as the same may be
amended, restated, supplemented or modified from time to time, the “Loan
Agreement”) between Borrower and Lender. All terms defined in the Loan
Agreement shall have the same meaning herein.

The undersigned certifies to Lender on the date hereof that (a)
the undersigned is a Responsible Officer of Borrower, and that, as such, is
authorized to execute this Certificate on behalf of Borrower, (b) no Default or
Material Adverse Effect has occurred and is continuing, (c) all of the
representations and warranties contained in Article VI of the Loan
Agreement and in the other Loan Documents are true and correct in all material
respects on and as of the date hereof with the same force and effect as if made
on and as of such date, except to the extent such representations and warranties
speak to a specific date, (d) a review of the activities of Borrower and its
Subsidiaries during the Subject Period has been made under the supervision of
the undersigned with a view to determining the amount of the current Borrowing
Base, (e) the Accounts included in the Borrowing Base below meet all conditions
to qualify for inclusion as “Eligible Accounts” under the Loan Agreement, and
(f) the information set forth below is true and correct as of the last day of
the Subject Period. 

	  	  	AT END OF 
	  	  	SUBJECT 
	LINE 	  	PERIOD 
	  	  	  
	  	  	  
	13. 	Total Accounts: 	$ ___________________
	  	  	  
	14. 	Ineligible Accounts: 	$ ___________________

	 	(a) 	
      The Account does not comply with all applicable laws,
      rules, and regulations, including, without limitation, usury laws, the
      Federal Truth in Lending Act, and Regulation Z of the Board of Governors
      of the Federal Reserve System;

Borrowing Base Report - 5 

	  	AT END OF 
	  	SUBJECT 
	LINE 	PERIOD 

	 	(b) 	
      The Account has been outstanding for more than one
      hundred and twenty (120) days past the original date of invoice;

	 	 	 
	 	(c) 	
      The Account represents a commission, or the Account is
      not owed as a result of (i) the sale of goods by a Loan Party in the
      ordinary course of business and such sale has been consummated and such
      goods have been shipped and delivered and received by the Account Debtor,
      or (ii) services performed by a Loan Party in the ordinary course of
      business;

	 	 	 
	 	(d) 	
      The Account does not arise from an enforceable
      contract;

	 	 	 
	 	(e) 	
      The Account arises from the sale of any good that is on a
      bill-and- hold, guaranteed sale, sale-or-return, sale on approval,
      consignment, or any other repurchase or return basis;

	 	 	 
	 	(f) 	
      No Loan Party has good and indefeasible title to the
      Account, or the Account is subject to any Lien other than Liens in favor
      of Lender;

	 	 	 
	 	(g) 	
      The Account arises out of a contract with or order from,
      an Account Debtor that, by its terms, prohibits or makes void or
      unenforceable the grant of a security interest by a Loan Party to Lender
      in and to such Account;

	 	 	 
	 	(h) 	
      The Account is subject to any setoff, counterclaim,
      defense, dispute, recoupment, or adjustment other than normal discounts
      for prompt payment;

	 	 	 
	 	(i) 	
      The Account Debtor is insolvent or is the subject of any
      bankruptcy or insolvency proceeding or has made an assignment for the
      benefit of creditors, suspended normal business operations, dissolved,
      liquidated, terminated its existence, ceased to pay its debts as they
      become due, or suffered a receiver or trustee to be appointed for any of
      its assets or affairs;

	 	 	 
	 	(j) 	
      The Account is evidenced by chattel paper or an
      instrument;

	 	 	 
	 	(k) 	
      A default exists under the Account by any party
      thereto;

Borrowing Base Report - 6 

	  	AT END OF 
	  	SUBJECT 
	LINE 	PERIOD 

	 	(l) 	
      The Account Debtor has returned or refused to retain, or
      has otherwise notified a Loan Party of any dispute concerning, or claimed
      nonconformity of, any of the goods from the sale of which the Account
      arose;

	 	 	 
	 	(m) 	
      The Account is owed by an Affiliate, employee, officer,
      director or shareholder of any Loan Party;

	 	 	 
	 	(n) 	
      The Account is not payable in Dollars by the Account
      Debtor;

	 	 	 
	 	(o) 	
      The Account Debtor is domiciled outside of the United
      States of America, and the Accounts of such Account Debtor are not backed
      by letters of credit in form and substance satisfactory to
  Lender;

	 	 	 
	 	(p) 	
      The Account Debtor is the United States of America or any
      state, department, agency, or instrumentality thereof, including (i) the
      United States of America acting under the Medicaid or Medicare programs or
      any other federal health care program, (ii) any state, territory or the
      District of Columbia acting pursuant to a health plan adopted pursuant to
      the Medicaid or Medicare programs, or any other state health care program
      or (iii) any agent, carrier, administrator or intermediary for any of the
      foregoing;

	 	 	 
	 	(q) 	
      The Account represents a “self-pay” claim;

	 	 	 
	 	(r) 	
      The Account is otherwise not acceptable in the sole
      discretion of Lender; provided that Lender shall have the right to
      create and adjust eligibility standards and related reserves from time to
      time in its good faith credit judgment.

		The amount of the Eligible
      Accounts owed by an Account Debtor to a Loan Party shall be reduced by the
      amount of all “contra accounts” (not including Accounts owed to any Loan
      Party by Lender) and other obligations owed by a Loan Party to such
      Account Debtor. 	
	  	  	  
	15. 	Total Eligible Accounts [Line 1
      minus Line 2]: 	$ ___________________
	  	  	  
	16. 	Outstanding principal amount of
      Revolving Credit Advances as of the last day of the Subject Period: 	$ ___________________
	  	  	  
	17. 	Borrowing Base [Line 3 multiplied
      by 70%]: 	$ ___________________

Borrowing Base Report - 7 

	  	AT END OF 
	  	SUBJECT 
	LINE 	PERIOD 

	18. 	Amount of Revolving Credit
      Commitment: 	$ ___________________
	 	 	 
	19. 	Lesser of Line 5 or Line 6: 	$ ___________________
	 	 	 
	20. 	Amount available for borrowing
      [Line 7 minus Line 4]: 	$ ___________________

Borrowing Base Report - 8 

	 	MARSH LANE SURGICAL HOSPITAL, LLC,
  
	 	a Texas limited liability company
  
	 	  	 	  
	 	By: 	NORTHSTAR HEALTHCARE
      SUBCO, L.L.C., 
	 	 	a Delaware limited
      liability company, 
	 	  	its sole Manager 
	 	  	 
	 	  	 	  
	 	  	 	  
	 	  	By: 	
	 	  	Name: 	
	 	  	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]