Document:

exhibit41-indenture

                                             Exhibit 4.1                                   EXECUTION VERSION                                                                    EVOLENT HEALTH, INC.                                                                             AND                                                              U.S. BANK NATIONAL ASSOCIATION,                                                                           as Trustee                                                                          INDENTURE                                                                    Dated as of August 19, 2020   3.50% Convertible Senior Notes due 2024                               

 

                               TABLE OF CONTENTS       ARTICLE 1 DEFINITIONS ........................................................................................................... 1      Section 1.01.  Definitions ....................................................................................................1     Section 1.02.  References to Interest .................................................................................13   ARTICLE 2 ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF  NOTES .......................................................................................................................................... 13      Section 2.01.  Designation and Amount............................................................................13     Section 2.02.  Form of Notes ............................................................................................13     Section 2.03.  Date  and  Denomination  of  Notes;  Payments  of  Interest  and  Defaulted                    Amounts......................................................................................................14     Section 2.04.  Execution, Authentication and Delivery of Notes ......................................15     Section 2.05.  Exchange and Registration of Transfer of Notes; Restrictions on Transfer;                    Depositary. .................................................................................................16     Section 2.06.  Mutilated, Destroyed, Lost or Stolen Notes ...............................................22     Section 2.07.  Temporary Notes ........................................................................................23     Section 2.08.  Cancellation of Notes Paid, Converted, Etc. .............................................24     Section 2.09.  CUSIP Numbers .........................................................................................24     Section 2.10.  Additional Notes; Repurchases ..................................................................24   ARTICLE 3 SATISFACTION AND DISCHARGE .................................................................... 25      Section 3.01.  Satisfaction and Discharge ........................................................................25   ARTICLE 4 PARTICULAR COVENANTS OF THE COMPANY ........................................... 25      Section 4.01.  Payment of Principal and Interest .............................................................25     Section 4.02.  Maintenance of Office or Agency ..............................................................25     Section 4.03.  Appointments to Fill Vacancies in Trustee’s Office ..................................26     Section 4.04.  Provisions as to Paying Agent. ..................................................................26     Section 4.05.  [Intentionally Omitted]. .............................................................................27     Section 4.06.  Rule 144A Information Requirement and Annual Reports. .......................27     Section 4.07.  Stay, Extension and Usury Laws ................................................................29     Section 4.08.  Compliance Certificate; Statements as to Defaults ...................................29     Section 4.09.  Further Instruments and Acts ....................................................................30   ARTICLE 5 LISTS OF HOLDERS AND REPORTS BY THE COMPANY AND THE TRUSTEE ....................................................................................................................................................... 30      Section 5.01.  Lists of Holders ..........................................................................................30     Section 5.02.  Preservation and Disclosure of Lists .........................................................30     

 

   ARTICLE 6 DEFAULTS AND REMEDIES............................................................................... 30      Section 6.01.  Events of Default ........................................................................................30     Section 6.02.  Acceleration; Rescission and Annulment ...................................................31     Section 6.03.  Additional Interest .....................................................................................32     Section 6.04.  Payments of Notes on Default; Suit Therefor ............................................33     Section 6.05.  Application of Monies Collected by Trustee ..............................................35     Section 6.06.  Proceedings by Holders .............................................................................36     Section 6.07.  Proceedings by Trustee ..............................................................................37     Section 6.08.  Remedies Cumulative and Continuing .......................................................37     Section 6.09.  Direction of Proceedings and Waiver of Defaults by Majority of Holders                   ....................................................................................................................37     Section 6.10.  Notice of Defaults ......................................................................................38     Section 6.11.  Undertaking to Pay Costs ..........................................................................38   ARTICLE 7 CONCERNING THE TRUSTEE ............................................................................ 38      Section 7.01.  Duties and Responsibilities of Trustee .......................................................38     Section 7.02.  Reliance on Documents, Opinions, Etc......................................................40     Section 7.03.  No Responsibility for Recitals, Etc. ...........................................................41     Section 7.04.  Trustee,  Paying  Agents,  Conversion  Agents  or  Note  Registrar  May  Own                    Notes ..........................................................................................................41     Section 7.05.  Monies and Shares of Class A Common Stock to Be Held in Trust ...........41     Section 7.06.  Compensation and Expenses of Trustee ....................................................41     Section 7.07.  Officer’s Certificate as Evidence ...............................................................42     Section 7.08.  Eligibility of Trustee ..................................................................................42     Section 7.09.  Resignation or Removal of Trustee. ...........................................................43     Section 7.10.  Acceptance by Successor Trustee ..............................................................44     Section 7.11.  Succession by Merger, Etc. ........................................................................44     Section 7.12.  Trustee’s Application for Instructions from the Company ........................45   ARTICLE 8 CONCERNING THE HOLDERS ........................................................................... 45      Section 8.01.  Action by Holders ......................................................................................45     Section 8.02.  Proof of Execution by Holders ...................................................................46     Section 8.03.  Persons Who Are Deemed Absolute Owners .............................................46     Section 8.04.  Company-Owned Notes Disregarded ........................................................46     Section 8.05.  Revocation of Consents; Future Holders Bound .......................................47   ARTICLE 9 HOLDERS’ MEETINGS ......................................................................................... 47      Section 9.01.  Purpose of Meetings ..................................................................................47     Section 9.02.  Call of Meetings by Trustee .......................................................................47     Section 9.03.  Call of Meetings by Company or Holders .................................................48     Section 9.04.  Qualifications for Voting ...........................................................................48     Section 9.05.  Regulations ................................................................................................48     Section 9.06.  Voting .........................................................................................................49     

 

      Section 9.07.  No Delay of Rights by Meeting ..................................................................49   ARTICLE 10 SUPPLEMENTAL INDENTURES ...................................................................... 49      Section 10.01. Supplemental Indentures Without Consent of Holders ..............................49     Section 10.02. Supplemental Indentures with Consent of Holders ....................................50     Section 10.03. Effect of Supplemental Indentures .............................................................51     Section 10.04. Notation on Notes ......................................................................................51     Section 10.05. Evidence  of  Compliance  of  Supplemental  Indenture  to  Be  Furnished                    Trustee........................................................................................................52   ARTICLE 11 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE ............ 52      Section 11.01. Company May Consolidate, Etc. on Certain Terms ..................................52     Section 11.02. Successor Corporation to Be Substituted ..................................................52     Section 11.03. Opinion of Counsel to Be Given to Trustee ...............................................53   ARTICLE  12  IMMUNITY  OF  INCORPORATORS,  STOCKHOLDERS,  OFFICERS  AND  DIRECTORS ................................................................................................................................ 53      Section 12.01. Indenture and Notes Solely Corporate Obligations...................................53   ARTICLE 13 [INTENTIONALLY OMITTED] .......................................................................... 53   ARTICLE 14 CONVERSION OF NOTES .................................................................................. 54      Section 14.01. Conversion Privilege .................................................................................54     Section 14.02. Conversion Procedure; Settlement Upon Conversion. ..............................54     Section 14.03. Increased  Conversion  Rate  Applicable  to  Certain  Notes  Surrendered  in                    Connection with Make-Whole Fundamental Changes. .............................58     Section 14.04. Adjustment of Conversion Rate ..................................................................60     Section 14.05. Adjustments of Prices .................................................................................69     Section 14.06. Shares to Be Fully Paid .............................................................................70     Section 14.07. Effect of Recapitalizations, Reclassifications and Changes of the Class A                    Common Stock. ..........................................................................................70     Section 14.08. Certain Covenants. ....................................................................................72     Section 14.09. Responsibility of Trustee ............................................................................72     Section 14.10. Notice to Holders Prior to Certain Actions ...............................................73     Section 14.11. Stockholder Rights Plans ...........................................................................73   ARTICLE 15 REPURCHASE OF NOTES AT OPTION OF HOLDERS .................................. 73      Section 15.01. [Intentionally Omitted] ..............................................................................74     Section 15.02. Repurchase at Option of Holders Upon a Fundamental Change. .............74     Section 15.03. Withdrawal of Fundamental Change Repurchase Notice. ........................76     Section 15.04. Deposit of Fundamental Change Repurchase Price. .................................76     Section 15.05. Covenant to Comply with Applicable Laws Upon Repurchase of Notes ...77     

 

   ARTICLE 16 OPTIONAL REDEMPTION ................................................................................. 78      Section 16.01. Optional Redemption .................................................................................78     Section 16.02. Notice of Optional Redemption; Selection of Notes. .................................78     Section 16.03. Payment of Notes Called for Redemption. .................................................79     Section 16.04. Restrictions on Redemption .......................................................................80   ARTICLE 17 MISCELLANEOUS PROVISIONS ...................................................................... 80      Section 17.01. Provisions Binding on Company’s Successors ..........................................80     Section 17.02. Official Acts by Successor Corporation .....................................................80     Section 17.03. Addresses for Notices, Etc. ........................................................................80     Section 17.04. Governing Law; Jurisdiction .....................................................................81     Section 17.05. Evidence  of  Compliance  with  Conditions  Precedent;  Certificates  and                    Opinions of Counsel to Trustee..................................................................81     Section 17.06. Legal Holidays ...........................................................................................82     Section 17.07. No Security Interest Created ......................................................................82     Section 17.08. Benefits of Indenture ..................................................................................82     Section 17.09. Table of Contents, Headings, Etc. .............................................................82     Section 17.10. Authenticating Agent ..................................................................................82     Section 17.11. Execution in Counterparts .........................................................................84     Section 17.12. Severability ................................................................................................84     Section 17.13. Waiver of Jury Trial ...................................................................................84     Section 17.14. Force Majeure ...........................................................................................84     Section 17.15. Calculations ...............................................................................................84     Section 17.16. USA PATRIOT Act .....................................................................................84       Exhibit A      Form of Note                                            A-1         

 

                                                               INDENTURE  dated  as  of  August  19,  2020  between  EVOLENT  HEALTH,  INC.,  a  Delaware  corporation,  as  issuer  (the  “Company,”  as  more  fully  set  forth  in  Section  1.01  [Definitions]) and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as  trustee (the “Trustee,” as more fully set forth in Section 1.01 [Definitions]).                                 W I T N E S S E T H:         WHEREAS,  for  its  lawful  corporate  purposes,  the  Company  has  duly  authorized  the  issuance of its 3.50% Convertible Senior Notes due 2024 (the “Notes”), initially in an aggregate  principal amount not to exceed $117,051,000, and in order to provide the terms and conditions  upon  which  the  Notes  are  to  be  authenticated,  issued  and  delivered,  the  Company  has  duly  authorized the execution and delivery of this Indenture; and         WHEREAS, the Form of Note, the certificate of authentication to be borne by each Note,  the Form of Notice of Conversion, the Form of Fundamental Change Repurchase Notice and the  Form of Assignment and Transfer to be borne by the Notes are to be substantially in the forms  hereinafter provided; and         WHEREAS,  all  acts  and  things  necessary  to  make  the  Notes,  when  executed  by  the  Company and authenticated and delivered by the Trustee or a duly authorized authenticating agent,  as in this Indenture provided, the valid, binding and legal obligations of the Company, and this  Indenture  a  valid  agreement  according  to  its  terms,  have  been  done  and  performed,  and  the  execution of this Indenture and the issuance hereunder of the Notes have in all respects been duly  authorized.         NOW, THEREFORE, THIS INDENTURE WITNESSETH:         That in order to declare the terms and conditions upon which the Notes are, and are to be,  authenticated, issued and delivered, and in consideration of the premises and of the purchase and  acceptance  of  the  Notes  by  the  Holders  thereof,  the  Company  covenants  and  agrees  with  the  Trustee for the benefit of each other and for the equal and proportionate benefit of the respective  Holders from time to time of the Notes (except as otherwise provided below), as follows:                                      Article 1                                    Definitions         Section 1.01. Definitions.  The terms defined in this Section 1.01 [Definitions] (except as  herein otherwise expressly provided or unless the context otherwise requires) for all purposes of  this  Indenture  and  of  any  indenture  supplemental  hereto  shall  have  the  respective  meanings  specified in this Section 1.01 [Definitions].  The words “herein,” “hereof,” “hereunder” and words  of similar import refer to this Indenture as a whole and not to any particular Article, Section or  other subdivision.  The word “or” shall not be construed as being exclusive.  The terms defined in  this Article include the plural as well as the singular.         “Additional Interest” means all amounts, if any, payable pursuant to Section 4.06(d) [Rule  144A Information Requirement and Annual Reports], Section 4.06(e) [Rule 144A Information  Requirement and Annual Reports] and Section 6.03 [Additional Interest], as applicable.     

 

         “Additional  Shares”  shall  have  the  meaning  specified  in  Section  14.03(a)  [Increased  Conversion  Rate  Applicable  to  Certain  Notes  Surrendered  in  Connection  with  Make-Whole  Fundamental Changes].         “Affiliate”  of  any  specified  Person  means  any  other  Person  directly  or  indirectly  controlling or controlled by or under direct or indirect common control with such specified Person.   For  the  purposes  of  this  definition,  “control,” when  used  with  respect  to  any  specified  Person  means the power to direct or cause the direction of the management and policies of such Person,  directly or indirectly, whether through the ownership of voting securities, by contract or otherwise;  and  the  terms  “controlling”  and  “controlled”  have  meanings  correlative  to  the  foregoing.   Notwithstanding anything to the contrary herein, the determination of whether one Person is an  “Affiliate” of another Person for purposes of this Indenture shall be made based on the facts at the  time such determination is made or required to be made, as the case may be, hereunder.         “Board of Directors” means the board of directors of the Company or a committee of such  board duly authorized to act for it hereunder.         “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant  Secretary of the Company to have been duly adopted by the Board of Directors or pursuant to  authorization by the Board  of Directors, and to be in full force and effect on the date of such  certification, and delivered to the Trustee.         “Business Day” means, with respect to any Note, any day other than a Saturday, a Sunday  or a day on which the Federal Reserve Bank of New York is authorized or required by law or  executive order to close or be closed.         “Capital Stock” means, for any entity, any and all shares, interests, rights to purchase,  warrants, options, participations or other equivalents of or interests in (however designated) stock  issued by that entity.         “Cash  Settlement”  shall  have  the  meaning  specified  in  Section  14.02(a)  [Conversion  Procedure; Settlement Upon Conversion].         “Class A Common Stock” means the Class A common stock of the Company, par value  $0.01  per  share,  subject  to  Section  14.07  [Effect  of  Recapitalizations,  Reclassifications  and  Changes of the Class A Common Stock].         “Class B Common Stock” means the Class B common stock of the Company, par value  $0.01 per share.         “Class B Common Units” means the Class B common units of Evolent Health LLC.         “Clause A Distribution” shall have the meaning specified in Section 14.04(c) [Adjustment  of Conversion Rate].         “Clause B Distribution” shall have the meaning specified in Section 14.04(c) [Adjustment  of Conversion Rate].                                          2 

 

         “Clause C Distribution” shall have the meaning specified in Section 14.04(c) [Adjustment  of Conversion Rate].         “close of business” means 5:00 p.m. (New York City time).         “Combination  Settlement”  shall  have  the  meaning  specified  in  Section  14.02(a)  [Conversion Procedure; Settlement Upon Conversion].         “Commission” means the U.S. Securities and Exchange Commission.         “Common Equity” of any Person means Capital Stock of such Person that is generally  entitled  (a)  to  vote  in  the  election  of  directors  of  such  Person  or  (b)  if  such  Person  is  not  a  corporation,  to  vote  or  otherwise  participate  in  the  selection  of  the  governing  body,  partners,  managers or others that will control the management or policies of such Person.         “Company” shall have the meaning specified in the first paragraph of this Indenture, and  subject to the provisions of Article 11 [Consolidation, Merger, Sale, Conveyance and Lease], shall  include its successors and assigns.         “Company Order” means a written order of the Company, signed by (a) the Company’s  Chief Executive Officer, Chief Financial Officer, President, Controller, Executive or Senior Vice  President or any Vice President (whether or not designated by a number or numbers or word or  words added before or after the title “Vice President”) and (b) any such other Officer designated  in clause (a) of this definition or the Company’s Treasurer or Assistant Treasurer or Secretary or  any Assistant Secretary, and delivered to the Trustee.         “Conversion Agent” shall have the meaning specified in Section 4.02 [Maintenance of  Office or Agency].         “Conversion  Date”  shall  have  the  meaning  specified  in  Section  14.02(c)  [Conversion  Procedure; Settlement Upon Conversion].         “Conversion Obligation” shall have the meaning specified in Section 14.01 [Conversion  Privilege].         “Conversion Price” means, as of any time, $1,000, divided by the Conversion Rate as of  such time.         “Conversion  Rate”  shall  have  the  meaning  specified  in  Section  14.01  [Conversion  Privilege].         “Corporate Trust Office” means the principal office of the Trustee at which at any time  its corporate trust business shall be administered, which office at the date hereof is located at 1021  East Cary Street, Suite 1850, Richmond, Virginia 23219, Attention: Account Manager, or such  other address as the Trustee may designate from time to time by notice to the Holders and the  Company, or the principal corporate trust office of any successor trustee (or such other address as  such successor trustee may designate from time to time by notice to the Holders and the Company).                                          3 

 

         “Custodian” means the Trustee, as custodian for The Depository Trust Company, with  respect to the Global Notes, or any successor entity thereto.         “Daily Conversion Value” means, for each of the 20 consecutive Trading Days during the  relevant Observation Period, 5% of the product of (a) the Conversion Rate on such Trading Day  and (b) the Daily VWAP for such Trading Day.         “Daily Measurement Value” means the Specified Dollar Amount (if any) divided by 20.         “Daily  Settlement  Amount”  for  each  of  the  20  consecutive  Trading  Days  during  the  relevant Observation Period, shall consist of:               (a)   cash in an amount equal to the lesser of (i) the Daily Measurement Value        and (ii) the Daily Conversion Value on such Trading Day; and               (b)   if  the  Daily  Conversion  Value  on  such  Trading  Day  exceeds  the  Daily        Measurement  Value,  a  number  of  shares  of  Class  A  Common  Stock  equal  to  (i)  the        difference between the Daily Conversion Value and the Daily Measurement Value, divided        by, (ii) the Daily VWAP for such Trading Day.         “Daily VWAP” means, for each of the 20 consecutive Trading Days during the relevant  Observation Period, the per share volume-weighted average price as displayed under the heading  “Bloomberg VWAP” on Bloomberg page “EVH <equity> AQR” (or its equivalent successor if  such page is not available) in respect of the period from the scheduled open of trading until the  scheduled close of trading of the primary trading session on such Trading Day (or if such volume- weighted average price is unavailable, the market value of one share of Class A Common Stock  on  such  Trading  Day  determined,  using  a  volume-weighted  average  method,  by  a  nationally  recognized independent investment banking firm retained by the Company for this purpose). The  “Daily VWAP” shall be determined without regard to after-hours trading or any other trading  outside of the regular trading session trading hours.         “Default” means any event that is, or after notice or passage of time, or both, would be, an  Event of Default.         “Defaulted Amounts” means any amounts on any Note (including, without limitation, the  Redemption  Price,  the  Fundamental  Change  Repurchase  Price,  principal  and  interest)  that  are  payable but are not punctually paid or duly provided for.         “Depositary” means, with respect to each Global Note, the Person specified in Section  2.05(c) [Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary] as  the Depositary with respect to such Notes, until a successor shall have been appointed and become  such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall  mean or include such successor.         “Distributed Property” shall have the meaning specified in Section 14.04(c) [Adjustment  of Conversion Rate].                                          4 

 

         “Effective  Date”  shall  have  the  meaning  specified  in  Section  14.03(c)  [Increased  Conversion  Rate  Applicable  to  Certain  Notes  Surrendered  in  Connection  with  Make-Whole  Fundamental Changes], except that, as used in Section 14.04 [Adjustment of Conversion Rate]  and Section 14.05 [Adjustments of Prices], “Effective Date” means the first date on which shares  of the Class A Common Stock trade on the applicable exchange or in the applicable market, regular  way, reflecting the relevant share split or share combination, as applicable.         “Event of Default” shall have the meaning specified in Section 6.01 [Events of Default].         “Ex-Dividend Date” means the first date on which shares of the Class A Common Stock  trade on the applicable exchange or in the applicable market, regular way, without the right to  receive the issuance, dividend or distribution in question, from the Company or, if applicable, from  the seller of Class A Common Stock on such exchange or market (in the form of due bills or  otherwise) as determined by such exchange or market.         “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules  and regulations promulgated thereunder.         “Form  of  Assignment  and  Transfer”  means  the  “Form  of  Assignment  and  Transfer”  attached as Attachment 3 to the Form of Note attached hereto as Exhibit A.         “Form of Fundamental Change Repurchase Notice” means the “Form of Fundamental  Change Repurchase Notice” attached as  Attachment 2 to the Form of Note attached hereto as  Exhibit A.         “Form of Note” means the “Form of Note” attached hereto as Exhibit A.         “Form of Notice of Conversion” means the “Form of Notice of Conversion” attached as  Attachment 1 to the Form of Note attached hereto as Exhibit A.         “Fundamental Change” shall be deemed to have occurred at the time after the Notes are  originally issued if any of the following occurs:               (a)  except as described in clause (b) below, (1) a “person” or “group” within        the meaning of Section 13(d) of the Exchange Act, other than the Company, its Wholly        Owned Subsidiaries and the employee benefit plans of the Company and its Wholly Owned        Subsidiaries, has become the direct or indirect “beneficial owner,” as defined in Rule 13d-       3 under the Exchange Act, of the Company’s Common Equity representing more than 50%        or, in the case of the Permitted Holders collectively, more than 60% of the voting power        of the Company’s Common Equity; provided, however, that a “person” or “group” shall        not be deemed a beneficial owner of, or to own beneficially, (x) any securities tendered        pursuant to a tender or exchange offer made by or on behalf of such “person” or “group”        pursuant  to  a  Schedule  TO  (or  any  successor  form)  until  such  tendered  securities  are        accepted  for  purchase  or  exchange  thereunder  or  (y)  any  securities  to  the  extent  such        beneficial ownership (i) arises solely as a result of a revocable proxy delivered to such        “person” or “group” by a shareholder that is not, for the avoidance of doubt, a member of        such “group” in response to a proxy or consent solicitation made pursuant to, and disclosed        in accordance with, the applicable rules and regulations under the Exchange Act, and (ii)                                         5 

 

         is not also then reportable on Schedule 13D or Schedule 13G (or any successor schedule)        under the Exchange Act; and (2) such “person” or “group” files, or the Company files, a        Schedule TO or any schedule, form or report under the Exchange Act disclosing that such        an event described in the immediately preceding clause (1) has occurred;                (b)  the consummation of (A) any recapitalization, reclassification or change of        the  Class  A  Common  Stock  (other  than  changes  resulting  from  a  subdivision  or        combination) as a result of which the Class A Common Stock would be converted into, or        exchanged for, stock, other securities, other property or assets; (B) any share exchange,        consolidation or merger of the Company pursuant to which the Class A Common Stock        will be converted into cash, securities or other property or assets; or (C) any sale, lease or        other transfer in one transaction or a series of transactions of all or substantially all of the        consolidated assets of the Company and its Subsidiaries, taken as a whole, to any Person        other  than  one  of  the  Company’s  Subsidiaries;  provided,  however,  that  a  transaction        described in clause (B) in which the holders of all classes of the Company’s Common        Equity immediately prior to such transaction hold, directly or indirectly, more than 50% of        the  voting  power  of  all  classes  of  Common  Equity  of  the  continuing  or  surviving        corporation  or  transferee  or  the  parent  thereof  immediately  after  such  transaction  in        substantially the same proportions as such holders held, directly or indirectly, immediately        prior to such transaction shall not be a Fundamental Change pursuant to this clause (b);               (c)  the  stockholders  of  the  Company  approve  any  plan  or  proposal  for  the        liquidation or dissolution of the Company; or               (d)  the Class A Common Stock (or other Class A common stock underlying the        Notes)  ceases  to  be  listed  or  quoted  on  any  of  The  New  York  Stock  Exchange,  The        NASDAQ  Global  Select  Market  or  The  NASDAQ  Global  Market  (or  any  of  their        respective successors);   provided,  however,  that  a  transaction  or  transactions  described  in  clause  (b)  above  shall  not  constitute a Fundamental Change, if at least 90% of the consideration received or to be received  by the holders of the Class A Common Stock, excluding cash payments for fractional shares, in  connection with such transaction or transactions consists of shares of common stock or American  depositary receipts in respect thereof that are listed or quoted on any of The New York Stock  Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their  respective successors) or will be so listed or quoted when issued or exchanged in connection with  such transaction or transactions and as a result of such transaction or transactions the Notes become  convertible into such consideration, excluding cash payments for fractional shares (subject to the  provisions of Section 14.02(a) [Conversion Procedure; Settlement Upon Conversion]).  For the  avoidance of doubt, if a transaction constitutes a Fundamental Change pursuant to both clause (a)  and clause (b) above, such transaction shall be treated as a Fundamental Change solely pursuant  to clause (b) above for purposes of the exclusion described in this paragraph.  If any transaction in  which the Class A Common Stock is replaced by the securities of another entity occurs, following  completion  of  any  related  Make-Whole  Fundamental  Change  Period  (or,  in  the  case  of  a  transaction that would have been a Fundamental Change or a Make-Whole Fundamental Change  but for the proviso immediately following clause (d) of this definition, following the effective date                                          6 

 

   of such transaction) references to the Company in this definition shall instead be references to such  other entity.         “Fundamental Change Company Notice” shall have the meaning specified in Section  15.02(c) [Repurchase at Option of Holders Upon a Fundamental Change].         “Fundamental Change Repurchase Date” shall have the meaning specified in Section  15.02(a) [Repurchase at Option of Holders Upon a Fundamental Change].         “Fundamental Change Repurchase Notice” shall have the meaning specified in Section  15.02(b)(i) [Repurchase at Option of Holders Upon a Fundamental Change].         “Fundamental Change Repurchase Price” shall have the meaning specified in Section  15.02(a) [Repurchase at Option of Holders Upon a Fundamental Change].         “Global  Note”  shall  have  the  meaning  specified  in  Section  2.05(b)  [Exchange  and  Registration of Transfer of Notes; Restrictions on Transfer; Depositary].         “Holder,” as applied to any Note, or other similar terms (but excluding the term “beneficial  holder”), means any Person in whose name at the time a particular Note is registered on the Note  Register.         “Indenture” means this instrument as originally executed or, if amended or supplemented  as herein provided, as so amended or supplemented.         “Interest Payment Date” means each June 1 and December 1 of each year, beginning on  December 1, 2020.         “Last Reported Sale Price” of the Class A Common Stock (or any other security) on any  date means the closing sale price per share (or if no closing sale price is reported, the average of  the bid and ask prices or, if more than one in either case, the average of the average bid and the  average  ask  prices)  on  that  date  as  reported  in  composite  transactions  for  the  principal  U.S.   national  or  regional  securities  exchange  on  which  the  Class  A  Common  Stock  (or  such  other  security) is traded.  If the Class A Common Stock (or such other security) is not listed for trading  on a U.S. national or regional securities exchange on the relevant date, the “Last Reported Sale  Price” shall be the last quoted bid price for the Class A Common Stock (or such other security) in  the over-the-counter market on the relevant date as reported by OTC Markets Group Inc.  or a  similar organization.  If the Class A Common Stock (or such other security) is not so quoted, the  “Last Reported Sale Price” shall be the average of the mid-point of the last bid and ask prices for  the Class A Common Stock (or such other security) on the relevant date from each of at least three  nationally recognized independent investment banking firms selected by  the Company for this  purpose.         “Make-Whole Fundamental Change” means any transaction or event that constitutes a  Fundamental Change (as defined above and determined after giving effect to any exceptions to or  exclusions from such definition, but without regard to the proviso in clause (b) of the definition  thereof).                                          7 

 

         “Make-Whole Fundamental Change Period” shall have the meaning specified in Section  14.03(a) [Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with  Make-Whole Fundamental Changes].         “Market Disruption Event” means, for the purposes of determining amounts due upon  conversion (a) a failure by the primary U.S. national or regional securities exchange or market on  which the Class A Common Stock is listed or admitted for trading to open for trading during its  regular trading session or (b) the occurrence or existence prior to 1:00 p.m., New York City time,  on any Scheduled Trading Day for the Class A Common Stock for more than one half-hour period  in the aggregate during regular trading hours of any suspension or limitation imposed on trading  (by reason of movements in price exceeding limits permitted by the relevant stock exchange or  otherwise) in the Class A Common Stock or in any options contracts or futures contracts relating  to the Class A Common Stock.         “Maturity Date” means December 1, 2024.         “Note” or “Notes” shall have the meaning specified in the first paragraph of the recitals of  this Indenture.         “Note  Register”  shall  have  the  meaning  specified  in  Section  2.05(a)  [Exchange  and  Registration of Transfer of Notes; Restrictions on Transfer; Depositary].         “Note  Registrar”  shall  have  the  meaning  specified  in  Section  2.05(a)  [Exchange  and  Registration of Transfer of Notes; Restrictions on Transfer; Depositary].         “Notice of Conversion” shall have the meaning specified in Section 14.02(b) [Conversion  Procedure; Settlement Upon Conversion].         “Notice of Redemption” shall have the meaning specified in 16.02(a) [Notice of Optional  Redemption; Selection of Notes].         “Observation  Period”  with  respect  to  any  Note  surrendered  for  conversion  means:  (i) subject  to  clause  (ii),  if  the  relevant  Conversion  Date  occurs  prior  to  June  1,  2024,  the  20  consecutive Trading Day period beginning on, and including, the second Trading Day immediately  succeeding such Conversion Date; (ii) if the relevant Conversion Date occurs on or after the date  of the Company’s issuance of a Notice of Redemption with respect to the Notes pursuant to Section  16.02 [Notice of Optional Redemption; Selection of Notes] and prior to the relevant Redemption  Date, the 20 consecutive Trading Days beginning on, and including, the 41st Scheduled Trading  Day immediately preceding such Redemption Date; and (iii) subject to clause (ii), if the relevant  Conversion Date occurs on or after June 1, 2024, the 20 consecutive Trading Days beginning on,  and including, the 41st Scheduled Trading Day immediately preceding the Maturity Date.         “Officer” means, with respect to the Company, the President, the Chief Executive Officer,  the  Treasurer,  the  Secretary,  any  Executive  or  Senior  Vice  President  or  any  Vice  President  (whether or not designated by a number or numbers or word or words added before or after the  title “Vice President”).                                          8 

 

         “Officer’s Certificate,” when used with respect to the Company, means a certificate that  is delivered to the Trustee and that is signed by one Officer of the Company.  Each such certificate  shall  include  the  statements  provided  for  in  Section  17.05  [Evidence  of  Compliance  with  Conditions  Precedent;  Certificates  and  Opinions  of  Counsel  to  Trustee]  if  and  to  the  extent  required by the provisions of such Section.           “open of business” means 9:00 a.m. (New York City time).         “Opinion of Counsel” means an opinion in writing signed by legal counsel, who may be  an employee of or counsel to the Company, or other counsel acceptable to the Trustee, that is  delivered to the Trustee.           “Optional  Redemption”  shall  have  the  meaning  specified  in  Section  16.01  [Optional  Redemption].         “outstanding,”  when  used  with  reference  to  Notes,  shall,  subject  to  the  provisions  of  Section 8.04 [Company-Owned Notes Disregarded], mean, as of any particular time, all Notes  authenticated and delivered by the Trustee under this Indenture, except:               (a)  Notes theretofore canceled by the Trustee or accepted by the Trustee for        cancellation;               (b)  Notes, or portions thereof, that have become due and payable and in respect        of which monies in the necessary amount shall have been deposited in trust with the Trustee        or  with  any  Paying  Agent  (other  than  the  Company)  or  shall  have  been  set  aside  and        segregated in trust by the Company (if the Company shall act as its own Paying Agent);               (c)  Notes that have been paid pursuant to Section 2.06 [Mutilated, Destroyed,        Lost or Stolen Notes] or Notes in lieu of which, or in substitution for which, other Notes        shall  have  been  authenticated  and  delivered  pursuant  to  the  terms  of  Section  2.06        [Mutilated,  Destroyed, Lost or Stolen Notes] unless proof satisfactory to the Trustee is        presented that any such Notes are held by protected purchasers in due course;                (d)  Notes converted pursuant to Article 14 [Conversion of Notes] and required        to be cancelled pursuant to Section 2.08 [Cancellation of Notes Paid, Converted, Etc.]; and               (e)  Notes repurchased by the Company pursuant to the penultimate sentence of        Section 2.10 [Additional Notes; Repurchases] and required to be canceled pursuant to the        last sentence thereof.           “Paying Agent” shall have the meaning specified in Section 4.02 [Maintenance of Office  or Agency].         “Permitted Holders” means TPG Growth II Advisors, Inc., TPG Growth II BDH, L.P.  and TPG Eagle Holdings L.P. and each of their Affiliates and any funds or partnerships managed  by any of them (but not including any portfolio companies or operating companies of any of the  foregoing, notwithstanding the form of ownership of any such portfolio or operating companies),  The Advisory Board Company and University of Pittsburgh Medical Center.                                         9 

 

         “Person” means an individual, a corporation, a limited liability company, an association,  a partnership, a joint venture, a joint stock company, a trust, an unincorporated organization or a  government or an agency or a political subdivision thereof.         “Physical  Notes”  means  permanent  certificated  Notes  in  registered  form  issued  in  denominations of $1,000 principal amount and integral multiples thereof.         “Physical Settlement” shall have the meaning specified in Section 14.02(a) [Conversion  Procedure; Settlement Upon Conversion].         “Predecessor Note” of any particular Note means every previous Note evidencing all or a  portion of the same debt as that evidenced by such particular Note; and, for the purposes of this  definition, any Note authenticated and delivered under Section 2.06 [Mutilated, Destroyed, Lost  or Stolen Notes] in lieu of or in exchange for a mutilated, lost, destroyed or stolen Note shall be  deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note that it replaces.         “Record Date” means, with respect to any dividend, distribution or other transaction or  event in which the holders of the Class A Common Stock (or other applicable security) have the  right to receive any cash, securities or other property or in which the Class A Common Stock (or  such other security) is exchanged for or converted into any combination of cash, securities or other  property, the date fixed for determination of holders of the Class A Common Stock (or such other  security) entitled to receive such cash, securities or other property (whether such date is fixed by  the Board of Directors, by statute, by contract or otherwise).         “Redemption  Date”  shall  have  the  meaning  specified  in  Section  16.02(a)  [Notice  of  Optional Redemption; Selection of Notes].         “Redemption  Period”  means  the  period  from,  and  including,  the  date  the  Company  delivers  a  Notice  of  Redemption  until  the  close  of  business  on  the  Scheduled  Trading  Day  immediately preceding the related Redemption Date.         “Redemption  Price”  means,  for  any  Notes  to  be  redeemed  pursuant  to  Section  16.01  [Optional Redemption], 100% of the principal amount of such Notes, plus accrued and unpaid  interest, if any, to, but excluding, the Redemption Date (unless the Redemption Date falls after a  Regular Record Date but on or prior to the immediately succeeding  Interest Payment  Date, in  which case interest accrued to the Interest Payment Date will be paid to Holders of record of such  Notes as of the close of business on such Regular Record Date, and the Redemption Price will be  equal to 100% of the principal amount of such Notes).         “Reference Property”  shall  have  the  meaning  specified  in  Section  14.07(a)  [Effect  of  Recapitalizations, Reclassifications and Changes of the Class A Common Stock].         “Regular Record Date,” with respect to any Interest Payment Date, means the May 15 or  November 15 (whether or not such day is a Business Day) immediately preceding the applicable  June 1 or December 1 Interest Payment Date, respectively.         “Resale  Restriction  Termination  Date”  shall  have  the  meaning  specified  in  Section  2.05(c) [Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary].                                         10 

 

         “Responsible Officer” means, when used with respect to the Trustee, any officer within  the corporate trust department of the Trustee, including any vice president, assistant vice president,  assistant  secretary,  assistant  treasurer,  trust  officer  or  any  other  officer  of  the  Trustee  who  customarily performs functions similar to those performed by the Persons who at the time shall be  such  officers,  respectively,  or  to  whom  any  corporate  trust  matter  is  referred  because  of  such  person’s  knowledge  of  and  familiarity  with  the  particular  subject  and  who  shall  have  direct  responsibility for the administration of this Indenture.         “Restricted Securities” shall have the meaning specified in Section 2.05(c) [Exchange and  Registration of Transfer of Notes; Restrictions on Transfer; Depositary].         “Rule 144” means Rule 144 as promulgated under the Securities Act.         “Rule 144A” means Rule 144A as promulgated under the Securities Act.         “Scheduled  Trading  Day”  means  a  day  that  is  scheduled  to  be  a Trading  Day  on  the  principal U.S. national or regional securities exchange or market on which the Class A Common  Stock is listed or admitted for trading. If the Class A Common Stock is not so listed or admitted  for trading, “Scheduled Trading Day” means a Business Day.         “Securities  Act”  means  the  Securities  Act  of  1933,  as  amended,  and  the  rules  and  regulations promulgated thereunder.         “Settlement  Amount”  has  the  meaning  specified  in  Section  14.02(a)(iv)  [Conversion  Procedure; Settlement Upon Conversion].         “Settlement  Method”  means,  with  respect  to  any  conversion  of  Notes,  Physical  Settlement,  Cash  Settlement  or  Combination  Settlement,  as  elected  (or  deemed  to  have  been  elected) by the Company.         “Settlement  Notice”  has  the  meaning  specified  in  Section  14.02(a)(iii)  [Conversion  Procedure; Settlement Upon Conversion].         “Share Exchange Event” shall have the meaning specified in Section 14.07(a) [Effect of  Recapitalizations, Reclassifications and Changes of the Class A Common Stock].          “Significant Subsidiary” means a Subsidiary of the Company that meets the definition of  “significant  subsidiary”  in  Article  1  [Definitions],  Rule  1-02  of  Regulation  S-X  under  the  Exchange Act.         “Specified  Dollar  Amount”  means  the  maximum  cash  amount  per  $1,000  principal  amount of Notes to be received upon conversion as specified in the Settlement Notice related to  any converted Notes.         “Spin-Off”  shall  have  the  meaning  specified  in  Section  14.04(c)  [Adjustment  of  Conversion Rate].                                          11 

 

         “Stock Price” shall have the meaning specified in Section 14.03(c) [Increased Conversion  Rate  Applicable  to  Certain  Notes  Surrendered  in  Connection  with  Make-Whole  Fundamental  Changes].         “Subsidiary” means, with respect to any Person, any corporation, association, partnership  or other business entity of which more than 50% of the total voting power of shares of Capital  Stock or other interests (including partnership interests) entitled (without regard to the occurrence  of any contingency) to vote in the election of directors, managers, general partners or trustees  thereof is at the time owned or controlled, directly or indirectly, by (i) such Person; (ii) such Person  and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of such Person.         “Successor Company” shall have the meaning specified in Section 11.01(a) [Company  May Consolidate, Etc. on Certain Terms].         “Term Sheet” means the final pricing term sheet dated August 13, 2020, relating to the  offering and sale of the Notes.         “Trading  Day”  means,  (1)  except  for  purposes  of  determining  amounts  due  upon  conversion, a day on which (i) trading in the Class A Common Stock (or other security for which  a closing sale price must be determined) generally occurs on The New York Stock Exchange or,  if the Class A Common Stock (or such other security) is not then listed on The New York Stock  Exchange, on the principal other U.S. national or regional securities exchange on which the Class  A Common Stock (or such other security) is then listed or, if the Class A Common Stock (or such  other security) is not then listed on a U.S.  national or regional securities exchange, on the principal  other market on which the Class A Common Stock (or such other security) is then traded and (ii)  a Last Reported Sale Price for the Class A Common Stock (or such other security) is available on  such  securities  exchange  or  market,  and  (2)  for  purposes  of  determining  amounts  due  upon  conversion only, a day on which (x) there is no Market Disruption Event and (y) trading in the  Class A Common Stock generally occurs on The New York Stock Exchange or, if the Class A  Common Stock is not then listed on The New York Stock Exchange, on the principal other U.S.  national or regional securities exchange on which the Class A Common Stock is then listed or, if  the Class A Common Stock is not then listed on a U.S. national or regional securities exchange,  on the principal other market on which the Class A Common Stock is then listed or admitted for  trading. If the Class A Common Stock is not so listed or admitted for trading, “Trading Day”  means a Business Day.         “transfer” shall have the meaning specified in Section 2.05(c) [Exchange and Registration  of Transfer of Notes; Restrictions on Transfer; Depositary].         “Trigger  Event”  shall  have  the  meaning  specified  in  Section  14.04(c)  [Adjustment  of  Conversion Rate].         “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as it was in  force at the date of execution of this Indenture; provided, however, that in the event the Trust  Indenture Act of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean,  to the extent required by such amendment, the Trust Indenture Act of 1939, as so amended.                                          12 

 

         “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture  until  a  successor  trustee  shall  have  become  such  pursuant  to  the  applicable  provisions  of  this  Indenture,  and  thereafter  “Trustee”  shall  mean  or  include  each  Person  who  is  then  a  Trustee  hereunder.         “unit of Reference Property” shall have the meaning specified in Section 14.07(a) [Effect  of Recapitalizations, Reclassifications and Changes of the Class A Common Stock].          “Valuation Period” shall have the meaning specified in Section 14.04(c) [Adjustment of  Conversion Rate].         “Wholly Owned Subsidiary” means, with respect to any Person, any Subsidiary of such  Person, except that, solely for purposes of this definition, the reference to “more than 50%” in the  definition of “Subsidiary” shall be deemed replaced by a reference to “100%”.         Section 1.02. References to Interest.  Unless the context otherwise requires, any reference  to interest on, or in respect of, any Note in this Indenture shall be deemed to include Additional  Interest if, in such context, Additional Interest is, was or would be payable pursuant to any of  Section 4.06(d) [Rule 144A Information Requirement and Annual Reports], Section 4.06(e) [Rule  144A  Information  Requirement  and  Annual  Reports]  and  Section  6.03  [Additional  Interest].   Unless the context otherwise requires, any express mention of Additional Interest in any provision  hereof shall not be construed as excluding Additional Interest in those provisions hereof where  such express mention is not made.                                      Article 2              Issue, Description, Execution, Registration and Exchange of Notes         Section 2.01. Designation  and  Amount.   The  Notes  shall  be designated  as  the “3.50%  Convertible  Senior  Notes  due  2024.”  The  aggregate  principal  amount  of  Notes  that  may  be  authenticated and delivered under this Indenture is initially limited to $117,051,000, subject to  Section 2.10 [Additional Notes; Repurchases] and except for Notes authenticated and delivered  upon registration or transfer of, or in exchange for, or in lieu of other Notes to the extent expressly  permitted hereunder.         Section 2.02. Form of Notes.  The Notes and the Trustee’s certificate of authentication to  be borne by such Notes shall be substantially in the respective forms set forth in Exhibit A, the  terms and provisions of which shall constitute, and are hereby expressly incorporated in and made  a part of this Indenture.  To the extent applicable, the Company and the Trustee, by their execution  and  delivery  of  this  Indenture,  expressly  agree  to  such  terms  and  provisions  and  to  be  bound  thereby.         Any  Global  Note  may  be  endorsed  with  or  have  incorporated  in  the  text  thereof  such  legends or recitals or changes not inconsistent with the provisions of this Indenture as may be  required by the Custodian or the Depositary, or as may be required to comply with any applicable  law or any regulation thereunder or with the rules and regulations of any securities exchange or  automated  quotation  system  upon  which  the  Notes  may  be  listed  or  traded  or  designated  for  issuance or to conform with any usage with respect thereto, or to indicate any special limitations  or restrictions to which any particular Notes are subject.                                         13 

 

         Any of the Notes may have such letters, numbers or other marks of identification and such  notations, legends or endorsements as the Officer executing the same may approve  (execution  thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions  of this Indenture, or as may be required to comply with any law or with any rule or regulation  made  pursuant  thereto  or  with  any  rule  or regulation  of any  securities  exchange or  automated  quotation system on which the Notes may be listed or designated for issuance, or to conform to  usage or to indicate any special limitations or restrictions to which any particular Notes are subject.         Each Global Note shall represent such principal amount of the outstanding Notes as shall  be specified therein and shall provide that it  shall  represent the aggregate principal amount of  outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of  outstanding Notes represented thereby may from time to time be increased or reduced to reflect  redemptions,  repurchases,  cancellations,  conversions,  transfers  or  exchanges  permitted  hereby.   Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount  of outstanding Notes represented thereby shall be made by the Trustee or the Custodian, at the  direction of the Trustee, in such manner and upon instructions given by the Holder of such Notes  in accordance with this Indenture.  Payment of principal (including the Redemption Price and the  Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, a  Global Note shall be made to the Holder of such Note on the date of payment, unless a record date  or other means of determining Holders eligible to receive payment is provided for herein.         Section 2.03. Date  and  Denomination  of  Notes;  Payments  of  Interest  and  Defaulted  Amounts.         (a)   The Notes shall be issuable in registered form without coupons in denominations  of $1,000 principal amount and integral multiples thereof.  Each Note shall be dated the date of its  authentication and shall bear interest from the date specified on the face of such Note.  Accrued  interest on the Notes shall be computed on the basis of a 360-day year composed of twelve 30-day  months and, for partial months, on the basis of the number of days actually elapsed in a 30-day  month.         (b)   The Person in whose name any Note (or its Predecessor Note) is registered on the  Note Register at the close of business on any Regular Record Date with respect to any Interest  Payment Date shall be entitled to receive the interest payable on such Interest Payment Date.  The  principal amount of any Note (x) in the case of any Physical Note, shall be payable at the office or  agency of the Company maintained by the Company for such purposes in the contiguous United  States, which shall initially be the Corporate Trust Office and (y) in the case of any Global Note,  shall be payable by wire transfer of immediately available funds to the account of the Depositary  or its nominee.  The Company shall pay interest (i) on any Physical Notes (A) to Holders holding  Physical Notes having an aggregate principal amount of $5,000,000 or less, by check mailed to  the Holders of these Notes at their address as it appears in the Note Register and (B) to Holders  holding Physical Notes having an aggregate principal amount of more than $5,000,000, either by  check mailed to each Holder or, upon application by such a Holder to the Note Registrar not later  than the relevant Regular Record Date, by wire transfer in immediately available funds to that  Holder’s account within the United States, which application shall remain in effect until the Holder  notifies, in writing, the Note Registrar to the contrary or (ii) on any Global Note by wire transfer  of immediately available funds to the account of the Depositary or its nominee.                                         14 

 

         (c)   Any Defaulted Amounts shall forthwith cease to be payable to the Holder on the  relevant payment date but shall accrue interest per annum at the rate borne by the Notes plus one  percent,  subject  to  the  enforceability  thereof  under  applicable  law,  from,  and  including,  such  relevant payment date, and such Defaulted Amounts together with such interest thereon shall be  paid by the Company, at its election in each case, as provided in clause (i) or (ii) below:               (i)   The Company may elect to make payment of any Defaulted Amounts to the        Persons in whose names the Notes (or their respective Predecessor Notes) are registered at        the close of business on a special record date for the payment of such Defaulted Amounts,        which shall be fixed in the following manner.  The Company shall notify the Trustee in        writing of the amount of the Defaulted Amounts proposed to be paid on each Note and the        date of the proposed payment (which shall be not less than 25 days after the receipt by the        Trustee of such notice, unless the Trustee shall consent to an earlier date), and at the same        time  the  Company  shall  deposit  with  the  Trustee  an  amount  of  money  equal  to  the        aggregate  amount  to  be  paid  in  respect  of  such  Defaulted  Amounts  or  shall  make        arrangements satisfactory to the  Trustee for  such deposit on or prior to  the date of the        proposed payment, such money when deposited to be held in trust for the benefit of the        Persons entitled to such Defaulted Amounts as in this clause provided.  Thereupon the        Company shall fix a special record date for the payment of such Defaulted Amounts which        shall be not more than 15 days and not less than 10 days prior to the date of the proposed        payment, and not less than 10 days after the receipt by the Trustee of the notice of the        proposed payment.  The Company shall promptly notify the Trustee of such special record        date and the Trustee, in the name and at the expense of the Company, shall cause notice of        the proposed payment of such Defaulted Amounts and the special record date therefor to        be delivered to each Holder not less than 10 days prior to such special record date.  Notice        of the proposed payment of such Defaulted Amounts and the special record date therefor        having been so delivered, such Defaulted Amounts shall be paid to the Persons in whose        names  the  Notes  (or their  respective Predecessor  Notes)  are  registered  at  the close  of        business  on  such  special  record  date  and  shall  no  longer  be  payable  pursuant  to  the        following clause (ii) of this Section 2.03(c) [Date and Denomination of Notes; Payments        of Interest and Defaulted Amounts].               (ii)  The Company may make payment of any Defaulted Amounts in any other        lawful  manner  not  inconsistent  with  the  requirements  of  any  securities  exchange  or        automated quotation system on which the Notes may be listed or designated for trading,        and upon such notice as may be required by such exchange or automated quotation system,        if, after notice given by the Company to the Trustee of the proposed payment pursuant to        this clause, such manner of payment shall be deemed practicable by the Trustee.         Section 2.04. Execution, Authentication and Delivery of Notes.  The Notes shall be signed  in  the name  and on  behalf  of  the  Company  by  the  manual,  facsimile  or  .pdf  signature  of  any  Officer.         At any time and from time to time after the execution and delivery of this Indenture, the  Company may deliver Notes executed by the Company to the Trustee for authentication, together  with  a  Company  Order  for  the  authentication  and  delivery  of  such  Notes,  and  the  Trustee  in                                          15 

 

   accordance  with  such  Company  Order  shall  authenticate  and  deliver  such  Notes,  without  any  further action by the Company hereunder.         Only such Notes as shall bear thereon a certificate of authentication substantially in the  form set forth on the Form of Note attached as Exhibit A hereto, executed manually or by facsimile  by an authorized officer of the Trustee (or an authenticating agent appointed by the Trustee as  provided  by  Section  17.10  [Authenticating  Agent]),  shall  be  entitled  to  the  benefits  of  this  Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee (or such an  authenticating agent) upon any Note executed by the Company shall be conclusive evidence that  the Note so authenticated has been duly authenticated and delivered hereunder and that the Holder  is entitled to the benefits of this Indenture.         In case any Officer of the Company who shall have signed any of the Notes shall cease to  be such Officer before the Notes so signed shall have been authenticated and delivered by the  Trustee,  or  disposed  of  by  the  Company,  such  Notes  nevertheless  may  be  authenticated  and  delivered or disposed of as though the person who signed such Notes had not ceased to be such  Officer of the Company; and any Note may be signed on behalf of the Company by such persons  as, at the actual date of the execution of such Note, shall be the Officers of the Company, although  at the date of the execution of this Indenture any such person was not such an Officer.         Section 2.05. Exchange and Registration of Transfer of Notes; Restrictions on Transfer;  Depositary.         (a)   The Company shall cause to be kept at the Corporate Trust Office a register (the  register maintained in such office or in any other office or agency of the Company designated  pursuant  to  Section  4.02  [Maintenance  of  Office  or  Agency],  the  “Note  Register”)  in  which,  subject  to  such  reasonable  regulations  as  it  may  prescribe,  the  Company  shall  provide  for  the  registration of Notes and of transfers of Notes.  Such register shall be in written form or in any  form capable of being converted into written form within a reasonable period of time.  The Trustee  is  hereby  initially  appointed  the  “Note  Registrar”  for  the  purpose  of  registering  Notes  and  transfers of Notes as herein provided.  The Company may appoint one or more co-Note Registrars  in accordance with Section 4.02 [Maintenance of Office or Agency].         Upon surrender for registration of transfer of any Note to the Note Registrar or any co- Note Registrar, and satisfaction of the requirements for such transfer set forth in this Section 2.05  [Exchange  and  Registration  of  Transfer  of  Notes;  Restrictions  on  Transfer;  Depositary],  the  Company  shall  execute,  and  the  Trustee  shall  authenticate  and  deliver,  in  the  name  of  the  designated transferee or transferees, one or more new Notes of any authorized denominations and  of a like aggregate principal amount and bearing such restrictive legends as may be required by  this Indenture.          Notes may be exchanged for other Notes of any authorized denominations and of a like  aggregate principal amount, upon surrender of the Notes to be exchanged at any such office or  agency maintained by the Company pursuant to Section 4.02 [Maintenance of Office or Agency].   Whenever any Notes are so surrendered for exchange, the Company shall execute, and the Trustee  shall authenticate and deliver, the Notes that the Holder making the exchange is entitled to receive,  bearing registration numbers not contemporaneously outstanding.                                         16 

 

         All Notes presented or surrendered for registration of transfer or for exchange, repurchase  or conversion shall (if so required by the Company, the Trustee, the Note Registrar or any co-Note  Registrar) be duly endorsed, or be accompanied by a written instrument or instruments of transfer  in form satisfactory to the Company and duly executed, by the Holder thereof or its attorney-in- fact duly authorized in writing.         No service charge shall be imposed by the Company, the Trustee, the Note Registrar, any  co-Note Registrar or the Paying Agent for any exchange or registration of transfer of Notes, but  the Company may require a Holder to pay a sum sufficient to cover any documentary, stamp or  similar issue or transfer tax required in connection therewith as a result of the name of the Holder  of new Notes issued upon such exchange or registration of transfer being different from the name  of the Holder of the old Notes surrendered for exchange or registration of transfer.         None of the Company, the Trustee, the Note Registrar or any co-Note Registrar shall be  required to exchange or register a transfer of (i) any Notes surrendered for conversion or, if a  portion of any Note is surrendered for conversion, such portion thereof surrendered for conversion,  (ii)  any  Notes,  or  a  portion  of  any  Note,  surrendered  for  repurchase  (and  not  withdrawn)  in  accordance with Article 15 [Repurchase of Notes at Option of Holders] or (iii) any Notes selected  for  redemption  in  accordance  with  Article  16  [Optional  Redemption],  except  the  unredeemed  portion of any Note being redeemed in part.         All Notes issued upon any registration of transfer or exchange of Notes in accordance with  this Indenture shall be the valid obligations of the Company, evidencing the same debt, and entitled  to the same benefits under this Indenture as the Notes surrendered upon such registration of transfer  or exchange.         (b)   So long as the Notes are eligible for book-entry settlement with the Depositary,  unless otherwise required by law, subject to the fourth paragraph from the end of Section 2.05(c)  [Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary] all Notes  shall be represented by one or more Notes in global form (each, a “Global Note”) registered in the  name of the Depositary or the nominee of the Depositary.  The transfer and exchange of beneficial  interests in a Global Note that does not involve the issuance of a Physical Note shall be effected  through the Depositary (but not the Trustee or the Custodian) in accordance with this Indenture  (including  the  restrictions  on  transfer  set  forth  herein)  and  the  procedures  of  the  Depositary  therefor.         (c)   Every  Note  that  bears  or  is  required  under  this  Section  2.05(c)  [Exchange  and  Registration of Transfer of Notes; Restrictions on Transfer; Depositary] to bear the legend set forth  in this Section 2.05(c) [Exchange and Registration of Transfer of Notes; Restrictions on Transfer;  Depositary] (together with any Class A Common Stock issued upon conversion of the Notes that  is required to bear the legend set forth in Section 2.05(d) [Exchange and Registration of Transfer  of Notes; Restrictions on Transfer; Depositary], collectively, the “Restricted Securities”) shall be  subject to the restrictions on transfer set forth in this Section 2.05(c) [Exchange and Registration  of Transfer of Notes; Restrictions on Transfer; Depositary] (including the legend set forth below),  unless such restrictions on transfer shall be eliminated or otherwise waived by written consent of  the  Company,  and  the  Holder  of  each  such  Restricted  Security,  by  such  Holder’s  acceptance  thereof, agrees to be bound by all such restrictions on transfer.  As used in this Section 2.05(c)                                         17 

 

   [Exchange  and  Registration  of  Transfer  of  Notes;  Restrictions  on  Transfer;  Depositary]  and  Section  2.05(d)  [Exchange  and  Registration  of  Transfer  of  Notes;  Restrictions  on  Transfer;  Depositary],  the  term  “transfer”  encompasses  any  sale,  pledge,  transfer  or  other  disposition  whatsoever of any Restricted Security.         Until the date (the “Resale Restriction Termination Date”) that is the later of (1) the date  that is one year after the date of original issuance of the Notes, or such shorter period of time as  permitted by Rule 144 or any successor provision thereto, and (2) such later date, if any, as may  be required by applicable law, any certificate evidencing such Note (and all securities issued in  exchange therefor or substitution thereof, other than Class A Common Stock, if any, issued upon  conversion  thereof,  which  shall  bear  the  legend  set  forth  in  Section  2.05(d)  [Exchange  and  Registration of Transfer of Notes; Restrictions on Transfer; Depositary], if applicable) shall bear  a legend in substantially the following form (unless such Notes have been transferred pursuant to  a registration statement that has become or been declared effective under the Securities Act and  that continues to be effective at the time of such transfer, or sold pursuant to the exemption from  registration provided by Rule 144 or any similar provision then in force under the Securities Act,  or unless otherwise agreed by the Company in writing, with notice thereof to the Trustee):         THIS  SECURITY  AND  THE  CLASS  A  COMMON  STOCK,  IF  ANY,  ISSUABLE  UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE  SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT  BE  OFFERED,  SOLD,  PLEDGED  OR  OTHERWISE  TRANSFERRED  EXCEPT  IN  ACCORDANCE WITH THE FOLLOWING SENTENCE.  BY ITS ACQUISITION HEREOF  OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:               (1)  REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS        ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING        OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE        INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND               (2)  AGREES  FOR  THE  BENEFIT  OF  EVOLENT  HEALTH,  INC.  (THE        “COMPANY”)  THAT  IT  WILL  NOT  OFFER,  SELL,  PLEDGE  OR  OTHERWISE        TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO        THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL        ISSUE DATE HEREOF OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY        RULE  144  UNDER  THE  SECURITIES  ACT  OR  ANY  SUCCESSOR  PROVISION        THERETO AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY        APPLICABLE LAW, EXCEPT:                     (A)  TO THE COMPANY OR ANY SUBSIDIARY THEREOF, OR                     (B)  PURSUANT  TO  A  REGISTRATION  STATEMENT  WHICH              HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, OR                     (C)  TO    A    QUALIFIED    INSTITUTIONAL      BUYER    IN              COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR                                          18 

 

                     (D)  PURSUANT  TO  AN  EXEMPTION  FROM  REGISTRATION              PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER              AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS              OF THE SECURITIES ACT.         PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH  CLAUSE (2)(D) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO  REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER  EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT  THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES  ACT AND APPLICABLE STATE SECURITIES LAWS.  NO REPRESENTATION IS MADE  AS  TO  THE  AVAILABILITY  OF  ANY  EXEMPTION  FROM  THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT.         No transfer of any Note prior to the Resale Restriction Termination Date will be registered  by the Note Registrar unless the applicable box on the Form of Assignment and Transfer has been  checked.         Any Note (or security issued in exchange or substitution therefor) (i) as  to which such  restrictions  on  transfer  shall  have  expired  in  accordance  with  their  terms,  (ii)  that  has  been  transferred pursuant to a registration statement that has become effective or been declared effective  under the Securities Act and that continues to be effective at the time of such transfer or (iii) that  has been sold pursuant to the exemption from registration provided by Rule 144 or any similar  provision then in force under the Securities Act, may, upon surrender of such Note for exchange  to  the  Note  Registrar  in  accordance  with  the  provisions  of  this  Section  2.05  [Exchange  and  Registration of Transfer of Notes; Restrictions on Transfer; Depositary], be exchanged for a new  Note or Notes, of like tenor and aggregate principal amount, which shall not bear the restrictive  legend  required  by  this  Section  2.05(c)  [Exchange  and  Registration  of  Transfer  of  Notes;  Restrictions on Transfer; Depositary] and shall not be assigned a restricted CUSIP number.  The  Company shall be entitled to instruct the Custodian in writing to so surrender any Global Note as  to which any of the conditions set forth in clause (i) through (iii) of the immediately preceding  sentence have been satisfied, and, upon such instruction, the Custodian shall so surrender such  Global Note for exchange; and any new Global Note so exchanged therefor shall not bear the  restrictive  legend  specified  in  this  Section  2.05(c)  [Exchange  and  Registration  of  Transfer  of  Notes; Restrictions on Transfer; Depositary] and shall not be assigned a restricted CUSIP number.   The Company shall promptly notify the Trustee upon the occurrence of the Resale Restriction  Termination Date and promptly after a registration statement, if any, with respect to the Notes or  any Class A Common Stock issued upon conversion of the Notes has been declared effective under  the Securities Act.         Notwithstanding any other provisions of this Indenture (other than the provisions set forth  in this Section 2.05(c) [Exchange and Registration of Transfer of Notes; Restrictions on Transfer;  Depositary]),  a  Global  Note  may  not  be  transferred  as  a  whole  or  in  part  except  (i)  by  the  Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or  another  nominee  of  the  Depositary  or  by  the  Depositary  or  any  such  nominee  to  a  successor  Depositary or a nominee of such successor Depositary and (ii) for exchange of a Global Note or a                                          19 

 

   portion  thereof  for  one  or  more  Physical  Notes  in  accordance  with  the  second  immediately  succeeding paragraph.         The  Depositary  shall  be  a  clearing  agency  registered  under  the  Exchange  Act.   The  Company initially appoints The Depository Trust Company to act as Depositary with respect to  each Global Note.  Initially, each Global Note shall be issued to the Depositary, registered in the  name of Cede & Co., as the nominee of the Depositary, and deposited with the Trustee as custodian  for Cede & Co.         If (i) the Depositary notifies the Company at any time that the Depositary is unwilling or  unable to continue as depositary for the Global Notes and a successor depositary is not appointed  within 90 days, (ii) the Depositary ceases to be registered as a clearing agency under the Exchange  Act and a successor depositary is not appointed within 90 days or (iii) an Event of Default with  respect to the Notes has occurred and is continuing and a beneficial owner of any Note requests  through the Trustee that its beneficial interest therein be issued as a Physical Note, the Company  shall execute, and the Trustee, upon receipt of an Officer’s Certificate and a Company Order for  the authentication and delivery of Notes, shall authenticate and deliver (x) in the case of clause  (iii), a Physical Note to such beneficial owner in a principal amount equal to the principal amount  of such Note corresponding to such beneficial owner’s beneficial interest and (y) in the case of  clause (i) or (ii), Physical Notes to each beneficial owner of the related Global Notes (or a portion  thereof) in an aggregate principal amount equal to the aggregate principal amount of such Global  Notes in exchange for such Global Notes, and upon delivery of the Global Notes to the Trustee  such Global Notes shall be canceled.         Physical  Notes issued in exchange for all  or a part of the Global Note pursuant  to this  Section  2.05(c)  [Exchange  and  Registration  of  Transfer  of  Notes;  Restrictions  on  Transfer;  Depositary]  shall  be  registered  in  such  names  and  in  such  authorized  denominations  as  the  Depositary, pursuant to instructions from its direct or indirect participants or otherwise, or, in the  case of clause (iii) of the immediately preceding paragraph, the relevant beneficial owner, shall  instruct the Trustee.  Upon execution and authentication, the Trustee shall deliver such Physical  Notes to the Persons in whose names such Physical Notes are so registered.         At such time as all interests in a Global Note have been converted, canceled, repurchased,  redeemed or transferred, such Global Note shall be, upon receipt thereof, canceled by the Trustee  in accordance with standing procedures and existing instructions between the Depositary and the  Custodian.  At any time prior to such cancellation, if any interest in a Global Note is exchanged  for Physical Notes, converted, canceled, repurchased, redeemed or transferred to a transferee who  receives Physical Notes therefor or any Physical Note is exchanged or transferred for part of such  Global Note, the principal amount of such Global Note shall, in accordance with the standing  procedures and instructions existing between the Depositary and the Custodian, be appropriately  reduced or increased, as the case may be, and an endorsement shall be made on such Global Note,  by the Trustee or the Custodian, at the direction of the Trustee, to reflect such reduction or increase.         None of the Company, the Trustee or any agent of the Company or the Trustee shall have  any responsibility or liability for any aspect of the records relating to or payments made on account  of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any  records relating to such beneficial ownership interests.                                         20 

 

         (d)   Until the Resale Restriction Termination Date, any stock certificate representing  Class A Common Stock issued upon conversion of a Note shall bear a legend in substantially the  following form (unless such Class A Common Stock has been transferred pursuant to a registration  statement that has become or been declared effective under the Securities Act and that continues  to be effective at the time of such transfer, or pursuant to the exemption from registration provided  by  Rule  144  or  any  similar provision  then  in  force  under  the Securities  Act,  or  such  Class  A  Common Stock has been issued upon conversion of a Note that has been transferred pursuant to a  registration statement that has become or been declared effective under the Securities Act and that  continues to be effective at the time of such transfer, or pursuant to the exemption from registration  provided by Rule 144 or any similar provision then in force under the Securities Act, or unless  otherwise agreed by the Company with written notice thereof to the Trustee and any transfer agent  for the Class A Common Stock):         THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT  OF  1933,  AS  AMENDED  (THE  “SECURITIES  ACT”),  AND  MAY  NOT  BE  OFFERED,  SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH  THE FOLLOWING SENTENCE.  BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL  INTEREST HEREIN, THE ACQUIRER:               (1)  REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS        ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING        OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE        INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND                (2)  AGREES FOR THE BENEFIT OF EVOLENT HEALTH, INC.  (THE        “COMPANY”)  THAT  IT  WILL  NOT  OFFER,  SELL,  PLEDGE  OR  OTHERWISE        TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO        THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL        ISSUE DATE OF THE SERIES OF NOTES UPON THE CONVERSION OF WHICH        THIS  SECURITY  WAS  ISSUED  OR  SUCH  SHORTER  PERIOD  OF  TIME  AS        PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR        PROVISION  THERETO  AND  (Y)  SUCH  LATER  DATE,  IF  ANY,  AS  MAY  BE        REQUIRED BY APPLICABLE LAW, EXCEPT:                     (A)  TO THE COMPANY OR ANY SUBSIDIARY THEREOF, OR                     (B)  PURSUANT  TO  A  REGISTRATION  STATEMENT  WHICH                          HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT,                          OR                     (C)  TO    A    QUALIFIED    INSTITUTIONAL      BUYER    IN                          COMPLIANCE WITH RULE 144A UNDER THE SECURITIES                          ACT, OR                     (D)  PURSUANT  TO  AN  EXEMPTION  FROM  REGISTRATION                          PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR                          ANY  OTHER  AVAILABLE  EXEMPTION  FROM  THE                                          21 

 

                           REGISTRATION  REQUIREMENTS  OF  THE  SECURITIES                          ACT.         PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH  CLAUSE  (2)(D)  ABOVE,  THE  COMPANY  AND  THE  TRANSFER  AGENT  FOR  THE  COMPANY’S  CLASS  A  COMMON  STOCK  RESERVE  THE  RIGHT  TO  REQUIRE  THE  DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS  MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED  TRANSFER  IS  BEING  MADE  IN  COMPLIANCE  WITH  THE  SECURITIES  ACT  AND  APPLICABLE STATE SECURITIES LAWS.  NO REPRESENTATION IS MADE AS TO THE  AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF  THE SECURITIES ACT.         Any such Class A Common Stock (i) as to which such restrictions on transfer shall have  expired in accordance with their terms, (ii) that has  been transferred pursuant to a registration  statement that has become or been declared effective under the Securities Act and that continues  to be effective at the time of such transfer or (iii) that has been sold pursuant to the exemption from  registration provided by Rule 144 or any similar provision then in force under the Securities Act,  may, upon surrender of the certificates representing such shares of Class A Common Stock for  exchange in accordance with the procedures of the transfer agent for the Class A Common Stock,  be exchanged for a new certificate or certificates for a like aggregate number of shares of Class A  Common  Stock,  which  shall  not  bear  the  restrictive  legend  required  by  this  Section  2.05(d)  [Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary].         (e)   Any Note or Class A Common Stock issued upon the conversion or exchange of a  Note that is repurchased or owned by any Affiliate of the Company (or any Person who was an  Affiliate of the Company at any time during the three months immediately preceding) may not be  resold by such Affiliate (or such Person, as the case may be) unless registered under the Securities  Act or resold pursuant to an exemption from the registration requirements of the Securities Act in  a transaction that results in such Note or Class A Common Stock, as the case may be, no longer  being a “restricted security” (as defined under Rule 144).  The Company shall cause any Note that  is repurchased or owned by it to be surrendered to the Trustee for cancellation in accordance with  Section 2.08 [Cancellation of Notes Paid, Converted, Etc.].         Section 2.06. Mutilated, Destroyed, Lost or Stolen Notes.  In case any Note shall become  mutilated or be destroyed, lost or stolen, the Company in its discretion may execute, and upon its  written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate  and deliver, a new Note, bearing a registration number not contemporaneously outstanding, in  exchange and substitution for the mutilated Note, or in lieu of and in substitution for the Note so  destroyed, lost or stolen.  In every case the applicant for a substituted Note shall furnish to the  Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity  as may be required by them to save each of them harmless from any loss, liability, cost or expense  caused by or connected with such substitution, and, in every case of destruction, loss or theft, the  applicant shall also furnish to the Company, to the Trustee and, if applicable, to such authenticating  agent  evidence  to  their  satisfaction  of  the  destruction,  loss  or  theft  of  such  Note  and  of  the  ownership thereof.                                          22 

 

         The Trustee or such authenticating agent may authenticate any such substituted Note and  deliver the same upon the receipt of such security or indemnity as the Trustee, the Company and,  if applicable, such authenticating agent may require.  No service charge shall be imposed by the  Company, the Trustee, the Note Registrar, any co-Note Registrar or the Paying Agent upon the  issuance of any substitute Note, but the Company may require a Holder to pay a sum sufficient to  cover any documentary, stamp or similar issue or transfer tax required in connection therewith as  a result of the name of the Holder of the new substitute Note being different from the name of the  Holder of the old Note that became mutilated or was destroyed, lost or stolen.  In case any Note  that has matured or is about to mature or has been surrendered for required repurchase or is about  to be converted in accordance with Article 14 [Conversion of Notes] shall become mutilated or be  destroyed, lost or stolen, the Company may, in its sole discretion, instead of issuing a substitute  Note, pay or authorize the payment of or convert or authorize the conversion of the same (without  surrender thereof except in the case of a mutilated Note), as the case may be, if the applicant for  such payment or conversion shall furnish to the Company, to the Trustee and, if applicable, to such  authenticating agent such security or indemnity as may be required by them to save each of them  harmless for any loss, liability, cost or expense caused by or connected with such substitution, and,  in every case of destruction, loss or theft, evidence satisfactory to the Company, the Trustee and,  if  applicable,  any  Paying  Agent  or  Conversion  Agent  evidence  of  their  satisfaction  of  the  destruction, loss or theft of such Note and of the ownership thereof.         Every substitute Note issued pursuant to the provisions of this Section 2.06 [Mutilated,  Destroyed, Lost or Stolen Notes] by virtue of the fact that any Note is destroyed, lost or stolen  shall constitute an additional contractual obligation of the Company, whether or not the destroyed,  lost or stolen Note shall be found at any time, and shall be entitled to all the benefits of (but shall  be subject to all the limitations set forth in) this Indenture equally and proportionately with any  and all other Notes duly issued hereunder.  To the extent permitted by law, all Notes shall be held  and owned upon the express condition that the foregoing provisions are exclusive with respect to  the replacement, payment, redemption, conversion or repurchase of mutilated, destroyed, lost or  stolen Notes and shall preclude any and all other rights or remedies notwithstanding any law or  statute  existing  or  hereafter  enacted  to  the  contrary  with  respect  to  the  replacement,  payment,  redemption, conversion or repurchase of negotiable instruments or other securities without their  surrender.         Section 2.07. Temporary Notes.  Pending the preparation of Physical Notes, the Company  may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon written  request  of  the  Company,  authenticate  and  deliver  temporary  Notes  (printed  or  lithographed).   Temporary Notes shall be issuable in any authorized denomination, and substantially in the form  of the Physical Notes but with such omissions, insertions and variations as may be appropriate for  temporary Notes, all as may be determined by the Company.  Every such temporary Note shall be  executed by the Company and authenticated by the Trustee or such authenticating agent upon the  same conditions and in substantially the same manner, and with the same effect, as the Physical  Notes.  Without unreasonable delay, the Company shall execute and deliver to the Trustee or such  authenticating  agent  Physical  Notes  (other  than  any  Global  Note)  and  thereupon  any  or  all  temporary Notes (other than any Global Note) may be surrendered in exchange therefor, at each  office or agency maintained by the Company pursuant to Section 4.02 [Maintenance of Office or  Agency] and the Trustee or such authenticating agent shall authenticate and deliver in exchange  for such temporary Notes an equal aggregate principal amount of Physical Notes.  Such exchange                                         23 

 

   shall be made by the Company at its own expense and without any  charge therefor.  Until  so  exchanged, the temporary Notes shall in all respects be entitled to the same benefits and subject to  the same limitations under this Indenture as Physical Notes authenticated and delivered hereunder.         Section 2.08. Cancellation of Notes Paid, Converted, Etc.  The Company shall cause all  Notes surrendered for the purpose of payment, repurchase (including as described in Section 2.10  [Additional Notes; Repurchases] below, but excluding Notes repurchased pursuant to cash-settled  swaps  or  other  derivatives),  redemption,  registration  of  transfer  or  exchange  or  conversion,  if  surrendered  to  any  Person  other  than  the  Trustee  (including  any  of  the  Company’s  agents,  Subsidiaries or Affiliates), to be surrendered to the Trustee for cancellation.  All Notes delivered  to  the  Trustee  shall  be  canceled  promptly  by  it,  and,  except  for  any  Notes  surrendered  for  registration of transfer or exchange, no Notes shall be authenticated in exchange thereof except as  expressly  permitted  by  any  of  the  provisions  of  this  Indenture.   The  Trustee  shall  dispose  of  canceled  Notes  in  accordance  with  its  customary  procedures  and,  after  such  disposition,  shall  deliver a certificate of such disposition to the Company, at the Company’s written request in a  Company Order.           Section 2.09. CUSIP Numbers.  The Company in issuing the Notes may use “CUSIP”  numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in all notices  issued to Holders as a convenience to such Holders; provided that any such notice may state that  no representation is made as to the correctness of such numbers either as printed on the Notes or  on such notice and that reliance may be placed only on the other identification numbers printed on  the  Notes.   The  Company  shall  promptly  notify  the  Trustee  in  writing  of  any  change  in  the  “CUSIP” numbers.           Section 2.10. Additional Notes; Repurchases.  The Company may, without the consent of  the Holders and notwithstanding Section 2.01 [Designation and Amount], reopen this Indenture  and issue additional Notes hereunder with the same terms as the Notes initially issued hereunder  (other than differences in the issue price and interest accrued prior to the issue date, if any, of such  additional Notes) in an unlimited aggregate principal amount; provided that if any such additional  Notes are not fungible with the Notes initially issued hereunder for U.S.  federal securities law and  income tax purposes, such additional Notes shall have a separate CUSIP number.  Prior to the  issuance of any such additional Notes, the Company shall deliver to the Trustee a Company Order,  an  Officer’s  Certificate  and  an  Opinion  of  Counsel,  such  Officer’s  Certificate  and  Opinion  of  Counsel  to  cover  such  matters,  in  addition  to  those  required  by  Section  17.05  [Evidence  of  Compliance with Conditions Precedent; Certificates and Opinions of Counsel to Trustee], as the  Trustee shall reasonably request.  In addition, the Company may, to the extent permitted by law,  and directly or indirectly (regardless of whether such Notes  are surrendered to the Company),  repurchase Notes in the open market or otherwise, whether by the Company or its Subsidiaries or  through  a  private  or  public  tender  or  exchange  offer  or  through  counterparties  to  private  agreements, including by cash-settled swaps or other derivatives.  The Company shall cause any  Notes so repurchased (other than Notes effectively repurchased pursuant to cash-settled swaps or  other derivatives) to be surrendered to the Trustee for cancellation in accordance with Section 2.08  [Cancellation  of  Notes  Paid,  Converted,  Etc.]  and  such  Notes  shall  no  longer  be  considered  outstanding under this Indenture upon their repurchase.                                          24 

 

                                      Article 3                              Satisfaction and Discharge         Section 3.01. Satisfaction  and  Discharge.   This  Indenture  shall  upon  request  of  the  Company contained in an Officer’s Certificate cease to be of further effect, and the Trustee, at the  expense  of  the  Company,  shall  execute  proper  instruments  acknowledging  satisfaction  and  discharge of this Indenture, when (1) (i) all Notes theretofore authenticated and delivered (other  than  Notes  which  have  been  destroyed,  lost  or  stolen  and  which  have  been  replaced,  paid  or  converted as provided in Section 2.06 [Mutilated, Destroyed, Lost or Stolen Notes]) have been  delivered to the Trustee for cancellation; or (ii) the Company has deposited with the Trustee or  delivered to Holders, as applicable, after the Notes have become due and payable, whether on the  Maturity  Date,  any  Fundamental  Change  Repurchase  Date,  any  Redemption  Date,  upon  conversion  or  otherwise,  cash  and/or  shares  of  Class  A  Common  Stock  solely  to  satisfy  the  Company’s Conversion Obligations (in the case of amounts due upon conversion), as applicable,  sufficient to pay all of the outstanding Notes or satisfy all outstanding conversions, as the case may  be, and paying all other sums due and payable under this Indenture by the Company; and (2) the  Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each  stating that all conditions precedent herein provided for relating to the satisfaction and discharge  of this Indenture have been complied with.  Notwithstanding the satisfaction and discharge of this  Indenture, the obligations of the Company to the Trustee under Section 7.06 [Compensation and  Expenses of Trustee] shall survive.                                      Article 4                         Particular Covenants of the Company         Section 4.01. Payment of Principal and Interest.  The Company covenants and agrees that  it will cause to be paid the principal (including the Redemption Price and the Fundamental Change  Repurchase Price, if applicable) of, and accrued and unpaid interest on, each of the Notes at the  places, at the respective times and in the manner provided herein and in the Notes.         Section 4.02. Maintenance  of  Office  or  Agency.   The  Company  will  maintain  in  the  contiguous United States an office or agency where the Notes may be surrendered for registration  of  transfer  or  exchange  or  for  presentation  for  payment,  repurchase  or  redemption  (“Paying  Agent”) or for conversion (“Conversion Agent”) and where notices and demands to or upon the  Company in respect of the Notes and this Indenture may be served.  The Company will give prompt  written notice to the Trustee of the location, and any change in the location, of such office or  agency.  If at any time the Company shall fail to maintain any such required office or agency or  shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices  and demands may be made or served at the Corporate Trust Office or the office or agency of the  Trustee in the contiguous United States.         The Company may also from time to time designate as co-Note Registrars one or more  other offices or agencies where the Notes may be presented or surrendered for any or all such  purposes and may from time to time rescind such designations; provided that no such designation  or rescission shall in any manner relieve the Company of its obligation to maintain an office or  agency in the contiguous United States for such purposes.  The Company will give prompt written  notice to the Trustee of any such designation or rescission and of any change in the location of any                                         25 

 

   such other office or agency.  The terms “Paying Agent” and “Conversion Agent” include any  such additional or other offices or agencies, as applicable.         The Company hereby initially designates the Trustee as the Paying Agent, Note Registrar,  Custodian and Conversion Agent and the Corporate Trust Office as the office or agency in the  contiguous United States where Notes may be surrendered for registration of transfer or exchange  or for presentation for payment or repurchase or for conversion and where notices and demands to  or upon the Company in respect of the Notes and this Indenture may be served.         Section 4.03. Appointments  to  Fill  Vacancies  in  Trustee’s  Office.   The  Company,  whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner  provided in Section 7.09 [Resignation or Removal of Trustee], a Trustee, so that there shall at all  times be a Trustee hereunder.         Section 4.04. Provisions as to Paying Agent.         (a)   If the Company shall appoint a Paying Agent other than the Trustee, the Company  will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such  agent shall agree with the Trustee, subject to the provisions of this Section 4.04 [Provisions as to  Paying Agent]:               (i)   that it will hold all sums held by it as such agent for the payment of the        principal (including the Redemption Price and the Fundamental Change Repurchase Price,        if applicable) of, and accrued and unpaid interest on, the Notes in trust for the benefit of        the Holders of the Notes;               (ii)  that it will give the Trustee prompt notice of any failure by the Company to        make any payment of the principal (including the Redemption Price and the Fundamental        Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, the Notes        when the same shall be due and payable; and               (iii) that at any time during the continuance of an Event of Default, upon request        of the Trustee, it will forthwith pay to the Trustee all sums so held in trust.         The Company shall, on or before each due date of the principal (including the Redemption  Price and the Fundamental Change Repurchase  Price, if applicable) of,  or accrued and unpaid  interest  on,  the  Notes,  deposit  with  the  Paying  Agent  a  sum  sufficient  to  pay  such  principal  (including the Redemption Price and the Fundamental Change Repurchase Price, if applicable) or  accrued  and unpaid  interest,  and  (unless  such  Paying  Agent  is  the  Trustee)  the  Company  will  promptly notify the Trustee of any failure to take such action; provided that if such deposit is made  on the due date, such deposit must be received by the Paying Agent by 10:00 a.m., New York City  time, on such date.         (b)   If the Company shall act as its own Paying Agent, it will, on or before each due  date of the principal (including the Redemption Price and the Fundamental Change Repurchase  Price, if applicable) of, and accrued and unpaid interest on, the Notes, set aside, segregate and hold  in trust for the benefit of the Holders of the Notes a sum sufficient to pay such principal (including  the Redemption Price and the Fundamental Change Repurchase Price, if applicable) and accrued                                         26 

 

   and unpaid interest so becoming due and will promptly notify the Trustee in writing of any failure  to  take such  action  and  of any  failure by  the  Company  to  make any  payment  of the principal  (including the Redemption Price and the Fundamental Change Repurchase Price, if applicable) of,  or accrued and unpaid interest on, the Notes when the same shall become due and payable.         (c)   Anything  in  this  Section  4.04  [Provisions  as  to  Paying  Agent]  to  the  contrary  notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction and  discharge of this Indenture, or for any other reason, pay, cause to be paid or deliver to the Trustee  all sums or amounts held in trust by the Company or any Paying Agent hereunder as required by  this Section 4.04 [Provisions as to Paying Agent], such sums or amounts to be held by the Trustee  upon the trusts herein contained and upon such payment or delivery by the Company or any Paying  Agent to the Trustee, the Company or such Paying Agent shall be released from all further liability  but only with respect to such sums or amounts.         (d)   Any money and shares of Class A Common Stock deposited with the Trustee or  any Paying Agent, or then held by the Company, in trust for the payment of the principal (including  the Redemption Price and the Fundamental Change Repurchase Price, if applicable) of, accrued  and  unpaid  interest  on  and the consideration  due  upon  conversion  of any  Note and  remaining  unclaimed for two years after such principal (including the Redemption Price and the Fundamental  Change  Repurchase  Price,  if  applicable),  interest  or  consideration  due  upon  conversion  has  become due and payable shall be paid to the Company on request of the Company contained in an  Officer’s Certificate, or (if then held by the Company) shall be discharged from such trust; and the  Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company  for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust  money and shares of Class A Common Stock, and all liability of the Company as trustee thereof,  shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being  required to make any such repayment, may at the expense of the Company cause to be published  once, in a newspaper published in the English language, customarily published on each Business  Day and of general circulation in The Borough of Manhattan, The City of New York, notice that  such money and shares of Class A Common Stock remain unclaimed and that, after a date specified  therein, which shall not be less than 30 days from the date of such publication, any unclaimed  balance of such money and shares of Class A Common Stock then remaining will be repaid or  delivered to the Company.         Section 4.05. [Intentionally Omitted].         Section 4.06. Rule 144A Information Requirement and Annual Reports.         (a)   At any time the Company is not subject to Section 13 or 15(d) of the Exchange Act,  the Company shall, so long as any of the Notes or any shares of Class A Common Stock issuable  upon conversion thereof shall, at such time, constitute “restricted securities” within the meaning  of Rule 144(a)(3) under the Securities Act, promptly provide to the Trustee and, upon written  request, any Holder, beneficial owner or prospective purchaser of such Notes or any shares of  Class A Common Stock issuable upon conversion of such Notes, the information required to be  delivered pursuant to Rule 144A(d)(4) under the Securities Act to facilitate the resale of such Notes  or shares of the Class A Common Stock pursuant to Rule 144A.  During the period and subject to  the  conditions  described  in  the  immediately  preceding  sentence,  the  Company  shall  take  such                                         27 

 

   further action as any Holder or beneficial owner of such Notes or such Class A Common Stock  may reasonably request to the extent from time to time required to enable such Holder or beneficial  owner to sell such Notes or shares of Class A Common Stock in accordance with Rule 144A, as  such rule may be amended from time to time.         (b)   The Company shall file with the Trustee, within 15 days after the same are required  to be filed with the Commission, copies of any documents or reports that the Company is required  to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act (giving effect to  any grace period provided by Rule 12b-25 under the Exchange Act).  Any such document or report  that  the  Company  files  with  the  Commission  via  the  Commission’s  EDGAR  system  shall  be  deemed to be filed with the Trustee for purposes of this Section 4.06(b) [Rule 144A Information  Requirement and Annual Reports] at the time such documents are filed via the EDGAR system.         (c)   Delivery  of  the  reports  and  documents  described  in  subsection  (b)  above  to  the  Trustee is for informational purposes only, and the Trustee’s receipt of such shall not constitute  constructive  notice  of  any  information  contained  therein  or  determinable  from  information  contained therein, including the Company’s compliance with any of its covenants hereunder (as to  which the Trustee is entitled to conclusively rely on an Officer’s Certificate).         (d)   If, at any time during the six-month period beginning on, and including, the date  that is six months after the date of original issuance of the Notes, the Company fails to timely file  any document or report that it is required to file with the Commission pursuant to Section 13 or  15(d)  of  the  Exchange  Act,  as  applicable  (after  giving  effect  to  all  applicable  grace  periods  thereunder and other than reports on Form 8-K), or the Notes are not otherwise freely tradable  pursuant to Rule 144 by Holders other than the Company’s Affiliates or Holders that were the  Company’s Affiliates at any time during the three months immediately preceding (as a result of  restrictions  pursuant  to  U.S.   securities  laws  or  the  terms  of  this  Indenture  or  the  Notes),  the  Company shall pay Additional Interest on such Notes.  Such Additional Interest shall accrue on  such Notes at the rate of 0.50% per annum of the principal amount of the Notes outstanding for  each day during such period for which the Company’s failure to file has occurred and is continuing  or the Notes are not  otherwise freely tradable pursuant  to Rule 144 by Holders other than the  Company’s Affiliates (or Holders that were the Company’s Affiliates at any time during the three  months  immediately  preceding).   As  used  in  this  Section  4.06(d)  [Rule  144A  Information  Requirement and Annual Reports], documents or reports that the Company is required to “file”  with  the  Commission  pursuant  to  Section  13  or  15(d)  of  the  Exchange  Act  does  not  include  documents or reports that the Company furnishes to the Commission pursuant to Section 13 or  15(d) of the Exchange Act.           (e)   If, and for so long as, the restrictive legend on any Notes specified in Section 2.05(c)  [Evidence  of  Compliance  with  Conditions  Precedent;  Certificates  and  Opinions  of  Counsel  to  Trustee] has not been removed, any Notes are assigned a restricted CUSIP or any Notes are not  otherwise freely tradable pursuant to Rule 144 by Holders other than the Company’s Affiliates or  Holders  that  were  the  Company’s  Affiliates  at  any  time  during  the  three  months  immediately  preceding (without restrictions pursuant to U.S.  securities laws or the terms of this Indenture or  the Notes) as of the 365th day (or, if such day is not a Business Day, the immediately following  Business Day) after the date of original issuance of the Notes, the Company shall pay Additional  Interest  on  such  Notes  at  a  rate  equal  to  0.50%  per  annum  of  the  principal  amount  of  Notes                                         28 

 

   outstanding until the restrictive legend on such Notes has been removed in accordance with Section  2.05(c) [Evidence of Compliance with Conditions Precedent; Certificates and Opinions of Counsel  to Trustee], such Notes are assigned an unrestricted CUSIP and such Notes are freely tradable  pursuant to Rule 144 by Holders other than the Company’s Affiliates (or Holders that were the  Company’s  Affiliates  at  any  time  during  the  three  months  immediately  preceding)  (without  restrictions pursuant to U.S.  securities laws or the terms of this Indenture or the Notes).         (f)   Additional  Interest  will  be  payable  in  arrears  on  each  Interest  Payment  Date  following accrual in the same manner as regular interest on the Notes.           (g)   The Additional Interest that is payable in accordance with Section 4.06(d) [Rule  144A Information Requirement and Annual Reports] or Section 4.06(e) [Rule 144A Information  Requirement and Annual Reports] shall be in addition to, and not in lieu of, any Additional Interest  that may be payable as a result of the Company’s election pursuant to Section 6.03 [Additional  Interest].         (h)   If Additional Interest is payable by the Company pursuant to Section 4.06(d) [Rule  144A Information Requirement and Annual Reports] or Section 4.06(e) [Rule 144A Information  Requirement  and  Annual  Reports],  the  Company  shall  deliver  to  the  Trustee  an  Officer’s  Certificate to that effect stating (i) the amount of such Additional Interest that is payable and (ii)  the date on which such Additional Interest is payable.  Unless and until a Responsible Officer of  the  Trustee  receives  at  the  Corporate  Trust  Office  such  a  certificate,  the  Trustee  may  assume  without inquiry that no such Additional Interest is payable.  If the Company has paid Additional  Interest directly to the Persons entitled to it, the Company shall deliver to the Trustee an Officer’s  Certificate setting forth the particulars of such payment.         Section 4.07. Stay, Extension and Usury Laws.  The Company covenants (to the extent  that  it  may  lawfully  do  so)  that  it  shall  not  at  any  time  insist  upon,  plead,  or  in  any  manner  whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law  that would prohibit or forgive the Company from paying all or any portion of the principal of or  interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in  force, or that may affect the covenants or the performance of this Indenture; and the Company (to  the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law,  and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of  any power herein granted to the Trustee, but will suffer and permit the execution of every such  power as though no such law had been enacted.         Section 4.08. Compliance  Certificate;  Statements  as  to  Defaults.   The  Company  shall  deliver to the Trustee within 120 days after the end of each fiscal year of the Company (beginning  with the fiscal year ending on December 31, 2020) an Officer’s Certificate stating whether the  signers thereof have knowledge of any failure by the Company to comply with all conditions and  covenants then required  to be performed under this Indenture and, if so, specifying  each such  failure and the nature thereof.         In addition, the Company shall deliver to the Trustee, as soon as possible, and in any event  within 30 days after the Company has knowledge of any Event of Default or Default, an Officer’s                                          29 

 

   Certificate setting forth the details of such Event of Default or Default, its status and the action  that the Company is taking or proposing to take in respect thereof.         Section 4.09. Further Instruments and Acts.  Upon request of the Trustee, the Company  shall execute and deliver such further instruments and do such further acts as may be reasonably  necessary or proper to carry out more effectively the purposes of this Indenture.                                      Article 5                Lists of Holders and Reports by the Company and the Trustee         Section 5.01. Lists of Holders.  The Company covenants and agrees that it will furnish or  cause to be furnished to the Trustee, semi-annually, not more than 15 days after each May 15 and  November 15  in each year beginning with November 15, 2020, and at such other times as the  Trustee may request in writing, within 30 days after receipt by the Company of any such request  (or such lesser time as the Trustee may reasonably request in order to enable it to timely provide  any notice to be provided by it hereunder), a list in such form as the Trustee may reasonably require  of the names and addresses of the Holders as of a date not more than 15 days (or such other date  as the Trustee may reasonably request in order to so provide any such notices) prior to the time  such information is furnished, except that no such list need be furnished so long as the Trustee is  acting as Note Registrar.          Section 5.02. Preservation  and  Disclosure  of  Lists.   The  Trustee  shall  preserve,  in  as  current a form as is reasonably practicable, all information as to the names and addresses of the  Holders  contained  in  the  most  recent  list  furnished  to  it  as  provided  in  Section  5.01  [Lists  of  Holders] or maintained by the Trustee in its capacity as Note Registrar, if so acting.  The Trustee  may destroy any list furnished to it as provided in Section 5.01 [Lists of Holders] upon receipt of  a new list so furnished.                                      Article 6                               Defaults and Remedies         Section 6.01. Events  of  Default.   Each  of  the  following  events  shall  be  an  “Event  of  Default” with respect to the Notes:         (a)   default  in  any  payment  of interest  on  any  Note  when  due and  payable,  and  the  default continues for a period of 30 days;         (b)   default  in  the  payment  of  principal  of  any  Note  when  due  and  payable  on  the  Maturity Date, upon any Optional Redemption, upon any required repurchase, upon declaration of  acceleration or otherwise;         (c)   failure  by  the  Company  to  comply  with  its  obligation  to  convert  the  Notes  in  accordance  with  this  Indenture  upon  exercise  of  a  Holder’s  conversion  right  and  the  failure  continues for a period of three Business Days;         (d)   failure  by  the  Company  to  issue  a  Fundamental  Change  Company  Notice  in  accordance with Section 15.02(c) [Repurchase at Option of Holders Upon a Fundamental Change]  or notice of a Make-Whole Fundamental Change in accordance with Section 14.03(b) [Increased                                         30 

 

   Conversion  Rate  Applicable  to  Certain  Notes  Surrendered  in  Connection  with  Make-Whole  Fundamental  Changes]  in  each  case  when  due,  and  the  failure  continues  for  a  period  of  five  Business Days;         (e)   failure  by  the  Company  to  comply  with  its  obligations  under  Article  11  [Consolidation, Merger, Sale, Conveyance and Lease];         (f)   failure by the Company for 60 days after written notice from the Trustee or the  Holders of at least 25% in principal amount of the Notes then outstanding has been received by  the Company to comply with any of its other agreements contained in the Notes or this Indenture;         (g)   default by the Company or any Subsidiary  of the Company with respect to any  mortgage, agreement or other instrument under which there may be outstanding, or by which there  may be secured or evidenced, any indebtedness for money borrowed in excess of $15,000,000 (or  its  foreign  currency  equivalent)  in  the  aggregate  of  the  Company  and/or  any  such  Subsidiary,  whether such indebtedness exists as of the date of this Indenture or shall hereafter be created (i)  resulting in such indebtedness becoming or being declared due and payable or (ii) constituting a  failure to pay the principal or interest of any such debt when due and payable at its stated maturity,  upon any required repurchase, upon declaration of acceleration or otherwise;         (h)   a  final  judgment  or  judgments  for  the  payment  of  $15,000,000  (or  its  foreign  currency  equivalent)  or  more  (excluding  any  amounts  covered  by  insurance)  in  the  aggregate  rendered  against  the  Company  or  any  Subsidiary  of  the  Company,  which  judgment  is  not  discharged, bonded, paid, waived or stayed within 60 days after (i) the date on which the right to  appeal thereof has expired if no such appeal has commenced, or (ii) the date on which all rights to  appeal have been extinguished;         (i)   the Company or any Significant Subsidiary shall commence a voluntary case or  other proceeding seeking liquidation, reorganization or other relief with respect to the Company  or any such Significant Subsidiary or its debts under any bankruptcy, insolvency or other similar  law  now  or  hereafter  in  effect  or  seeking  the  appointment  of  a  trustee,  receiver,  liquidator,  custodian  or  other  similar  official  of  the  Company  or  any  such  Significant  Subsidiary  or  any  substantial part of its property, or shall consent to any such relief or to the appointment of or taking  possession by any such official in an involuntary case or other proceeding commenced against it,  or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its  debts as they become due; or         (j)   an involuntary case or other proceeding shall be commenced against the Company  or any Significant Subsidiary seeking liquidation, reorganization or other relief with respect to the  Company or such Significant Subsidiary or its debts under any bankruptcy, insolvency or other  similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator,  custodian or other similar official of the Company or such Significant Subsidiary or any substantial  part of its property, and such involuntary case or other proceeding shall remain undismissed and  unstayed for a period of 30 consecutive days.         Section 6.02. Acceleration; Rescission and Annulment.  If one or more Events of Default  shall have occurred and be continuing (whatever the reason for such Event of Default and whether                                          31 

 

   it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,  decree or order of any court or any order, rule or regulation of any administrative or governmental  body), then, and in each and every such case (other than an Event of Default specified in Section  6.01(i) [Events of Default] or Section 6.01(j) [Events of Default] with respect to the Company or  any  of its  Significant  Subsidiaries),  unless  the  principal  of  all  of the Notes  shall  have already  become due and payable, either the Trustee or the Holders of at least 25% in aggregate principal  amount of the Notes then outstanding determined in accordance with Section 8.04 [Company- Owned Notes Disregarded], by notice in writing to the Company (and to the Trustee if given by  Holders), may, and the Trustee at the request of such Holders shall, declare 100% of the principal  of, and accrued and unpaid interest on, all the Notes to be due and payable immediately, and upon  any  such  declaration  the  same  shall  become  and  shall  automatically  be  immediately  due  and  payable, anything contained in this Indenture or in the Notes to the contrary notwithstanding.  If  an Event of Default specified in Section 6.01(i) [Events of Default] or Section 6.01(j) [Events of  Default]  with  respect  to  the  Company  or  any  of  its  Significant  Subsidiaries  occurs  and  is  continuing, 100% of the principal of, and accrued and unpaid interest, if any, on, all Notes shall  become and shall automatically be immediately due and payable.         The immediately preceding paragraph, however, is subject to the conditions that if, at any  time after the principal of the Notes shall have been so declared due and payable, and before any  judgment or decree for the payment of the monies  due shall have been obtained or entered as  hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to  pay installments of accrued and unpaid interest upon all Notes and the principal of any and all  Notes  that  shall  have  become  due  otherwise  than  by  acceleration  (with  interest  on  overdue  installments  of  accrued  and  unpaid  interest  to  the  extent  that  payment  of  such  interest  is  enforceable under applicable law, and on such principal at the rate borne by the Notes at such time,  plus one percent) and amounts due to the Trustee pursuant to Section 7.06 [Compensation and  Expenses of Trustee], and if (1) rescission would not conflict with any judgment or decree of a  court of competent jurisdiction and (2) any and all existing Events of Default under this Indenture,  other than the nonpayment of the principal of and accrued and unpaid interest, if any, on Notes  that shall have become due solely by such acceleration, shall have been cured or waived pursuant  to Section 6.09 [Direction of Proceedings and Waiver of Defaults by Majority of Holders], then  and in every such case (except as provided in the immediately succeeding sentence) the Holders  of a majority in aggregate principal amount of the Notes then outstanding, by written notice to the  Company and to the Trustee, may waive all Defaults or Events of Default with respect to the Notes  and rescind and annul such declaration and its consequences and such Default shall cease to exist,  and any Event of Default arising therefrom shall be deemed to have been cured for every purpose  of this Indenture; but no such waiver or rescission and annulment shall extend to or shall affect  any  subsequent  Default  or  Event  of  Default,  or  shall  impair  any  right  consequent  thereon.   Notwithstanding anything to the contrary herein, no such waiver or rescission and annulment shall  extend to or shall affect any Default or Event of Default resulting from (i) the nonpayment of the  principal  (including  the  Redemption  Price  and  the  Fundamental  Change  Repurchase  Price,  if  applicable) of, or accrued and unpaid interest on, any Notes, (ii) a failure to repurchase any Notes  when required or (iii) a failure to pay or deliver, as the case may be, the consideration due upon  conversion of the Notes.         Section 6.03. Additional Interest.  Notwithstanding anything in this Indenture or in the  Notes to the contrary, to the extent the Company elects, the sole remedy for an Event of Default                                         32 

 

   relating to the Company’s failure to comply with its obligations as set forth in Section 4.06(b)  [Rule 144A Information Requirement and Annual Reports] shall, for the first 180 days after the  occurrence of  such  an  Event  of Default,  consist  exclusively  of  the right  to  receive  Additional  Interest on the Notes at a rate equal to (1) 0.25% per annum of the principal amount of the Notes  outstanding for each day during the first 90 days during which such Event of Default is continuing  beginning on, and including, the date on which such Event of Default first occurs and (2) 0.50%  per annum of the principal amount of the Notes outstanding for each day during the next 90 days  during which such Event of Default is continuing.  Additional Interest payable pursuant to this  Section 6.03 [Additional Interest] shall be in addition to, not in lieu of, any Additional Interest  payable pursuant to Section 4.06(d) [Rule 144A Information Requirement and Annual Reports] or  Section 4.06(e) [Rule 144A Information Requirement and Annual Reports].  If the Company so  elects, such Additional Interest shall be payable in the same manner and on the same dates as the  stated interest payable on the Notes.  On the 181st day after such Event of Default (if the Event of  Default relating to the Company’s failure to comply with its obligations set forth in Section 4.06(b)  [Rule 144A Information Requirement and Annual Reports] is not cured or waived prior to such  181st day), the Notes shall be immediately subject to acceleration as provided in Section 6.02  [Acceleration; Rescission and Annulment] and Additional Interest pursuant to this Section 6.03  [Additional Interest] shall cease to accrue.  The provisions of this paragraph will not affect the  rights of Holders of Notes in the event of the occurrence of any Event of Default other than the  Company’s  failure  to  comply  with  its  obligations  as  set  forth  in  Section  4.06(b)  [Rule  144A  Information Requirement and Annual Reports].  In the event the Company does not elect to pay  Additional Interest following an Event of Default in accordance with this Section 6.03 [Additional  Interest] or the Company elected to make such payment but does not pay the Additional Interest  when  due,  the  Notes  shall  be  immediately  subject  to  acceleration  as  provided  in  Section  6.02  [Acceleration; Rescission and Annulment].         In order to elect to pay Additional Interest as the sole remedy during the first 180 days after  the occurrence of any Event of Default described in the immediately preceding paragraph, the  Company must notify all Holders of the Notes, the Trustee and the Paying Agent of such election  prior to the beginning of such 180-day period.  Upon the failure to timely give such notice, the  Notes  shall  be  immediately  subject  to  acceleration  as  provided  in  Section  6.02  [Acceleration;  Rescission and Annulment].         Section 6.04. Payments  of  Notes  on  Default;  Suit  Therefor.   If  an  Event  of  Default  described in clause (a) or (b) of Section 6.01 [Events of Default] shall have occurred, the Company  shall, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders of the Notes,  the whole amount then due and payable on the Notes for principal and interest, if any, with interest  on any overdue principal and interest, if any, at the rate borne by the Notes at such time, plus one  percent, and, in addition thereto, such further amount as shall be sufficient to cover any amounts  due to the Trustee under Section 7.06 [Compensation and Expenses of Trustee].  If the Company  shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as  trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due  and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same  against the Company or any other obligor upon the Notes and collect the moneys adjudged or  decreed to be payable in the manner provided by law out of the property of the Company or any  other obligor upon the Notes, wherever situated.                                          33 

 

         In the event there shall be pending proceedings for the bankruptcy or for the reorganization  of the Company or any other obligor on the Notes under Title 11 of the United States Code, or any  other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,  liquidator, sequestrator or similar official shall have been appointed for or taken possession of the  Company or such other obligor, the property of the Company or such other obligor, or in the event  of any other judicial proceedings relative to the Company or such other obligor upon the Notes, or  to the creditors or property of the Company or such  other  obligor, the Trustee, irrespective of  whether  the  principal  of  the  Notes  shall  then  be  due  and  payable  as  therein  expressed  or  by  declaration  or  otherwise  and  irrespective  of  whether  the Trustee shall  have made any  demand  pursuant to the provisions of this Section 6.04 [Payments of Notes on Default; Suit Therefor], shall  be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a  claim or claims for the whole amount of principal and accrued and unpaid interest, if any, in respect  of the Notes, and, in case of any judicial proceedings, to file such proofs of claim and other papers  or documents and to take such other actions as it may deem necessary or advisable in order to have  the  claims  of  the  Trustee  (including  any  claim  for  the  reasonable  compensation,  expenses,  disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in  such judicial proceedings relative to the Company or any other obligor on the Notes, its or their  creditors, or its or their property, and to collect and receive any monies or other property payable  or deliverable on any such claims, and to distribute the same after the deduction of any amounts  due to the Trustee under Section 7.06 [Compensation and Expenses of Trustee]; and any receiver,  assignee  or  trustee  in  bankruptcy  or  reorganization,  liquidator,  custodian  or  similar  official  is  hereby authorized by each of the Holders to make such payments to the Trustee, as administrative  expenses, and, in the event that the Trustee shall consent to the making of such payments directly  to the Holders, to pay to the Trustee any amount due it for reasonable compensation, expenses,  advances and disbursements, including agents and counsel fees, and including any other amounts  due to the Trustee under Section 7.06 [Compensation and Expenses of Trustee], incurred by it up  to the date of such distribution.  To the extent that such payment of reasonable compensation,  expenses, advances and disbursements out of the estate in any such proceedings shall be denied  for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any  and all distributions, dividends, monies, securities and other property that the Holders of the Notes  may  be  entitled  to  receive  in  such  proceedings,  whether  in  liquidation  or  under  any  plan  of  reorganization or arrangement or otherwise.         Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent  to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment  or composition affecting such Holder or the rights of any Holder thereof, or to authorize the Trustee  to vote in respect of the claim of any Holder in any such proceeding.         All rights of action and of asserting claims under this Indenture, or under any of the Notes,  may be enforced by the Trustee without the possession of any of the Notes, or the production  thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted  by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of  judgment  shall,  after  provision  for  the  payment  of  the  reasonable  compensation,  expenses,  disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the  Holders of the Notes.                                          34 

 

         In  any  proceedings  brought  by  the  Trustee  (and  in  any  proceedings  involving  the  interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee  shall be held to represent all the Holders of the Notes, and it shall not be necessary to make any  Holders of the Notes parties to any such proceedings.         In case the Trustee shall have proceeded to enforce any right under this Indenture and such  proceedings shall have been discontinued or abandoned because of any waiver pursuant to Section  6.09 [Direction of Proceedings and Waiver of Defaults by Majority of Holders] or any rescission  and annulment pursuant to Section 6.02 [Acceleration; Rescission and Annulment] or for any other  reason or shall have been determined adversely to the Trustee, then and in every such case the  Company, the Holders and the Trustee shall, subject to any determination in such proceeding, be  restored respectively to their several positions and rights hereunder, and all rights, remedies and  powers of the Company, the Holders and the Trustee shall continue as though no such proceeding  had been instituted.         Section 6.05. Application of Monies Collected by Trustee.  Any monies collected by the  Trustee  pursuant  to  this  Article  6  [Defaults  and  Remedies]  with  respect  to  the  Notes  shall  be  applied in the following order, at the date or dates fixed by the Trustee for the distribution of such  monies, upon presentation of the several Notes, and stamping thereon the payment, if only partially  paid, and upon surrender thereof, if fully paid:         First, to the payment of all amounts due the Trustee under Section 7.06 [Compensation  and Expenses of Trustee];         Second, in case the principal of the outstanding Notes shall not have become due and be  unpaid, to the payment of interest on, and any cash due upon conversion of, the Notes in default  in the order of the date due of the payments of such interest and cash due upon conversion, as the  case may be, with interest (to the extent that such interest has been collected by the Trustee) upon  such overdue payments at the rate borne by the Notes at such time, plus one percent, such payments  to be made ratably to the Persons entitled thereto;         Third, in case the principal of the outstanding Notes shall have become due, by declaration  or otherwise, and be unpaid to the payment of the whole amount (including, if applicable, the  payment of the Redemption Price and the Fundamental Change Repurchase Price and any cash  due upon conversion) then owing and unpaid upon the Notes for principal and interest, if any, with  interest on the overdue principal and, to the extent that such interest has been collected by the  Trustee, upon overdue installments of interest at the rate borne by the Notes at such time plus one  percent, and in case such monies shall be insufficient to pay in full the whole amounts so due and  unpaid  upon  the  Notes,  then  to  the  payment  of  such  principal  (including,  if  applicable,  the  Redemption  Price  and  the  Fundamental  Change  Repurchase  Price  and  the  cash  due  upon  conversion) and interest without preference or priority of principal over interest, or of interest over  principal or of any installment of interest over any other installment of interest, or of any Note  over  any  other  Note,  ratably  to  the  aggregate  of  such  principal  (including,  if  applicable,  the  Redemption  Price  and  the  Fundamental  Change  Repurchase  Price  and  any  cash  due  upon  conversion) and accrued and unpaid interest; and         Fourth, to the payment of the remainder, if any, to the Company.                                         35 

 

         Section 6.06. Proceedings by Holders.  Except to enforce the right to receive payment of  principal (including, if applicable, the Redemption Price and the Fundamental Change Repurchase  Price) or interest when due, or the right to receive payment or delivery of the consideration due  upon conversion, no Holder of any Note shall have any right by virtue of or by availing of any  provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or  under or with respect to this Indenture, or for the appointment of a receiver, trustee, liquidator,  custodian or other similar official, or for any other remedy hereunder, unless:          (a)   such Holder previously shall have given to the Trustee written notice of an Event  of Default and of the continuance thereof, as herein provided;         (b)   Holders of at least 25% in aggregate principal amount of the Notes then outstanding  shall have made written request upon the Trustee to institute such action, suit or proceeding in its  own name as Trustee hereunder;         (c)   such  Holders  shall  have  offered  to  the  Trustee  such  security  or  indemnity  reasonably satisfactory to the Trustee against any loss, liability or expense to be incurred therein  or thereby;         (d)   the Trustee for 60 days after its receipt of such notice, request and offer of such  security  or  indemnity,  shall  have  neglected  or  refused  to  institute  any  such  action,  suit  or  proceeding; and          (e)   no direction that, in the opinion of the Trustee, is inconsistent with such written  request shall have been given to the Trustee by the Holders of a majority of the aggregate principal  amount  of  the  Notes  then  outstanding  within  such  60-day  period  pursuant  to  Section  6.09  [Direction of Proceedings and Waiver of Defaults by Majority of Holders],    it being understood and intended, and being expressly covenanted by the taker and Holder of every  Note with every other taker and Holder and the Trustee that no one or more Holders shall have  any right in any manner whatever by virtue of or by availing of any provision of this Indenture to  affect, disturb or prejudice the rights of any other Holder, or to obtain or seek to obtain priority  over or preference to any other such Holder, or to enforce any right under this Indenture, except in  the manner herein provided and for the equal, ratable and common benefit of all Holders (except  as  otherwise  provided  herein).   For  the  protection  and  enforcement  of  this  Section  6.06  [Proceedings by Holders], each and every Holder and the Trustee shall be entitled to such relief as  can be given either at law or in equity.         Notwithstanding any other provision of this Indenture and any provision of any Note, each  Holder shall have the right to receive payment or delivery, as the case may be, of (x) the principal  (including the Redemption Price and the Fundamental Change Repurchase Price, if applicable) of,  (y) accrued and unpaid interest, if any, on, and (z) the consideration due upon conversion of, such  Note,  on  or  after  the  respective  due  dates  expressed  or  provided  for  in  such  Note  or  in  this  Indenture, or to institute suit for the enforcement of any such payment or delivery, as the case may  be.  Notwithstanding the foregoing and for the avoidance of doubt, no amendment to, or deletion  or waiver of any of, the provisions set forth in this Indenture or any action taken by the Company  not prohibited by this Indenture (other than any action pursuant to Section 10.02 [Supplemental                                          36 

 

   Indentures with Consent of Holders] that requires the consent of each Holder of an outstanding  Note affected) shall be deemed to impair or affect any rights of any Holder to receive such payment  or delivery.         Section 6.07. Proceedings by Trustee.  In case of an Event of Default, the Trustee may in  its  discretion  proceed  to  protect  and  enforce  the  rights  vested  in  it  by  this  Indenture  by  such  appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either  by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the  specific enforcement of any covenant or agreement contained in this Indenture or in aid of the  exercise of any power granted in this Indenture, or to enforce any other legal or equitable right  vested in the Trustee by this Indenture or by law.         Section 6.08. Remedies  Cumulative  and  Continuing.   Except  as  provided  in  the  last  paragraph of Section 2.06 [Mutilated, Destroyed, Lost or Stolen Notes], all powers and remedies  given by this Article 6 [Defaults and Remedies] to the Trustee or to the Holders shall, to the extent  permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers  and  remedies  available  to  the  Trustee  or  the  Holders  of  the  Notes,  by  judicial  proceedings  or  otherwise, to enforce the performance or observance of the covenants and agreements contained  in this Indenture, and no delay or omission of the Trustee or of any Holder of any of the Notes to  exercise any right or power accruing upon any Default or Event of Default shall impair any such  right or power, or shall be construed to be a waiver of any such Default or Event of Default or any  acquiescence therein; and, subject to the provisions of Section 6.06 [Proceedings by Holders],  every power and remedy given by this Article 6 [Defaults and Remedies] or by law to the Trustee  or to the Holders may be exercised from time to time, and as often as shall be deemed expedient,  by the Trustee or by the Holders.         Section 6.09. Direction of Proceedings and Waiver of Defaults by Majority of Holders.   The Holders of a majority of the aggregate principal amount of the Notes at the time outstanding  determined in accordance with Section 8.04 [Company-Owned Notes Disregarded] shall have the  right to direct the time, method and place of conducting any proceeding for any remedy available  to the Trustee or exercising any trust or power conferred on the Trustee with respect to the Notes;  provided, however, that (a) such direction shall not be in conflict with any rule of law or with this  Indenture, and (b) the Trustee may take any other action deemed proper by the Trustee that is not  inconsistent with such direction.  The Trustee may refuse to follow any direction that it determines  is unduly prejudicial to the rights of any other Holder or that would involve the Trustee in personal  liability.   The  Holders  of  a  majority  in  aggregate  principal  amount  of  the  Notes  at  the  time  outstanding determined in accordance with Section 8.04 [Company-Owned Notes Disregarded]  may  on  behalf  of  the Holders  of  all  of the Notes  waive  any  past  Default  or Event  of Default  hereunder and its consequences except (i) a default in the payment of accrued and unpaid interest,  if  any,  on,  or  the  principal  (including  any  Redemption  Price  and  any  Fundamental  Change  Repurchase Price) of, the Notes when due that has not been cured, (ii) a failure by the Company  to pay or deliver, as the case may be, the consideration due upon conversion of the Notes or (iii) a  default  in  respect  of  a  covenant  or  provision  hereof  which  under  Article  10  [Supplemental  Indentures] cannot be modified or amended without the consent of each Holder of an outstanding  Note affected.  Upon any such waiver the Company, the Trustee and the Holders of the Notes shall  be restored to their former positions and rights hereunder; but no such waiver shall extend to any  subsequent or other Default or Event of Default or impair any right consequent thereon.  Whenever                                         37 

 

   any Default or Event of Default hereunder shall have been waived as permitted by this Section  6.09 [Direction of Proceedings and Waiver of Defaults by Majority of Holders], said Default or  Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been  cured and to be not continuing; but no such waiver shall extend to any subsequent or other Default  or Event of Default or impair any right consequent thereon.         Section 6.10. Notice of Defaults.  The Trustee shall, within 90 days after the occurrence  and continuance of a Default of which a Responsible Officer has actual knowledge, deliver to all  Holders notice of all Defaults known to a Responsible Officer, unless such Defaults shall have  been cured or waived before the giving of such notice; provided that, except in the case of a Default  in the payment of the principal of (including the Redemption Price and the Fundamental Change  Repurchase Price, if applicable), or accrued and unpaid interest on, any of the Notes or a Default  in the payment or delivery of the consideration due upon conversion, the Trustee shall be protected  in withholding such notice if and so long as a committee of Responsible Officers of the Trustee in  good faith determines that the withholding of such notice is in the interests of the Holders.         Section 6.11. Undertaking to Pay Costs.  All parties to this Indenture agree, and each  Holder of any Note by its acceptance thereof shall be deemed to have agreed, that any court may,  in  its  discretion,  require,  in  any  suit  for  the  enforcement  of  any  right  or  remedy  under  this  Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the  filing by any party litigant in such suit of an undertaking to pay the costs of such suit and that such  court  may  in  its  discretion  assess  reasonable  costs,  including  reasonable  attorneys’  fees  and  expenses, against any party litigant in such suit, having due regard to the merits and good faith of  the claims or defenses made by such party litigant; provided that the provisions of this Section  6.11  [Undertaking  to  Pay  Costs]  (to  the  extent  permitted  by  law)  shall  not  apply  to  any  suit  instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the  aggregate more than 10% in principal amount of the Notes at the time outstanding determined in  accordance with Section 8.04 [Company-Owned Notes Disregarded], or to any suit instituted by  any Holder for the enforcement of the payment of the principal of or accrued and unpaid interest,  if any, on any Note (including, but not limited to, the Redemption Price  and the Fundamental  Change Repurchase Price, if applicable) on or after the due date expressed or provided for in such  Note or to any suit for the enforcement of the right to convert any Note, or receive the consideration  due upon conversion, in accordance with the provisions of Article 14 [Conversion of Notes].                                      Article 7                               Concerning the Trustee         Section 7.01. Duties and Responsibilities of Trustee.  The Trustee, prior to the occurrence  of  an  Event  of  Default  and  after  the  curing  or  waiver  of  all  Events  of  Default  that  may  have  occurred, undertakes to perform such duties and only such duties as are specifically set forth in  this Indenture.  In the event an Event of Default has occurred and is continuing, the Trustee shall  exercise such of the rights and powers vested in it by this Indenture, and use the same degree of  care and skill in its exercise, as a prudent person would exercise or use under the circumstances in  the  conduct  of  such  person’s  own  affairs;  provided  that  if  an  Event  of  Default  occurs  and  is  continuing, the Trustee will be under no obligation to exercise any of the rights or powers under  this Indenture at the request or direction of any of the Holders unless such Holders have offered to                                          38 

 

   the Trustee indemnity or security reasonably satisfactory to the Trustee against any loss, liability  or expense that might be incurred by it in compliance with such request or direction.         No provision of this Indenture shall be construed to relieve the Trustee from liability for  its  own  grossly  negligent  action,  its  own  grossly  negligent  failure  to  act  or  its  own  willful  misconduct, except that:         (a)   prior to the occurrence of an Event of Default and after the curing or waiving of all  Events of Default that may have occurred:               (i)   the duties and obligations of the Trustee shall be determined solely by the        express  provisions  of  this  Indenture,  and  the  Trustee  shall  not  be  liable  except  for  the        performance of such duties and obligations as are specifically set forth in this Indenture        and  no  implied  covenants  or  obligations  shall  be  read  into  this  Indenture  against  the        Trustee; and               (ii)  in the absence of bad faith and willful misconduct on the part of the Trustee,        the Trustee may conclusively rely, as to the truth of the statements and the correctness of        the opinions expressed therein, upon any certificates or opinions furnished to the Trustee        and  conforming  to  the  requirements  of  this  Indenture;  but,  in  the  case  of  any  such        certificates  or  opinions  that  by  any  provisions  hereof  are  specifically  required  to  be        furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine        whether or not they conform to the requirements of this Indenture (but need not confirm or        investigate the accuracy of any mathematical calculations or other facts stated therein);         (b)   the Trustee shall not be liable for any error of judgment made in good faith by a  Responsible  Officer  or  Officers  of  the  Trustee,  unless  it  shall  be  proved  that  the  Trustee  was  grossly negligent in ascertaining the pertinent facts;         (c)   the Trustee shall not be liable with respect to any action taken or omitted to be taken  by it in good faith in accordance with the direction of the Holders of not less than a majority of the  aggregate principal amount of the Notes at the time outstanding determined as provided in Section  8.04 [Company-Owned Notes Disregarded] relating to the time, method and place of conducting  any proceeding for  any remedy available to the Trustee, or exercising any trust or power conferred  upon the Trustee, under this Indenture;         (d)   whether or not therein provided, every provision of this Indenture relating to the  conduct or affecting the liability of, or affording protection to, the Trustee shall be subject to the  provisions of this Section;         (e)   the Trustee shall not be liable in respect of any payment (as to the correctness of  amount, entitlement to receive or any other matters relating to payment) or notice effected by the  Company or any Paying Agent or any records maintained by any co-Note Registrar with respect  to the Notes;         (f)   if any party fails to deliver a notice relating to an event the fact of which, pursuant  to this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its                                          39 

 

   failure to receive such notice as reason to act as if no such event occurred, unless a Responsible  Officer of the Trustee had actual knowledge of such event;         (g)   in the absence of written investment direction from the Company, all cash received  by the Trustee shall be placed in a non-interest bearing trust account, and in no event shall the  Trustee be liable for the selection of investments or for investment losses incurred thereon or for  losses incurred as a result of the liquidation of any such investment prior to its maturity date or the  failure of the party directing such investments prior to its maturity date or the failure of the party  directing such investment to provide timely written investment direction, and the Trustee shall  have no obligation to invest or reinvest any amounts held hereunder in the absence of such written  investment direction from the Company; and         (h)   in the event that the Trustee is also acting as Custodian, Note Registrar, Paying  Agent, Conversion Agent or transfer agent hereunder, the rights and protections afforded to the  Trustee  pursuant  to  this  Article  7  [Concerning  the  Trustee]  shall  also  be  afforded  to  such  Custodian, Note Registrar, Paying Agent, Conversion Agent or transfer agent.         None of the provisions contained in this Indenture shall require the Trustee to expend or  risk its own funds or otherwise incur personal financial liability in the performance of any of its  duties or in the exercise of any of its rights or powers.         Section 7.02. Reliance on Documents, Opinions, Etc.  Except as otherwise provided in  Section 7.01 [Duties and Responsibilities of Trustee]:         (a)   the Trustee may conclusively rely and shall be fully protected in acting upon any  resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond,  note, coupon or other paper or document believed by it in good faith to be genuine and to have  been signed or presented by the proper party or parties;         (b)   any request, direction, order or demand of the Company mentioned herein shall be  sufficiently  evidenced  by  an  Officer’s  Certificate  (unless  other  evidence  in  respect  thereof  be  herein specifically prescribed); and any Board Resolution may be evidenced to the Trustee by a  copy thereof certified by the Secretary or an Assistant Secretary of the Company;         (c)   the Trustee may consult with counsel and require an Opinion of Counsel and any  advice  of  such  counsel  or  Opinion  of  Counsel  shall  be  full  and  complete  authorization  and  protection in respect of any action taken or omitted by it hereunder in good faith and in accordance  with such advice or Opinion of Counsel;         (d)   the Trustee shall not be bound to make any investigation into the facts or matters  stated  in  any  resolution,  certificate,  statement,  instrument,  opinion,  report,  notice,  request,  direction,  consent,  order,  bond,  debenture  or  other  paper  or  document,  but  the  Trustee,  in  its  discretion, may make such further inquiry or investigation into such facts or matters as it may see  fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be  entitled to examine the books, records and premises of the Company, personally or by agent or  attorney at the expense of the Company and shall incur no liability of any kind by reason of such  inquiry or investigation;                                          40 

 

         (e)   the Trustee may execute any of the trusts or powers hereunder or perform any duties  hereunder  either  directly  or  by  or  through  agents,  custodians,  nominees  or  attorneys  and  the  Trustee  shall  not  be  responsible  for  any  misconduct  or  negligence  on  the  part  of  any  agent,  custodian, nominee or attorney appointed by it with due care hereunder; and         (f)   the permissive rights of the Trustee enumerated herein shall not be construed as  duties.         In no event shall the Trustee be liable for any consequential loss or damage of any kind  whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the  likelihood of such loss or damage and regardless of the form of action other than any such loss or  damage caused by the Trustee’s willful misconduct or gross negligence.  The Trustee shall not be  charged with knowledge of any Default or Event of Default with respect to the Notes other than a  Default or Event of Default arising out of a failure to pay the principal of, or interest on, the Notes  (including, if applicable, the Fundamental Change Repurchase Price and the Redemption Price),  unless either (1) a Responsible Officer shall have actual knowledge of such Default or Event of  Default or (2) written notice of such Default or Event of Default shall have been given to the  Trustee by the Company or by any Holder of the Notes.         Section 7.03. No Responsibility for Recitals, Etc.  The recitals contained herein and in the  Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of the  Company, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee  makes no representations as to the validity or sufficiency of this Indenture or of the Notes.  The  Trustee shall not be accountable for the use or application by the Company of any Notes or the  proceeds of any Notes authenticated and delivered by the Trustee in conformity with the provisions  of this Indenture.         Section 7.04. Trustee,  Paying  Agents,  Conversion  Agents  or  Note  Registrar  May  Own  Notes.  The Trustee, any Paying Agent, any Conversion Agent or Note Registrar, in its individual  or any other capacity, may become the owner or pledgee of Notes with the same rights it would  have if it were not the Trustee, Paying Agent, Conversion Agent or Note Registrar.         Section 7.05. Monies  and  Shares  of  Class  A Common  Stock  to  Be  Held  in Trust.   All  monies and shares of Class A Common Stock received by the Trustee shall, until used or applied  as herein provided, be held in trust for the purposes for which they were received.  Money and  shares of Class A Common Stock held by the Trustee in trust hereunder need not be segregated  from other funds except to the extent required by law.  The Trustee shall be under no liability for  interest on any money or shares of Class A Common Stock received by it hereunder except as may  be agreed from time to time by the Company and the Trustee.         Section 7.06. Compensation  and  Expenses  of  Trustee.   The  Company  covenants  and  agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, reasonable  compensation for all services rendered by it hereunder in any capacity (which shall not be limited  by any provision of law in regard to the compensation of a trustee of an express trust) as mutually  agreed to in writing between the Trustee and the Company, and the Company will pay or reimburse  the Trustee upon its request for all reasonable expenses, disbursements and advances reasonably  incurred or made by the Trustee in accordance with any of the provisions of this Indenture in any                                         41 

 

   capacity hereunder (including the reasonable compensation and the expenses and disbursements  of its agents and counsel and of all Persons not regularly in its employ) except any such expense,  disbursement or advance as shall have been caused by its gross negligence, willful misconduct or  bad  faith.   The  Company  also  covenants  to  indemnify  the  Trustee  in  any  capacity  under  this  Indenture and any other document or transaction entered into in connection herewith and its agents  and any authenticating agent for, and to hold them harmless against, any loss, claim, damage,  liability or expense incurred without gross negligence, willful misconduct or bad faith on the part  of the Trustee, its officers, directors, agents or employees, or such agent or authenticating agent,  as the case may be, and arising out of or in connection with the acceptance or administration of  this Indenture or in any other capacity hereunder, including the costs and expenses of defending  themselves against any claim of liability in the premises.  The obligations of the Company under  this Section 7.06 [Compensation and Expenses of Trustee] to compensate or indemnify the Trustee  and to pay or reimburse the Trustee for expenses, disbursements and advances shall be secured by  a senior claim to which the Notes are hereby made subordinate on all money or property held or  collected  by  the  Trustee,  except,  subject  to  the  effect  of  Section  6.05  [Application  of  Monies  Collected by Trustee],  funds held in trust herewith for the benefit of the Holders of particular  Notes.   The  Trustee’s  right  to  receive  payment  of  any  amounts  due  under  this  Section  7.06  [Compensation  and  Expenses  of  Trustee]  shall  not  be  subordinate  to  any  other  liability  or  indebtedness  of  the  Company.   The  obligation  of  the  Company  under  this  Section  7.06  [Compensation  and  Expenses  of  Trustee]  shall  survive  the  satisfaction  and  discharge  of  this  Indenture and the earlier resignation or removal of the Trustee.  The Company need not pay for  any settlement made without its consent, which consent shall not be unreasonably withheld.  The  indemnification  provided  in  this  Section  7.06  [Compensation  and  Expenses  of  Trustee]  shall  extend to the officers, directors, agents and employees of the Trustee.         Without prejudice to any other rights available to the Trustee under applicable law, when  the Trustee and its agents and any authenticating agent incur expenses or render services after an  Event of Default  specified in Section 6.01(i) [Events of Default] or Section 6.01(j) [Events of  Default] occurs, the expenses and the  compensation for the services are intended to constitute  expenses of administration under any bankruptcy, insolvency or similar laws.         Section 7.07. Officer’s Certificate as Evidence.  Except as otherwise provided in Section  7.01 [Duties and Responsibilities of Trustee], whenever in the administration of the provisions of  this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established  prior to taking or omitting any action hereunder, such matter (unless other evidence in respect  thereof  be  herein  specifically  prescribed)  may,  in  the  absence  of  gross  negligence,  willful  misconduct, recklessness and bad faith on the part of the Trustee, be deemed to be conclusively  proved and established by an Officer’s Certificate delivered to the Trustee, and such Officer’s  Certificate, in the absence of gross negligence, willful misconduct, recklessness and bad faith on  the part of the Trustee, shall be full warrant to the Trustee for any action taken or omitted by it  under the provisions of this Indenture upon the faith thereof.         Section 7.08. Eligibility of Trustee.  There shall at all times be a Trustee hereunder which  shall be a Person that is eligible pursuant to the Trust Indenture Act (as if the Trust Indenture Act  were  applicable  hereto)  to  act  as  such  and  has  a  combined  capital  and  surplus  of  at  least  $50,000,000.  If such Person publishes reports of condition at least annually, pursuant to law or to  the requirements of any supervising or examining authority, then for the purposes of this Section,                                         42 

 

   the combined capital and surplus of such Person shall be deemed to be its combined capital and  surplus as set forth in its most recent report of condition so published.  If at any time the Trustee  shall  cease  to  be  eligible  in  accordance  with  the  provisions  of  this  Section,  it  shall  resign  immediately in the manner and with the effect hereinafter specified in this Article.         Section 7.09. Resignation or Removal of Trustee.         (a)    The Trustee may at any time resign by giving written notice of such resignation to  the  Company  and  by  delivering  notice thereof  to  the  Holders.   Upon  receiving  such  notice of  resignation,  the  Company  shall  promptly  appoint  a  successor trustee by  written  instrument,  in  duplicate, executed by order of the Board of Directors, one copy of which instrument shall be  delivered to the resigning Trustee and one copy to the successor trustee.  If no successor trustee  shall have been so appointed and have accepted appointment within 60 days after the giving of  such notice of resignation to the Holders, the resigning Trustee may, upon ten Business Days’  notice  to  the  Company  and  the  Holders,  petition  any  court  of  competent  jurisdiction  for  the  appointment of a successor trustee, or any Holder who has been a bona fide holder of a Note or  Notes for at least six months (or since the date of this Indenture) may, subject to the provisions of  Section 6.11 [Undertaking to Pay Costs], on behalf of himself or herself and all others similarly  situated,  petition  any  such  court  for  the  appointment  of  a  successor  trustee.   Such  court  may  thereupon, after such notice, if any,  as it may deem proper and prescribe, appoint a successor  trustee.         (b)   In case at any time any of the following shall occur:               (i)   the Trustee shall cease to be eligible in accordance with the provisions of        Section 7.08 [Eligibility of Trustee] and shall fail to resign after written request therefor by        the Company or by any such Holder, or               (ii)  the  Trustee  shall  become  incapable  of  acting,  or  shall  be  adjudged  a        bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or        any public officer shall take charge or control of the Trustee or of its property or affairs for        the purpose of rehabilitation, conservation or liquidation,   then, in either case, the Company may by a Board Resolution remove the Trustee and appoint a  successor trustee by written instrument, in duplicate, executed by order of the Board of Directors,  one copy of which instrument shall be delivered to the Trustee so removed and one copy to the  successor trustee, or, subject to the provisions of Section 6.11 [Undertaking to Pay Costs], any  Holder who has been a bona fide holder of a Note or Notes for at least six months (or since the  date of this Indenture) may, on behalf of himself or herself and all others similarly situated, petition  any  court  of  competent  jurisdiction  for  the  removal  of  the  Trustee  and  the  appointment  of  a  successor trustee.  Such court may thereupon, after such notice, if any, as it may deem proper and  prescribe, remove the Trustee and appoint a successor trustee.         (c)   The Holders of a majority in aggregate principal amount of the Notes at the time  outstanding,  as  determined  in  accordance  with  Section  8.04  [Company-Owned  Notes  Disregarded], may at any time remove the Trustee and nominate a successor trustee that shall be  deemed appointed as successor trustee unless within ten days after notice to the Company of such                                          43 

 

   nomination the Company objects thereto, in which case the Trustee so removed or any Holder,  upon the terms and conditions and otherwise as in Section 7.09(a) [Resignation or Removal of  Trustee]  provided,  may  petition  any  court  of  competent  jurisdiction  for  an  appointment  of  a  successor trustee.         (d)   Any resignation or removal of the Trustee and appointment of a successor trustee  pursuant to any of the provisions of this Section 7.09 [Resignation or Removal of Trustee] shall  become effective upon acceptance of appointment by the successor trustee as provided in Section  7.10 [Acceptance by Successor Trustee].         Section 7.10. Acceptance  by  Successor  Trustee.   Any  successor  trustee  appointed  as  provided in Section 7.09 [Resignation or Removal of Trustee] shall execute, acknowledge and  deliver to the Company and to its predecessor trustee an instrument accepting such appointment  hereunder,  and  thereupon  the  resignation  or  removal  of  the  predecessor  trustee  shall  become  effective and such successor trustee, without any further act, deed or conveyance, shall become  vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like  effect as if originally named as Trustee herein; but, nevertheless, on the written request of the  Company or of the successor trustee, the trustee ceasing to act shall, upon payment of any amounts  then due it pursuant to the provisions of Section 7.06 [Compensation and Expenses of Trustee],  execute and deliver an instrument transferring to such successor trustee all the rights and powers  of the trustee so ceasing to act.  Upon request of any such successor trustee, the Company shall  execute any and all instruments in writing for more fully and certainly vesting in and confirming  to such successor trustee all such rights and powers.  Any trustee ceasing to act shall, nevertheless,  retain a senior claim to which the Notes are hereby made subordinate on all money or property  held or collected by such trustee as such, except for funds held in trust for the benefit of Holders  of particular Notes, to secure any amounts then due it pursuant to the provisions of Section 7.06  [Compensation and Expenses of Trustee].         No successor trustee shall accept appointment as provided in this Section 7.10 [Acceptance  by Successor Trustee] unless at the time of such acceptance such successor trustee shall be eligible  under the provisions of Section 7.08 [Eligibility of Trustee].         Upon acceptance of appointment by a successor trustee as provided in this Section 7.10  [Acceptance by Successor Trustee], each of the Company and the successor trustee, at the written  direction and at the expense of the Company shall deliver or cause to be delivered notice of the  succession of such trustee hereunder to the Holders.  If the Company fails to deliver such notice  within ten days after acceptance of appointment by the successor trustee, the successor trustee shall  cause such notice to be delivered at the expense of the Company.          Section 7.11. Succession by Merger, Etc.  Any corporation or other entity into which the  Trustee may be merged or converted or with which it may be consolidated, or any corporation or  other entity resulting from any merger, conversion or consolidation to which the Trustee shall be  a party, or any corporation or other entity succeeding to all or substantially all of the corporate  trust business of the Trustee (including the administration of this Indenture), shall be the successor  to the Trustee hereunder without the execution or filing of any paper or any further act on the part  of any of the parties hereto; provided that in the case of any corporation or other entity succeeding                                          44 

 

   to all or substantially all of the corporate trust business of the Trustee such corporation or other  entity shall be eligible under the provisions of Section 7.08 [Eligibility of Trustee].         In case at the time such successor to the Trustee shall succeed to the trusts created by this  Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to  the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating  agent appointed by such predecessor trustee, and deliver such Notes so authenticated; and in case  at that time any of the Notes shall not have been authenticated, any successor to the Trustee or an  authenticating agent appointed by such successor trustee may authenticate such Notes either in the  name of any predecessor trustee hereunder or in the name of the successor trustee; and in all such  cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture  provided that the certificate of the Trustee shall have; provided, however, that the right to adopt  the certificate of authentication of any predecessor trustee or to authenticate Notes in the name of  any predecessor trustee shall apply only to its successor or successors by merger, conversion or  consolidation.         Section 7.12. Trustee’s Application for Instructions from the Company.  Any application  by the Trustee for written instructions from the Company (other than with regard to any action  proposed to be taken or omitted to be taken by the Trustee that affects the rights of the Holders of  the Notes under this Indenture) may, at the option of the Trustee, set forth in writing any action  proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or after  which such action shall be taken or such omission shall be effective.  The Trustee shall not be  liable to the Company for any action taken by, or omission of, the Trustee in accordance with a  proposal included in such application on or after the date specified in such application (which date  shall not be less than three Business Days after the date any officer that the Company has indicated  to the Trustee should receive such application actually receives such application, unless any such  officer shall have consented in writing to any earlier date), unless, prior to taking any such action  (or  the  effective  date  in  the  case  of  any  omission),  the  Trustee  shall  have  received  written  instructions in accordance with this Indenture in response to such application specifying the action  to be taken or omitted.                                      Article 8                               Concerning the Holders         Section 8.01. Action  by  Holders.   Whenever  in  this  Indenture  it  is  provided  that  the  Holders of a specified percentage of the aggregate principal amount of the Notes may take any  action (including the making of any demand or request, the giving of any notice, consent or waiver  or the taking of any other action), the fact that at the time of taking any such action, the Holders  of such specified percentage have joined therein may be evidenced (a) by any instrument or any  number  of  instruments  of  similar  tenor  executed  by  Holders  in  person  or  by  agent  or  proxy  appointed in writing, or (b) by the record of the Holders voting in favor thereof at any meeting of  Holders duly called and held in accordance with the provisions of Article 9 [Holders' Meetings],  or (c) by a combination of such instrument or instruments and any such record of such a meeting  of Holders.  Whenever the Company or the Trustee solicits the taking of any action by the Holders  of the Notes, the Company or the Trustee may, but shall not be required to, fix in advance of such  solicitation, a date as the record date for determining Holders entitled to take such action.  The                                          45 

 

   record date if one is selected shall be not more than fifteen days prior to the date of commencement  of solicitation of such action.         Section 8.02. Proof of Execution by Holders.  Subject to the provisions of Section 7.01  [Duties and Responsibilities of Trustee], Section 7.02 [Reliance on Documents, Opinions, Etc.]  and Section 9.05 [Regulations], proof of the execution of any instrument by a Holder or its agent  or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as  may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee.  The  holding of Notes shall be proved by the Note Register or by a certificate of the Note Registrar.   The  record  of  any  Holders’  meeting  shall  be  proved  in  the  manner  provided  in  Section  9.06  [Voting].         Section 8.03. Persons Who Are Deemed Absolute Owners.  The Company, the Trustee,  any authenticating agent, any Paying Agent, any Conversion Agent and any Note Registrar may  deem the Person in whose name a Note shall be registered upon the Note Register to be, and may  treat  it  as,  the  absolute  owner  of  such  Note  (whether  or  not  such  Note  shall  be  overdue  and  notwithstanding any notation of ownership or other writing thereon made by any Person other than  the Company or any Note Registrar) for the purpose of receiving payment of or on account of the  principal (including any Redemption Price and any Fundamental Change Repurchase Price) of and  (subject to Section 2.03 [Date and Denomination of Notes; Payments of Interest and Defaulted  Amounts.]) accrued and unpaid interest on such Note, for conversion of such Note and for all other  purposes; and neither the Company nor the Trustee nor any Paying Agent nor any Conversion  Agent nor any Note Registrar shall be affected by any notice to the contrary.  All such payments  or deliveries so made to any Holder for the time being, or upon its order, shall be valid, and, to the  extent of the sums or shares of Class A Common Stock so paid or delivered, effectual to satisfy  and  discharge  the  liability  for  monies  payable  or  shares  deliverable  upon  any  such  Note.   Notwithstanding anything to the contrary in this Indenture or the Notes following an Event of  Default,  any  holder  of  a  beneficial  interest  in  a  Global  Note  may  directly  enforce  against  the  Company,  without  the  consent,  solicitation,  proxy,  authorization  or  any  other  action  of  the  Depositary or any other Person, such holder’s right to exchange such beneficial interest for a Note  in certificated form in accordance with the provisions of this Indenture.         Section 8.04. Company-Owned Notes Disregarded.  In determining whether the Holders  of the requisite aggregate principal amount of Notes have concurred in any direction, consent,  waiver  or  other  action  under  this  Indenture,  Notes  that  are  owned  by  the  Company,  by  any  Subsidiary  thereof  or  by  any  Affiliate  of  the  Company  or  any  Subsidiary  thereof  shall  be  disregarded and deemed not to be outstanding for the purpose of any such determination; provided  that for the purposes of determining whether the Trustee shall be protected in relying on any such  direction,  consent,  waiver or  other  action  only  Notes  that  a  Responsible  Officer  knows  are  so  owned shall be so disregarded.  Notes so owned that have been pledged in good faith may be  regarded  as  outstanding  for  the  purposes  of  this  Section  8.04  [Company-Owned  Notes  Disregarded] if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right to  so act with respect to such Notes and that the pledgee is not the Company, a Subsidiary thereof or  an Affiliate of the Company or a Subsidiary thereof.  In the case of a dispute as to such right, any  decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.   Upon  request  of  the  Trustee,  the  Company  shall  furnish  to  the  Trustee  promptly  an  Officer’s  Certificate listing and identifying all Notes, if any, known by the Company to be owned or held                                         46 

 

   by or for the account of any of the above described Persons; and, subject to Section 7.01 [Duties  and Responsibilities of Trustee], the Trustee shall be entitled to accept such Officer’s Certificate  as conclusive evidence of the facts therein set forth and of the fact that all Notes not listed therein  are outstanding for the purpose of any such determination.         Section 8.05. Revocation of Consents; Future Holders Bound.  At any time prior to (but  not after) the evidencing to the Trustee, as provided in Section 8.01 [Action by Holders], of the  taking of any action by the Holders of the percentage of the aggregate principal amount of the  Notes specified in this Indenture in connection with such action, any Holder of a Note that is shown  by the evidence to be included in the Notes the Holders of which have consented to such action  may, by filing written notice with the Trustee at its Corporate Trust Office and upon proof of  holding as provided in Section 8.02 [Proof of Execution by Holders], revoke such action so far as  concerns such Note.  Except as aforesaid, any such action taken by the Holder of any Note shall  be conclusive and binding upon such Holder and upon all future Holders and owners of such Note  and of any Notes issued in exchange or substitution therefor or upon registration of transfer thereof,  irrespective of whether any notation in regard thereto is made upon such Note or any Note issued  in exchange or substitution therefor or upon registration of transfer thereof.                                      Article 9                                 Holders’ Meetings         Section 9.01. Purpose of Meetings.  A meeting of Holders may be called at any time and  from time to time pursuant to the provisions of this Article 9 [Holders' Meetings] for any of the  following purposes:         (a)   to give any notice to the Company or to the Trustee or to give any directions to the  Trustee permitted under this Indenture, or to consent to the waiving of any Default or Event of  Default hereunder (in each case, as permitted under this Indenture) and its consequences, or to take  any other action authorized to be taken by Holders pursuant to any of the provisions of Article 6  [Defaults and Remedies];         (b)   to remove the Trustee and nominate a successor trustee pursuant to the provisions  of Article 7 [Concerning the Trustee];         (c)   to  consent  to  the  execution  of  an  indenture  or  indentures  supplemental  hereto  pursuant to the provisions of Section 10.02 [Supplemental Indentures with Consent of Holders];  or         (d)   to take any other action authorized to be taken by or on behalf of the Holders of any  specified aggregate principal amount of the Notes under any other provision of this Indenture or  under applicable law.         Section 9.02. Call of Meetings by Trustee.  The Trustee may at any time call a meeting of  Holders to take any action specified in Section 9.01 [Purpose of Meetings], to be held at such time  and at such place as the Trustee shall determine.  Notice of every meeting of the Holders, setting  forth the time and the place of such meeting and in general terms the action proposed to be taken  at such meeting and the establishment of any record date pursuant  to Section 8.01 [Action by  Holders], shall be delivered to Holders of such Notes.  Such notice shall also be delivered to the                                         47 

 

   Company.  Such notices shall be delivered not less than 20 nor more than 90 days prior to the date  fixed for the meeting.         Any  meeting  of  Holders  shall  be  valid  without  notice  if  the  Holders  of  all  Notes  then  outstanding are present in person or by proxy or if notice is waived before or after the meeting by  the Holders of all Notes then outstanding, and if the Company and the Trustee are either present  by duly authorized representatives or have, before or after the meeting, waived notice.         Section 9.03. Call of Meetings by Company or Holders.  In case at any time the Company,  pursuant to a Board Resolution, or the Holders of at least 10% of the aggregate principal amount  of the Notes then outstanding, shall have requested the Trustee to call a meeting of Holders, by  written request setting forth in reasonable detail the action proposed to be taken at the meeting,  and the Trustee shall not have delivered the notice of such meeting within 20 days after receipt of  such request, then the Company or such Holders may determine the time and the place for such  meeting  and  may  call  such  meeting  to  take  any  action  authorized  in  Section  9.01  [Purpose of  Meetings], by delivering notice thereof as provided in Section 9.02 [Call of Meetings by Trustee].         Section 9.04. Qualifications for Voting.  To be entitled to vote at any meeting of Holders  a Person shall (a) be a Holder of one or more Notes on the record date pertaining to such meeting  or (b) be a Person appointed by an instrument in writing as proxy by a Holder of one or more Notes  on the record date pertaining to such meeting.  The only Persons who shall be entitled to be present  or to speak at any meeting of Holders shall be the Persons entitled to vote at such meeting and  their counsel and any representatives of the Trustee and its counsel and any representatives of the  Company and its counsel.         Section 9.05. Regulations.  Notwithstanding any other provisions of this Indenture, the  Trustee  may  make  such  reasonable  regulations  as  it  may  deem  advisable  for  any  meeting  of  Holders, in regard to proof of the holding of Notes and of the appointment of proxies, and in regard  to the appointment and duties of inspectors of votes, the submission and examination of proxies,  certificates and other evidence of the right to vote, and such other matters concerning the conduct  of the meeting as it shall think fit.         The  Trustee  shall,  by  an  instrument  in  writing,  appoint  a  temporary  chairman  of  the  meeting, unless the meeting shall have been called by the Company or by Holders as provided in  Section  9.03  [Call  of  Meetings  by  Company  or  Holders],  in  which  case  the  Company  or  the  Holders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman.   A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the  Holders of a majority in aggregate principal amount of the Notes represented at the meeting and  entitled to vote at the meeting.         Subject to the provisions of Section 8.04 [Company-Owned Notes Disregarded], at any  meeting  of  Holders  each  Holder  or  proxyholder  shall  be  entitled  to  one  vote  for  each  $1,000  principal amount of Notes held or represented by him or her; provided, however, that no vote shall  be cast or counted at any meeting in respect of any Note challenged as not outstanding and ruled  by the chairman of the meeting to be not outstanding.  The chairman of the meeting shall have no  right to vote other than by virtue of Notes held by it or instruments in writing as aforesaid duly  designating it as the proxy to vote on behalf of other Holders.  Any meeting of Holders duly called                                         48 

 

   pursuant to the provisions of Section 9.02 [Call of Meetings by Trustee] or Section 9.03 [Call of  Meetings  by  Company  or  Holders]  may  be  adjourned  from  time  to  time  by  the  Holders  of  a  majority of the aggregate principal amount of Notes represented at the meeting, whether or not  constituting a quorum, and the meeting may be held as so adjourned without further notice.         Section 9.06. Voting.  The vote upon any resolution submitted to any meeting of Holders  shall be by written ballot on which shall be subscribed the signatures of the Holders or of their  representatives  by  proxy  and  the outstanding  aggregate  principal  amount  of the Notes  held  or  represented by them.  The permanent chairman of the meeting shall appoint two inspectors of votes  who shall count all votes cast at the meeting for or against any resolution and who shall make and  file with the secretary of the meeting their verified written reports in duplicate of all votes cast at  the meeting.  A record in duplicate of the proceedings of each meeting of Holders shall be prepared  by the secretary of the meeting and there shall be attached to said record the original reports of the  inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having  knowledge of the facts setting forth a copy of the notice of the meeting and showing that said  notice was delivered as provided in Section 9.02 [Call of Meetings by Trustee].  The record shall  show the aggregate principal amount of the Notes voting in favor of or against any resolution.  The  record shall be signed and verified by the affidavits of the permanent chairman and secretary of  the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee  to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.         Any record so signed and verified shall be conclusive evidence of the matters therein stated.         Section 9.07. No  Delay  of  Rights  by  Meeting.   Nothing  contained  in  this  Article  9  [Holders' Meetings] shall be deemed or construed to authorize or permit, by reason of any call of  a meeting of Holders or any rights expressly or impliedly conferred hereunder to make such call,  any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the  Trustee or to the Holders under any of the provisions of this Indenture or of the Notes.                                     Article 10                               Supplemental Indentures         Section 10.01. Supplemental Indentures Without Consent of Holders.  The Company, when  authorized by a Board Resolution, at the Company’s expense, may from time to time and at any  time, without notice to or consent of any Holders, amend this Indenture or the Notes, by entering  into an indenture or indentures supplemental hereto for one or more of the following purposes:         (a)   to cure any ambiguity, omission, defect or inconsistency;         (b)   to provide for the assumption by a Successor Company of the obligations of the  Company under this Indenture pursuant to Article 11 [Consolidation, Merger, Sale, Conveyance  and Lease];         (c)   to add guarantees with respect to the Notes;         (d)   to secure the Notes;                                          49 

 

         (e)   to add to the covenants or Events of Default of the Company for the benefit of the  Holders or surrender any right or power conferred upon the Company;         (f)   to make any change that does not adversely affect the rights of any Holder;         (g)   irrevocably elect a Settlement Method or Specified Dollar Amount (or a minimum  Specified Dollar Amount) or eliminate the Company’s right to elect a Settlement Method;         (h)   in  connection  with  any  Share  Exchange  Event,  to  provide  that  the  Notes  are  convertible  into  Reference  Property,  subject  to  the  provisions  of  Section  14.02  [Conversion  Procedure; Settlement Upon Conversion], and make such related changes to the terms of the Notes  to the extent expressly required by this Indenture; or         (i)   to conform the provisions of this Indenture or the Notes to the provisions of the  Term Sheet, as set forth in an Officer’s Certificate.         Upon the written request of the Company, the Trustee is hereby authorized to join with the  Company in the execution of any such supplemental indenture, to make any further appropriate  agreements and stipulations that may be therein contained, but the Trustee shall not be obligated  to, but may in its discretion, enter into any supplemental indenture that affects the Trustee’s own  rights, duties or immunities under this Indenture or otherwise.         Any  supplemental  indenture  authorized  by  the  provisions  of  this  Section  10.01  [Supplemental Indentures Without Consent of Holders] may be executed by the Company and the  Trustee  without  the  consent  of  the  Holders  of  any  of  the  Notes  at  the  time  outstanding,  notwithstanding any of the provisions of Section 10.02 [Supplemental Indentures with Consent of  Holders].         Section 10.02. Supplemental  Indentures  with  Consent  of  Holders.   With  the  consent  (evidenced as provided in Article 8 [Concerning the Holders]) of the Holders of at least a majority  of the aggregate principal amount of the Notes then outstanding (determined as provided in Section  8.04 [Company-Owned Notes Disregarded] and including, without limitation, consents obtained  in connection with a repurchase of, or tender or exchange offer for, Notes), the Company, when  authorized by a Board Resolution and the Trustee, at the Company’s expense, may from time to  time and at any time enter into an indenture or indentures supplemental hereto for the purpose of  adding any provisions to or changing in any manner or eliminating any of the provisions of this  Indenture or any supplemental indenture or of modifying in any manner the rights of the Holders,  or waiving the Company’s compliance with any of the provisions of this Indenture or the Notes;  provided, however, that, without the consent of each Holder of an outstanding Note affected, no  such supplemental indenture shall:         (a)   reduce the amount of Notes whose Holders must consent to an amendment;         (b)   reduce the rate of or extend the stated time for payment of interest on any Note;         (c)   reduce the principal of or extend the Maturity Date of any Note;         (d)   make any change that adversely affects the conversion rights of any Notes;                                         50 

 

         (e)   reduce the Redemption Price or the Fundamental Change Repurchase Price of any  Note or amend or modify in any manner adverse to the Holders the Company’s obligation to make  such  payments,  whether  through  an  amendment  or  waiver  of  provisions  in  the  covenants,  definitions or otherwise;         (f)   make any Note payable in money, or at a place of payment, other than that stated  in the Note;         (g)   change the ranking of the Notes; or         (h)   make any change in this Article 10 [Supplemental Indentures] that requires each  Holder’s  consent  or  in  the  waiver  provisions  in  Section  6.02  [Acceleration;  Rescission  and  Annulment] or Section  6.09 [Direction of Proceedings and Waiver of Defaults by Majority of  Holders].         Upon the written request of the Company, and upon the filing with the Trustee of evidence  of the consent of Holders as aforesaid and subject to Section 10.05 [Evidence of Compliance of  Supplemental Indenture to Be Furnished Trustee], the Trustee shall join with the Company in the  execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s  own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may  in its discretion, but shall not be obligated to, enter into such supplemental indenture.         Holders do not need under this Section 10.02 [Supplemental Indentures with Consent of  Holders]  to  approve  the  particular  form  of  any  proposed  supplemental  indenture.   It  shall  be  sufficient if such Holders approve the substance thereof.  After any such supplemental indenture  becomes  effective,  the  Company  shall  deliver  to  the  Holders  a  notice  briefly  describing  such  supplemental indenture.  However, the failure to give such notice to all the Holders, or any defect  in the notice, will not impair or affect the validity of the supplemental indenture.         Section 10.03. Effect of Supplemental Indentures.  Upon the execution of any supplemental  indenture pursuant to the provisions of this Article 10 [Supplemental Indentures], this Indenture  shall be and be deemed to be modified and amended in accordance therewith and the respective  rights, limitation of rights, obligations, duties and immunities under this Indenture of the Trustee,  the Company and the Holders shall thereafter be determined, exercised and enforced hereunder  subject in all respects to such modifications and amendments and all the terms and conditions of  any such supplemental indenture shall be and be deemed to be part of the terms and conditions of  this Indenture for any and all purposes.         Section 10.04. Notation on Notes.  Notes authenticated and delivered after the execution of  any supplemental indenture pursuant to the provisions of this Article 10 [Supplemental Indentures]  may, at the Company’s expense, bear a notation in form approved by the Trustee as to any matter  provided for in such supplemental indenture.  If the Company or the Trustee shall so determine,  new Notes so modified as to conform, in the opinion of the Trustee and the Board of Directors, to  any  modification  of  this  Indenture  contained  in  any  such  supplemental  indenture  may,  at  the  Company’s expense, be prepared and executed by the Company, authenticated by the Trustee (or  an authenticating agent duly appointed by the Trustee pursuant to Section 17.10 [Authenticating                                          51 

 

   Agent]) and delivered in exchange for the Notes then outstanding, upon surrender of such Notes  then outstanding.         Section 10.05. Evidence  of  Compliance  of  Supplemental  Indenture  to  Be  Furnished  Trustee.  In addition to the documents required by Section 17.05 [Evidence of Compliance with  Conditions Precedent; Certificates and Opinions of Counsel to Trustee], the Trustee shall receive  an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any supplemental  indenture  executed  pursuant  hereto  complies  with  the  requirements  of  this  Article  10  [Supplemental Indentures] and is permitted or authorized by this Indenture.                                     Article 11                    Consolidation, Merger, Sale, Conveyance and Lease         Section 11.01. Company  May  Consolidate,  Etc.  on  Certain  Terms.   Subject  to  the  provisions of Section 11.02 [Successor Corporation to Be Substituted], the Company shall not  consolidate with, merge with or into, or sell, convey, transfer or lease all or substantially all of the  consolidated  assets  of  the  Company  and  its  Subsidiaries,  taken  as  a whole,  to  another  Person,  unless:         (a)   the resulting, surviving or transferee Person (the “Successor Company”), if not the  Company, shall be a corporation organized and existing under the laws of the United States of  America, any State thereof or the District of Columbia, and the Successor Company (if not the  Company)  shall  expressly  assume,  by  supplemental  indenture  all  of  the  obligations  of  the  Company under the Notes and this Indenture; and         (b)   immediately after giving effect to such transaction, no Default or Event of Default  shall have occurred and be continuing under this Indenture.         For purposes of this Section 11.01 [Company May Consolidate, Etc. on Certain Terms],  the sale, conveyance, transfer or lease of all or substantially all of the properties and assets of one  or more Subsidiaries of the Company to another Person, which properties and assets, if held by the  Company instead of such Subsidiaries, would constitute all or substantially all of the properties  and assets of the Company on a consolidated basis, shall be deemed to be the sale, conveyance,  transfer or lease of all or substantially all of the properties and assets of the Company to another  Person.         Section 11.02. Successor Corporation to Be Substituted.  In case of any such consolidation,  merger, sale, conveyance, transfer or lease and upon the assumption by the Successor Company,  by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the  Trustee, of the due and punctual payment of the principal of and accrued and unpaid interest on all  of the Notes, the due and punctual delivery or payment, as the case may be, of any consideration  due upon conversion of the Notes and the due and punctual performance of all of the covenants  and conditions of this Indenture to be performed by the Company, such Successor Company (if  not the Company) shall succeed to and, except in the case of a lease of all or substantially all of  the consolidated assets of the Company and its subsidiaries, taken as a whole, shall be substituted  for the Company, with the same effect as if it had been named herein as the party of the first part.   Such Successor Company thereupon may cause to be signed, and may issue either in its own name                                          52 

 

   or in the name of the Company any or all of the Notes issuable hereunder which theretofore shall  not have been signed by the Company and delivered to the Trustee; and, upon the order of such  Successor Company instead of the Company and subject to all the terms, conditions and limitations  in  this  Indenture  prescribed,  the  Trustee  shall  authenticate  and  shall  deliver,  or  cause  to  be  authenticated and delivered, any Notes that previously shall have been signed and delivered by the  Officers of the Company to the Trustee for authentication, and any Notes that such Successor  Company thereafter shall cause to be signed and delivered to the Trustee for that purpose.  All the  Notes so issued shall in all respects have the same legal rank and benefit under this Indenture as  the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as though  all of such Notes had been issued at the date of the execution hereof.  In the event of any such  consolidation,  merger,  sale,  conveyance  or  transfer  (but  not  in  the  case  of  a  lease),  upon  compliance with this Article 11 [Consolidation, Merger, Sale, Conveyance and Lease] the Person  named  as  the  “Company”  in  the  first  paragraph  of  this  Indenture  (or  any  successor  that  shall  thereafter have become such in the manner prescribed in this Article 11 [Consolidation, Merger,  Sale, Conveyance and Lease]) may be dissolved, wound up and liquidated at any time thereafter  and, except in the case of a lease, such Person shall be released from its liabilities as obligor and  maker of the Notes and from its obligations under this Indenture and the Notes.         In case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes  in phraseology and form (but not in substance) may be made in the Notes thereafter to be issued  as may be appropriate.         Section 11.03. Opinion of Counsel to Be Given to Trustee.  No such consolidation, merger,  sale, conveyance, transfer or lease shall be effective unless the Trustee shall receive an Officer’s  Certificate and an Opinion of Counsel as conclusive evidence that any such consolidation, merger,  sale, conveyance, transfer or lease and any such assumption and, if a supplemental indenture is  required  in  connection  with  such  transaction,  such  supplemental  indenture,  complies  with  the  provisions of this Article 11 [Consolidation, Merger, Sale, Conveyance and Lease].                                     Article 12               Immunity of Incorporators, Stockholders, Officers and Directors         Section 12.01. Indenture and  Notes  Solely  Corporate  Obligations.   No  recourse  for the  payment of the principal of or accrued and unpaid interest on any Note, nor for any claim based  thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or  agreement of the Company in this Indenture or in any supplemental indenture or in any Note, nor  because  of  the  creation  of  any  indebtedness  represented  thereby,  shall  be  had  against  any  incorporator, stockholder, employee, agent, Officer or director or Subsidiary, as such, past, present  or future, of the Company or of any successor corporation, either directly or through the Company  or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by  the enforcement of any assessment or penalty or otherwise; it being expressly understood that all  such liability is hereby expressly waived and released as a condition of, and as a consideration for,  the execution of this Indenture and the issue of the Notes.                                     Article 13                               [Intentionally Omitted]                                          53 

 

                                     Article 14                                Conversion of Notes         Section 14.01. Conversion Privilege.  Subject to and upon compliance with the provisions  of  this  Article  14  [Conversion  of  Notes],  each  Holder  of  a  Note  shall  have  the  right,  at  such  Holder’s option, to convert all or any portion (if the portion to be converted is $1,000 principal  amount or an integral multiple thereof) of such Note at any time prior to the close of business on  the Business Day immediately preceding the Maturity Date at an initial conversion rate of 54.8667  shares of Class A Common Stock (subject to adjustment as provided in this Article 14 [Conversion  of  Notes],  the  “Conversion  Rate”)  per  $1,000  principal  amount  of  Notes  (subject  to,  and  in  accordance with, the settlement provisions of Section 14.02 [Conversion Procedure; Settlement  Upon Conversion], the “Conversion Obligation”).         Section 14.02. Conversion Procedure; Settlement Upon Conversion.         (a)   Subject  to  this  Section  14.02  [Conversion  Procedure;  Settlement  Upon  Conversion],  Section  14.03(b)  [Increased  Conversion  Rate  Applicable  to  Certain  Notes  Surrendered in Connection with Make-Whole Fundamental Changes] and Section 14.07(a) [Effect  of  Recapitalizations,  Reclassifications  and  Changes  of  the  Class  A  Common  Stock],  upon  conversion of any Note, the Company shall pay or deliver, as the case may be, to the converting  Holder,  in  respect  of  each  $1,000  principal  amount  of  Notes  being  converted,  cash  (“Cash  Settlement”),  shares  of  Class  A  Common  Stock,  together  with  cash,  if  applicable,  in  lieu  of  delivering any fractional share of Class A Common Stock in accordance with subsection (j) of this  Section 14.02 [Conversion Procedure; Settlement Upon Conversion] (“Physical Settlement”), or  a combination of cash and shares of Class A Common Stock, together with cash, if applicable, in  lieu of delivering any fractional share of Class A Common Stock in accordance with subsection  (j) of this Section 14.02 [Conversion Procedure; Settlement Upon Conversion] (“Combination  Settlement”), at its election, as set forth in this Section 14.02 [Conversion Procedure; Settlement  Upon Conversion].               (i)   All conversions for which the  relevant  Conversion Date occurs after the        Company’s issuance of a Notice of Redemption with respect to the Notes and prior to the        related  Redemption  Date,  and  all  conversions  for  which  the  relevant  Conversion  Date        occurs on or after June 1, 2024, shall be settled using the same Settlement Method.               (ii)  Except for any conversions for which the relevant Conversion Date occurs        after the Company’s issuance of a Notice of Redemption with respect to the Notes and        prior  to  the  related  Redemption  Date,  and  any  conversions  for  which  the  relevant        Conversion  Date  occurs  on  or  after  June  1,  2024,  the  Company  shall  use  the  same        Settlement Method for all conversions with the same Conversion Date, but the Company        shall  not  have  any  obligation  to  use  the  same  Settlement  Method  with  respect  to        conversions with different Conversion Dates.               (iii) If, in respect of any Conversion Date (or the period described in the third        immediately succeeding set of parentheses, as the case may be), the Company elects to        deliver a notice (the “Settlement Notice”) of the relevant Settlement Method in respect of        such Conversion Date (or such period, as the case may be), the Company, through the                                         54 

 

                Trustee, shall deliver such Settlement Notice to converting Holders no later than the close  of business on the Trading Day immediately following such Conversion Date (or, in the  case of any conversions for which the relevant Conversion Date occurs (x) after the date  of issuance of a Notice of Redemption with respect to the Notes and prior to the related  Redemption Date, in such Notice of Redemption or (y) on or after June 1, 2024, no later  than June 1, 2024). If the Company does not elect a Settlement Method prior to the deadline  set forth in the immediately preceding sentence, the Company shall no longer have the right  to elect Cash Settlement or Physical Settlement and the Company shall be deemed to have  elected Combination Settlement in respect of its Conversion Obligation, and the Specified  Dollar  Amount  per  $1,000  principal  amount  of  Notes  shall  be  equal  to  $1,000.  Such  Settlement  Notice  shall  specify  the  relevant  Settlement  Method  and  in  the  case  of  an  election  of  Combination  Settlement,  the  relevant  Settlement  Notice  shall  indicate  the  Specified Dollar Amount per $1,000 principal amount of Notes. If the Company delivers a  Settlement Notice electing Combination Settlement in respect of its Conversion Obligation  but does not indicate a Specified Dollar Amount per $1,000 principal amount of Notes in  such Settlement Notice, the Specified Dollar Amount per $1,000 principal amount of Notes  shall be deemed to be $1,000.         (iv)  The cash, shares of Class A Common Stock or combination of cash and  shares of Class A Common Stock in respect of any conversion of Notes (the “Settlement  Amount”) shall be computed as follows:               (A)   if the Company elects to satisfy its Conversion Obligation in respect                    of  such  conversion  by  Physical  Settlement,  the  Company  shall                    deliver to the converting Holder in respect of each $1,000 principal                    amount of Notes being  converted a number of shares of Class  A                    Common  Stock  equal  to  the  Conversion  Rate  in  effect  on  the                    Conversion Date;               (B)   if the Company elects to satisfy its Conversion Obligation in respect                    of such conversion by Cash Settlement, the Company shall pay to                    the converting Holder in respect of each $1,000 principal amount of                    Notes being converted cash in an amount equal to the sum of the                    Daily  Conversion  Values  for  each  of  the  20  consecutive Trading                    Days during the related Observation Period; and               (C)   if the Company elects (or is deemed to have elected) to satisfy its                    Conversion  Obligation  in  respect  of  such  conversion  by                    Combination Settlement, the Company shall pay or deliver, as the                    case may be, in respect of each $1,000 principal amount of Notes                    being converted, a Settlement Amount equal to the sum of the Daily                    Settlement Amounts for each of the 20 consecutive Trading Days                    during the related Observation Period.         (v)   The  Daily  Settlement  Amounts  (if  applicable) and  the  Daily  Conversion  Values (if applicable) shall be determined by the Company promptly following the last day  of  the  related  Observation  Period.  Promptly  after  such  determination  of  the  Daily                                   55 

 

         Settlement Amounts or the Daily Conversion Values, as the case may be, and the amount        of cash payable in lieu of delivering any fractional share of Class A Common Stock, the        Company shall notify the Trustee and the Conversion Agent (if other than the Trustee) of        the Daily Settlement Amounts or the Daily Conversion Values, as the case may be, and the        amount of cash payable in lieu of delivering fractional shares of Class A Common Stock.        The  Trustee  and  the  Conversion  Agent  (if  other  than  the  Trustee)  shall  have  no        responsibility for any such determination.         (b)   Subject to Section 14.02(e) [Conversion Procedure; Settlement Upon Conversion],  before any Holder of a Note shall be entitled to convert a Note as set forth above, such Holder  shall (i) in the case of a Global Note, comply with the procedures of the Depositary in effect at that  time and, if required, pay funds equal to interest payable on the next Interest Payment Date to  which  such  Holder  is  not  entitled  as  set  forth  in  Section  14.02(h)  [Conversion  Procedure;  Settlement Upon Conversion] and (ii) in the case of a Physical Note (1) complete, manually sign  and deliver an irrevocable notice to the Conversion Agent as set forth in the Form of Notice of  Conversion (or a facsimile thereof) (a “Notice of Conversion”) at the office of the Conversion  Agent and state in writing therein the principal amount of Notes to be converted and the name or  names (with addresses) in which such Holder wishes the certificate or certificates for any shares  of Class A Common Stock to be delivered upon settlement of the Conversion Obligation to be  registered, (2) surrender such Notes, duly endorsed to the Company or in blank (and accompanied  by appropriate endorsement and transfer documents), at the office of the Conversion Agent, (3) if  required, furnish appropriate endorsements and transfer documents and (4) if required, pay funds  equal to interest payable on the next Interest Payment Date to which such Holder is not entitled as  set forth in Section 14.02(h) [Conversion Procedure; Settlement Upon Conversion].  The Trustee  (and if different, the Conversion Agent) shall notify the Company of any conversion pursuant to  this Article 14 [Conversion of Notes] on the Conversion Date for such conversion.  No Notice of  Conversion with respect to any Notes may be surrendered by a Holder thereof if such Holder has  also delivered a Fundamental Change Repurchase Notice to the Company in respect of such Notes  and has not validly withdrawn such Fundamental Change Repurchase Notice in accordance with  Section 15.03 [Withdrawal of Fundamental Change Repurchase Notice].         If more than one Note shall be surrendered for conversion at one time by the same Holder,  the  Conversion  Obligation  with  respect  to  such  Notes  shall  be  computed  on  the  basis  of  the  aggregate  principal  amount  of  the  Notes  (or  specified  portions  thereof  to  the  extent  permitted  thereby) so surrendered.         (c)   A Note shall be deemed to have been converted immediately prior to the close of  business on the date (the “Conversion Date”) that the Holder has complied with the requirements  set forth in subsection (b) above.  Except as set forth in Section 14.03(b) [Increased Conversion  Rate  Applicable  to  Certain  Notes  Surrendered  in  Connection  with  Make-Whole  Fundamental  Changes] and Section 14.07(a) [Effect of Recapitalizations, Reclassifications and Changes of the  Class A Common Stock], the Company shall pay or deliver, as the case may be, the consideration  due in respect of the Conversion Obligation on the second Business Day immediately following  the  relevant  Conversion  Date,  if  the  Company  elects  Physical  Settlement,  or  on  the  second  Business Day immediately following the last Trading Day of the relevant Observation Period, in  the case of any other Settlement Method. If any shares of Class A Common Stock are due to a  converting Holder, the Company shall issue or cause to be issued, and deliver (if applicable) to the                                         56 

 

   Conversion Agent or to such Holder, or such Holder’s nominee or nominees, the full number of  shares of Class A Common Stock to which such Holder shall be entitled, in certificate form or in  book-entry format, in satisfaction of the Company’s Conversion Obligation.         (d)   In case any Note shall be surrendered for partial conversion, the Company shall  execute and the Trustee shall authenticate and deliver to the Holder of the Note so surrendered a  new Note or Notes in authorized denominations in an aggregate principal amount equal to the  unconverted  portion  of  the  surrendered  Note,  without  payment  of  any  service  charge  by  the  converting Holder but, if required by the Company or Trustee, with payment of a sum sufficient  to cover any documentary, stamp or similar issue or transfer tax or similar governmental charge  required by law or that may be imposed in connection therewith as a result of the name of the  Holder of the new Notes issued upon such conversion being different from the name of the Holder  of the old Notes surrendered for such conversion.         (e)   If a Holder submits a Note for conversion, the Company shall pay any documentary,  stamp or similar issue or transfer tax due on the issue of the shares of Class A Common Stock  upon conversion, unless the tax is due because the Holder requests such shares to be issued in a  name other than the Holder’s name, in which case the Holder shall pay that tax.  The Conversion  Agent may refuse to deliver the certificates representing the shares of Class A Common Stock  being issued in a name other than the Holder’s name until the Trustee receives a sum sufficient to  pay any tax that is due by such Holder in accordance with the immediately preceding sentence.           (f)   Except  as  provided  in  Section  14.04  [Adjustment  of  Conversion  Rate],  no  adjustment shall be made for dividends on any shares of Class A Common Stock issued upon the  conversion of any Note as provided in this Article 14 [Conversion of Notes].         (g)   Upon the conversion of an interest in a Global Note, the Trustee, or the Custodian  at the direction of the Trustee, shall make a notation on such Global Note as to the reduction in the  principal amount represented thereby.  The Company shall notify the Trustee in writing of any  conversion of Notes effected through any Conversion Agent other than the Trustee.         (h)   Upon conversion, a Holder shall not receive any separate cash payment for accrued  and  unpaid  interest,  if  any,  except  as  set  forth  below.   The  Company’s  settlement  of  the  full  Conversion Obligation shall be deemed to satisfy in full its obligation to pay the principal amount  of the Note and accrued and unpaid interest, if any, to, but not including, the relevant Conversion  Date.  As a result, accrued and unpaid interest, if any, to, but not including, the relevant Conversion  Date shall be deemed to be paid in full rather than cancelled, extinguished or forfeited.  Upon  conversion of Notes into a combination of cash and shares of Class A Common Stock, accrued  and unpaid interest will be deemed to be paid first out of the cash paid upon such conversion.  Notwithstanding the foregoing, if Notes are converted after the close of business on a Regular  Record Date, Holders of such Notes as of the close of business on such Regular Record Date will  receive the full amount of interest payable on such Notes on the corresponding Interest Payment  Date notwithstanding the conversion.  Notes surrendered for conversion during the period from  the close of business on any Regular Record Date to the open of business on the immediately  following Interest Payment Date must be accompanied by funds equal to the amount of interest  payable  on  the  Notes  so  converted;  provided  that  no  such  payment  shall  be  required  (1)  for  conversions following the Regular Record Date immediately preceding the Maturity Date; (2) if                                         57 

 

   the Company has specified a Fundamental Change Repurchase Date that is after a Regular Record  Date  and  on  or  prior  to  the  Business  Day  immediately  following  the  corresponding  Interest  Payment Date; or (3) to the extent of any Defaulted Amounts, if any Defaulted Amounts exists at  the time of conversion with respect to such Note.  Therefore, for the avoidance of doubt, all Holders  of record on the Regular Record Date immediately preceding the Maturity Date shall receive the  full interest payment due on the Maturity Date in cash regardless of whether their Notes have been  converted following such Regular Record Date.         (i)   The Person in whose name the shares of Class A Common Stock shall be issuable  upon conversion shall be treated  as a stockholder of record  as of the  close of business on the  relevant Conversion Date (if the Company elects to satisfy the related Conversion Obligation by  Physical Settlement) or the last Trading Day of the relevant Observation Period (if the Company  elects  to  satisfy  the  related  Conversion  Obligation  by  Combination  Settlement).   Upon  a  conversion  of  Notes,  such  Person  shall  no  longer  be  a  Holder  of  such  Notes  surrendered  for  conversion.         (j)   The Company shall not issue any fractional share of Class A Common Stock upon  conversion of the Notes and shall instead pay cash in lieu of delivering any fractional share of  Class A Common Stock issuable upon  conversion based on the  Daily VWAP  for the relevant  Conversion Date (in the case of Physical Settlement) or based on the Daily VWAP for the last  Trading Day of the relevant Observation Period (in the case of Combination Settlement). For each  Note  surrendered  for conversion  if  the Company  has  elected  Combination  Settlement,  the full  number of shares that shall be issued upon conversion thereof shall be computed on the basis of  the aggregate Daily Settlement Amounts for the relevant Observation Period and any fractional  shares remaining after such computation shall be paid in cash.         Section 14.03. Increased  Conversion  Rate  Applicable  to  Certain  Notes  Surrendered  in  Connection with Make-Whole Fundamental Changes.         (a)   If (i) the Effective Date of a Make-Whole Fundamental Change occurs prior to the  Maturity  Date  and  a  Holder  elects  to  convert  its  Notes  in  connection  with  such  Make-Whole  Fundamental Change or (ii) the Company issues a Notice of Redemption and a Holder elects to  convert its Notes with a Conversion Date occurring during the related Redemption Period, the  Company shall, under the circumstances described below, increase the Conversion Rate for the  Notes so surrendered for conversion by a number of additional shares of Class A Common Stock  (the “Additional Shares”), as described below.  A conversion of Notes shall be deemed for these  purposes to be “in connection with” such Make-Whole Fundamental Change if the relevant Notice  of Conversion is received by the Conversion Agent from, and including, the Effective Date of the  Make-Whole Fundamental Change up to, and including, the Business Day immediately prior to  the related Fundamental Change Repurchase Date (or, in the case of a Make-Whole Fundamental  Change  that  would  have  been  a  Fundamental  Change  but  for  the  proviso  in  clause  (b)  of  the  definition thereof, the 35th Trading Day immediately following the Effective Date of such Make- Whole Fundamental Change) (such period, the “Make-Whole Fundamental Change Period”).         (b)   Upon  surrender  of  Notes  for  conversion  in  connection  with  a  Make-Whole  Fundamental Change or during a Redemption Period, the Company shall, at its option, satisfy its  Conversion Obligation by Physical Settlement, Cash Settlement, or Combination Settlement, in                                         58 

 

   accordance with Section 14.02 [Conversion Procedure; Settlement Upon Conversion]; provided,  however, that if, at the effective time of a Make-Whole Fundamental Change described in clause  (b) of the definition of Fundamental Change, the Reference Property following such Make-Whole  Fundamental  Change is  composed entirely of cash, for any conversion of Notes following the  Effective Date of such  Make-Whole Fundamental Change, the Conversion Obligation shall be  calculated based solely on the Stock Price for the transaction and shall be deemed to be an amount  of cash per $1,000 principal amount of converted Notes equal to the Conversion Rate (including  any adjustment for Additional Shares), multiplied by such Stock Price.  The Company shall notify  the Holders of Notes of the Effective Date of any Make-Whole Fundamental Change and issue a  press release announcing such Effective Date no later than five Business Days after such Effective  Date.         (c)   The number of Additional Shares, if any, by which the Conversion Rate shall be  increased shall be determined by reference to the table below, based on the date on which the  Make-Whole Fundamental Change occurs or becomes effective or the date the Company delivers  the Notice of Redemption, as the case may be (in each case, the “Effective Date”), and the price  (the “Stock Price”) paid (or deemed to be paid) per share of Class A Common Stock in the Make- Whole Fundamental Change or determined with respect to the Notice of Redemption, as the case  may  be.   If  the  holders  of  the  Class  A  Common  Stock  receive  in  exchange  for  their  Class  A  Common Stock only cash in a Make-Whole Fundamental Change described in clause (b) of the  definition  of  Fundamental  Change,  the  Stock  Price  shall  be  the  cash  amount  paid  per  share.   Otherwise, the Stock Price shall be the average of the Last Reported Sale Prices of the Class A  Common  Stock  over  the  five  Trading  Day  period  ending  on,  and  including,  the  Trading  Day  immediately preceding the Effective Date.  If a conversion during a Redemption Period would also  be deemed to be in connection with a Make-Whole Fundamental Change, a Holder of the Notes to  be converted will be entitled to a single increase to the Conversion Rate with respect to the first to  occur of the Effective Date of the Notice of Redemption or the Make-Whole Fundamental Change,  as applicable, and the later event will be deemed not to have occurred for purposes of this Section  14.03 [Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with  Make-Whole Fundamental Changes].  The Board of Directors shall make appropriate adjustments  to the Stock Price, in its good faith determination, to account for any adjustment to the Conversion  Rate that becomes effective, or any event requiring an adjustment to the Conversion Rate where  the  Ex-Dividend  Date,  Effective  Date  (as  such  term  is  used  in  Section  14.04  [Adjustment  of  Conversion Rate]) or expiration date of the event occurs during such five consecutive Trading Day  period.         (d)   The  Stock  Prices  set  forth  in  the  column  headings  of  the  table  below  shall  be  adjusted as of any date on which the Conversion Rate is otherwise adjusted.  The adjusted Stock  Prices shall equal the Stock Prices applicable immediately prior to such adjustment, multiplied by  a fraction, the numerator of which is the Conversion Rate immediately prior to such adjustment  giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as  so adjusted.  The number of Additional Shares set forth in the table below shall be adjusted in the  same manner and at the same time as the Conversion Rate as set forth in Section 14.04 [Adjustment  of Conversion Rate].         (e)   The following table sets forth the number of Additional Shares of Class A Common  Stock  by  which  the Conversion  Rate  shall  be increased  per  $1,000  principal  amount  of  Notes                                         59 

 

   pursuant  to  this  Section  14.03  [Increased  Conversion  Rate  Applicable  to  Certain  Notes  Surrendered in Connection with Make-Whole Fundamental Changes] for each Stock Price and  Effective Date set forth below:                                                                                                    Stock Price                                  Effective Date $14.02  $16.00  $18.23  $20.00  $23.69  $25.00  $30.00  $40.00  $50.00  $75.00  $100.00                August 19, 2020  16.4599 15.5738 12.2628 10.3395 7.5737 6.8644 4.9413 2.9963 2.0628 1.0441 0.6146  December 1, 2020  16.4599 14.7163 11.2726 9.3135 6.5758 5.8940 4.1020 2.4035 1.6402 0.8404 0.5053  December 1, 2021  16.4599 13.5250 9.9040 7.9090 5.2474 4.6164 3.0437 1.7063 1.1624 0.6127 0.3771  December 1, 2022  16.4599 11.7525 7.8491 5.8305 3.3871 2.8680 1.7150 0.9273 0.6492 0.3601 0.2263  December 1, 2023  16.4599 8.5588 3.7630 1.9180 0.6142 0.4680 0.2653 0.1735 0.1314 0.0760 0.0483  December 1, 2024  16.4599 7.6331 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000   The exact Stock Prices and Effective Dates may not be set forth in the table above, in which case:               (i)   if the Stock Price is between two Stock Prices in the table above or the        Effective Date is between two Effective Dates in the table, the number of Additional Shares        shall  be  determined  by  a  straight-line  interpolation  between  the  number  of  Additional        Shares set forth for the higher and lower Stock Prices and the earlier and later Effective        Dates, as applicable, based on a 365-day year;               (ii)  if the Stock Price is less than $14.02 per share (subject to adjustment in the        same  manner  as  the  Stock  Prices  set  forth  in  the  column  headings  of  the  table  above        pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion        Rate; and                (iii) if the Stock Price is greater than $100.00 per share (subject to adjustment in        the same manner as the Stock Prices set forth in the column headings of the table above        pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion        Rate.   Notwithstanding the foregoing, in no event shall the Conversion Rate per $1,000 principal amount  of Notes exceed 71.3266 shares of Class A Common Stock, subject to adjustment in the same  manner as the Conversion Rate pursuant to Section 14.04 [Adjustment of Conversion Rate].         (f)   Nothing in this Section 14.03 [Increased Conversion Rate Applicable to Certain  Notes  Surrendered  in  Connection  with  Make-Whole  Fundamental  Changes]  shall  prevent  an  adjustment to the Conversion Rate pursuant to Section 14.04 [Adjustment of Conversion Rate] in  respect of a Make-Whole Fundamental Change.         Section 14.04. Adjustment  of  Conversion  Rate.   The  Conversion  Rate  shall  be  adjusted  from time to time by the Company if any of the following events occurs, except that the Company  shall not make any adjustments to the Conversion Rate if Holders of the Notes participate (other  than in the case of (x) a share split or share combination or (y) a tender or exchange offer), at the                                         60 

 

   same time and upon the same terms as holders of the Class A Common Stock and solely as a result  of holding the Notes, in any of the transactions described in this Section 14.04 [Adjustment of  Conversion Rate], without having to convert their Notes, as if they held a number of shares of  Class  A  Common  Stock  equal  to  the  Conversion  Rate,  multiplied  by  the  principal  amount  (expressed in thousands) of Notes held by such Holder.         (a)   If the Company exclusively issues shares of Class A Common Stock as a dividend  or distribution on shares of the Class A Common Stock, or if the Company effects a share split or  share combination, the Conversion Rate shall be adjusted based on the following formula:                                                    where,   CR0              =      the  Conversion  Rate  in  effect  immediately  prior  to  the close  of                          business  on  the  Record  Date of  such  dividend  or  distribution,  or                          immediately prior to the open of business on the Effective Date of                          such share split or share combination, as applicable;   CR'              =      the Conversion Rate in effect immediately after the close of business                         on such Record Date or immediately after the open of business on                          such Effective Date, as applicable;   OS0              =     the  number  of  shares  of  Class  A  Common  Stock outstanding                          immediately prior to the close of business on such Record Date or                          immediately prior to the open of business on such Effective Date, as                          applicable; and   OS'               =    the  number  of  shares  of  Class  A  Common  Stock outstanding                          immediately after giving effect to such dividend, distribution, share                          split or share combination.   Any adjustment made under this Section 14.04(a) [Adjustment of Conversion Rate] shall become  effective  immediately  after  the  close  of  business  on  the  Record  Date  for  such  dividend  or  distribution, or immediately after the open of business on the Effective Date for such share split or  share  combination,  as applicable.   If  any dividend or distribution of the type described in this  Section  14.04(a)  [Adjustment  of  Conversion  Rate]  is  declared  but  not  so  paid  or  made,  the  Conversion Rate shall be immediately readjusted, effective as of the date the Board of Directors  determines not to pay such dividend or distribution, to the Conversion Rate that would then be in  effect if such dividend or distribution had not been declared.         (b)   If the Company issues to all or substantially all holders of the Class A Common  Stock any rights, options or warrants entitling them, for a period of not more than 45 calendar days  after the announcement date of such issuance, to subscribe for or purchase shares of the Class A  Common Stock at a price per share that is less than the average of the Last Reported Sale Prices  of the Class A Common Stock for the 10 consecutive Trading Day period ending on, and including,                                         61 

 

   the  Trading  Day  immediately  preceding  the  date  of  announcement  of  such  issuance,  the  Conversion Rate shall be increased based on the following formula:                                                     where,   CR0           =      the Conversion Rate in effect immediately prior to the close of business                      on the Record Date for such issuance;   CR'           =     the Conversion Rate in effect immediately after the close of business on                       such Record Date;   OS0           =      the  number  of  shares  of  Class  A  Common  Stock outstanding                       immediately prior to the close of business on such Record Date;   X             =      the total number of shares of Class A Common Stock issuable pursuant                       to such rights, options or warrants; and   Y             =      the number of shares of Class A Common Stock equal to the aggregate                       price payable to exercise such rights, options or warrants, divided by the                       average of the Last Reported Sale Prices of the Class A Common Stock                      over the 10 consecutive Trading Day period ending on, and including,                       the Trading Day immediately preceding the date of announcement of                       the issuance of such rights, options or warrants.         Any increase made under this Section 14.04(b) [Adjustment of Conversion Rate] shall be  made successively whenever any such  rights, options or warrants are issued and shall become  effective immediately after the close of business on the Record Date for such issuance.  To the  extent that shares of Class A Common Stock are not delivered after the expiration of such rights,  options or warrants, the Conversion Rate shall be decreased to be the Conversion Rate that would  then be in effect had the increase with respect to the issuance of such rights, options or warrants  been made on the basis of delivery of only the number of shares of Class A Common Stock actually  delivered.   If  such  rights,  options  or  warrants  are not  so  issued,  the  Conversion  Rate  shall  be  decreased to the Conversion Rate that would then be in effect if such Record Date for such issuance  had not occurred.         For purposes of this Section 14.04(b) [Adjustment of Conversion Rate], in determining  whether any rights, options or warrants entitle the holders to subscribe for or purchase shares of  Class A Common Stock at less than such average of the Last Reported Sale Prices of the Class A  Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading  Day immediately preceding the date of announcement for such issuance, and in determining the  aggregate offering price of such shares of Class A Common Stock, there shall be taken into account  any consideration received by the Company for such rights, options or warrants and any amount  payable on exercise or conversion thereof, the value of such consideration, if other than cash, to  be determined (which determination shall be binding) by the Board of Directors.                                           62 

 

         (c)   If  the  Company  distributes  shares  of  its  Capital  Stock,  evidences  of  its  indebtedness, other assets or property of the Company or rights, options or warrants to acquire its  Capital Stock or other securities, to all or substantially all holders of the Class A Common Stock,  excluding (i) dividends, distributions or issuances as to which an adjustment was effected pursuant  to  Section  14.04(a)  [Adjustment  of  Conversion  Rate]  or  Section  14.04(b)  [Adjustment  of  Conversion Rate], (ii) dividends or distributions paid exclusively in cash as to which the provisions  set forth in Section 14.04(d) [Adjustment of Conversion Rate] shall apply, and (iii) Spin-Offs as  to which the provisions set forth below in this Section 14.04(c) [Adjustment of Conversion Rate]  shall apply (any of such shares of Capital Stock, evidences of indebtedness, other assets or property  or  rights,  options  or  warrants  to  acquire  Capital  Stock  or  other  securities,  the  “Distributed  Property”), then the Conversion Rate shall be increased based on the following formula:                                                       where,   CR0            =     the Conversion Rate in effect immediately prior to the close of                       business on the Record Date for such distribution;   CR'            =     the Conversion Rate in effect immediately after the close of business                       on such Record Date;   SP0            =     the average of the Last Reported Sale Prices of the Class A Common                       Stock over the 10 consecutive Trading Day period ending on, and                       including, the Trading Day immediately preceding the Ex-Dividend                       Date for such distribution; and   FMV            =     the fair market value (as determined (which determination shall be                       binding) by the Board of Directors) of the Distributed Property with                       respect to each outstanding share of the Class A Common Stock on                       the Record Date for such distribution.   Any increase made under the portion of this Section 14.04(c) [Adjustment of Conversion Rate]  above shall become effective immediately after the close of business on the Record Date for such  distribution.  If such distribution is not so paid or made, the Conversion Rate shall be decreased to  the  Conversion  Rate  that  would  then  be  in  effect  if  such  distribution  had  not  been  declared.   Notwithstanding the foregoing, if “FMV” (as defined above) is equal to or greater than “SP0” (as  defined above), in lieu of the foregoing increase, each Holder of a Note shall receive, in respect of  each $1,000 principal amount thereof, at the same time and upon the same terms as holders of the  Class  A  Common  Stock  receive  the  Distributed  Property,  the  amount  and  kind  of  Distributed  Property such Holder would have received if such Holder owned a number of shares of Class A  Common Stock equal to the Conversion Rate in effect on the Record Date for the distribution.  If  the Board of Directors determines the “FMV” (as defined above) of any distribution for purposes  of this Section 14.04(c) [Adjustment of Conversion Rate] by reference to the actual or when-issued  trading market for any securities, it shall in doing so consider the prices in such market over the  same period used in computing the Last Reported Sale Prices of the Class A Common Stock over                                         63 

 

   the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately  preceding the Ex-Dividend Date for such distribution.           With respect to an adjustment pursuant to this Section 14.04(c) [Adjustment of Conversion  Rate] where there has been a payment of a dividend or other distribution on the Class A Common  Stock of shares of Capital Stock of any class or series, or similar equity interest, of or relating to a  Subsidiary or other business unit  of the Company, that are,  or, when issued, will be, listed or  admitted for trading on a U.S.  national securities exchange (a “Spin-Off”), the Conversion Rate  shall be increased based on the following formula:                                                       where,   CR0       =     the Conversion Rate in effect immediately prior to the end of the Valuation                  Period;   CR'       =     the  Conversion  Rate  in  effect  immediately  after  the  end  of  the Valuation                  Period;   FMV0      =     the average of the Last Reported Sale Prices of the Capital Stock or similar                  equity  interest  distributed  to  holders  of  the  Class  A  Common  Stock                 applicable  to  one  share  of  Class  A  Common  Stock over  the  first  10                  consecutive Trading Day period after, and including, the Ex-Dividend Date                 of the Spin-Off (the “Valuation Period”); and   MP0       =     the average of the Last Reported Sale Prices of the Class A Common Stock                 over the Valuation Period.         The increase to the Conversion Rate under the preceding paragraph shall occur at the close  of business on the last Trading Day of the Valuation Period; provided that (x) in respect of any  conversion  of  Notes,  if  the  relevant  Conversion  Date  occurs  during  the  Valuation  Period,  references to “10” in the preceding paragraph shall be deemed to be replaced with such lesser  number of Trading Days as have elapsed from, and including, the Ex-Dividend Date of such Spin- Off to, and including, the Conversion Date in determining the Conversion Rate and (y) in respect  of any conversion of Notes for which Cash Settlement or Combination Settlement is applicable,  for any Trading Day that falls within the relevant Observation Period for such conversion and  within the Valuation Period, the reference to “10” in the preceding paragraph shall be deemed  replaced with such lesser number of Trading Days as have elapsed from, and including, the Ex- Dividend  Date  for  such  Spin-Off  to,  and  including,  such  Trading  Day  in  determining  the  Conversion Rate as of such Trading Day.         For purposes of this Section 14.04(c) [Adjustment of Conversion Rate] (and subject in all  respect to Section 14.11 [Stockholder Rights Plans]), rights, options or warrants distributed by the  Company to all holders of the Class A Common Stock entitling them to subscribe for or purchase  shares of the Company’s Capital Stock, including Class A Common Stock (either initially or under                                         64 

 

   certain circumstances), which rights, options or warrants, until the occurrence of a specified event  or events (“Trigger Event”): (i) are deemed to be transferred with such shares of Class A Common  Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of Class A  Common Stock, shall be deemed not to have been distributed for purposes of this Section 14.04(c)  [Adjustment of Conversion Rate] (and no adjustment to the Conversion Rate under this Section  14.04(c) [Adjustment of Conversion Rate] will be required) until the occurrence of the earliest  Trigger  Event,  whereupon  such  rights,  options  or  warrants  shall  be  deemed  to  have  been  distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made  under this Section 14.04(c) [Adjustment of Conversion Rate].  If any such right, option or warrant,  including  any  such  existing  rights,  options  or  warrants  distributed  prior  to  the  date  of  this  Indenture, are subject to events, upon the occurrence of which such rights, options or warrants  become exercisable to purchase different securities, evidences of indebtedness or other assets, then  the date of the occurrence of any and each such event shall be deemed to be the date of distribution  and Record Date with respect to new rights, options or warrants with such rights (in which case  the  existing  rights,  options  or  warrants  shall  be  deemed  to  terminate  and  expire  on  such  date  without exercise by any of the holders thereof).  In addition, in the event of any distribution (or  deemed distribution) of rights, options or warrants, or any Trigger Event or other event (of the type  described  in  the  immediately  preceding  sentence)  with  respect  thereto  that  was  counted  for  purposes  of calculating a distribution amount for which an adjustment  to the Conversion Rate  under this Section 14.04(c) [Adjustment of Conversion Rate] was made, (1) in the case of any such  rights, options or warrants that shall all have been redeemed or purchased without exercise by any  holders  thereof,  upon  such  final  redemption  or  purchase  (x)  the  Conversion  Rate  shall  be  readjusted as if such rights, options or warrants had not been issued and (y) the Conversion Rate  shall then again be readjusted to give effect to such distribution, deemed distribution or Trigger  Event, as the case may be, as though it were a cash distribution, equal to the per share redemption  or purchase price received by a holder or holders of Class A Common Stock with respect to such  rights, options or warrants (assuming such holder had retained such rights, options or warrants),  made to all holders of Class A Common Stock as of the date of such redemption or purchase, and  (2) in the case of such rights, options or warrants that shall have expired or been terminated without  exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights, options  and warrants had not been issued.         For  purposes  of  Section  14.04(a)  [Adjustment  of  Conversion  Rate],  Section  14.04(b)  [Adjustment of Conversion Rate] and this Section 14.04(c) [Adjustment of Conversion Rate], if  any dividend or distribution to which this Section 14.04(c) [Adjustment of Conversion Rate] is  applicable also includes one or both of:         (A)  a dividend or distribution of shares of Class A Common Stock to which Section  14.04(a) [Adjustment of Conversion Rate] is applicable (the “Clause A Distribution”); or         (B)  a dividend or distribution of rights, options or warrants to which Section 14.04(b)  [Adjustment of Conversion Rate] is applicable (the “Clause B Distribution”),   then, in either case, (1) such dividend or distribution, other than the Clause A Distribution and the  Clause  B  Distribution,  shall  be  deemed  to  be  a  dividend  or  distribution  to  which  this  Section  14.04(c) [Adjustment of Conversion Rate] is applicable (the “Clause C Distribution”) and any  Conversion Rate adjustment required by this Section 14.04(c) [Adjustment of Conversion Rate]                                         65 

 

   with respect to such Clause C Distribution shall then be made, and (2) the Clause A Distribution  and Clause B Distribution shall be deemed to immediately follow the Clause C Distribution and  any Conversion Rate adjustment required by Section 14.04(a) [Adjustment of Conversion Rate]  and Section 14.04(b) [Adjustment of Conversion Rate] with respect thereto shall then be made,  except that, if determined by the Company (I) the “Record Date” of the Clause A Distribution and  the Clause B Distribution shall be deemed to be the Record Date of the Clause C Distribution and  (II)  any  shares  of  Class  A  Common  Stock  included  in  the  Clause A  Distribution  or  Clause B  Distribution shall be deemed not to be “outstanding immediately prior to the close of business on  such  Record  Date  or  immediately  prior  to  the  open  of  business  on  such  Effective  Date,  as  applicable”  within  the  meaning  of  Section  14.04(a)  [Adjustment  of  Conversion  Rate]  or  “outstanding immediately prior to the close of business on such Record Date” within the meaning  of Section 14.04(b) [Adjustment of Conversion Rate].         (d)   If any cash dividend or distribution is made to all or substantially all holders of the  Class A Common Stock, the Conversion Rate shall be adjusted based on the following formula:                                                     where,   CR0         =     the Conversion Rate in effect immediately prior to the close of business on                    the Record Date for such dividend or distribution;   CR'         =     the Conversion Rate in effect immediately after the close of business on                    the Record Date for such dividend or distribution;   SP0         =     the Last Reported Sale Price of the Class A Common Stock on the Trading                    Day  immediately  preceding  the  Ex-Dividend  Date for such  dividend  or                    distribution; and   C           =     the amount in cash per share the Company distributes to all or substantially                    all holders of the Class A Common Stock.   Any increase pursuant to this Section 14.04(d) [Adjustment of Conversion Rate] shall become  effective  immediately  after  the  close  of  business  on  the  Record  Date  for  such  dividend  or  distribution.  If such dividend or distribution is not so paid, the Conversion Rate shall be decreased,  effective as of the date the Board of Directors determines not to make or pay such dividend or  distribution, to be the Conversion Rate that would then be in effect if such dividend or distribution  had not been declared.  Notwithstanding the foregoing, if “C” (as defined above) is equal to or  greater than “SP0” (as defined above), in lieu of the foregoing increase, each Holder of a Note shall  receive, for each $1,000 principal amount of Notes, at the same time and upon the same terms as  holders of shares of the Class A Common Stock, the amount of cash that such Holder would have  received  if  such  Holder  owned  a  number  of  shares  of  Class  A  Common  Stock  equal  to  the  Conversion Rate on the Record Date for such cash dividend or distribution.                                          66 

 

         (e)   If the Company or any of its Subsidiaries make a payment in respect of a tender or  exchange offer for the Class A Common Stock, to the extent that the cash and value of any other  consideration included in the payment per share of Class A Common Stock exceeds the average  of the Last Reported Sale Prices of the Class A Common Stock over the 10 consecutive Trading  Day period commencing on, and including, the Trading Day next succeeding the last date on which  tenders or exchanges may be made pursuant to such tender or exchange offer, the Conversion Rate  shall be increased based on the following formula:                                                        where,   CR0           =      the Conversion Rate in effect immediately prior to the close of business                      on  the  10th  Trading  Day immediately  following,  and  including,  the                       Trading Day next succeeding the date such tender or exchange offer                       expires;   CR'           =     the Conversion Rate in effect immediately after the close of business on                       the  10th  Trading  Day immediately  following,  and  including,  the                       Trading Day next  succeeding the date such tender or exchange offer                       expires;   AC            =      the  aggregate  value  of  all  cash  and  any  other  consideration  (as                       determined  (which  determination  shall  be  binding)  by  the Board  of                       Directors)  paid  or  payable  for  shares  of Class  A  Common  Stock                      purchased in such tender or exchange offer;   OS0           =      the  number  of  shares  of  Class  A  Common  Stock outstanding                       immediately  prior  to  the  date  such  tender  or  exchange  offer  expires                       (prior to giving effect to the purchase of all shares of Class A Common                       Stock accepted for purchase or exchange in such tender or exchange                       offer);   OS'           =     the  number  of  shares  of  Class  A  Common  Stock outstanding                       immediately after the date such tender or exchange offer expires (after                       giving effect to the purchase of all shares of Class A Common Stock                      accepted for purchase or exchange in such tender or exchange offer);                       and   SP'           =     the average of the Last Reported Sale Prices of the Class A Common                       Stock over the 10 consecutive Trading Day period commencing on, and                       including,  the  Trading  Day  next  succeeding  the  date  such  tender  or                       exchange offer expires.         The  increase  to  the  Conversion  Rate  under  this  Section  14.04(e)  [Adjustment  of  Conversion  Rate]  shall  be  determined  at  the  close  of  business  on  the  tenth  Trading  Day                                         67 

 

   immediately following, and including, the Trading Day next succeeding the date such tender or  exchange offer expires; provided that (x) in respect of any conversion of Notes for which Physical  Settlement  is  applicable,  if  the  relevant  Conversion  Date  occurs  during  the  10  Trading  Days  immediately following, and including, the Trading Day next succeeding the expiration date of any  tender or exchange offer, references to “10” or “10th” in the preceding paragraph shall be deemed  replaced with such lesser number of Trading Days as have elapsed from, and including, the Trading  Day next succeeding the date that such tender or exchange offer expires to, and including, the  Conversion Date in determining the Conversion Rate and (y) in respect of any conversion of Notes  for which Cash Settlement or Combination Settlement is applicable, for any Trading Day that falls  within  the  relevant  Observation  Period  for  such  conversion  and  within  the  10  Trading  Days  immediately following, and including, the Trading Day next succeeding the expiration date of any  tender or exchange offer, references to “10” or “10th” in the preceding paragraph shall be deemed  replaced with such lesser number of Trading Days as have elapsed from, and including, the Trading  Day next succeeding the expiration date of such tender or exchange offer to, and including, such  Trading Day in determining the Conversion Rate as of such Trading Day.         (f)   Except as stated herein, the Company shall not adjust the Conversion Rate for the  issuance of shares of Class A Common Stock or any securities convertible into or exchangeable  for shares of Class A Common Stock or the right to purchase shares of Class A Common Stock or  such convertible or exchangeable securities.         (g)   In addition to those adjustments required by clauses (a), (b), (c), (d) and (e) of this  Section 14.04 [Adjustment of Conversion Rate], and to the extent permitted by applicable law and  subject to the applicable rules of any exchange on which any of the Company’s securities are then  listed, the Company from time to time may increase the Conversion Rate by any amount for a  period of at least 20 Business Days if the Board of Directors determines (which determination shall  be binding) that such increase would be in the Company’s best interest.  In addition, to the extent  permitted by applicable law and subject to the applicable rules of any exchange on which any of  the Company’s securities are then listed, the Company may (but is not required to) increase the  Conversion Rate to avoid or diminish any income tax to holders of the Class A Common Stock or  rights to purchase the Class A Common Stock in connection with a dividend or distribution of  shares of Class A Common Stock (or rights to acquire shares of Class A Common Stock) or similar  event.   Whenever  the  Conversion  Rate  is  increased  pursuant  to  either  of  the  preceding  two  sentences, the Company shall deliver to the Holder of each Note a notice of the increase at least  15 days prior to the date the increased Conversion Rate takes effect, and such notice shall state the  increased Conversion Rate and the period during which it will be in effect.         (h)   Notwithstanding anything to the contrary in this Article 14 [Conversion of Notes],  the Conversion Rate shall not be adjusted:               (i)   upon the issuance of any shares of Class A Common Stock pursuant to any        present or future plan providing for the reinvestment of dividends or interest payable on        the Company’s securities and the investment of additional optional amounts in shares of        Class A Common Stock under any plan;                                          68 

 

               (ii)  upon the issuance of any shares of Class A Common Stock or options or        rights to purchase those shares pursuant to any present or future benefit plan or program of        or assumed by the Company or any of the Company’s Subsidiaries;               (iii) upon the issuance of any shares of Class A Common Stock pursuant to any        option, warrant, right or exercisable, exchangeable or convertible security not described in        clause (ii) of this subsection and outstanding as of the date the Notes were first issued;               (iv)  upon (a) the issuance of any Class B Common Units or shares of Class B        Common  Stock  or  (b)  the  exchange  of  Class  B  Common  Units  or  shares  of  Class  B        Common Stock) for shares of Class A Common Stock in accordance with the Company’s        certificate of incorporation;               (v)   for stock repurchases that are not tender offers to which the provisions of        Section  14.04(e)  [Adjustment  of  Conversion  Rate]  shall  apply,  including  structured  or        derivative transactions;                (vi)  solely for a change in the par value of the Class A Common Stock; or               (vii) for accrued and unpaid interest, if any.         (i)   All calculations and other adjustments under this Article 14 [Conversion of Notes]  shall be made by the Company and shall be made to the nearest one-ten thousandth (1/10,000th)  of a share.         (j)   Whenever the Conversion Rate is adjusted as herein provided, the Company shall  promptly  file  with  the  Trustee  (and  the  Conversion  Agent  if  not  the  Trustee)  an  Officer’s  Certificate  setting  forth  the  Conversion  Rate  after  such  adjustment  and  setting  forth  a  brief  statement of the facts requiring such adjustment.  Unless and until a Responsible Officer of the  Trustee shall have received such Officer’s Certificate, the Trustee shall not be deemed to have  knowledge of any adjustment of the Conversion Rate and may assume without inquiry that the last  Conversion  Rate  of  which  it  has  knowledge is  still  in  effect.   Promptly after delivery  of such  certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting  forth the adjusted Conversion Rate and the date on which each adjustment becomes effective and  shall deliver such notice of such adjustment of the Conversion Rate to each Holder.  Failure to  deliver such notice shall not affect the legality or validity of any such adjustment.         (k)   For purposes of this Section 14.04 [Adjustment of Conversion Rate], the number  of shares of Class A Common Stock at any time outstanding shall not include shares of Class A  Common Stock held in the treasury of the Company so long as the Company does not pay any  dividend or make any distribution on shares of Class A Common Stock held in the treasury of the  Company,  but  shall  include  shares  of  Class  A  Common  Stock  issuable  in  respect  of  scrip  certificates issued in lieu of fractions of shares of Class A Common Stock.         Section 14.05. Adjustments of Prices.  Whenever any provision of this Indenture requires  the Company to calculate the Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion  Values  or  the  Daily  Settlement  Amounts  over  a  span  of  multiple  days  (including,  without  limitation, an Observation Period and the period for determining the Stock Price for purposes of a                                         69 

 

   Make-Whole Fundamental Change or Notice of Redemption), the Board of Directors shall make  appropriate adjustments to each to account for any adjustment to the Conversion Rate that becomes  effective, or any event requiring an adjustment to the Conversion Rate where the Record Date,  Effective Date or expiration date, as the case may be, of the event occurs, at any time during the  period when the Last Reported Sale Prices, Daily VWAPs, the Daily Conversion Values or the  Daily Settlement Amounts are to be calculated.         Section 14.06. Shares to Be Fully Paid.  The Company shall provide, free from preemptive  rights, out of its authorized but unissued shares or shares held in treasury, sufficient shares of Class  A Common Stock to provide for conversion of the Notes from time to time as such Notes are  presented  for  conversion  (assuming  delivery  of  the  maximum  number  of  Additional  Shares  pursuant to Section 14.03 [Increased Conversion Rate Applicable to Certain Notes Surrendered in  Connection with Make-Whole Fundamental Changes] and that at the time of computation of such  number  of  shares,  all  such  Notes  would  be  converted  by  a  single  Holder  and  that  Physical  Settlement were applicable).         Section 14.07. Effect of Recapitalizations, Reclassifications and Changes of the Class A  Common Stock.           (a)   In the case of:               (i)   any  recapitalization,  reclassification  or  change  of  the  Class  A  Common        Stock (other than changes resulting from a subdivision or combination),                (ii)  any consolidation, merger or combination involving the Company,                (iii) any sale, lease or other transfer to a third party of the consolidated assets of        the Company and the Company’s Subsidiaries substantially as an entirety or                (iv)  any statutory share exchange,          in each case, as a result of which the Class A Common Stock would be converted into, or  exchanged for, stock, other securities, other property or assets (including cash or any combination  thereof) (any such event, a “Share Exchange Event”), then, at and after the effective time of such  Share Exchange Event, the right to convert each $1,000 principal amount of Notes shall be changed  into a right to convert such principal amount of Notes into the kind and amount of shares of stock,  other securities or other property or assets (including cash or any combination thereof) that a holder  of a number of shares of Class A Common Stock equal to the Conversion Rate immediately prior  to such Share Exchange Event would have owned or been entitled to receive (the “Reference  Property,” with each “unit of Reference Property” meaning the kind and amount of Reference  Property that a holder of one share of Class A Common Stock is entitled to receive) upon such  Share Exchange Event and, prior to or at the effective time of such Share Exchange Event, the  Company or the successor or purchasing Person, as the case may be, shall execute with the Trustee  a  supplemental  indenture  permitted  under  Section  10.01(g)  [Supplemental  Indentures  Without  Consent of Holders] providing for such change in the right to convert each $1,000 principal amount  of Notes; provided, however, that at and after the effective time of the Share Exchange Event  (A) the Company or the successor or acquiring company, as the case may be, shall continue to  have the right to determine the form of consideration to be paid or delivered, as the case may be,                                         70 

 

   upon conversion of Notes in accordance with Section 14.02 [Conversion Procedure; Settlement  Upon  Conversion]  and  (B)(I)  any  amount  payable  in  cash  upon  conversion  of  the  Notes  in  accordance  with  Section  14.02  [Conversion  Procedure;  Settlement  Upon  Conversion]  shall  continue to be payable in cash, (II) any shares of Class A Common Stock that the Company would  have been  required  to  deliver  upon  conversion  of the Notes  in  accordance with  Section  14.02  [Conversion Procedure; Settlement Upon Conversion] shall instead be deliverable in the amount  and type of Reference Property that a holder of that number of shares of Class A Common Stock  would have received in such Share Exchange Event and (III) the Daily VWAP shall be calculated  based on the value of a unit of Reference Property.         If the Share Exchange Event causes the Class A Common Stock to be converted into, or  exchanged for, the right to receive more than a single type of consideration (determined based in  part upon any form of stockholder election), then (i) the Reference Property into which the Notes  will be convertible shall be deemed to be (x) the weighted average of the types and amounts of  consideration received by the holders of Class A Common Stock that affirmatively make such an  election or (y) if no holders of the Class A Common Stock affirmatively make such an election,  the types and amounts of consideration actually received by the holders of the Class A Common  Stock, and (ii) the unit of Reference Property for purposes of the immediately preceding paragraph  shall refer to the consideration referred to in clause (i) attributable to one share of Class A Common  Stock.  The Company shall notify Holders, the Trustee and the Conversion Agent (if other than  the Trustee) of such weighted average as soon as practicable after such determination is made.         Such supplemental indenture described in the second immediately preceding paragraph  shall provide for anti-dilution and other adjustments that shall be as nearly equivalent as is possible  to the adjustments provided for in this Article 14 [Conversion of Notes].  If, in the case of any  Share  Exchange  Event,  the  Reference  Property  includes  shares  of  stock,  securities  or  other  property or assets (including cash or any combination thereof) of a Person other than the Company  or the successor or purchasing corporation, as the case may be, in such Share Exchange Event,  then such supplemental indenture shall also be executed by such other Person and shall contain  such additional provisions to protect the interests of the Holders of the  Notes  as the Board of  Directors shall determine (which determination shall be binding) to be reasonably necessary by  reason of the foregoing, including the provisions providing for the purchase rights set forth in  Article 15 [Repurchase of Notes at Option of Holders].         (b)   When the Company executes a supplemental indenture pursuant to subsection (a)  of this Section 14.07 [Effect of Recapitalizations, Reclassifications and Changes of the Class A  Common Stock], the Company shall promptly file with the Trustee an Officer’s Certificate briefly  stating the reasons therefor, the kind or amount of cash, securities or property or asset that will  comprise a unit of Reference Property after any such Share Exchange Event, any adjustment to be  made with respect thereto and that all conditions precedent have been complied with, and shall  promptly deliver notice thereof to all Holders.  The Company shall cause notice of the execution  of  such  supplemental  indenture to  be delivered  to  each  Holder  within  20  days  after  execution  thereof.  Failure to deliver such notice shall not affect the legality or validity of such supplemental  indenture.         (c)   The Company shall not become a party to any Share Exchange Event unless its  terms are consistent with this Section 14.07  [Effect of Recapitalizations, Reclassifications  and                                         71 

 

   Changes of the Class A Common Stock].  None of the foregoing provisions shall affect the right  of a Holder to convert its Notes into cash, shares of Class A Common Stock or a combination of  cash and shares of Class A Common Stock, as applicable, as set forth in Section 14.01 [Conversion  Privilege] and Section 14.02 [Conversion Procedure; Settlement Upon Conversion] prior to the  effective date of such Share Exchange Event.         (d)   The  above  provisions  of  this  Section  shall  similarly  apply  to  successive  Share  Exchange Events.         Section 14.08. Certain Covenants.         (a)   The Company covenants that all shares of Class A Common Stock issued upon  conversion of Notes will be fully paid and non-assessable by the Company and free from all taxes,  liens and charges with respect to the issue thereof.         (b)   The  Company  covenants  that,  if  any  shares  of  Class  A  Common  Stock  to  be  provided for the purpose of conversion of Notes hereunder require registration with or approval of  any governmental authority under any federal or state law before such shares of Class A Common  Stock may be validly issued upon conversion, the Company will, to the extent then permitted by  the rules and interpretations of the Commission, secure such registration or approval, as the case  may be.         (c)   The Company further covenants that if at any time the Class A Common Stock shall  be listed on any national securities exchange or automated quotation system the Company will list  and keep listed, so long as the Class A Common Stock shall be so listed on such  exchange or  automated quotation system, any Class A Common Stock issuable upon conversion of the Notes.         Section 14.09. Responsibility of  Trustee.   The  Trustee  and  any  other  Conversion  Agent  shall not at any time be under any duty or responsibility to any Holder to determine the Conversion  Rate  (or  any  adjustment  thereto)  or  whether  any  facts  exist  that  may  require  any  adjustment  (including  any  increase)  of  the  Conversion  Rate,  or  with  respect  to  the  nature  or  extent  or  calculation of any such adjustment when made, or with respect to the method employed, or herein  or in any supplemental indenture provided to be employed, in making the same.  The Trustee and  any other Conversion Agent shall not be accountable with respect to the validity or value (or the  kind or amount) of any shares of Class A Common Stock, or of any securities, property or cash  that may at any time be issued or delivered upon the conversion of any Note; and the Trustee and  any other Conversion Agent make no representations with respect thereto.  Neither the Trustee nor  any Conversion Agent shall be responsible for any failure of the Company to issue, transfer or  deliver any shares of Class A Common Stock or stock certificates or other securities or property  or cash upon the surrender of any Note for the purpose of conversion or to comply with any of the  duties, responsibilities or covenants of the Company contained in this Article.  Without limiting  the generality of the foregoing, neither the Trustee nor any Conversion Agent shall be under any  responsibility  to  determine  the  correctness  of  any  provisions  contained  in  any  supplemental  indenture entered into pursuant to Section 14.07 [Effect of Recapitalizations, Reclassifications and  Changes of the Class A Common Stock] relating either to the kind or amount of shares of stock or  securities or property (including cash) receivable by Holders upon the conversion of their Notes  after any event referred to in such Section 14.07 [Effect of Recapitalizations, Reclassifications and                                         72 

 

   Changes of the Class A Common Stock] or to any adjustment to be made with respect thereto, but,  subject  to  the  provisions  of  Section  7.01  [Duties  and  Responsibilities  of  Trustee],  may  accept  (without any independent investigation) as conclusive evidence of the  correctness of any such  provisions, and shall be protected in relying upon, the Officer’s Certificate (which the Company  shall  be  obligated  to  file  with  the  Trustee  prior  to  the  execution  of  any  such  supplemental  indenture) with respect thereto.         Section 14.10. Notice to Holders Prior to Certain Actions.  In case of any:         (a)   action by the Company or one of its Subsidiaries that would require an adjustment  in the Conversion Rate pursuant to Section 14.04 [Adjustment of Conversion Rate] or Section  14.11 [Stockholder Rights Plans];         (b)   Share Exchange Event; or         (c)   voluntary or involuntary dissolution, liquidation or winding-up of the Company or  any of its Subsidiaries;   then, in each case (unless notice of such event is otherwise required pursuant to another provision  of this Indenture), the Company shall cause to be filed with the Trustee and the Conversion Agent  (if other than the Trustee) and to be delivered to each Holder, as promptly as possible but in any  event at least 20 days prior to the applicable date hereinafter specified, a notice stating (i) the date  on which a record is to be taken for the purpose of such action by the Company or one of its  Subsidiaries or, if a record is not to be taken, the date as of which the holders of Class A Common  Stock of record are to be determined for the purposes of such action by the Company or one of its  Subsidiaries,  or  (ii)  the  date  on  which  such  Share  Exchange  Event,  dissolution,  liquidation  or  winding-up is expected to become effective or occur, and the date as of which it is expected that  holders of Class A Common Stock of record shall be entitled to exchange their Class A Common  Stock for securities or other property deliverable upon such Share Exchange Event, dissolution,  liquidation or winding-up.  Failure to give such notice, or any defect therein, shall not affect the  legality or validity of such action by the Company or one of its Subsidiaries, Share Exchange  Event, dissolution, liquidation or winding-up.         Section 14.11. Stockholder Rights Plans.  If the Company has a stockholder rights plan in  effect  upon  conversion  of  the Notes,  each  share  of  Class  A  Common  Stock  issued  upon  such  conversion shall be entitled to receive the appropriate number of rights, if any, and the certificates  representing the Class A Common Stock issued upon such conversion shall bear such legends, if  any, in each case as may be provided by the terms of any such stockholder rights plan, as the same  may be amended from time to time.  However, if, prior to any conversion of Notes, the rights have  separated from the shares of Class A Common Stock in accordance with the provisions of the  applicable stockholder rights plan, the Conversion Rate shall be adjusted at the time of separation  as if the Company distributed to all or substantially all holders of the Class A Common Stock  Distributed Property as provided in Section 14.04(c) [Adjustment of Conversion Rate], subject to  readjustment in the event of the expiration, termination or redemption of such rights.                                     Article 15                        Repurchase of Notes at Option of Holders                                          73 

 

         Section 15.01. [Intentionally Omitted]         Section 15.02. Repurchase at Option of Holders Upon a Fundamental Change.         (a)   If a Fundamental Change occurs at any time, each Holder shall have the right, at  such Holder’s option, to require the Company to repurchase for cash all of such Holder’s Notes,  or any portion of the principal thereof that is equal to $1,000 or an integral multiple of $1,000, on  the date (the “Fundamental Change Repurchase Date”) specified by the Company that is not  less than 20 calendar days or more than 35 calendar days following the date of the Fundamental  Change Company Notice at a repurchase price equal to 100% of the principal amount thereof, plus  accrued and unpaid interest thereon to, but excluding, the Fundamental Change Repurchase Date  (the “Fundamental Change Repurchase Price”), unless the Fundamental Change Repurchase  Date falls after a Regular Record Date but on or prior to the Interest Payment Date to which such  Regular Record Date relates, in which case the  Company shall instead pay the full amount of  accrued  and  unpaid  interest  to  the  Holder  of  record  as  of  such  Regular  Record  Date,  and  the  Fundamental Change Repurchase Price shall be equal to 100% of the principal amount of Notes  to be repurchased pursuant to this Article 15 [Repurchase of Notes at Option of Holders].         (b)   Repurchases of Notes under this Section 15.02 [Repurchase at Option of Holders  Upon a Fundamental Change] shall be made, at the option of the Holder thereof, upon:               (i)   delivery to the Paying Agent by a Holder of a duly completed notice (the        “Fundamental Change Repurchase Notice”) in the form set forth in Attachment 2 to the        Form  of  Note  attached  hereto  as  Exhibit  A,  if  the  Notes  are  Physical  Notes,  or  in        compliance with the Depositary’s procedures for surrendering interests in Global Notes, if        the Notes are Global Notes, in each case on or before the close of business on the Business        Day immediately preceding the Fundamental Change Repurchase Date; and               (ii)  delivery of the Notes, if the Notes are Physical Notes, to the Paying Agent        at any time after delivery of the Fundamental Change Repurchase Notice (together with all        necessary endorsements for transfer) at the Corporate Trust Office of the Paying Agent, or        book-entry transfer of the Notes, if the Notes are Global Notes, in compliance with the        procedures of the Depositary, in each case, such delivery or transfer being a condition to        receipt by the Holder of the Fundamental Change Repurchase Price therefor.         The Fundamental Change Repurchase Notice in respect of any Notes to be repurchased  shall state:               (iii) in the case of Physical  Notes, the certificate numbers of the Notes to be        delivered for repurchase;               (iv)  the portion of the principal amount of Notes to be repurchased, which must        be $1,000 or an integral multiple thereof; and               (v)   that  the  Notes  are  to  be  repurchased  by  the  Company  pursuant  to  the        applicable provisions of the Notes and this Indenture;                                          74 

 

   provided, however, that if the Notes are Global Notes, the Fundamental Change Repurchase Notice  must comply with appropriate Depositary procedures.         Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent  the Fundamental Change Repurchase Notice contemplated by this Section 15.02 [Repurchase at  Option of Holders Upon a Fundamental Change] shall have the right to withdraw, in whole or in  part, such Fundamental Change Repurchase Notice at any time prior to the close of business on  the Business Day immediately preceding the Fundamental Change Repurchase Date by delivery  of  a  written  notice  of  withdrawal  to  the  Paying  Agent  in  accordance  with  Section  15.03  [Withdrawal of Fundamental Change Repurchase Notice].         The  Paying  Agent  shall  promptly  notify  the  Company  of  the  receipt  by  it  of  any  Fundamental Change Repurchase Notice or written notice of withdrawal thereof.         (c)   On or before the 20th calendar day after the occurrence of the effective date of a  Fundamental Change, the Company shall provide to all Holders of Notes and the Trustee and the  Paying Agent (in the case of a Paying Agent other than the Trustee) a notice (the “Fundamental  Change Company Notice”) of the occurrence of the effective date of the Fundamental Change  and of the repurchase right at the option of the Holders arising as a result thereof.  In the case of  Physical Notes, such notice shall be by first class mail or, in the case of Global Notes, such notice  shall be delivered in accordance with the applicable procedures of the Depositary.  Simultaneously  with providing such notice, the Company shall publish a notice containing the information set forth  in the Fundamental Change Company Notice in a newspaper of general circulation in The City of  New York or publish such information on the Company’s website or through such other public  medium as the Company may use at that time.  Each Fundamental Change Company Notice shall  specify:               (i)   the events causing the Fundamental Change;               (ii)  the date of the Fundamental Change;               (iii) the last date on which a Holder may exercise the repurchase right pursuant        to this Article 15 [Repurchase of Notes at Option of Holders];               (iv)  the Fundamental Change Repurchase Price;               (v)   the Fundamental Change Repurchase Date;               (vi)  the name and address of the Paying Agent and the Conversion Agent, if        applicable;               (vii) if applicable, the Conversion Rate and any adjustments to the Conversion        Rate;               (viii) that the Notes  with respect  to which a Fundamental Change Repurchase        Notice has been delivered by a Holder may be converted only if the Holder withdraws the        Fundamental Change Repurchase Notice in accordance with the terms of this Indenture;        and                                         75 

 

               (ix)  the  procedures  that  Holders  must  follow  to  require  the  Company  to        repurchase their Notes.         No failure of the Company to give the foregoing notices and no defect therein shall limit  the Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the  Notes  pursuant  to  this  Section  15.02  [Repurchase  at  Option  of  Holders  Upon  a  Fundamental  Change].           At the Company’s request, the Trustee shall give such notice in the Company’s name and  at the Company’s expense; provided, however, that, in all cases, the text of such Fundamental  Change Company Notice shall be prepared by the Company.         (d)   Notwithstanding the foregoing, no Notes may be repurchased by the Company on  any date at the option of the Holders upon a Fundamental Change if the principal amount of the  Notes has been accelerated, and such acceleration has not been rescinded, on or prior to such date  (except in the case of an acceleration resulting from a Default by the Company in the payment of  the Fundamental Change Repurchase Price with respect to such Notes).  The Paying Agent will  promptly  return  to  the  respective  Holders  thereof  any  Physical  Notes  held  by  it  during  the  acceleration of the Notes (except in the case of an acceleration resulting from a Default by the  Company  in  the  payment  of  the  Fundamental  Change  Repurchase  Price  with  respect  to  such  Notes), or any instructions for book-entry transfer of the Notes in compliance with the procedures  of the Depositary shall be deemed to have been cancelled, and, upon such return or cancellation,  as  the  case  may  be,  the Fundamental  Change  Repurchase  Notice  with  respect  thereto  shall  be  deemed to have been withdrawn.         Section 15.03. Withdrawal of Fundamental Change Repurchase Notice.         (a)   A Fundamental Change Repurchase Notice may be withdrawn (in whole or in part)  by means of a written notice of withdrawal delivered to the Corporate Trust Office of the Paying  Agent in accordance with this Section 15.03 [Withdrawal of Fundamental Change Repurchase  Notice] at any time prior to the close of business on the Business Day immediately preceding the  Fundamental Change Repurchase Date, specifying:               (i)   the  principal  amount  of  the  Notes  with  respect  to  which  such  notice  of        withdrawal is being submitted,               (ii)  if Physical Notes have been issued, the certificate number of the Note in        respect of which such notice of withdrawal is being submitted, and               (iii) the principal amount, if any, of such Note that remains subject to the original        Fundamental Change Repurchase Notice, which portion must be in principal amounts of        $1,000 or an integral multiple of $1,000;   provided, however, that if the Notes are Global Notes, the notice must comply with appropriate  procedures of the Depositary.         Section 15.04. Deposit of Fundamental Change Repurchase Price.                                          76 

 

         (a)   The Company will deposit with the Trustee (or other Paying Agent appointed by  the Company, or if the Company is acting as its own Paying Agent, set aside, segregate and hold  in trust as provided in Section 4.04 [Provisions as to Paying Agent]) on or prior to 10:00 a.m., New  York City time, on the Fundamental Change Repurchase Date an amount of money sufficient to  repurchase all of the Notes to be repurchased at the appropriate Fundamental Change Repurchase  Price.  Subject to receipt of funds and/or Notes by the Trustee (or other Paying Agent appointed  by the Company), payment for Notes surrendered for repurchase (and not withdrawn prior to the  close  of  business  on  the  Business  Day  immediately  preceding  the  Fundamental  Change  Repurchase  Date)  will  be  made  on  the  later  of  (i)  the  Fundamental  Change  Repurchase  Date  (provided  the  Holder  has  satisfied  the  conditions  in  Section  15.02  [Repurchase  at  Option  of  Holders Upon a Fundamental Change]) and (ii) the time of book-entry transfer or the delivery of  such Note to the Trustee (or other Paying Agent appointed by the Company) by the Holder thereof  in the manner required by Section 15.02 [Repurchase at Option of Holders Upon a Fundamental  Change] by mailing checks for the amount payable to the Holders of such Notes entitled thereto  as they shall appear in the Note Register; provided, however, that payments to the Depositary shall  be made by wire transfer of immediately available funds to the account of the Depositary or its  nominee.   The  Trustee  shall,  promptly  after  such  payment  and  upon  written  demand  by  the  Company, return to the Company any funds in excess of the Fundamental Change Repurchase  Price.         (b)   If by 10:00 a.m.  New York City time, on the Fundamental Change Repurchase  Date, the Trustee (or other Paying Agent appointed by the Company) holds money sufficient to  make payment on all the Notes or portions thereof that are to be repurchased on such Fundamental  Change Repurchase Date, then, with respect to the Notes that have been properly surrendered for  repurchase and have not been validly withdrawn, (i) such Notes will cease to be outstanding, (ii)  interest will cease to accrue on such Notes (whether or not book-entry transfer of the Notes has  been made or the Notes have been delivered to the Trustee or Paying Agent) and (iii) all other  rights of the Holders of such Notes will terminate (other than the right to receive the Fundamental  Change Repurchase Price and, if applicable, accrued and unpaid interest).         (c)   Upon surrender of a Note that is to be repurchased in part pursuant to Section 15.02  [Repurchase at Option of Holders Upon a Fundamental Change], the Company shall execute and  the Trustee shall authenticate and deliver to the Holder a new Note in an authorized denomination  equal in principal amount to the unrepurchased portion of the Note surrendered.         Section 15.05. Covenant to Comply with Applicable Laws Upon Repurchase of Notes.  In  connection with any repurchase offer, the Company shall, if required:         (a)   comply with the provisions of Rule 13e-4, Rule 14e-1 and any other tender offer  rules under the Exchange Act that may then be applicable;         (b)   file a Schedule TO or any other required schedule under the Exchange Act; and         (c)   otherwise comply with all federal and state securities laws in connection with any  offer by the Company to repurchase the Notes;                                          77 

 

   in each case, so as to permit the rights and obligations under this Article 15 [Repurchase of Notes  at Option of Holders] to be exercised in the time and in the manner specified in this Article 15  [Repurchase of Notes at Option of Holders].         Notwithstanding anything to the contrary herein, to the extent that, as a result of any change  in any federal or state securities laws or other applicable laws or regulations after the date of this  Indenture,  compliance  with this Article 15 [Repurchase of Notes  at Option of Holders]  would  result  in  a  violation  of  any  such  federal  or  state  securities  laws  or  other  applicable  laws  or  regulations, the Company shall comply with its obligation to offer to repurchase the Notes upon a  Fundamental  Change  in  a  manner  that  also  complies  with  the  applicable  securities  laws  and  regulations and will not be deemed to have breached its obligations set forth in this Article 15  [Repurchase of Notes at Option of Holders] by virtue of such conflict.                                     Article 16                                Optional Redemption         Section 16.01. Optional Redemption.  The Notes shall not be redeemable by the Company  prior to March 1, 2023, and no sinking fund is provided for the Notes. On or after March 1, 2023,  the Company may redeem (an “Optional Redemption”) for cash all or part of the Notes, at the  Redemption Price, if the Last Reported Sale Price of the Class A Common Stock has been at least  130%  of  the  Conversion  Price  then  in  effect  for  at  least  20  Trading  Days  (whether  or  not  consecutive) during any 30 consecutive Trading Day period (including the last Trading Day of  such period) ending on, and including, the Trading Day immediately preceding the date on which  the  Company  provides  Notice  of  Redemption  in  accordance  with  Section  16.02  [Notice  of  Optional Redemption; Selection of Notes].         Section 16.02. Notice of Optional Redemption; Selection of Notes.           (a)   In case the Company exercises its Optional Redemption right to redeem all or, as  the case may be, any part of the Notes pursuant to Section 16.01 [Optional Redemption], it shall  fix a date for redemption (each, a “Redemption Date”) and it or, at its written request received by  the Trustee not less than 15 calendar days prior to the date such Notice of Redemption is to be sent  (or such shorter period of time as may be acceptable to the Trustee), the Trustee, in the name of  and at the expense of the Company, shall deliver or cause to be delivered a notice of such Optional  Redemption (a “Notice of Redemption”) not less than 50 nor more than 60 Scheduled Trading  Days prior to the Redemption Date to each Holder of Notes so to be redeemed as a whole or in  part; provided, however, that, if the Company shall give such notice, it shall also give written  notice of the Redemption Date to the Trustee and the Paying Agent (if other than the Trustee). The  Redemption Date must be a Business Day.         (b)   The Notice of Redemption, if delivered in the manner herein provided, shall be  conclusively presumed to have been duly given, whether or not the Holder receives such notice.  In any case, failure to give such Notice of Redemption or any defect in the Notice of Redemption  to the Holder of any Note designated for redemption as a whole or in part shall not affect the  validity of the proceedings for the redemption of any other Note.         (c)   Each Notice of Redemption shall specify:                                          78 

 

               (i)   the Redemption Date;               (ii)  the Redemption Price;               (iii) that on the Redemption Date, the Redemption Price will become due and        payable upon each Note to be redeemed, and that interest thereon, if any, shall cease to        accrue on and after the Redemption Date;               (iv)  the place or places where such Notes are to be surrendered for payment of        the Redemption Price;               (v)   that Holders may surrender their Notes for conversion at any time prior to        the  close  of  business  on  the  Scheduled  Trading  Day  immediately  preceding  the        Redemption Date;               (vi)  the procedures a converting Holder must follow to convert its Notes and the        Settlement Method and Specified Dollar Amount, if applicable;               (vii) the Conversion Rate and, if applicable, the number of Additional Shares        added to the Conversion Rate in accordance with Section 14.03 [Increased Conversion        Rate  Applicable  to  Certain  Notes  Surrendered  in  Connection  with  Make-Whole        Fundamental Changes];               (viii) the CUSIP, ISIN or other similar numbers, if any, assigned to such Notes;        and               (ix)  in case any Note is to be redeemed in part only, the portion of the principal        amount thereof to be redeemed and on and after the Redemption Date, upon surrender of        such Note, a new Note in principal amount equal to the unredeemed portion thereof shall        be issued.         A Notice of Redemption shall be irrevocable.         (d)   If fewer than all of the outstanding Notes are to be redeemed and the Notes to be  redeemed  are  Global  Notes,  the  Notes  to  be  redeemed  shall  be  selected  by  the  Depositary  in  accordance with the applicable procedures of the Depositary. If fewer than all of the outstanding  Notes are to be redeemed and the Notes to be redeemed are not Global Notes, the Trustee shall  select the Notes or portions thereof to be redeemed (in principal amounts of $1,000 or multiples  thereof) on a pro rata basis. If any Note selected for partial redemption is submitted for conversion  in part after such selection, the portion of the Note submitted for conversion shall be deemed (so  far as may be possible) to be the portion selected for redemption.         Section 16.03. Payment of Notes Called for Redemption.         (a)   If any Notice of Redemption has been given in respect of the Notes in accordance  with Section 16.02 [Notice of Optional Redemption; Selection of Notes], the Notes shall become  due and payable on the Redemption Date at the place or places stated in the Notice of Redemption  and at the applicable Redemption Price. On presentation and surrender of the Notes at the place or                                         79 

 

   places stated in the Notice of Redemption, the Notes shall be paid and redeemed by the Company  at the applicable Redemption Price.         (b)   Prior to 10:00 a.m. New York City time on the Redemption Date, the Company  shall deposit with the Paying Agent or, if the Company or a Subsidiary of the Company is acting  as the Paying Agent, shall segregate and hold in trust as provided in Section 7.05 [Monies and  Shares of Class A Common Stock to Be Held in Trust] an amount of cash (in immediately available  funds if deposited on the Redemption Date), sufficient to pay the Redemption Price of all of the  Notes to be redeemed on such Redemption Date. Subject to receipt of funds by the Paying Agent,  payment for the Notes to be redeemed shall be made on the Redemption Date for such Notes. The  Paying Agent shall, promptly after such payment and upon written demand by the Company, return  to the Company any funds in excess of the Redemption Price.         Section 16.04. Restrictions on Redemption. The Company may not redeem any Notes on  any date if the principal amount of the Notes has been accelerated in accordance with the terms of  this Indenture, and such acceleration has not been rescinded, on or prior to the Redemption Date  (except in the case of an acceleration resulting from a Default by the Company in the payment of  the Redemption Price with respect to such Notes).                                     Article 17                              Miscellaneous Provisions         Section 17.01. Provisions Binding on Company’s Successors.  Prior to the date that it is  released pursuant to Section 11.02 [Successor Corporation to Be Substituted], all the covenants,  stipulations, promises and agreements of the Company contained in this Indenture shall bind its  successors and assigns whether so expressed or not.         Section 17.02. Official  Acts  by  Successor  Corporation.   Any  act  or  proceeding  by  any  provision of this Indenture authorized or required to be done or performed by any board, committee  or Officer of the Company shall and may be done and performed with like force and effect by the  like board, committee or officer of any corporation or other entity that shall at the time be the  lawful sole successor of the Company.         Section 17.03. Addresses for Notices, Etc.  Any notice or demand that by any provision of  this Indenture is required or permitted to be given or served by the Trustee or by the Holders on  the Company shall be deemed to have been sufficiently given or made, for all purposes if given or  served by being deposited postage prepaid by registered or certified mail in a post office letter box  addressed (until another address is filed by the Company with the Trustee) to Evolent Health, Inc.,  800 N.  Glebe Road, Suite 500, Arlington, Virginia 22203, Attention: Jonathan Weinberg.  Any  notice, direction, request or demand hereunder to or upon the Trustee shall be deemed to have been  sufficiently given or made, for all purposes, if given or served by being deposited postage prepaid  by registered or certified mail in a post office letter box addressed to the Corporate Trust Office.         The Trustee, by notice to the Company, may designate additional or different addresses for  subsequent notices or communications.         Any notice or communication delivered or to be delivered to a Holder of Physical Notes  shall be mailed to it by first class mail, postage prepaid, at its address as it appears on the Note                                         80 

 

   Register and shall be sufficiently given to it if so mailed within the time prescribed.  Any notice  or communication delivered or to be delivered to a Holder of Global Notes shall be delivered in  accordance with the applicable procedures of the Depositary and shall be sufficiently given to it if  so delivered within the time prescribed.         Failure to mail or deliver a notice or communication to a Holder or any defect in it shall  not affect its sufficiency with respect to other Holders.  If a notice or communication is mailed or  delivered, as the case may be, in the manner provided above, it is duly given, whether or not the  addressee receives it.         In case by reason of the suspension of regular mail service or by reason of any other cause  it shall be impracticable to give such notice to Holders by mail, then such notification as shall be  made with the approval of the Trustee shall constitute a sufficient notification for every purpose  hereunder.  All notices, approvals, consents, requests and other communications hereunder must  be in writing (provided that any communication sent to the Trustee hereunder must be in the form  of a document that is signed manually or by way of a digital signature provided by DocuSign or  such other digital signature provider as specified in writing to the Trustee by the Company) and in  English.  The Company agrees to assume all risks arising out of the use of digital signatures and  electronic methods to submit communications to the Trustee, including without limitation the risk  of the Trustee acting on unauthorized instructions and the risk of interception and misuse by third  parties.         Section 17.04. Governing Law; Jurisdiction.  THIS INDENTURE AND EACH NOTE,  AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO  THIS INDENTURE AND EACH NOTE, SHALL BE GOVERNED BY, AND CONSTRUED IN  ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD  TO THE CONFLICTS OF LAWS PROVISIONS THEREOF).         The Company irrevocably consents and agrees, for the benefit of the Holders from time to  time of the Notes and the Trustee, that any legal action, suit or proceeding against it with respect  to obligations, liabilities or any other matter arising out of or in connection with this Indenture or  the Notes may be brought in the courts of the State of New York or the courts of the United States  located in the Borough of Manhattan, New York City, New York and, until amounts due and to  become due in respect of the Notes have been paid, hereby irrevocably consents and submits to  the non-exclusive jurisdiction of each such court in personam, generally and unconditionally with  respect to any action, suit or proceeding for itself in respect of its properties, assets and revenues.         The Company irrevocably and unconditionally waives, to the fullest extent permitted by  law, any objection which it may now or hereafter have to the laying of venue of any of the aforesaid  actions, suits or proceedings arising out of or in connection with this Indenture brought in the  courts  of the State  of  New York  or the courts  of  the  United  States  located  in  the  Borough  of  Manhattan, New York City, New York and hereby further irrevocably and unconditionally waives  and agrees not to plead or claim in any such court that any such action, suit or proceeding brought  in any such court has been brought in an inconvenient forum.         Section 17.05. Evidence  of  Compliance  with  Conditions  Precedent;  Certificates  and  Opinions of Counsel to Trustee.  Upon any application or demand by the Company to the Trustee                                         81 

 

   to take any action under any of the provisions of this Indenture, the Company shall, if requested  by the Trustee, furnish to the Trustee an Officer’s Certificate stating that such action is permitted  by the terms of this Indenture.         Each Officer’s Certificate provided for, by or on behalf of the Company in this Indenture  and delivered to the Trustee with respect to compliance with this Indenture (other than the Officer’s  Certificates provided for in Section 4.08 [Compliance Certificate; Statements as to Defaults]) shall  include (a) a statement that the person signing such certificate is familiar with the requested action  and  this  Indenture;  (b)  a  brief  statement  as  to  the  nature  and  scope  of  the  examination  or  investigation upon which the statement contained in such certificate is based; (c) a statement that,  in  the  judgment  of  such  person,  he  or  she  has  made  such  examination  or  investigation  as  is  necessary to enable him or her to express an informed judgment as to whether or not such action  is permitted by this Indenture; and (d) a statement as to whether or not, in the judgment of such  person, such action is permitted by this Indenture.         Notwithstanding anything to the contrary in this Section 17.05 [Evidence of Compliance  with Conditions Precedent; Certificates and Opinions of Counsel to Trustee], if any provision in  this Indenture specifically provides that the Trustee shall or may receive an Opinion of Counsel in  connection with any action to be taken by the Trustee or the Company hereunder, the Trustee shall  be entitled to, or entitled to request, such Opinion of Counsel.         Section 17.06. Legal  Holidays.   In  any  case  where  any  Interest  Payment  Date,  any  Fundamental  Change  Repurchase  Date,  any  Redemption  Date  or  the  Maturity  Date  is  not  a  Business Day, then any action to be taken on such date need not be taken on such date, but may  be taken on the next succeeding Business Day with the same force and effect as if taken on such  date, and no interest shall accrue in respect of the delay.         Section 17.07. No Security Interest Created.  Nothing in this Indenture or in the Notes,  expressed  or  implied,  shall  be  construed  to  constitute  a  security  interest  under  the  Uniform  Commercial  Code  or  similar  legislation,  as  now  or  hereafter  enacted  and  in  effect,  in  any  jurisdiction.         Section 17.08. Benefits of Indenture.  Nothing in this Indenture or in the Notes, expressed  or implied, shall give to any Person, other than the Holders, the parties hereto, any Paying Agent,  any  Conversion  Agent,  any  authenticating  agent,  any  Note  Registrar  and  their  successors  hereunder, any benefit or any legal or equitable right, remedy or claim under this Indenture.         Section 17.09. Table of Contents, Headings, Etc.  The table of contents and the titles and  headings  of  the  articles  and  sections  of  this  Indenture  have  been  inserted  for  convenience  of  reference only, are not to be considered a part hereof, and shall in no way modify or restrict any  of the terms or provisions hereof.         Section 17.10. Authenticating Agent.  The Trustee may appoint an authenticating agent that  shall be authorized to act on its behalf and subject to its direction in the authentication and delivery  of Notes in connection with the original issuance thereof and transfers and exchanges of Notes  hereunder,  including  under  Section  2.04  [Execution,  Authentication  and  Delivery  of  Notes],  Section  2.05  [Exchange  and  Registration  of  Transfer  of  Notes;  Restrictions  on  Transfer;                                          82 

 

   Depositary], Section 2.06 [Mutilated, Destroyed, Lost or Stolen Notes], Section 2.07 [Temporary  Notes], Section 10.04 [Notation on Notes] and Section 15.04 [Deposit of Fundamental Change  Repurchase Price] as fully to all intents and purposes as though the authenticating agent had been  expressly authorized by this Indenture and those Sections to authenticate and deliver Notes.  For  all purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent  shall be deemed to be authentication and delivery of such Notes “by the Trustee” and a certificate  of authentication executed on behalf of the Trustee by an authenticating agent shall be deemed to  satisfy any requirement hereunder or in the Notes for the Trustee’s certificate of authentication.   Such  authenticating  agent  shall  at  all  times  be  a  Person  eligible  to  serve  as  trustee  hereunder  pursuant to Section 7.08 [Eligibility of Trustee].         Any corporation or other entity into which any authenticating agent may be merged or  converted or with which it may be consolidated, or any corporation or other entity resulting from  any merger, consolidation or conversion to which any authenticating agent shall be a party, or any  corporation or other entity succeeding to the corporate trust business of any authenticating agent,  shall be the successor of the authenticating agent hereunder, if such successor corporation or other  entity is otherwise eligible under this Section 17.10 [Authenticating Agent], without the execution  or filing of any paper or any further act on the part of the parties hereto or the authenticating agent  or such successor corporation or other entity.         Any authenticating agent may at any time resign by giving written notice of resignation to  the  Trustee  and  to  the  Company.   The  Trustee  may  at  any  time  terminate  the  agency  of  any  authenticating agent by giving written notice of termination to such authenticating agent and to the  Company.  Upon receiving such a notice of resignation or upon such a termination, or in case at  any time any authenticating agent shall cease to be eligible under this Section, the Trustee may  appoint a successor authenticating agent (which may be the Trustee), shall give written notice of  such appointment to the Company and shall deliver notice of such appointment to all Holders.         The  Company  agrees  to  pay  to  the  authenticating  agent  from  time  to  time  reasonable  compensation for its services although the Company may terminate the authenticating agent, if it  determines such agent’s fees to be unreasonable.         The provisions of Section 7.02 [Reliance on Documents, Opinions, Etc], Section 7.03 [No  Responsibility for Recitals, Etc.], Section 7.04 [Trustee, Paying Agents, Conversion Agents or  Note Registrar May Own Notes], Section 8.03 [Persons Who Are Deemed Absolute Owners] and  this Section 17.10 [Authenticating Agent] shall be applicable to any authenticating agent.         If  an  authenticating  agent  is  appointed  pursuant  to  this  Section  17.10  [Authenticating  Agent],  the  Notes  may  have  endorsed  thereon,  in  addition  to  the  Trustee’s  certificate  of  authentication, an alternative certificate of authentication in the following form:   __________________________,  as Authenticating Agent, certifies that this is one of the Notes described  in the within-named Indenture.      By: ____________________                                         83 

 

   Authorized Officer          Section 17.11. Execution in Counterparts.  This Indenture may be executed in any number  of counterparts, each of which shall be an original, but such counterparts shall together constitute  but one and the same instrument.  The exchange of copies of this Indenture and of signature pages  by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture  as to the parties hereto and may be used in lieu of the original Indenture for all purposes.  Signatures  of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures  for all purposes.         Section 17.12. Severability.  In the event any provision of this Indenture or in the Notes  shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity, legality  or enforceability of the remaining provisions shall not in any way be affected or impaired.         Section 17.13. Waiver of Jury Trial.  EACH OF THE COMPANY AND THE TRUSTEE  HEREBY  IRREVOCABLY  WAIVES,  TO  THE  FULLEST  EXTENT  PERMITTED  BY  APPLICABLE  LAW,  ANY  AND  ALL  RIGHT  TO  TRIAL  BY  JURY  IN  ANY  LEGAL  PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR  THE TRANSACTIONS CONTEMPLATED HEREBY.         Section 17.14. Force Majeure.  In no event shall the Trustee be responsible or liable for  any failure or delay in the performance of its obligations hereunder arising out of or caused by,  directly  or  indirectly,  forces  beyond  its  control,  including,  without  limitation,  strikes,  work  stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural  catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or  computer  (software  and  hardware)  services;  it  being  understood  that  the  Trustee  shall  use  reasonable efforts that are consistent with accepted practices in the banking industry to resume  performance as soon as practicable under the circumstances.         Section 17.15. Calculations.  Except as otherwise provided herein, the Company shall be  responsible for making all calculations called for under the Notes.  These calculations include, but  are not limited to, determinations of the Stock Price, the Last Reported Sale Prices of the Class A  Common Stock, the Daily VWAPs, the Daily Conversion Values, the Daily Settlement Amounts,  accrued interest payable on the Notes and the Conversion Rate of the Notes.  The Company shall  make all these calculations in good faith and, absent manifest error, the Company’s calculations  shall be final and binding on Holders of Notes.  The Company shall provide a schedule of its  calculations  to  each  of  the  Trustee  and  the  Conversion  Agent,  and  each  of  the  Trustee  and  Conversion Agent is entitled to rely conclusively upon the accuracy of the Company’s calculations  without independent verification.  The Trustee will forward the Company’s calculations to any  Holder  of  Notes  upon  the  written  request  of  that  Holder  at  the  sole  cost  and  expense  of  the  Company.         Section 17.16. USA PATRIOT Act.   The  parties  hereto  acknowledge that  in  accordance  with Section 326 of the USA PATRIOT Act, the Trustee, like all financial institutions and in order  to help fight the funding of terrorism and money laundering, is required to obtain, verify, and  record information that identifies each person or legal entity that establishes a relationship or opens  an account with the Trustee.  The parties to this Indenture agree that they will provide the Trustee                                         84 

 

   with such information as it may request in order for the Trustee to satisfy the requirements of the  USA PATRIOT Act.                        [Remainder of page intentionally left blank]                                              85 

 

         IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Indenture  to  be  duly  executed as of the date first written above.                           EVOLENT HEALTH, INC.                                                                              By:   /s/ Jonathan Weinberg                            Name:  Jonathan Weinberg                          Title:  General Counsel and Secretary                                                                                                      U.S. BANK NATIONAL ASSOCIATION, as Trustee                                                                              By:   /s/ Patricia A. Welling ______                          Name:  Patricia A. Welling                          Title:  Vice President                                            86 

 

                                                                                                                              Exhibit A                             [FORM OF FACE OF NOTE]                 [INCLUDE FOLLOWING LEGEND IF A GLOBAL NOTE]         [UNLESS  THIS  CERTIFICATE  IS  PRESENTED  BY  AN  AUTHORIZED  REPRESENTATIVE  OF  THE  DEPOSITORY  TRUST  COMPANY,  A  NEW  YORK  CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF  TRANSFER,  EXCHANGE,  OR  PAYMENT,  AND  ANY  CERTIFICATE  ISSUED  IS  REGISTERED  IN  THE  NAME  OF  CEDE  &  CO.  OR  IN  SUCH  OTHER  NAME  AS  IS  REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT  HEREUNDER  IS  MADE  TO  CEDE  &  CO.  OR  TO  SUCH  OTHER  ENTITY  AS  IS  REQUESTED  BY  AN  AUTHORIZED  REPRESENTATIVE  OF  DTC),  ANY  TRANSFER,  PLEDGE,  OR  OTHER  USE  HEREOF  FOR  VALUE  OR  OTHERWISE  BY  OR  TO  ANY  PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &  CO., HAS AN INTEREST HEREIN.]            [INCLUDE FOLLOWING LEGEND IF A RESTRICTED SECURITY]         [THIS  SECURITY  AND  THE  CLASS  A  COMMON  STOCK,  IF  ANY,  ISSUABLE  UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE  SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT  BE  OFFERED,  SOLD,  PLEDGED  OR  OTHERWISE  TRANSFERRED  EXCEPT  IN  ACCORDANCE WITH THE FOLLOWING SENTENCE.  BY ITS ACQUISITION HEREOF  OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:         (1) REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A  “QUALIFIED  INSTITUTIONAL  BUYER”  (WITHIN  THE  MEANING  OF  RULE  144A  UNDER  THE  SECURITIES  ACT)  AND  THAT  IT  EXERCISES  SOLE  INVESTMENT  DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND         (2) AGREES FOR THE BENEFIT OF EVOLENT HEALTH, INC.  (THE “COMPANY”)  THAT  IT  WILL  NOT  OFFER,  SELL,  PLEDGE  OR  OTHERWISE  TRANSFER  THIS  SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS  THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR  SUCH  SHORTER  PERIOD  OF  TIME  AS  PERMITTED  BY  RULE  144  UNDER  THE  SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO AND (Y) SUCH LATER  DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT:         (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, OR         (B)  PURSUANT  TO  A  REGISTRATION  STATEMENT  WHICH  HAS  BECOME  EFFECTIVE UNDER THE SECURITIES ACT, OR         (C) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE  144A UNDER THE SECURITIES ACT, OR                                          A-1 

 

         (D)  PURSUANT  TO  AN  EXEMPTION  FROM  REGISTRATION  PROVIDED  BY  RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION  FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.           PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH  CLAUSE (2)(D) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO  REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER  EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT  THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES  ACT AND APPLICABLE STATE SECURITIES LAWS.  NO REPRESENTATION IS MADE  AS  TO  THE  AVAILABILITY  OF  ANY  EXEMPTION  FROM  THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT.]                                             A-2 

 

                              EVOLENT HEALTH, INC.                         3.50% Convertible Senior Note due 2024   No. [_____]                                          [Initially]1 $[_________]   CUSIP No.  30050BAE1         Evolent Health, Inc., a corporation duly organized and validly existing under the laws of  the State of Delaware (the “Company,” which term includes any successor corporation or other  entity under the Indenture referred to on the reverse hereof), for value received hereby promises  to pay to [CEDE & CO.]2 [_______]3, or registered assigns, the principal sum [as set forth in the  “Schedule  of  Exchanges  of  Notes”  attached  hereto]4  [of  $[_______]]5,  which  amount,  taken  together with the principal amounts of all other outstanding Notes, shall not, unless permitted by  the  Indenture,  exceed  $117,051,000 in  aggregate  at  any time,  in  accordance  with  the  rules  and  procedures of the Depositary, on December 1, 2024, and interest thereon as set forth below.         This Note shall bear interest at the rate of 3.50% per year from August 19, 2020, or from  the most recent date to which interest had been paid or provided for to, but excluding, the next  scheduled Interest Payment Date until December 1, 2024.  Interest is payable semi-annually in  arrears on each June 1 and December 1, commencing on December 1, 2020, to Holders of record at  the close of business on the preceding May 15 and November 15 (whether or not such day is a  Business Day), respectively.  Additional Interest will be payable as set forth in Section 4.06(d),  Section 4.06(e) and Section 6.03 of the within-mentioned Indenture, and any reference to interest  on, or in respect of, any Note therein shall be deemed to include Additional Interest if, in such  context, Additional Interest is, was or would be payable pursuant to any of such Section 4.06(d),  Section 4.06(e) or Section 6.03, and any express mention of the payment of Additional Interest in  any provision therein shall not be construed as excluding Additional Interest in those provisions  thereof where such express mention is not made.         Any Defaulted Amounts shall accrue interest per annum at the rate borne by the Notes plus  one percent, subject to the enforceability thereof under applicable law, from, and including, the  relevant payment date to, but excluding, the date on which such Defaulted Amounts shall have  been paid by the Company, at its election, in accordance with Section 2.03(c) of the Indenture.         The Company shall pay the principal of and interest on this Note, if and so long as such  Note is a Global Note, in immediately available funds to the Depositary or its nominee, as the case  may be, as the registered Holder of such Note.  As provided in and subject to the provisions of the  Indenture, the Company shall pay the principal of any Notes (other than Notes that are Global  Notes) at the office or agency designated by the Company for that purpose.  The Company has  initially designated the Trustee as its Paying Agent and Note Registrar in respect of the Notes and                             1 Include if a global note.  2 Include if a global note.  3 Include if a physical note.  4 Include if a global note.  5 Include if a physical note                                        A-3 

 

   its agency in Richmond, Virginia, as a place where Notes may be presented for payment or for  registration of transfer and exchange.           Reference is made to the further provisions of this Note set forth on the reverse hereof,  including, without limitation, provisions giving the Holder of this Note the right to convert this  Note into cash, shares of Class A Common Stock or a combination of cash and shares of Class A  Common Stock, as applicable, on the terms and subject to the limitations set forth in the Indenture.   Such further provisions shall for all purposes have the same effect as though fully set forth at this  place.         This Note, and any claim, controversy or dispute arising under or related to this Note,  shall be construed in accordance with and governed by the laws of the State of New York  (without regard to the conflicts of laws provisions thereof).         In  the  case  of  any  conflict  between  this  Note  and  the  Indenture,  the  provisions  of  the  Indenture shall control and govern.         This Note shall not be valid or become obligatory for any purpose until the certificate of  authentication hereon shall have been signed manually or by facsimile by the Trustee or a duly  authorized authenticating agent under the Indenture.                        [Remainder of page intentionally left blank]                                             A-4 

 

         IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.                                 EVOLENT HEALTH, INC.                                                                                                  By:                                                                Name:                                Title:  Dated:     TRUSTEE’S CERTIFICATE OF AUTHENTICATION  U.S. BANK NATIONAL ASSOCIATION  as Trustee, certifies that this is one of the Notes described  in the within-named Indenture.      By:                      Authorized Officer                                              A-5 

 

                           [FORM OF REVERSE OF NOTE]                              EVOLENT HEALTH, INC.                         3.50% Convertible Senior Note due 2024         This Note is one of a duly authorized issue of Notes of the Company, designated as its  3.50% Convertible Senior Notes due 2024 (the “Notes”), limited to the aggregate principal amount  of $117,051,000 all issued or to be issued under and pursuant to an Indenture dated as of August  19,  2020  (the  “Indenture”),  between  the  Company  and  U.S.  Bank  National  Association  (the  “Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made  for a description of the rights, limitations of rights, obligations, duties and immunities thereunder  of the Trustee, the Company and the Holders of the Notes.  Additional Notes may be issued in an  unlimited  aggregate  principal  amount,  subject  to  certain  conditions  specified  in  the  Indenture.   Capitalized terms used in this Note and not defined in this Note shall have the respective meanings  set forth in the Indenture.         In case certain Events of Default shall have occurred and be continuing, the principal of,  and interest on, all Notes may be declared, by either the Trustee or Holders of at least 25% in  aggregate principal amount of Notes then outstanding, and upon said declaration shall become,  due and payable, in the manner, with the effect and subject to the conditions and certain exceptions  set forth in the Indenture.         Subject to the terms and conditions of the Indenture, the Company will make all payments  and deliveries in respect of the Fundamental Change Repurchase Price on the Fundamental Change  Repurchase Date, the Redemption Price on the Redemption Date and the principal amount on the  Maturity Date, as the case may be, to the Holder who surrenders a Note to a Paying Agent to  collect such payments in respect of the Note.  The Company will pay cash amounts in money of  the United States that at the time of payment is legal tender for payment of public and private  debts.           The  Indenture  contains  provisions  permitting  the  Company  and  the  Trustee  in  certain  circumstances, without the consent of the Holders of the Notes, and in certain other circumstances,  with the consent of the Holders of not less than a majority in aggregate principal amount of the  Notes at the time outstanding, evidenced as in the Indenture provided, to execute supplemental  indentures modifying the terms of the Indenture and the Notes as described therein.  It is also  provided in the Indenture that, subject to certain exceptions, the Holders of a majority in aggregate  principal amount of the Notes at the time outstanding may on behalf of the Holders of all of the  Notes waive any past Default or Event of Default under the Indenture and its consequences.         Each Holder shall have the right to receive payment or delivery, as the case may be, of (x)  the principal (including the Redemption Price and the Fundamental Change Repurchase Price, if  applicable) of,  (y)  accrued  and  unpaid  interest,  if  any,  on,  and  (z)  the  consideration  due upon  conversion of, this Note at the place, at the respective times, at the rate and in the lawful money or  shares of Class A Common Stock, as the case may be, herein prescribed.         The Notes are issuable in registered form without coupons in denominations of $1,000  principal amount and integral multiples thereof.  At the office or agency of the Company referred                                        A-6 

 

   to on the face hereof, and in the manner and subject to the limitations provided in the Indenture,  Notes  may  be  exchanged  for  a  like  aggregate  principal  amount  of  Notes  of  other  authorized  denominations, without payment of any service charge but, if required by the Company or Trustee,  with  payment  of  a sum sufficient  to  cover any  transfer  or  similar tax  that  may  be  imposed  in  connection therewith as a result of the name of the Holder of the new Notes issued upon such  exchange of Notes being different from the name of the Holder of the old Notes surrendered for  such exchange.         The  Notes  shall  be  redeemable  at  the  Company’s  option  on  or  after March  1,  2023  in  accordance with the terms and subject to the conditions specified in the Indenture. No sinking fund  is provided for the Notes.         Upon the occurrence of a Fundamental Change, the Holder has the right, at such Holder’s  option, to require the Company to repurchase for cash all of such Holder’s Notes or any portion  thereof (in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change  Repurchase Date at a price equal to the Fundamental Change Repurchase Price.         Subject to the provisions of the Indenture, the Holder hereof has the right, at its option,  during certain periods and upon the occurrence of certain conditions specified in the Indenture,  prior to the close of business on the Business Day immediately preceding the Maturity Date, to  convert any Notes or portion thereof that is $1,000 or an integral multiple thereof, into cash, shares  of Class A Common Stock or a combination of cash and shares of Class A Common Stock, as  applicable, at the Conversion Rate specified in the Indenture, as adjusted from time to time as  provided in the Indenture.                                             A-7 

 

                                 ABBREVIATIONS         The following abbreviations, when used in the inscription of the face of this Note, shall be  construed as though they were written out in full according to applicable laws or regulations:   TEN COM = as tenants in common    UNIF GIFT MIN ACT = Uniform Gifts to Minors Act   CUST = Custodian   TEN ENT = as tenants by the entireties    JT TEN = joint tenants with right of survivorship and not as tenants in common          Additional abbreviations may also be used though not in the above list.                                             A-8 

 

                                                                            Schedule A6                          SCHEDULE OF EXCHANGES OF NOTES                                    Evolent Health, Inc.                            3.50% Convertible Senior Notes due 2024            The  initial  principal  amount  of  this  Global  Note  is  ONE  HUNDRED  SEVENTEEN     MILLION FIFTY-ONE THOUSAND DOLLARS ($117,051,000).  The following increases or     decreases in this Global Note have been made:                                                           Principal amount Signature of                       Amount of         Amount of       of this Global Note authorized                       decrease in        increase in      following such  signatory of                    principal amount   principal amount     decrease or     Trustee or  Date of exchange of this Global Note of this Global Note   increase       Custodian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    6 Include if a global note.                                           A-9 

 

                                                                                                                           Attachment 1                        [FORM OF NOTICE OF CONVERSION]   To:  U.S. Bank National Association         The undersigned registered owner of this Note hereby exercises the option to convert this  Note, or the portion hereof (that is $1,000 principal amount or an integral multiple thereof) below  designated, into cash, shares of Class A Common Stock or a combination of cash and shares of  Class A Common Stock, as applicable, in accordance with the terms of the Indenture referred to  in this Note, and directs that any cash payable and any shares of Class A Common Stock issuable  and deliverable upon such conversion, together with any cash for any fractional share, and any  Notes  representing  any  unconverted  principal  amount  hereof,  be  issued  and  delivered  to  the  registered Holder hereof unless a different name has been indicated below.  If any shares of Class  A Common Stock or any portion of this Note not converted are to be issued in the name of a Person  other than the undersigned, the undersigned will pay all documentary, stamp or similar issue or  transfer taxes, if any in accordance with Section 14.02(d) and Section 14.02(e) of the Indenture.   Any amount required to be paid to the undersigned on account of interest accompanies this Note.   Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in  the Indenture.   Dated:                                                                                       ________________________________                                      Signature(s)                           Signature Guarantee    Signature(s) must be guaranteed  by an eligible Guarantor Institution  (banks, stock brokers, savings and  loan associations and credit unions)  with membership in an approved  signature guarantee medallion program  pursuant to Securities and Exchange  Commission Rule 17Ad-15 if shares  of Class A Common Stock are to be issued, or  Notes are to be delivered, other than  to and in the name of the registered holder.    Fill in for registration of shares if  to be issued, and Notes if to  be delivered, other than to and in the  name of the registered holder:                                          1 

 

                            (Name)                             (Street Address)                             City, State and Zip Code)  Please print name and address                 Principal amount to be converted (if less than all):               $______,000               NOTICE: The above signature(s) of the Holder(s) hereof must correspond with the              name as written upon the face of the Note in every particular without alteration or              enlargement or any change whatever.               _________________________              Social Security or Other Taxpayer              Identification Number                                          2 

 

                                                                                                                           Attachment 2              [FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]   To:  U.S. Bank National Association         The undersigned registered owner of this Note hereby acknowledges receipt of a notice  from Evolent Health, Inc.  (the “Company”) as to the occurrence of a Fundamental Change with  respect to the Company and specifying the Fundamental Change Repurchase Date and requests  and instructs the Company to pay to the registered holder hereof in accordance with Section 15.02  of the Indenture referred to in this Note (1) the entire principal amount of this Note, or the portion  thereof (that is $1,000 principal amount or an integral multiple thereof) below designated, and (2)  if  such  Fundamental  Change  Repurchase  Date  does  not  fall  during  the  period  after  a  Regular  Record  Date  and  on  or  prior  to  the  corresponding  Interest  Payment  Date,  accrued  and  unpaid  interest, if any, thereon to, but excluding, such Fundamental Change Repurchase Date.  Capitalized  terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture.         In the case of Physical Notes, the certificate numbers of the Notes to be repurchased are as  set forth below:   Dated: _____________________                    ________________________________                    Signature(s)                                                            _________________________                    Social Security or Other Taxpayer                    Identification Number                                        Principal amount to be repaid (if less than all):                    $          ,000                    NOTICE:  The above signature(s) of the Holder(s) hereof must correspond                    with  the  name  as  written  upon  the  face  of  the  Note  in  every  particular                    without alteration or enlargement or any change whatever.                                          1 

 

                                                                                                                           Attachment 3                      [FORM OF ASSIGNMENT AND TRANSFER]   For value received ____________________________ hereby sell(s), assign(s) and transfer(s)  unto _________________ (Please insert social security or Taxpayer Identification Number of  assignee) the within Note, and hereby irrevocably constitutes and appoints  _____________________ attorney to transfer the said Note on the books of the Company, with  full power of substitution in the premises.   In connection with any transfer of the within Note occurring prior to the Resale Restriction  Termination Date, as defined in the Indenture governing such Note, the undersigned confirms  that such Note is being transferred:   □     To Evolent Health, Inc.  or a subsidiary thereof; or   □     Pursuant to a registration statement that has become or been declared effective under the        Securities Act of 1933, as amended; or   □     Pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as        amended; or   □     Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as        amended, or any other available exemption from the registration requirements of the        Securities Act of 1933, as amended.     Dated: ________________________      _____________________________________    _____________________________________    Signature(s)                             Signature Guarantee    Signature(s) must be guaranteed by an  eligible Guarantor Institution (banks, stock  brokers, savings and loan associations and  credit unions) with membership in an approved  signature guarantee medallion program pursuant  to Securities and Exchange Commission  Rule 17Ad-15 if Notes are to be delivered, other  than to and in the name of the registered holder.                                           1 

 

   NOTICE: The signature on the assignment must correspond with the name as written upon the  face of the Note in every particular without alteration or enlargement or any change whatever.                                            2exhibit101-amendedcredit

                                                                    Exhibit 10.1                                                           EXECUTION VERSION                  FIRST AMENDMENT TO CREDIT AGREEMENT                         This  First  Amendment  to  Credit  Agreement,  dated  as  of  August  13,  2020  (this  “Amendment”), by and among EVOLENT HEALTH, INC., a Delaware corporation (“Parent”),  EVOLENT  HEALTH  LLC,  a  Delaware  limited  liability  company  (the  “Borrower”),  its  Subsidiaries  signatory  hereto  as  guarantors  or  hereafter  designated  as  Guarantors  pursuant  to  Section 8.11 thereto, the lenders from time to time party hereto (each, a “Lender” and, collectively,  the “Lenders”), and ARES CAPITAL CORPORATION, a Maryland corporation (“Ares”), as  administrative  agent  and  collateral  agent  for  the  Lenders  (in  such  capacity,  together  with  its  successors  and  assigns  in  such  capacity,  the  “Administrative  Agent”)  to  that  certain  Credit  Agreement, dated as of December 30, 2019 (the “Existing Credit Agreement”, and as the same  may be further amended, restated, amended  and  restated, supplemented or otherwise modified  from time to time (including pursuant to this Amendment), the “Credit Agreement”).                                           W I T N E S S E T H:                         WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make,  and have made, certain loans and other extensions of credit to the Borrower;                         WHEREAS,  the  Administrative  Agent  and  all  the  Lenders  under  the  Existing  Credit Agreement desire to amend the Credit Agreement on the terms and conditions set forth  herein;                         NOW THEREFORE, in consideration of the premises and mutual covenants  hereinafter set forth, the parties hereto agree as follows:             Section 1. Definitions. Unless otherwise defined herein, terms defined in the Credit Agreement  (as amended pursuant to Section 2 below) and used herein shall have the meanings given to them  in the Credit Agreement.             Section 2. Amendments. In reliance on the representations, warranties, covenants and agreements  contained in this Amendment, and subject to the satisfaction of the conditions precedent set forth  in Section 4 hereof, the Credit Agreement is hereby amended as follows:                   (a)  Effective as of the First Amendment Effective Date (as defined below), the Existing  Credit Agreement is hereby amended to delete the stricken text (indicated textually in the same  manner as the following example: stricken text) and to add the underlined text (indicated textually  in the same manner as the following example: underlined text) as set forth in the Credit Agreement  attached hereto as Exhibit A, except that any Schedule, Exhibit or other attachment to the Credit  Agreement not amended pursuant to the terms of this Amendment shall remain in effect without  any amendment or other modification thereto.             Section 3. Representations and Warranties. Each Credit Party hereby represents and warrants  to the Administrative Agent and each Lender that as of the First Amendment Effective Date and  after giving effect to the amendments described in Section 2 hereof:                   (a) All representations and warranties made by each Credit Party contained in the Credit  Agreement or in the other Credit Documents are true and correct in all material respects, in each 

 

case, with the same effect as though such representations and warranties had been made on and as  of the date hereof (except where such representations and warranties expressly relate to an earlier  date, in which case such representations and warranties shall have been true and correct in all  material respects  as of such earlier date);  provided,  that any representation or warranty that is  qualified as to “materiality,” “Material Adverse Effect” or similar language is (or shall be) true  and correct in all respects on such respective dates.                   (b) No Default or Event of Default has occurred and is continuing.                   (c) The  execution,  delivery  and  performance  by  each  of  the  Credit  Parties  of  this  Amendment  has  been  duly  authorized  by  all  necessary  action,  and  do  not  and  will  not  (i)  contravene in any material respect any applicable provision of any material Applicable Law of any  Governmental Authority, (ii) result in any breach of any of the terms, covenants, conditions or  provisions  of,  or  constitute  a  default  under,  or  result  in  the  creation  or  imposition  of  (or  the  obligation to create or impose) any Lien upon any of the property or assets of any Credit Party  (other than Permitted Liens and Liens created under the Credit Documents) pursuant to, (A) the  terms of any material indenture, loan agreement, lease agreement, mortgage or deed of trust or (B)  any other Material Contracts, in the case, of either clause (A) and (B) to which any Credit Party is  a party or by which it or any of its property or assets is bound or (iii) violate any provision of the  Organization  Documents  any  Credit  Party,  except  with  respect  to  any  conflict,  breach  or  contravention or default (but not the creation of Liens other than Permitted Liens) referred to in  clauses (ii)(A) or (ii)(B), to the extent that such conflict, breach, contravention or default could not  reasonably be expected to have a Material Adverse Effect.                   (d) Each  Credit  Party  has  the  corporate  or  other  organizational  power  and  authority  to  execute,  deliver  and  carry  out  the  terms  and  provisions  of  this  Amendment  and  has  taken  all  necessary  corporate  or  other  organizational  action  to  authorize  the  execution,  delivery  and  performance  of  this  Amendment.  Each  Credit  Party  has  duly  executed  and  delivered  this  Amendment and this Amendment constitute the legal, valid and binding obligation of each Credit  Party enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency,  fraudulent conveyance, moratorium, reorganization and other similar laws relating to or affecting  creditors’ rights generally and general principles of equity (whether considered in a proceeding in  equity or law).                   (e) No authorization or approval or other action by, and no notice to or filing with, any  Governmental  Authority  or  other  Person,  and  no  consent  or  approval  under  any  contract  or  instrument (other than (a) those that have been duly obtained or made and which are in full force  and effect, or if not obtained or made, individually or in the aggregate, could not reasonably be  expected to have a Material Adverse Effect, (b) the filing of UCC financing statements and other  equivalent filings for foreign jurisdictions and (c) to the extent the Capital Stock of any Licensed  Insurance Entity is subject to any Applicable Laws affecting any future rights or remedies of a  Secured Party with respect to such Capital Stock) is required for the due execution, delivery or  performance by any Credit Party of this Amendment.             Section  4. Effectiveness. This Amendment is subject only to the satisfaction of the following  conditions  and  shall  become  effective  on  and  as  of  the  Business  Day  on  which  the  following  conditions shall have been satisfied (the “First Amendment Effective Date”):                                        2 

 

      (a) receipt by the Administrative Agent from each party hereto of a counterpart of this  Agreement signed on behalf of such party;                   (b) at the time of and immediately after giving effect to this Amendment, (i) no Default or  Event of Default shall have occurred and be continuing and (ii) the representations and warranties  of each Credit Party set forth in Section 3 herein shall be true and correct in all material respects  as  of  the  First  Amendment  Effective  Date  (except  where  such  representations  and  warranties  expressly relate to an earlier date, in which case such representations and warranties shall have  been  true  and  correct  in  all  material  respects  as  of  such  earlier  date);  provided,  that  any  representation or warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar  language is (or shall be) true and correct in all respects on such respective dates;                   (c) Administrative Agent shall have received on or prior to the First Amendment Effective  Date, in immediately available funds, payment or reimbursement (or the Borrower shall have made  arrangements  reasonably  satisfactory  to  the  Administrative  Agent  for  such  payment  or  reimbursement) of all costs, fees, out-of-pocket expenses, compensation and other amounts then  due and payable in connection with this Amendment to the extent invoiced to the Borrower at least  two (2) Business Days prior to the First Amendment Effective Date; and                   (d) simultaneously with the effectiveness of this Amendment, the Parent shall have issued  the Convertible Senior Notes due 2024 and the material documentation executed in connection  therewith shall have be delivered to the Administrative Agent.             Section 5. Effect of Amendment; Ratification.                   (a) Except  as  expressly  set  forth  herein,  this  Amendment  shall  not  by  implication  or  otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the  Lenders or the Administrative Agent under the Credit Agreement or any other Credit Document,  and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations,  covenants or agreements contained in the Credit Agreement or any other provision of the Credit  Agreement or of any other Credit Document, all of which are ratified and affirmed in all respects  and shall continue in full force and effect.                   (b) On  and  after  the  date  hereof,  each  reference  in  the  Credit  Agreement  to  “this  Agreement”, “hereunder”, “hereof’, “herein”, or words of like import, and each reference to the  Credit  Agreement  in  any  other  Credit  Document  shall  be  deemed  a  reference  to  the  Credit  Agreement  as  amended  hereby.  This  Amendment  shall  constitute  a  “Credit  Document” for  all  purposes of the Credit Agreement and the other Credit Documents.                   (c) Each of the Credit Parties as debtor, grantor, pledgor, guarantor, assignor, or in any  other similar capacity in which such Credit Party grants liens or security interests in its property  or otherwise acts as accommodation party or guarantor, as the case may be, hereby (i) ratifies and  reaffirms all of its payment and performance obligations, contingent or otherwise, under each of  the Credit Documents to which it is a party (after giving effect hereto) and (ii) to the extent such  Credit Party granted liens on or security interests in any of its property pursuant to any such Credit  Document as security for or otherwise guaranteed the Obligations under or with respect to the  Credit Documents, ratifies and reaffirms such guarantee and grant of security interests and liens                                         3 

 

and confirms and agrees that such security interests and liens hereafter secure all of the Obligations  as  amended  hereby.  Each  of  the  Credit  Parties  hereby  consents  to  this  Amendment  and  acknowledges that each of the Credit Documents (as amended herby) remains in full force and  effect and is hereby ratified and reaffirmed.             Section 6.  General.                   (a) GOVERNING  LAW.  THIS  AMENDMENT  AND  THE  RIGHTS  AND  OBLIGATIONS  OF  THE  PARTIES  HEREUNDER  SHALL  BE  GOVERNED  BY,  AND  CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE  OF NEW YORK.                   (b) Costs and Expenses. The Borrower agrees to reimburse the Administrative Agent for  its  reasonable  out-of-pocket  expenses  in  connection  with  this  Amendment,  including  the  reasonable and documented fees, charges and disbursements of counsel for the Administrative  Agent, in accordance with Section 12.05 of the Credit Agreement.                   (c) Counterparts. This Amendment may be executed by one or more of the parties thereto  on  any  number of  separate  counterparts  (including  by  electronic  transmission),  and  all  of said  counterparts taken together shall be deemed to constitute one and the same instrument. A set of  the copies of this Amendment signed by all the parties shall be lodged with the Borrower and the  Administrative Agent.                   (d) Headings. The headings of this Amendment are used for convenience of reference only,  are  not  part  of  this  Amendment  and  shall  not  affect  the  construction  of,  or  be  taken  into  consideration in interpreting, this Amendment.                   (e) Electronic Signatures. Section 12.02 of the Credit Agreement is hereby incorporated  herein, mutatis mutandis.                                   [remainder of page intentionally left blank]                                          4 

 

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be  duly executed and delivered by their respective duly authorized officers as of the day and year first  above written.             BORROWER:                               EVOLENT HEALTH LLC,                                          a Delaware limited liability company                                                                                                            By: /s/ Jonathan Weinberg                                               Name: Jonathan Weinberg                                              Title: Secretary                                    PARENT:                                 EVOLENT HEALTH, INC.,                                          a Delaware corporation                                                                                                            By: /s/ Jonathan Weinberg                                              Name: Jonathan Weinberg                                             Title: Secretary                                    OTHER GUARANTORS:                       EH HOLDING COMPANY, INC.,                                          a Delaware corporation                                                                                                            By: /s/ Jonathan Weinberg                                              Name: Jonathan Weinberg                                             Title: Secretary                                                                            EVOLENT CARE PARTNERS HOLDING                                          COMPANY, INC.,                                          a Delaware corporation                                                                                                            By: /s/ Jonathan Weinberg                                              Name: Jonathan Weinberg                                             Title: Secretary              

 

NCIS HOLDINGS, INC.,  a Delaware corporation                                                                                                              By: /s/ Jonathan Weinberg      Name: Jonathan Weinberg     Title: Secretary                                                         NCH MANAGEMENT SYSTEMS, INC.,  a California corporation                                                                                                              By: /s/ Jonathan Weinberg      Name: Jonathan Weinberg     Title: Secretary                                                         EVOLENT CARE PARTNERS OF TEXAS,  INC.,  a Texas corporation                                                                                                              By: /s/ Jonathan Weinberg      Name: Jonathan Weinberg     Title: Secretary                                                         THE ACCOUNTABLE CARE  ORGANIZATION LTD,  a Michigan corporation                                                                                                              By:  /s/ Jonathan Weinberg      Name: Jonathan Weinberg     Title: Secretary              

 

ADMINISTRATIVE AGENT AND A             ARES CAPITAL MANAGEMENT LLC,  LENDER:                                a Delaware limited liability company                                                                                                                     By: /s/ Scott Lem                                              Name: Scott Lem                                             Title: Authorized Signatory              

 

        EXHIBIT A             Amended Credit Agreement                      [attached]              

 

           EXECUTION VERSIONEXHIBIT A TO FIRST AMENDMENT TO CREDIT                                                                    AGREEMENT                                                                 CREDIT AGREEMENT                                     by and among                                EVOLENT HEALTH LLC,                                     as Borrower,                                         EVOLENT HEALTH, INC.,                                      as Parent                                   Certain Subsidiaries thereof, as Guarantors,                                                The Lenders                            from Time to Time Party Hereto,                                         and                            ARES CAPITAL CORPORATION,                                as Administrative Agent,                                        Dated as of December 30, 2019                              as amended August 13, 2020                                                                                                                                                                                                                                                                                                                                 DBD1M/ 1S1L0I6B3R1A74R7Y.401\28390\059001\36918934.v2-5/20/20   36918934              

 

                             TABLE OF CONTENTS                                                                                        Page              Article I  Definitions                                                      1         Section 1.01     Defined Terms                                        1         Section 1.02     Other Interpretive Provisions                       33         Section 1.03     Accounting Terms and Determination                  34         Section 1.04     Rounding                                            34         Section 1.05     References to Agreements, Laws, etc                 34         Section 1.06     Times of Day                                        34         Section 1.07     Timing of Payment of Performance                    34         Section 1.08     Corporate Terminology                               35         Section 1.09     UCC Definitions                                     35   Article II          Amount and Terms of Credit Facilities                  35         Section 2.01     Loans                                               35         Section 2.02     Minimum Amount of Each Borrowing; Maximum Number                           of Borrowings                                      37         Section 2.03     Notice of Borrowing                                 37         Section 2.04     Disbursement of Funds                               38         Section 2.05     Payment of Loans; Evidence of Debt                  39         Section 2.06     Conversions and Continuations                       39         Section 2.07     Pro Rata Borrowings                                 40         Section 2.08     Interest                                            40         Section 2.09     Interest Periods                                    41         Section 2.10     Increased Costs, Illegality, etc                    42         Section 2.11     Compensation                                        44         Section 2.12     Change of Lending Office                            45         Section 2.13     Notice of Certain Costs                             45         Section 2.14     [Reserved]                                          45         Section 2.15     Defaulting Lenders                                  45   Article III  [RESERVED]                                                    46   Article IV  Fees and Commitment Terminations                               47         Section 4.01      Fees                                               47         Section 4.02      Mandatory Termination of Commitments               47   Article V   Payments                                                       47         Section 5.01     Voluntary Prepayments                               47         Section 5.02     Mandatory Prepayments                               48         Section 5.03     Payment of Obligations; Method and Place of Payment   51         Section 5.04     Net Payments                                        51         Section 5.05     Computations of Interest and Fees                   54   Article VI       Conditions Precedent                                      54         Section 6.01     Conditions Precedent to Initial Credit Extension    54         Section 6.02     Conditions Precedent to all Credit Extensions       59                                           i  DB1/ 110631747.4   DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                             TABLE OF CONTENTS                                     (continued)                                                                            Page              Article VII      Representations, Warranties and Agreements                59         Section 7.01     Corporate Status                                    60         Section 7.02     Corporate Power and Authority                       60                                                                                       Section 7.03     No Violation                                        60         Section 7.04     Litigation, Labor Controversies, etc                60         Section 7.05     Use of Proceeds; Regulations U and X                61         Section 7.06     Approvals, Consents, etc                            61         Section 7.07     Investment Company Act                              61         Section 7.08     Full Disclosure                                     61         Section 7.09     Financial Condition; No Material Adverse Effect     62         Section 7.10     Tax Returns and Payments                            62         Section 7.11     Compliance with ERISA                               62         Section 7.12     Capitalization and Subsidiaries                     63         Section 7.13     Intellectual Property; Licenses, etc                64         Section 7.14     Environmental                                       64         Section 7.15     Ownership of Properties                             65         Section 7.16     No Default                                          65         Section 7.17     Solvency                                            65         Section 7.18     Licensed Insurance Entities                         65         Section 7.19                Compliance with Laws; Authorizations                           65 Section         7.20                Contractual or Other Restrictions                                     66 Section 7.21                        Transaction Documents                                                    66 Section 7.22                Collective         Bargaining Agreements                                   66 Section 7.23                Insurance                                                                          66 Section 7.24                Evidence of Other Indebtedness                                       66         Section 7.25                Deposit Accounts and Securities Accounts                      67 Section         7.26 Foreign Assets Control Regulations; Anti-Money                           Laundering and Anti-Corruption Practices           67         Section 7.27     Patriot Act                                         67         Section 7.28     Holding Company Status                              68         Section 7.29     Flood Insurance                                     68         Section 7.30     Location of Collateral; Equipment List              68         Section 7.31     Health Care Matters                                 68   Article VIII     Affirmative Covenants                                     71         Section 8.01     Financial Information, Reports, Notices and Information   71         Section 8.02     Books, Records and Inspections                      75         Section 8.03     Maintenance of Insurance                            76         Section 8.04     Payment of Taxes                                    76         Section 8.05     Maintenance of Existence; Compliance with Laws, etc   76         Section 8.06     Environmental Compliance                            77         Section 8.07     ERISA                                               78         Section 8.08     Maintenance of Property and Assets                  79   DB1/ 110631747.4                       ii     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                             TABLE OF CONTENTS                                     (continued)                                                                            Page                    Section 8.09     End of Fiscal Years; Fiscal Quarters                79         Section 8.10     Use of Proceeds                                     79         Section 8.11     Further Assurances; Additional Guarantors and Grantors   80         Section 8.12     Bank Accounts                                       81         Section 8.13     Compliance with Health Care Laws                    82         Section 8.14     Intellectual Property                               82         Section 8.15     Post-Closing                                        82   Article IX        Negative Covenants                                       83         Section 9.01     Limitation on Indebtedness                          83         Section 9.02     Limitation on Liens                                 84         Section 9.03     Consolidation, Merger, etc                          86         Section 9.04     Permitted Dispositions                              86         Section 9.05     Investments                                         87         Section 9.06     Restricted Payments, etc                            89         Section 9.07     Modification of Certain Agreements                  89         Section 9.08     Sale and Leaseback                                  89         Section 9.09     Transactions with Affiliates                        90         Section 9.10     Restrictive Agreements, etc                         90         Section 9.11     Hedging Transactions                                90         Section 9.12     Changes in Business                                 91         Section 9.13     Financial Performance Covenant                      91         Section 9.14     Disqualified Capital Stock                          91         Section 9.15     Removal of Collateral                               92         Section 9.16     Holdings Covenant                                   92   Article X         Events of Default                                        93         Section 10.01    Listing of Events of Default                        93         Section 10.02    Remedies Upon Event of Default                      96   Article XI        The Administrative Agent                                 96         Section 11.01    Appointment                                         96         Section 11.02    Delegation of Duties                                97         Section 11.03    Exculpatory Provisions                              97         Section 11.04    Reliance by Administrative Agent                    97         Section 11.05    Notice of Default                                   98         Section 11.06    Non-Reliance on Administrative Agent and Other Lenders                             98         Section 11.07    Indemnification                                     99         Section 11.08    Agent in Its Individual Capacity                    99         Section 11.09    Successor Agents                                    99         Section 11.10    Agents Generally                                   100         Section 11.11    Restrictions on Actions by Lenders; Sharing of Payments                              100   DB1/ 110631747.4                       iii    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                             TABLE OF CONTENTS                                     (continued)                                                                            Page                    Section 11.12    Agency for Perfection                              101         Section 11.13    Authorization to File Proof of Claim               101         Section 11.14    Credit Bids                                        101         Section 11.15    Binding Effect                                     102   Article XII      Miscellaneous                                            102         Section 12.01    Amendments and Waivers                             102         Section 12.02    Notices and Other Communications; Facsimile Copies   104         Section 12.03    No Waiver; Cumulative Remedies                     105         Section 12.04    Survival of Representations and Warranties         105         Section 12.05    Payment of Expenses; Indemnification               105         Section 12.06    Successors and Assigns; Participations and Assignments                             106         Section 12.07    Replacements of Lenders Under Certain Circumstances   110         Section 12.08    Securitization                                     110         Section 12.09    Adjustments; Set-off                               111         Section 12.10    Counterparts                                       112         Section 12.11    Severability                                       112         Section 12.12    Integration                                        112         Section 12.13    GOVERNING LAW                                      112         Section 12.14    Submission to Jurisdiction; Waivers                112         Section 12.15    Acknowledgments                                    113         Section 12.16    WAIVERS OF JURY TRIAL                              114         Section 12.17    Confidentiality                                    114         Section 12.18    Press Releases, etc                                115         Section 12.19    Releases of Guarantees and Liens                   116         Section 12.20    USA Patriot Act                                    116         Section 12.21    No Fiduciary Duty                                  117         Section 12.22    Authorized Officers                                117         Section 12.23    Acknowledgement and Consent to Bail-In of EEA                           Financial Institutions                            117                                    SCHEDULES              Schedule 1.01(a)  Commitments   Schedule 1.01(b)  Licensed Insurance Entities   Schedule 1.01(c)  Material Contracts   Schedule 7.04    Litigation   Schedule 7.12    Subsidiaries and Joint Ventures/Partnerships   Schedule 7.15    Real Property              DB1/ 110631747.4                       iv    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                             TABLE OF CONTENTS                                     (continued)                                                                            Page              Schedule 7.18    Licensed Insurance Entities   Schedule 7.22    Collective Bargaining Agreements   Schedule 7.23    Insurance   Schedule 7.24    Evidence of Indebtedness   Schedule 7.25    Deposit Accounts and Securities Accounts   Schedule 7.30    Location of Collateral; Equipment List   Schedule 7.31    Health Care Matters   Schedule 9.02    Liens   Schedule 9.04    Dispositions   Schedule 9.05(g)  Investments   Schedule 9.09    Transactions with Affiliates   Schedule 9.10    Restrictive Agreements   Schedule 12.02   Addresses for Notices                         EXHIBITS              Exhibit A-1  Form of Assignment and Acceptance   Exhibit C-1  Form of Compliance Certificate   Exhibit D-1  Form of DDTL Note   Exhibit N-1  Form of Notice of Borrowing   Exhibit N-2  Form of Notice of Conversion or Continuation   Exhibit T-1  Form of Term Loan Note                                                                                                                                                                                                                                                                           DB1/ 110631747.4                        v    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                             CREDIT AGREEMENT                    THIS CREDIT AGREEMENT, dated as of December 30, 2019, is among EVOLENT   HEALTH, INC., a Delaware corporation (“Parent”), EVOLENT HEALTH LLC, a Delaware   limited  liability  company  (the  “Borrower”),  its  Subsidiaries  signatory  hereto  as  guarantors  or   hereafter designated as Guarantors pursuant to Section 8.11, the lenders from time to time party   hereto  (each,  a  “Lender”  and,  collectively,  the  “Lenders”),  and ARES  CAPITAL   CORPORATION, a Maryland corporation (“Ares”), as administrative agent and collateral agent   for the Lenders (in such capacity, together with its successors and assigns in such capacity, the   “Administrative Agent”).                                               RECITALS                    WHEREAS, the Borrower has requested that the Lenders extend credit to the Borrower in   the form of (a) an initial term loan in the aggregate principal amount of $75,000,000 on the Closing   Date (the “Initial Term Loan Facility”) and (b) a delayed draw term loan facility (the “DDTL   Facility”) in the aggregate principal amount of up to $50,000,000; and                    WHEREAS, (a) the proceeds of the Initial Term Loan Facility will be used (i) to finance   the  Passport  Health  Acquisition  (as  defined  herein),  (ii)  to  pay  fees  and  expenses  incurred  in   connection with the transactions contemplated hereby (including the Passport Health Acquisition)   and (iii) fund ongoing working capital needs and other growth capital expenditure investments (to   the extent permitted hereunder) and (b) the proceeds of the DDTL Facility will be used solely (i)   to  finance  the 2021  Convertible  Notes  Repurchase,  (ii)  fund  Permitted  Acquisitions  and  other   growth capital expenditure investments (to the extent permitted hereunder) and (iii) to pay fees   and  expenses  incurred  in  connection  with  the  transactions  contemplated  thereby  and  the  2021   Convertible Notes Repurchase.                                              AGREEMENT                    NOW, THEREFORE, in consideration of the premises and the agreements, provisions   and covenants herein contained, the parties hereto agree as follows:                                               ARTICLE I                                                Definitions                              SECTION 1.01  Defined  Terms.  As used herein, the following terms shall have the    meanings specified in this Section 1.01, unless the context otherwise requires:                    “2021  Convertible  Notes”  shall  mean  Parent’s  2.00%  Convertible  Senior  Notes  due   December 1, 2021 in favor of U.S. Bank National Association, as trustee (the “Trustee”) and any   refinancing and extension thereof to the extent such refinancing or extension complies with clause   (y) of the definition of Additional Notes.                                              DB1/ 110631747.4   DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “2021  Convertible  Notes  Buyback”  shall  mean  Parent’s  prepayment,  redemption  or   repurchase of all or any portion of the 2021 Convertible Notes (including, for the avoidance of   doubt, through buybacks or open market repurchases).                    “2021 Convertible Notes Repurchase” shall mean Parent’s repurchase or redemption of   all or any portion of the 2021 Convertible Notes, whether by tender offer, open-market purchases   or otherwise.                    “2024 Convertible Notes” shall mean Parent’s Convertible Senior Notes due on or prior to   August 31, 2024, in a principal amount not to exceed $130,000,000, in favor of Trustee, and any   refinancing and extension thereof to the extent such refinancing or extension complies with the   definition of Additional Notes; provided, that, (x) such senior notes shall have no other obligors   other than Parent, (y) such Indebtedness shall not mature, amortize or be mandatorily redeemable   (other than solely for Qualified Capital Stock), pursuant to a sinking fund obligation or otherwise   (except as a result of a Change of Control or asset sale event so long as any rights of the holders   thereof upon the occurrence of a Change of Control or asset sale event shall be subject to the prior   repayment in full  of the Loans and  all other  Obligations that are accrued and payable and the   termination of the Commitments) earlier than August 31, 2024 and (z) the cash coupon in respect   thereof does not exceed 4.00% per annum.                    “2024 Convertible Notes Repurchase” shall mean Parent’s repurchase or redemption of   all or any portion of the 2024 Convertible Notes, whether by tender offer, open-market purchases   or otherwise.                    “2025  Convertible  Notes”  shall  mean  Parent’s  1.50%  Convertible  Senior  Notes  due   October 15, 2025, in favor of Trustee, and any refinancing and extension thereof to the extent such   refinancing or extension complies with the definition of Additional Notes.                    “ABR” shall mean, for any day, the highest of (a) the prime rate (as determined by reference   to the Wall Street Journal), (b) the federal funds rate plus 0.50%, (c) the sum of the Eurodollar   Rate  for  an  interest  period  of  three  (3)  months  plus  the  excess  of  the  Applicable  Margin  for   Eurodollar Loans over the Applicable Margin for Base Rate Loans  and  (d) 2.00% per annum.   Changes in the rate of interest on that portion of any Loans maintained as ABR Loans will take   effect simultaneously with each change in the ABR.                    “ABR Interest Payment Date” shall have the meaning set forth in Section 2.08(d). “ABR          Loan” shall mean each Loan bearing interest at ABR, as provided in Section 2.08.          “Additional Notes” shall mean unsecured convertible senior notes issued by Parent (which   shall have no other obligors other than Parent) after the Closing Date; provided, that, (x) such   Indebtedness  shall  not  mature,  amortize  or  be  mandatorily  redeemable  (other  than  solely  for   Qualified Capital Stock), pursuant to a sinking fund obligation or otherwise (except as a result of   a  Change of  Control  or  asset  sale  event  so  long  as  any  rights  of  the  holders  thereof upon  the   occurrence of a Change of Control or asset sale event shall be subject to the prior repayment in   full of the Loans and all other Obligations that are accrued and payable and the termination of the   DB1/ 110631747.4                        2    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Commitments)  earlier  than  the  date  that  is  ninety-one  (91)  days  after  the  Maturity  Date  (as   determined under clause (a) of the definition thereof) and (y) the cash interest rate payable thereon   does not exceed 4% per annum (it being agreed there shall be no maximum rate with respect to   paid-in-kind interest payments or on the conversion price of such Additional Notes).                     “Administrative Agent” shall have the meaning set forth in the preamble to this   Agreement.                    “Administrative Questionnaire” shall mean a questionnaire completed by each Lender, in   a  form  approved  by  the  Administrative  Agent,  in  which  such  Lender,  among  other  things,  (a)   designates one or more credit contacts to whom all syndicate-level information (which may contain   material nonpublic information about the Credit Parties and their Related Parties or their respective   securities) will be made available and who may receive such information in accordance with such   Lender’s compliance procedures and Applicable Laws, including federal and state securities laws   and (b) designates an address, facsimile number, electronic mail address and/or telephone number   for notices and communications with such Lender.                    “Affiliate”  shall  mean,  with  respect  to  any  Person,  any  other  Person  that,  directly  or   indirectly, through one or more intermediaries, Controls or is Controlled by or is under common   Control with the Person specified; provided, that, no Secured Party shall be an Affiliate of any   Credit Party solely by reason of the provisions of the Credit Documents. The term “Control” means   either (a) the power to vote, or the beneficial ownership of, ten (10%) or more of the Voting Stock   of such Person or (b) the possession, directly or indirectly, of the power to direct or cause the   direction of the management or policies of a Person, whether through the ability to exercise voting   power,  by  contract  or  otherwise.  The  terms  “Controlling”  and  “Controlled”  have  meanings   correlative thereto.                    “Agreement” shall mean this Credit Agreement, as the same may be amended, amended   and restated, supplemented or otherwise modified from time to time.                    “Anti-Corruption  Laws”  shall  mean  any  and  all  laws,  rules  or  regulations  relating  to   corruption or bribery, including, but not limited to, the FCPA and the U.K. Bribery Act 2010.                    “Anti-Money Laundering Laws” shall mean any and all laws, rules or regulations relating   to money laundering or terrorism financing, including (a) 18 U.S.C. §§ 1956 and 1957; and (b) the   Bank  Secrecy  Act,  31  U.S.C.  §§  5311  et  seq.,  as  amended  by  the  PATRIOT  Act,  and  its   implementing regulations.                    “Anti-Terrorism Laws” shall mean any laws relating to terrorism, trade sanctions programs   and  embargoes,  import/export  licensing,  money  laundering  or  bribery,  all  as  amended,   supplemented or replaced from time to time.                    “Applicable  Laws”  shall  mean,  with  respect  to  any  Person,  the  common  law  and  any   federal, state, local, foreign, multinational or international laws, statutes, codes, treaties, standards,   rules  and  regulations,  guidelines,  ordinances,  orders,  judgments,  writs,  injunctions,  decrees   (including administrative or judicial precedents or authorities) and the interpretation or   DB1/ 110631747.4                        3    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 administration thereof by, and other determinations, directives, requirements or requests of, any   Governmental  Authority,  in  each  case  whether  or  not  having  the  force  of  law  and  that  are   applicable to or binding upon such Person or any of its property or Products or to which such   Person  or  any  of  its  property  or  Products  is  subject.  For  the  avoidance  of  doubt,  the  term   “Applicable  Laws”  shall  include  FATCA  and  any  intergovernmental  agreements  with  respect   thereto between the United States and another jurisdiction.                    “Applicable Margin” shall mean a percentage per annum equal to, with respect to Loans,   (i) that are Eurodollar Loans, 8.00 percentage points and (ii) that are ABR Loans, 7.00 percentage   points.                    “Approved Fund” shall mean any Person (other than a natural person) that is engaged in   making, purchasing, holding or investing in bank loans and similar extensions of credit in the   ordinary course and that is administered, advised or managed by (a) a Lender, (b) an Affiliate of a   Lender or (c) an entity or an Affiliate of an entity that administers, advises or manages a Lender.                    “Ares” shall have the meaning set forth in the recitals to this Agreement.                    “Assignment and Acceptance” shall mean an assignment and acceptance substantially in   the form of Exhibit A-1.                    “Attributable Indebtedness” shall mean, on any date, in respect of any Capitalized Lease   of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person   prepared as of such date in accordance with GAAP.                    “Authorized Officer” shall mean, with respect to any Credit Party, the Chief Executive   Officer, the Chief Financial Officer, secretary or any other senior financial officer (to the extent   that such senior financial officer is designated as such in writing to the Administrative Agent by   such Credit Party) of such Credit Party.                    “Bail-In Action” shall mean the exercise of any Write-Down and Conversion Powers by   the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.                    “Bail-In Legislation” shall mean, with respect to any EEA Member Country implementing   Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European   Union, the implementing law for such EEA Member Country from time to time which is described   in the EU Bail-In Legislation Schedule.                    “Bankruptcy Code” shall mean the Federal Bankruptcy Reform Act of 1978.          “Benefited Lender” shall have the meaning set forth in Section 12.09.          “Board” shall mean the Board of Governors of the Federal Reserve System of the United   States (or any successor).                         DB1/ 110631747.4                        4     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Board of Directors” shall mean, as to any Person, the board of directors (or comparable   managers) of such Person, or any committee thereof duly authorized to act on behalf of the board   of directors (or comparable managers).          “Borrower”  shall  have  the  meaning  set  forth  in  the  preamble  to  this  Agreement.          “Borrowing” shall mean and include the incurrence of one Type of Loan on a given date   (or resulting from conversions on a given date) having, in the case of Eurodollar Loans, the same   Interest Period.                    “Budget” shall have the meaning set forth in Section 8.01(f).                    “Business Day” shall mean (a) any day excluding Saturday, Sunday and any day that shall   be in the City of New York a legal holiday or a day on which banking institutions are authorized   by law or other governmental actions to close, and (b) any day that is also a day for trading by and   between banks in Dollar deposits in the interbank Eurodollar market.                    “Capital  Stock”  shall  mean  any  and  all  shares,  interests,  participations,  units  or  other   equivalents  (however  designated)  of  capital  stock  of  a  corporation,  membership  interests  in  a   limited liability company, partnership interests of a limited partnership, any and all  equivalent   ownership interests in a Person and any and all warrants, rights or options to purchase any of the   foregoing.                    “Capitalized Lease Obligations” shall mean, as applied to any Person, all obligations under   Capitalized Leases of such Person or any of its Subsidiaries, in each case taken at the amount   thereof accounted for as liabilities on the balance sheet (excluding the footnotes thereto) of such   Person in accordance with GAAP.                    “Capitalized Leases” shall mean, as applied to any Person, all leases of property that have   been or should be, in accordance with GAAP, recorded as capitalized leases on the balance sheet   of such Person or any of its Subsidiaries, on a consolidated basis; provided, that for all purposes   hereunder  the  amount  of  obligations  under  any  Capitalized  Lease  shall  be  the  amount  thereof   accounted for as a liability on the balance sheet (excluding the footnotes thereto) of such Person   in accordance with GAAP; provided, that, any lease classified as an operating lease on the Closing   Date shall continue to be treated as an operating lease regardless of its treatment under GAAP. For   the avoidance of doubt,  “Capitalized Leases” shall not  include obligations or liabilities of any   Person to pay rent or other amounts under any lease of (or other arrangement conveying the right   to use) real or personal property, or a combination thereof, which obligations would be required to   be classified and accounted for as an operating lease under GAAP as existing on the Closing Date;   provided, that financial reporting obligations shall not be affected by this sentence.                    “Cash Equivalents” shall mean:                          (a)   any direct obligation of (or unconditional guarantee by) the United States   (or any agency or political subdivision thereof, to the extent such obligations are supported by the   DB1/ 110631747.4                        5     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 full faith and credit of the United States) maturing not more than one (1) year after the date of   acquisition thereof;                (b)   commercial paper maturing not more than one hundred eighty (180) days   from the date of issue and issued by (i) a corporation (other than an Affiliate of any Credit Party)   organized under the laws of any state of the United States or of the District of Columbia and, at   the time of acquisition thereof, rated A-1 or higher by S&P or P-1 or higher by Moody’s, or (ii)   any Lender (or its holding company);                (c)   any certificate of  deposit,  time deposit  or bankers’ acceptance, maturing   not more than one hundred eighty (180) days after its date of issuance, which is issued by either:   (i) a bank organized under the laws of the United States (or any state thereof) which has, at the   time of acquisition thereof, (A) a credit rating of P2 or higher from Moody’s or A or higher from   S&P and (B) a combined capital and surplus greater than $500,000,000, or (ii) a Lender;                (d)   any repurchase agreement having a term of thirty (30) days or less entered   into with any Lender or any commercial banking institution satisfying, at the time of acquisition   thereof, the criteria set forth in clause (c)(i) which (i) is secured by a fully perfected security interest   in any obligation of the type described in clause (a), and (ii) has a market value at the time such   repurchase agreement is entered into of not less than one hundred percent (100%) of the repurchase   obligation of such Lender or commercial banking institution thereunder;                (e)   Cash Equivalents set forth on Schedule 9.05(g); and                (f)   money market and mutual funds investing primarily in assets described in   clauses (a) through (d) of this definition.                    “Casualty Event” shall mean the damage, destruction or condemnation, as the case may   be, of property of any Credit Party.                    “CERCLA” shall mean the Comprehensive Environmental Response, Compensation and   Liability Act of 1980.                    “Change of Control” shall mean an event or series of events by which: (a) (1) any Person   or group within the meaning of the Exchange Act and the rules of the SEC thereunder (other than   the Borrower and its wholly-owned Subsidiaries, the Warrant  Holder and its affiliates and the   employee  benefit  plans  of  the  Borrower  and  its  wholly-owned  Subsidiaries)  shall  acquire   ownership,  directly  or  indirectly,  beneficially  or  of  record,  of  Capital  Stock  of  the  Parent   representing more than fifty percent (50%) or, in the case of the Permitted Holders collectively,   more than sixty percent (60%), of the aggregate ordinary voting power represented by the issued   and outstanding Capital Stock of Parent; provided, however, that a Person or group shall not be   deemed a beneficial owner of, or to own beneficially, (x) any securities tendered pursuant to a   tender or exchange offer made by or on behalf of such Person or group pursuant to a Schedule TO   (or  any  successor  form)  until  such  tendered  securities  are  accepted  for  purchase  or  exchange   thereunder or (y) any securities to the extent such beneficial ownership (i) arises solely as a result   of a revocable proxy delivered to such Person or group by a shareholder that is not, for the   DB1/ 110631747.4                        6    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 avoidance of doubt, a member of such “group” in response to a proxy or consent solicitation made   pursuant  to,  and  disclosed  in  accordance  with,  the  applicable  rules  and  regulations  under  the   Exchange  Act  and  (ii)  is  not  also  then  reportable  on  Schedule  13D  or  Schedule  13G  (or  any   successor schedule) under the Exchange Act; and (2) any Person or group (within the meaning of   the Exchange Act and the rules of the SEC thereunder) other than  the Warrant Holder and its   affiliates  files,  or  the  Parent  files,  a  Schedule  TO  or  any  schedule,  form  or  report  under  the   Exchange Act disclosing that such an event described in the immediately preceding clause (1) has   occurred; (b) the consummation of (A) any recapitalization, reclassification or change of the Class   A common stock of the Parent (other than changes resulting from a subdivision or combination)   as a result of which the Class A common stock of the Parent would be converted into, or exchanged   for,  stock,  other  securities,  other  property  or  assets;  (B)  any  share  exchange,  consolidation  or   merger of Parent pursuant to which the Class A common stock of Parent will be converted into   cash, securities or other property or assets; or (C) any sale, lease or other transfer in one transaction   or a series of transactions of all or substantially all of the consolidated assets of Parent and its   Subsidiaries, taken as a whole, to any Person other than one of Parent’s Subsidiaries; provided,   however, that a transaction described in clause (B) in which the holders of all classes of Parent’s   Capital Stock immediately prior to such transaction hold, directly or indirectly, more than 50% of   the  voting  power  of  all  classes  of  Capital  Stock  of  the  continuing  or  surviving  corporation  or   transferee  or  the  parent  thereof  immediately  after  such  transaction  in  substantially  the  same   proportions as such holders held, directly or indirectly, immediately prior to such transaction shall   not be a Change of Control pursuant to this clause (b); (c) the Class A common stock (or other   common  stock)  of  the  Parent  ceases  to  be  listed  or  quoted  on  any  of  The  New  York  Stock   Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their   respective successors); (d) Parent ceases to own one hundred percent (100%) of the issued and   outstanding voting Capital Stock of Borrower; (e) Borrower ceases to own directly or indirectly   one hundred percent (100%) of the issued and outstanding Capital Stock of each Guarantor (other   than Parent), free and clear of all Liens, rights, options, warrants or other similar agreements or   understandings, other than Liens in favor of Administrative Agent or non-consensual Permitted   Liens arising by operation of applicable law; or (f) a “Fundamental Change” (as defined in the   Convertible Senior Notes) shall occur.                    “Claims” shall have the meaning set forth in the definition of “Environmental Claims”.          “Closing Date” shall mean December 30, 2019.          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and   the regulations promulgated and rulings issued thereunder. Section references to the Code are to   the Code, as in effect at the date of this Agreement, and any subsequent provisions of the Code,   amendatory thereof, supplemental thereto or substituted therefor.                    “Collateral”  shall  mean  any  assets  of  any  Credit  Party  or  other  collateral  upon  which   Administrative Agent has been granted a Lien in connection with this Agreement.                    “Collateral Documents” shall mean the Security Agreement and each other document or   agreement that creates or perfects any security interests granted by any of the Credit Parties to the   Administrative Agent on behalf of the Secured Parties.   DB1/ 110631747.4                        7    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Collateral Sale” shall have the meaning set forth in Section 11.14.                    “Collections” shall mean all cash, checks, credit card slips or receipts, notes, instruments,   and other items of payment (including insurance proceeds, proceeds of cash sales, rental proceeds   and tax refunds) of the Credit Parties.                    “Commitment”  shall  mean  any  of  the  Initial  Term  Loan  Commitment  or  DDTL   Commitment. The aggregate amount of the Commitments as of the Closing Date is   $125,000,000, as set forth on Schedule 1.01(a).                    “Competitor” means any Person that is  an operating company  engaged  in substantially   similar business operations as the Borrower.                    “Compliance Certificate” shall mean a certificate duly completed and executed by an   Authorized Officer of the Borrower substantially in the form of Exhibit C-1.          “Confidential Information” shall have the meaning set forth in Section 12.17.          “Connection Income Taxes” shall mean Other Connection Taxes that are imposed on or   measured by net income (however denominated) or that are franchise Taxes or branch profits   Taxes.                    “Consolidated Adjusted EBITDA” shall mean, for a specified Test Period, an amount   determined for Parent and its Subsidiaries on a consolidated basis equal to                          (a)   Consolidated Net Income,                    plus                         (b)   to the extent deducted in calculating Consolidated Net Income for such    period (other than with respect to clause (b)(xiii) below), the sum of, without duplication,   amounts for:                                (i)   Consolidated Interest Expense (net of interest income);                                (ii)  (a) provisions for Taxes based on income and (b) any payments   actually made pursuant to the TRA;                                (iii) total depreciation expense;                                (iv)  total amortization expense;                                (v)   other  non-cash  charges  reducing  Consolidated  Net  Income   (excluding any such non-cash item (x) to the extent that it represents an accrual or reserve for   potential cash items in any future period or amortization of a prepaid cash item that was paid in a   prior period or (y) relating to a write-down, write off or reserve with respect to receivables or   inventory);   DB1/ 110631747.4                        8    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                   (vi)  losses,  costs  and  expenses  on  asset  sales,  disposals  or   abandonments (other than (i) of current assets and (ii) asset sales, disposals or abandonments in   the ordinary course of business);                      (vii) fees and expenses incurred in connection with a  Permitted   Acquisition,  other  Investments  permitted  hereunder,  Dispositions  (other  than  in  the  ordinary   course  of  business)  permitted  hereunder,  Restricted  Payments  permitted  hereunder  or  the   refinancing or redemption of Indebtedness permitted hereunder; provided, that, to the extent such   transactions have not been consummated, such costs, fees and expenses shall not exceed an amount   not greater than $1,500,000 in any Test Period;                      (viii) fees and expenses incurred in connection with the  consummation   of the Transactions on the Closing Date in an aggregate amount not to exceed $5,200,000, and to   the extent disclosed to Administrative Agent;                      (ix)  non-cash adjustments pursuant to any management equity or   equity-based plan or stock option plan or any other management or employee benefit plan or   agreement or any stock subscription or stockholders agreement;                      (x)   (1) the effects of adjustments in the Parent’s and its Subsidiaries’   consolidated financial statements pursuant to GAAP (including in the property and equipment,   software, goodwill, intangible assets, deferred revenue and debt line items thereof) resulting from   the  application  of  recapitalization  accounting  or  purchase  accounting,  as  the  case  may  be,  in   relation to the Transactions or any consummated acquisition or the amortization of any amounts   thereof,  (2)  any  non-cash  losses,  charges  or  adjustments  resulting  from  the  application  of   Accounting Standards Codification 606 and (3) earnout obligations and other similar contingent   consideration;                      (xi)  costs, fees and expenses relating to restructuring,  severance,   recruiting, retentions and relocations, signing and stay bonuses, payments made to employees or   producers  who  are  subject  to  non-compete  agreements,  and  curtailments  or  modifications  to   pension  and  post-retirement  employee  benefits  plans;  provided,  that,  the  aggregate  amount   included in this clause (xi) during any Test Period shall not exceed $7,500,000;                      (xii) charges,  losses  or  expenses  to  the  extent  paid  for,  reimbursed  or   indemnified by a Person other than Parent and its Subsidiaries or reimbursed through insurance by   a Person other than Parent and its Subsidiaries, in each case to the extent such expenses are actually   paid or refunded to Parent or any of its Subsidiaries (to the extent such payments or refunds are   included in Consolidated Net Income);                      (xiii) proceeds received from business interruption insurance;                      (xiv) to the extent included in Consolidated Net Income,  losses   attributable to non-controlling interests; and    DB1/ 110631747.4                        9    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                   (xv)  extraordinary, unusual and non-recurring costs, expenses and   losses in any Test Period; provided, that, the aggregate amount included in this clause (xv) during   any  Test  Period  shall  not  exceed  the  greater  of  (x)  $2,500,000  and  (y)  20%  of  Consolidated   Adjusted EBITDA as of the end of the most recently ended Test Period as calculated before giving   effect to the add-back in this clause (xv);    minus                (c)   to  the  extent  included  in  calculating  Consolidated  Net  Income  for  such   period (other than with respect to clause (c)(iv)), the sum of, without duplication, amounts for:                      (i)   other non-cash gains increasing Consolidated Net Income for such   period (excluding any such non-cash item to the extent it represents the reversal of an accrual or   reserve for a potential cash item in any prior period),                      (ii)  extraordinary, unusual and non-recurring gains and income;                      (iii) gains on asset sales, disposals or abandonments (other than (A) of   current assets and (B) asset sales, disposals or abandonments in the ordinary course of business);   and                      (iv) any software development costs to the extent capitalized during   such period.               provided; however, for purposes of determining the Total Secured Leverage Ratio, Consolidated   Adjusted EBITDA shall be determined on a Pro Forma Basis.                    “Consolidated Interest Expense” shall mean, for any specified Test Period, for the Parent   and its Subsidiaries, determined on a consolidated basis in accordance with GAAP, the sum of: (a)   all interest in respect of Indebtedness (including, without limitation, the interest component of any   payments in respect of Capitalized Lease Obligations) accrued or capitalized during such period   (whether or not actually paid during such period) plus (b) the net amount payable (or minus the   net amount receivable) in respect of Hedging Obligations relating to interest during such period   (whether or not actually paid or received during such period).                    “Consolidated Net Income” shall mean, for any specified Test Period, the consolidated net   income (or loss) of Parent and its Subsidiaries determined in accordance with GAAP; provided   that  there  shall  be  excluded  (i)  the  income  (or  loss)  of  any  Person  (other  than  consolidated   Subsidiaries  of  Parent)  in  which  any  Person  (other  than  Parent  or  any  of  its  consolidated   Subsidiaries)  has  a  joint  ownership  interest  or  that  is  accounted  for  by  the  equity  method  of   accounting, except to the extent of the amount of dividends or other distributions actually paid to   Parent or any of its consolidated Subsidiaries by such Person during such specified Test Period,   (ii)  the  income  (or  loss)  of  any  Person  accrued  prior  to  the  date  it  becomes  a  consolidated   Subsidiary  of  Parent  or  is  merged  into  or  consolidated  with  Parent  or  any  of  its  consolidated   Subsidiaries or such Person’s assets are acquired by Parent or any of its consolidated Subsidiaries,   and (iii) the income of any consolidated Subsidiary of Parent (other   DB1/ 110631747.4                       10    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 than  a  Credit  Party)  to  the  extent  that  the  declaration  or  payment  of  dividends  or  similar   distributions  by  that  consolidated  Subsidiary  of  that  income  is  not  at  the  time  permitted  by   operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute,   rule,  governmental  regulation  applicable  to  that  consolidated  Subsidiary  or  would  require   governmental  (including  regulatory)  consent;  provided,  that,  the  income  (or  loss)  of  any   consolidated  Subsidiary  of  Parent  (other  than  a  Credit  Party)  shall  not  be  excluded  from  this   definition  to  the extent  governmental  (including  regulatory)  consent  has  been  received  for  the   declaration or payment of dividends or similar distributions by that consolidated Subsidiary of its   income.                    “Consolidated Secured Debt” shall mean, as of any date of determination, the outstanding   principal amount of all Funded Debt that is secured, in whole or part, by a Lien on any asset of   Parent or any of its Subsidiaries.                    “Convertible  Senior  Notes”  shall  mean  (i)  the  2021  Convertible  Notes,  (ii)  the 2024   Convertible Notes, (iii) the 2025 Convertible Notes and (iiiiv) any Additional Notes.                    “Contingent  Liability”  shall  mean,  for  any  Person,  any  agreement,  undertaking  or   arrangement by which such Person guarantees, endorses or otherwise becomes or is contingently   liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment,   to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss)   the Indebtedness of any other Person (other than by endorsements of instruments in the course of   collection), or guarantees the payment of dividends or other distributions upon the Capital Stock   of any other Person. The amount of any Person’s obligation under any Contingent Liability shall   (subject to any limitation set forth therein) be deemed to be the outstanding principal amount of   the debt, obligation or other liability guaranteed thereby.                    “Control” shall have the meaning set forth in the definition of “Affiliate.”                    “Controlling  and  Controlled”  shall  have  the  meaning  set  forth  in  the  definition  of   “Affiliate.”                    “Control Agreement” shall mean a control agreement, in form and substance reasonably   satisfactory  to  Administrative  Agent,  executed  and  delivered  by  the  applicable  Credit  Party,   Administrative  Agent,  and  the  applicable  securities  intermediary  or  bank,  which  agreement  is   sufficient to give the Administrative Agent “control” under the UCC over each of such Credit   Party’s securities accounts, deposit accounts or investment property, as the case may be.                    “Credit Documents” shall mean this Agreement, the Control Agreements, the Fee Letter,   the Guarantee Agreement, the Security Documents, the Intercompany Subordination Agreement,   any Notes issued by the Borrower hereunder, any intercreditor or subordination agreements in   favor of the Administrative Agent with respect to this Agreement, and any other agreement entered   into now, or in the future, by any Credit Party, on the one hand, and the Administrative Agent or   Lender, on the other hand, in connection with this Agreement; provided, that, the Warrants shall   not be Credit Documents.              DB1/ 110631747.4                       11    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Credit  Extension”  shall  mean  and  include  the  making  (but  not  the  conversion  or   continuation) of a Loan.                    “Credit Facility” shall mean any of the Initial Term Loan Facility or DDTL Facility, as   applicable, and, collectively, the Initial Term Loan Facility and DDTL Facility.                    “Credit Party” shall mean the Borrower, each of the Guarantors and each other Person that   becomes a Credit Party hereafter pursuant to the execution of joinder documents.                    “DDTL Commitment” shall mean, (a) in the case of each Lender that is a Lender on the   date  hereof,  the  amount  set  forth  opposite  such  Lender’s  name  on  Schedule  1.01(a)  as  such   Lender’s “DDTL Commitment” and (b) in the case of any Lender that becomes a Lender after the   date hereof, the amount specified as such Lender’s “DDTL Commitment” in the Assignment and   Acceptance pursuant to which such Lender assumed a portion of the DDTL Commitment, in each   case as, the same (x) shall be permanently reduced each time there is a Delayed Draw Term Loan   draw by the amount of such Delayed Draw Term Loan draw that such Lender funds and (y) may   be otherwise changed from time to time pursuant to the terms hereof.                    “DDTL Commitment Expiration Date” shall mean December 30, 2021.                    “DDTL Facility” shall have the meaning set forth in the recitals to this Agreement.          “DDTL Note” shall mean a promissory note substantially in the form of Exhibit D-1.          “Declined Proceeds” shall have the meaning set forth in Section 5.02(j).          “Default” shall mean any event, act or condition that with notice or lapse of time, or both,   would constitute an Event of Default.                    “Default Rate” shall have the meaning set forth in Section 2.08(c).                    “Defaulting Lender” shall mean, subject to Section 2.15, any Lender that, as determined   by the Administrative Agent, (a) has failed to (i) fund any portion of the Term Loans required to   be funded by it hereunder for three (3) or more Business Days unless such Lender notifies the   Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s   determination  that  one  or  more  conditions  precedent  to  funding  (each  of  which  conditions   precedent, together with any applicable default, shall be specifically identified in such writing) has   not been satisfied, or (ii) pay to the Administrative Agent, any other Lender any other amount   required to be paid by it hereunder, (b) has notified the Borrower, or the Administrative Agent in   writing that it does not intend to comply with its funding obligations or has made a public statement   to that effect with respect to its funding obligations hereunder or under other agreements in which   it  commits  to  extend  credit  (unless  such  writing  or  public  statement  relates  to  such  Lender’s   obligation  to  fund  a  Loan  hereunder  and  states  that  such  position  is  based  on  such  Lender’s   determination that a condition precedent to funding (which condition precedent, together with any   applicable default, shall be specifically identified in such writing or public statement) cannot be   satisfied), (c) has failed, within three (3) or more Business Days  after             DB1/ 110631747.4                       12    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 written request by the Administrative Agent or the Borrower, to confirm in writing in a manner   satisfactory to the Administrative Agent that it will comply with its prospective funding obligations   hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause   (c) upon receipt of such written confirmation by the Administrative Agent), or (d) has, or has a   direct or indirect parent company that has, (i) become the subject of a bankruptcy or insolvency   proceeding,  (ii)  had  a  receiver,  custodian,  conservator,  trustee,  administrator,  assignee  for  the   benefit of creditors or similar Person charged with reorganization or liquidation of its business or   assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory   authority acting in such capacity, (iii) taken any action in furtherance of, or indicated its  consent    to,  approval  of or acquiescence in any such proceeding or appointment or   (iv) become the subject of a Bail-in Action; provided that a Lender shall not be a Defaulting Lender   solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct   or indirect parent company thereof by a Governmental Authority so long as such ownership interest   does not result in or provide such Lender with immunity from the jurisdiction of courts within the   United States or from the enforcement of judgments or writs of attachment on its assets or permit   such  Lender  (or  such  Governmental  Authority)  to  reject,  repudiate,  disavow  or  disaffirm  any   contracts or agreements made with such Lender. Any determination by the Administrative Agent   that a Lender is a Defaulting Lender under any   one or more of clauses   (a) through (d) above shall be conclusive and binding absent manifest error.          “Delayed  Draw  Term  Loan”  shall  have  the  meaning  set  forth  in  Section  2.01(e).          “Disposition” shall mean, with respect to any Person, any sale, transfer, lease,   contribution, division or other conveyance (including by way of merger) of, or the granting of   options, warrants or other rights to, any of such Person’s or their respective Subsidiaries’ assets   (including receivables and Capital Stock of Subsidiaries) to any other Person in a single transaction   or series of transactions.                    “Disqualified Capital Stock” shall mean any Capital Stock, other than the Warrants, the   2021 Convertible Notes and the 20212024 Convertible Notes, that, by its terms (or by the terms of   any security or other Capital Stock into which it is convertible or for which it is exchangeable) or   upon the happening of any event or condition, (a) matures or is mandatorily redeemable (other   than solely for Qualified Capital Stock), pursuant to a sinking fund obligation or otherwise (except   as a result of a Change of Control or asset sale so long as any rights of the holders thereof upon the   occurrence of a Change of Control or asset sale event shall be subject to the prior repayment in   full of the Loans and all other Obligations that are accrued and payable and the termination of the   Commitments), (b) is redeemable at the option of the holder thereof (other than solely for Qualified   Capital Stock) (except as a result of a Change of Control or asset sale so long as any rights of the   holders thereof upon the occurrence of a Change of Control or asset sale event shall be subject to   the prior repayment in full of the Loans and all other Obligations that are accrued and payable and   the termination of the Commitments), in whole or in part, (c) provides for the scheduled payment   of dividends in cash or (d) is or becomes convertible into or exchangeable for Indebtedness or any   other Capital Stock that would constitute Disqualified Capital Stock, in each case, prior to the date   that  is  ninety-one  (91)  days  after  the  Maturity  Date  (as  determined  under  clause  (a)  of  the   definition thereof); provided, that if such Capital Stock is              DB1/ 110631747.4                       13    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 issued pursuant to a plan for the benefit of employees of the Borrower or its Subsidiaries or by any   such plan to such employees, such Capital Stock shall not constitute Disqualified Capital Stock   solely because it may be required to be repurchased by the Borrower or its Subsidiaries in order to   satisfy applicable statutory or regulatory obligations.                    “Disqualified Institution” means any Person that is (a) designated by the Borrower, by   written  notice  delivered  to  Administrative  Agent  on  or  prior  to  the  Closing  Date,  as  a  (i)   disqualified institution or (ii) Competitor or (b) clearly identifiable, solely on the basis of such   Person’s name, as an Affiliate of any Person referred to in clause (a)(i) or (a)(ii) above; provided,   however, Disqualified Institutions shall (A) exclude any Person that the Borrower Representative   has  designated  as  no  longer being  a  Disqualified  Institution  by  written  notice delivered  to  the   Administrative Agent from time to time, (B) exclude any bona fide debt fund, investment vehicle,   regulated bank entity or unregulated lending entity (other than any person separately identified as   a  Disqualified  Institution  in  accordance  with  clause  (a)(ii)  above  or  any Affiliate  of  a  Person   identified under clause (b) above) that is engaged in making, purchasing, holding or otherwise   investing in commercial loans or similar extensions of credit in the ordinary course of business and   (C)  include  (I)  any  Person  that  is  added  as  a  Competitor  and  (II)  any  Person  that  is  clearly   identifiable, solely on the basis of such Person’s name, as an Affiliate of any Person referred to in   clause (C)(I), pursuant to a written supplement  to the list of Competitors that are Disqualified   Institutions, that is delivered by the Borrower after the date hereof to the Administrative Agent.   Such supplement shall become effective two (2) Business Days after the date that such written   supplement  is  delivered  to  Administrative  Agent,  but  which  shall  not  apply  retroactively  to   disqualify any Persons that have previously acquired an assignment or participation interest in the   Loans and/or Commitments as permitted herein                    “Distributable Cash” shall have the meaning set forth in Section 10.01(m).          “Dollars” and “$” shall mean dollars in lawful currency of the United States of America.          “Domestic Holding Company” shall mean a Domestic Subsidiary that has no material   assets other than Capital Stock (or Capital Stock and indebtedness) of one or more Foreign   Subsidiaries.                    “Domestic Subsidiary” shall mean each Subsidiary of the Borrower that is organized under   the  Applicable  Laws  of  the  United  States,  any  state,  territory,  protectorate  or  commonwealth   thereof or the District of Columbia.                    “EEA  Financial  Institution”  shall  mean  (a)  any  credit  institution  or  investment  firm   established in any EEA Member Country which is subject to the supervision of an EEA Resolution   Authority, (b) any entity established in an EEA Member Country which is a parent of an institution   described in clause (a) of this definition or (c)  any financial institution established in an  EEA   Member Country  which  is a subsidiary  of an institution described  in clauses (a) or  (b) of this   definition and is subject to consolidated supervision with its parent;                    “EEA Member Country” shall mean any of the member states of the European Union,   Iceland, Liechtenstein and Norway.   DB1/ 110631747.4                       14    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “EEA Resolution Authority” shall mean any public administrative authority or any Person   entrusted  with  public  administrative  authority  of  any  EEA  Member  Country  (including  any   delegee) having responsibility for the resolution of any EEA Financial Institution.                    “Eligible Assignee” shall have meaning set forth in Section 12.06(b).                    “Environmental Claims” shall mean any and all administrative, regulatory, adjudicatory   or  judicial  actions,  suits,  demands,  demand  letters,  claims,  liens,  fines,  penalties,  requests  for   information, inquiries, notices of noncompliance or violation, investigations (other than internal   reports  prepared  by  the  Credit  Parties  in  the  ordinary  course  of  such  Person’s  business)  or   proceedings relating in any way to any Environmental Law, any Hazardous Material (including   any exposure to any Hazardous Material), or any permit issued, or any approval given, under any   such  Environmental  Law  (“Claims”),  including  (i)  any  and  all  Claims  by  governmental  or   regulatory  authorities  for  enforcement,  cleanup,  removal,  response,  remedial,  investigation,   monitoring or other actions or damages pursuant to any Environmental Law and (ii) any and all   Claims  by  any  Person  seeking  damages,  contribution,  indemnification,  cost  recovery,   compensation or injunctive relief resulting from the presence, Release of, or threat of Release of,   Hazardous  Materials or arising from alleged injury or threat of injury to  human health, public   safety or the environment, pursuant to any Environmental Law.                    “Environmental  Law”  shall  mean  any  federal,  state,  foreign,  regional,  county  or  local   statute, law, rule, regulation, ordinance and code now or hereafter in effect and, in each case, as   amended, and any binding judicial or administrative interpretation thereof, including any binding   judicial or administrative order, decree or judgment, relating to the protection of human health,   safety or the environment or natural resources, including laws relating to the Release, threat of   Release,  manufacture,  processing,  distribution,  use,  presence,  production,  treatment,  storage,   disposal, transport, labeling or handling of, or exposure to, Hazardous Materials, including the   Federal  Water  Pollution  Control  Act,  the  Resource  Conservation  and  Recovery  Act,  the  Safe   Drinking Water Act, the Toxic Substances Control Act, the Clean Air Act and CERCLA, and other   similar state and local statutes and any regulations promulgated thereto.                    “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended   from time to time, and the regulations promulgated thereunder. Section references to ERISA are   to ERISA as in effect  at the date of this Agreement  and any subsequent  provisions of ERISA   amendatory thereof, supplemental thereto or substituted therefor.                    “ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) that,   together with any Credit Party or a Subsidiary thereof, is, or within the last six (6) years was,   treated as a “single employer” within the meaning of Section 414(b), (c), (m) or (o) of the Code.                    “ERISA Event” shall mean (a) the occurrence of any Reportable Event with respect to a   Plan, (b) any failure by any Plan to satisfy the minimum funding standard (within the meaning of   Section 412 of the Code or Section 302 of ERISA) applicable to such Plan, in each case whether   or not waived, (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of   an  application  for  a  waiver  of  the  minimum  funding  standard  with  respect  to  any  Plan,  (d)  a   determination that any Plan is, or is reasonably expected to be, in “at-risk” status (as defined in   DB1/ 110631747.4                       15    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Section 303 of ERISA or Section 430 of the Code), (e) the incurrence by any Credit Party or any   ERISA  Affiliate  of  any  liability  under  Title  IV  of  ERISA  with  respect  to  the  non-standard   termination of any Pension Plan, (f) the receipt by any Credit Party from the PBGC of any notice   relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan   under Section 4042 of ERISA, (g) the incurrence by any Credit Party or any ERISA Affiliate of   any liability with respect to its withdrawal or partial withdrawal from any Multiemployer Plan or   (i) the receipt by any Credit Party or any ERISA Affiliate of any notice concerning the imposition   of Withdrawal Liability on it or a determination that a Multiemployer Plan is, or is reasonably   expected to be, insolvent, within the meaning of Title IV of ERISA or in “endangered” or “critical”   status, within the meaning of Section 305 of ERISA.          “EU  Bail-In  Legislation  Schedule”  shall  mean  the  EU  Bail-In  Legislation  Schedule   published by the Loan Market Association (or any successor person), as in effect from time to   time.                    “Eurodollar Loan” shall mean any Loan bearing interest at a rate determined by reference   to the Eurodollar Rate.                    “Eurodollar Rate” shall mean, with respect to any Eurodollar Loan for any Interest Period,   a rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the greater   of (a) 1.00% per annum and (b) an amount equal to (i) the rate per annum appearing on Bloomberg   Professional Service Page BBAM1 offered rate for deposits in Dollars at approximately 11:00 a.m.   (London time) two (2) business days prior to the first day of such interest period for a three (3)   month term; multiplied by (ii) the Statutory Reserve Rate. If for  any reason the rate referred to in   clause (b)(i) is not available, for any such interest period, such rate will be a comparable successor   or alternative interbank rate for deposits in Dollars that it, at such time, broadly accepted by the   loan market in lieu of the Eurodollar Rate and is reasonably acceptable to the Administrative Agent   in consultation with the Borrower; provided that, to the extent a successor or alternative index rate   cannot  be  agreed  upon  within  five  (5)  Business  Days  after  the  Eurodollar  Rate  becomes   unavailable,  all  Loans  hereunder  will  be  deemed  to  be  ABR  Loans  (and  shall  bear  interest   accordingly) for purposes of the definition of “Applicable Margin” and Section 2.08, until such   time as an alternative rate can be agreed upon in accordance with clause (x) or (y).                    “Event of Default” shall have the meaning set forth in Article X.                    “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules   and regulations promulgated thereunder.                    “Excluded  Account”  means  each  deposit  or  securities  accounts  constituting  (a)  a  zero   balance account that sweeps on a daily basis into a deposit account subject to a Control Agreement,   (b) a deposit account used solely to fund payroll obligations, health benefit or employee benefit   obligations, Tax obligations, escrow arrangements, trust accounts or holding third-party insurance   funds or funds owned by (or held solely for the benefit of) Persons other than the Credit Parties or   holding any funds to be used for the purpose of paying claims to satisfy statutory or regulatory   requirements, (c) any other deposit or securities account so long as with   DB1/ 110631747.4                       16     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 respect to this clause (c), the aggregate amount on deposit in all such accounts does not exceed   $1,000,000 at any one time, (d) a deposit account into which an Account Debtor makes payment   under Medicare, Medicaid, TRICARE or any other health program operated by or financed in   whole or in part by any foreign or domestic federal, state or local government so long as funds on   deposit in such deposit account are transferred within two (2) Business Days to an account subject   to a Control Agreement or (e) a deposit account holding solely funds pledged as cash collateral to   the extent permitted under Section 9.02(b) or Section 9.02(m).                    “Excluded Subsidiary” shall mean any Subsidiary (1) for which guarantees at any time are   prohibited or restricted by Applicable Laws (including financial assistance, fraudulent conveyance,   preference, capitalization or any other Applicable Laws or regulations) (or contractually prohibited   on the Closing Date (in the case of existing Subsidiaries) or on the date of acquisition or formation   thereof (in the case of acquired or formed Subsidiaries), so long as such prohibition is not created   in contemplation of such transaction) from guaranteeing the Obligations, or if guaranteeing the   Obligations  would  require  governmental  (including  regulatory)  consent,  non-disapproval,   approval, filing, license or authorization (unless such consent, approval, license or authorization   has  been  received),  (2)  not-for-profit  subsidiaries,  captive  insurance  companies  and  special   purpose entities, (3) any non-wholly owned Subsidiary   (x) in existence on the Closing Date or (y) to the extent a guaranty by such Subsidiary is prohibited   by  the  terms  of  such  person’s  organizational  or  joint  venture  documents  (to  the  extent  the   prohibition is existing on the Closing Date or at the time any subsidiary is acquired, formed or   established (and which prohibition is not created in contemplation of such transaction)), (4) any   Subsidiary where the cost of providing a guarantee, taken as a whole, outweighs the benefit to the   Lenders, as determined in the reasonable discretion of the Administrative Agent and Borrower, (5)   any  subsidiary  to  the  extent  a  guarantee  by  such  entity  will  result  in  material  adverse  tax  or   regulatory  consequences, taken as  a whole, to Parent  and its Subsidiaries and  (6)  any  Foreign   Subsidiary, Domestic Holding Company and Licensed Insurance Entity (solely, in the case of any   Licensed Insurance Entity, to the extent guaranteeing the Obligations would require governmental   (including  regulatory)  consent,  notification,  non-disapproval,  approval,  filing,  license  or   authorization or would otherwise be prohibited or restricted by Applicable Laws).                    “Excluded Taxes” shall mean with respect to the Administrative Agent, any Lender or any   other recipient of any payment to be made by or on account of any Obligation of the Borrower   hereunder, (a) income, franchise or similar Taxes imposed on (or measured by) its net income (i)   by the United States of America, or by the jurisdiction under the laws of which such recipient is   organized or in which its principal office is located or, in the case of any Lender, in which its   applicable lending office is located or (ii) that are Other Connection Taxes, (b) any branch profits   Taxes  imposed  by  the  United  States  of  America  or  any  similar  tax  imposed  by  any  other   jurisdiction in which the Borrower is located, (c) in the case of a Non-U.S. Lender, any withholding   tax that is imposed on amounts payable to such Non-U.S. Lender at the time such Non-U.S. Lender   becomes a party to this Agreement (or designates a new lending office, unless such designation   was at the request of the Borrower), except to the extent that such Non-U.S. Lender (or its assignor,   if any) was entitled, at the time of designation of a new lending office (or assignment), to receive   additional amounts from the Borrower with respect to such withholding   DB1/ 110631747.4                       17     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 tax pursuant to Section 5.04(a), (d) Taxes imposed by reason of the failure of the Administrative   Agent or such Lender to comply with its obligations under Section 5.04(b) and Section 5.04(c), or   to  the extent  that  such  documentation  fails  to  establish  a  complete exemption  from  applicable   withholding Taxes, other than, in either case, due to a change in Applicable Laws after the Closing   Date and (e) U.S. federal withholding Taxes imposed under FATCA.                    “Existing  Earnouts”  shall  mean  (a)  the “Earnout  Consideration”  as  defined  under  that   certain  Agreement  and  Plan  of  Merger,  dated  as  of  September  7,  2018,  by  and  among  NCIS   Holdings, Inc., Parent, Borrower, Element Merger Sub, Inc. and the representative named therein,   as amended, restated, supplemented or modified from time to time, in an amount not to exceed   $10,800,000  and  (b)  the  earn-out  obligations  set  forth  in  Section  1.9  of  that  certain  Strategic   Growth  Agreement,  dated  as  of  December  16,  2015,  by  and  among  Parent,  Borrower  and   University Health Care, Inc., as amended, restated, supplemented or modified from time to time,   in an amount not to exceed $3,700,000; provided, that, the aggregate amount of Existing Earnouts,   together with the amount of the Global Share Backstop, that may be paid in cash may not exceed   $12,000,000.                    “FATCA”  shall  mean  Sections  1471  through  1474  of  the  Code,  as  of  the  date  of  this   Agreement  (or  any  amended  or  successor  version  that  is  substantively  comparable  and  not   materially  more  onerous  to  comply  with),  any  current  or  future  regulations  or  official   interpretations thereof, and any agreement entered into pursuant to Section 1471(b)(1) of the Code.                    “FCPA” shall mean the Foreign Corrupt Practices Act of 1977, as amended from time to   time, and the rules and regulations thereunder.                    “Federal Funds Rate” shall mean, for any day, a fluctuating interest rate per annum equal   to: (a) the weighted average of the rates on overnight federal funds transactions with members of   the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if   such day is not a Business Day, for the next succeeding Business Day) by the Federal Reserve   Bank of New York; or (b) if such rate is not so published for any day which is a Business Day, the   average of the quotations for such day on such transactions received by the Administrative Agent   from three federal funds brokers of recognized standing selected by it.                    “Fee Letter” shall mean the Fee Letter dated as of the date hereof by and between the   Borrower, Parent and the Administrative Agent, as amended, restated, supplemented or otherwise   modified from time to time.                    “Fees” shall mean all amounts payable pursuant to, or referred to in, Section 4.01 or the   Fee Letter.          “Financial Performance Covenants” shall mean the covenants set forth in Section 9.12.          “First Amendment Effective Date” has the meaning set forth for such term in that certain   First Amendment to Credit Agreement, dated as of August 13, 2020, by and among the   Borrower, the other Credit Parties party thereto and the Administrative Agent.   DB1/ 110631747.4                       18     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Flood Hazard Property” shall have the meaning set forth in the definition of the term   “Flood Insurance Requirements.”                    “Flood Insurance Laws” shall mean, collectively, (i) the National Flood Insurance Act of   1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection   Act of 1973 as now or hereafter in effect or any successor statute thereto, (iii) the National Flood   Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute thereto, (iv)   the Flood Insurance Reform Act of 2004 and (v) the Biggert –Waters Flood Insurance Reform Act   of 2012, as now or hereafter in effect of any successor statute thereto, in each case, together with   all  statutory  and  regulatory  provisions  consolidating,  amending,  replacing,  supplementing,   implementing or interpreting any of the foregoing, as amended or modified from time to time.                    “Flood  Insurance  Requirements”  shall  mean  (i)  a  completed  “life  of  loan”  Federal   Emergency Management Standard Flood Hazard Determination as to whether such real property   is in an area designated by the Federal Emergency Management Agency as having special flood   or mud slide hazards (a “Flood Hazard Property”) and (ii) if such real property is a Flood Hazard   Property, evidence as to (A) whether the community in which such real property, or as applicable,   the leasehold interest of such Credit Party in such real property, is located is participating in the   National Flood Insurance Program, (B) the applicable Credit Party’s written acknowledgment of   receipt  of  written  notification  from  the  Administrative  Agent  (1)  as  to  the  fact  that  such  real   property is a Flood Hazard Property and (2) as to whether the community in which each such Flood   Hazard Property is located is participating in the National Flood Insurance Program and (C) copies   of  flood  insurance  policies  under  the  National  Flood  Insurance  Program  (or  private  insurance   endorsed to cause such private insurance to be fully compliant with the federal law as regards   private placement insurance applicable to the National Flood Insurance Program, with financially   sound and reputable insurance companies not Affiliates of the Borrower) or a declaration page,   application  accompanied  by  proof  of  premium  payment  for  such  policies,  or  such  other   documentation as is satisfactory to the Administrative Agent and each Lender, with confirmation   of  such  satisfaction  of  such  Lender  to  be  made  in  writing  (which,  for  purposes  of  such   confirmation, shall include email) and such confirmation shall not be unreasonably withheld or   delayed, in each case, for the Parent and its Subsidiaries evidencing such flood insurance coverage   in  such  amounts  and  with  such  deductibles  as  required  by  Flood  Insurance  Laws  or  as  the   Administrative Agent may request (but no less than required by applicable Flood Insurance Laws)   and naming the Administrative Agent and its successors and/or assigns as sole loss payee on behalf   of the Lenders.                    “Foreign  Plan”  shall  mean  any  plan,  fund  (including,  without  limitation,  any   superannuation fund) or other similar program established, contributed to (regardless of whether   through direct contributions or through employee withholding) or maintained outside the United   States by any Loan Party primarily for the benefit of employees of the Loan Parties residing outside   the United States, which plan, fund or other similar program provides, or results in, retirement   income,  a  deferral  of  income  in  contemplation  of  retirement  or  payments  to  be  made  upon   termination of employment, and which plan is not subject to ERISA or the Code.                         DB1/ 110631747.4                       19     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Foreign Subsidiary” shall mean each Subsidiary of a Credit Party that is not a Domestic   Subsidiary.                    “Funded  Debt”  shall  mean,  as  of  any  date  of  determination,  all  then  outstanding   Indebtedness of Parent and its Subsidiaries, on a consolidated basis, of the type described in clauses   (a), (b) (excluding the amount of any undrawn or cash collateralized letters of credit), (d) and (f)   of the defined term “Indebtedness.”                    “GAAP”  shall  mean  generally  accepted  accounting  principles  in  the  United  States  of   America, as in effect from time to time; provided, that if the Borrower notifies the Administrative   Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of   any change occurring after the Closing Date in GAAP or in the application thereof on the operation   of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders   request an amendment to any provision hereof for such purpose), regardless of whether any such   notice  is  given  before  or  after  such  change  in  GAAP  or  in  the  application  thereof,  then  the   Administrative Agent, the Lenders and the Credit Parties shall negotiate in good faith to effect   such amendment and such provision shall be interpreted on the basis of GAAP as in effect and   applied immediately before such change shall have become effective until such notice shall have   been withdrawn or such provision amended in accordance herewith.                    “Global Share Backstop” shall mean the payment or issuance obligations of the Parent,   the Borrower and EH Holding Company, Inc. under that certain Post-Closing Agreement, dated as   of July 9, 2019, by and among Momentum Health Group, LLC, Momentum Health Acquisition,   Inc., Momentum Health  Holdings, LLC, Parent, Borrower  and EH Holding Company,  Inc., as   amended, restated, supplemented or modified from time to time, in an aggregate amount not to   exceed $10,500,000; provided, that, the aggregate amount of the Global Share Backstop, together   with the amount of the Existing Earnouts, that may be paid in cash may not exceed $12,000,000.                    “Governmental Authority” shall mean the government of the United States, any foreign   country  or  any  multinational  authority,  or  any  state,  commonwealth,  protectorate  or  political   subdivision thereof, and any entity, body or authority exercising executive, legislative, judicial,   regulatory or administrative functions of or pertaining to government, including the PBGC and   other quasi-governmental entities established to perform such functions.                    “Guarantee Agreement” shall mean a Guarantee Agreement, executed and delivered by   each Guarantor in favor of the Administrative Agent for the benefit of the Secured Parties, in form   and substance satisfactory to Administrative Agent.                    “Guarantee Obligations” shall mean, as to any Person, any Contingent Liability of such   Person or other obligation of such Person guaranteeing or intended to guarantee any Indebtedness   of  any  other  Person  (the  “primary  obligor”)  in  any  manner,  whether  directly  or  indirectly,   including  any  obligation  of  such  Person,  whether  or  not  contingent,  (a)  to  purchase  any  such   Indebtedness or any property constituting direct or indirect security therefor, (b) to advance or   supply funds (i) for the purchase or payment of any such Indebtedness or (ii) to maintain working   DB1/ 110631747.4                       20     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency   of the primary obligor, (c) to purchase property, securities or services primarily for the purpose of   assuring the owner of any such Indebtedness of the ability of the primary obligor to make payment   of such Indebtedness or (d) otherwise to assure or hold harmless the owner of such Indebtedness   against loss in respect thereof; provided, that the term “Guarantee Obligations” shall not include   endorsements  of  instruments  for  deposit  or  collection  in  the  ordinary  course  of  business  or   customary and reasonable indemnity obligations in effect on the Closing Date,  entered into in   connection with any acquisition or disposition of assets permitted under this Agreement (other   than with respect to Indebtedness). The amount of any Guarantee Obligation shall be deemed to   be an amount equal to the stated or determinable amount of the Indebtedness in respect of which   such Guarantee Obligation is made or, if not stated or determinable, the maximum reasonably   anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as   determined by such Person in good faith.                    “Guarantors” shall mean (a) Parent, (b) each Person that is a Domestic Subsidiary on the   Closing Date, and (c) each Person that becomes  a party to the Guarantee Agreement after the   Closing Date pursuant to Section 8.11, in each case, other than any Excluded Subsidiary.                    “Hazardous Materials” shall mean (a) any petroleum or petroleum products, radioactive   materials, friable asbestos, urea formaldehyde foam insulation, transformers or other equipment   that contain dielectric fluid containing regulated levels of polychlorinated biphenyls, and radon   gas;  (b)  any  chemicals,  materials  or  substances  defined  as  or  included  in  the  definition  of   “hazardous substances,” “hazardous waste,” “hazardous materials,” “extremely hazardous waste,”   “restricted  hazardous  waste,”  “toxic  substances,”  “toxic  pollutants,”  “contaminants,”  or   “pollutants,”  or  words  of  similar  import,  under  any  Environmental  Law;  and  (c)  any  other   chemical, material or substance, which is classified, prohibited, limited or regulated by, or forming   the basis of liability under, any Environmental Law.                    “Health Care Laws” means (i) any and all federal, state and local fraud and abuse laws,   including,  without  limitation,  the  federal  Anti-Kickback  Statute  (42  U.S.C.  §  1320a-7(b)),  the   Stark  Law  (42  U.S.C.  §  1395nn),  the  civil  False  Claims  Act  (31  U.S.C.  §  3729  et  seq.),  the   administrative  False  Claims  Law  (42  U.S.C.  §  1320a-7b(a)),  the  Anti-Inducement  Law (42   U.S.C. § 1320a-7a(a)(5)), the exclusion laws (42 U.S.C. § 1320a-7), the civil monetary penalty   laws  (42  U.S.C.  §  1320a-7a),  the  regulations  promulgated  pursuant  to  such  statutes  and  any   comparable state laws; (ii) the Health Insurance Portability and Accountability Act of 1996 (42   U.S.C. § 1320d et seq.), and the regulations promulgated thereunder and any comparable state   laws,  (iii)  Medicare  (Title  XVIII  of  the  Social  Security  Act)  and  the  regulations  promulgated   thereunder; (iv) Medicaid (Title XIX of the Social Security Act) and the regulations promulgated   thereunder; (v) the Medicare Prescription Drug, Improvement, and Modernization Act of 2003   (Pub.  L.  No.  108-173)  and  the  regulations  promulgated  thereunder;  (vi)  quality,  safety  and   accreditation standards and requirements of all applicable state laws or Governmental Authorities;   (vii) State and Federal Applicable Laws relating to the licensure, ownership or operation of a health   care  facility,  health  maintenance  organization  (HMO),  Medicaid  managed  care  organization   (MCO),  Medicare  Advantage organization,  provider service  network  (PSN) or  insurance  plan,   including any assets used in connection therewith, (viii) Applicable Laws relating              DB1/ 110631747.4                       21    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 to the preparation, processing, evaluation or payment of claims, collection of accounts receivable,   underwriting the cost of, or provision of management  or administrative services in connection   with, any and all of the foregoing, by any of Parent, its Subsidiaries or any Licensed Insurance   Entity, including, but not limited to, laws and regulations relating to the administration of health   benefit policies, patient or program charges, recordkeeping, referrals, professional fee splitting,   certificates of need, certificates of operations and authority, (ix) any and all federal or state laws   regulating third-party administrators and pharmacy benefit managers, including those promulgated   by state departments of insurance, and (x) any and all other applicable health care laws, rules,   codes, statutes, ordinances, regulations, manual provisions, policies and administrative guidance,   each of (i) through (x) as may be amended from time to time.                    “Hedge  Termination  Value”  shall  mean,  in  respect  of  any  one  or  more  Hedging   Obligations,  after  taking  into  account  the  effect  of  any  legally  enforceable  netting  agreement   relating to such Hedging Obligations, (a) for any date on or after the date such Hedging Obligations   have  been  closed  out  and  termination  value(s)  determined  in  accordance  therewith,  such   termination value(s) and (b) for any date prior to the date referenced in clause (a), the amount(s)   determined as the mark-to-market value(s) for such Hedging Obligations, as determined based   upon one or more mid-market or other readily available quotations provided by any recognized   dealer in such Hedging Obligations (which may include any Lender or any Affiliate of a Lender).                    “Hedging Obligations” shall mean, with respect to any Person, any and all obligations of   such  Person,  whether  absolute  or  contingent  and  howsoever  and  whensoever  created,  arising,   evidenced or acquired under (a) any and all Hedging Transactions (b) any and all cancellations,   buy backs, reversals, terminations or assignments of any Hedging Transactions and (c) any and all   renewals, extensions and modifications of any Hedging Transactions and any and all substitutions   for any Hedging Transactions.                    “Hedging  Transaction”  of  any  Person  shall  mean  (a)  any  transaction  (including  an   agreement  with  respect  to  any  such  transaction)  permitted  under  Section  9.11  now  existing  or   hereafter entered into by such Person that is a rate swap transaction, swap option, basis swap,   forward  rate  transaction,  commodity  swap,  commodity  option,  equity  or equity  index  swap  or   option,  bond  option,  interest  rate  option,  foreign  exchange  transaction,  cap  transaction,  floor   transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction,   currency option, spot transaction, credit protection transaction, credit swap, credit default swap,   credit default option, total return swap, credit spread transaction, repurchase transaction, reverse   repurchase  transaction,  buy/sell-back  transaction,  securities  lending  transaction,  or  any  other   similar  transaction  (including  any  option  with  respect  to  any  of  these  transactions)  or  any   combination thereof, whether or not any such transaction is governed by or subject to any master   agreement and (b) any and all transactions of any kind, and the related confirmations, which are   subject to the terms and conditions of, or governed by, any form of master agreement published by   the  International  Swaps and Derivatives Association,  Inc., any International Foreign Exchange   Master Agreement or any other master agreement (any such master agreement, together with any   related schedules, a “Master Agreement”), including any such obligations or liabilities under any   Master Agreement.   DB1/ 110631747.4                       22     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as the   same may be amended, modified or supplemented from time to time, any successor statute thereto,   any and all rules or regulations promulgated from time to time thereunder, and any comparable   state laws.                    “Historical  Financial  Statements”  shall  mean  (a)  audited  consolidated  financial   statements of Parent for the fiscal years ended December 31, 2017 and December 31, 2018 and   (b) unaudited consolidated financial statements of Parent for the fiscal year to date period ended   September 30, 2019.                    “Holding Company Guarantor” shall mean any entity formed after the Closing Date and   joined as a Guarantor under this Agreement pursuant to the terms of Section 8.11 for the sole   purpose of holding the Capital Stock of any Licensed Insurance Entity or joint venture.                    “Indebtedness” shall mean, as to any Person at a particular time, without duplication, all   of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:                          (a)   all indebtedness of such Person for borrowed money and all indebtedness   of such Person evidenced by bonds, debentures, notes, loan agreements or other similar   instruments;                          (b)   the maximum amount (after giving effect to any prior drawings or   reductions  which  may  have  been  reimbursed)  available  under  all  letters  of  credit  (including   standby  and  commercial),  bankers’  acceptances,  bank  guaranties,  surety  bonds,  performance   bonds and similar instruments issued or created by or for the account of such Person;                          (c)   the Hedge Termination Value of all Hedging Obligations of such Person;                          (d)   all obligations of such Person to pay the deferred purchase price of   property or services, including earn-out obligations (other than (i) trade accounts payable in the   ordinary course of business and (ii) to the extent such obligation is not due at any time prior to the   date that is six months after the Maturity Date (as determined under clause (a) of the definition   thereof), any earn-out obligation until such obligation becomes a liability on the balance sheet of   such Person in accordance with GAAP);                          (e)   indebtedness (excluding prepaid interest thereon) secured by a Lien on   property  owned  or  being  purchased  by  such  Person  (including  indebtedness  arising  under   conditional  sales  or  other  title  retention  agreements  and  mortgage,  industrial  revenue  bond,   industrial development bond and similar financings), whether or not such indebtedness shall have   been assumed by such Person or is limited in recourse;                          (f)   all Attributable Indebtedness;                          (g)   all obligations of such Person in respect of Disqualified Capital Stock; and                         DB1/ 110631747.4                       23     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (h)  all Guarantee Obligations of such Person in respect of any of the   foregoing,               provided, that Indebtedness shall not include (i) prepaid or deferred revenue arising in the ordinary   course  of  business,  (ii)  purchase  price  holdbacks  arising  in  the  ordinary  course  of  business  in   respect of a portion of the purchase price of an asset to satisfy warranties or other unperformed   obligations of the seller of such asset, (iii) endorsements of checks or drafts arising in the ordinary   course of business, (iv) trade accounts payable in the ordinary course of business, and (v) preferred   Capital Stock to the extent not constituting Disqualified Capital Stock.                    The amount of any net Hedging Obligations on any date shall be deemed to be the Hedge   Termination Value thereof as of such date. The amount of Indebtedness of any Person for purposes   of clause (e) above shall be deemed to be equal to the lesser of (x) the aggregate unpaid amount of   such Indebtedness and (y) the fair market value of the property of such Person encumbered thereby   as determined by such Person in good faith.                    “Initial Term Loan  Commitment” shall  mean,  (a) in the case of each  Lender that  is a   Lender on the date hereof, the amount set forth opposite such Lender’s name on Schedule 1.01(a)   as such Lender’s “Initial Term Loan Commitment” and (b) in the case of any Lender that becomes   a  Lender  after  the  date  hereof,  the  amount  specified  as  such  Lender’s  “Initial  Term  Loan   Commitment” in the Assignment and Acceptance pursuant to which such Lender assumed all or a   portion of the Initial Term Loan Commitment, in each case, as the same (x) shall be permanently   reduced on the Closing Date upon the Initial Term Loan draw that such Lender funds and (y) may   be changed from time to time pursuant to the terms hereof.                    “Initial  Term  Loan  Facility”  shall  have  the  meaning  set  forth  in  the  recitals  to  this   Agreement.                    “Initial  Term  Loan”  shall  have  the  meaning  set  forth  in  Section  2.01(a).          “Intellectual Property” shall have the meaning set forth in the Security Agreement.          “Intercompany  Service  Agreement”  shall  mean  that  certain  Intercompany  Service   Agreement,  dated  as  of  January  31,  2018,  by  and  between  the  Borrower  and  Evolent  Health   International Private Limited (formally known as Valence Health Solutions India Private Limited),   as amended, restated, supplemented or otherwise modified from time to time                    “Intercompany Subordination Agreement” shall mean the Intercompany Subordination   Agreement dated as of the date hereof among the Credit Parties and the Administrative Agent.                    “Interest  Period”  shall  mean,  with  respect  to  any  Eurodollar  Loan,  the  interest  period   applicable thereto, as determined pursuant to Section 2.09.                    “Investment” shall  mean, relative to any Person, (a) any loan, advance or extension of   credit made by such Person to any other Person, including the purchase by such first Person of any   bonds, notes, debentures or other debt securities of any such other Person, (b) Contingent             DB1/ 110631747.4                       24    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Liabilities in favor of any other Person and (c) any Capital Stock or other investment held by such   Person  in  any  other  Person.  The  amount  of  any  Investment  at  any  time  shall  be  the  original   principal or capital amount thereof less all returns of principal or equity thereon made on or before   such time and shall, if made by the transfer or exchange of property other than cash, be deemed to   have been made in an original principal or capital amount equal to the fair market value of such   property at the time of such Investment.                    “Lender” shall have the meaning set forth in the preamble to this Agreement.                    “Letter of Direction” shall mean that certain executed letter of direction from Borrower   addressed to Administrative Agent, on behalf of itself and Lenders, directing the disbursement on   the Closing Date of the proceeds of the Loans made on such date.                    “Licensed  Insurance  Entity”  shall  mean  any  Subsidiary  of  the  Borrower  listed  on   Schedule  1.01(b)  to  this  Agreement,  any  other  Subsidiary  of  the  Borrower  that  operates  as  a   licensed  insurance  company,  is  otherwise  regulated  by  a  Governmental  Authority  performing   insurance regulatory functions or is a healthcare entity subject to regulatory capital requirements.                    “Lien” shall mean any mortgage, pledge, security interest, hypothecation, assignment for   collateral purposes, lien (statutory or other) or similar encumbrance, and any easement, right-of-  way, license, restriction (including zoning restrictions), defect, exception or irregularity in title or   similar charge or encumbrance (including any conditional sale or other title retention agreement   or any lease in the nature thereof); provided, that in no event shall an operating lease entered into   in the ordinary course of business or any precautionary UCC filings made pursuant thereto by an   applicable lessor or lessee, be deemed to be a Lien.                    “Lighthouse”  shall  mean  Lighthouse  Health  Plan,  LLC,  a  Florida  limited  liability   company.                    “Lighthouse Capital Contributions” shall mean any capital contribution, loan, advance or   other Investment made in Lighthouse in an aggregate amount not to exceed $4,000,000 after the   Closing Date pursuant to the terms of that certain Memorandum of Understanding, dated as of   September  30,  2019,  by  and  among  Baptist  Hospital,  Inc.,  Lighthouse  and  the  Borrower,  as   amended, restated, supplemented or modified from time to time.                    “Liquidity” shall mean Qualified Cash of the Credit Parties, net of any checks written by   any Credit Party.                    “Loan”  shall  mean,  individually,  any  Loan  made  by  any  Lender  hereunder,  and   collectively, the Loans made by the Lenders hereunder. “Loan” shall include the Initial Term Loan   and each Delayed Draw Term Loan.                    “Make-Whole Premium” shall mean, with respect to any prepayment of the Term Loans   at any time on or prior to the second anniversary of the Closing Date, the excess of (a) the sum of   the present value of (i) one hundred four percent (104%) of the outstanding principal amount of   the Term Loans being prepaid as of such date of prepayment, plus (ii) all required interest   DB1/ 110631747.4                       25    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 payments due on such Term Loans from the date of prepayment through and including the second   anniversary of the Closing Date, which such present value shall be computed using a discount rate   equal to the Treasury Rate plus fifty (50) basis points over (b) the principal amount of the Term   Loans being prepaid; provided that in no event shall the Make-Whole Premium be less than zero.                    “Master  Agreement”  shall  have  the  meaning  set  forth  in  the  definition  of  the  term   “Hedging Transaction.”                    “Material  Adverse  Effect”  shall  mean  a  material  adverse  effect  caused  by  a  material   adverse change in (a) the business, assets, properties, liabilities (actual or contingent), operations,   financial condition or results of operations of the Parent and its Subsidiaries, taken as a whole,   (b) the validity or enforceability of this Agreement or any of the other Credit Documents, (c) the   Secured Parties’ ability to enforce their rights or remedies hereunder or under any of the other   Credit Documents, or (d) the ability of the Parent and its Subsidiaries, taken as a whole, to perform   their payment and other material obligations under the Credit Documents to which they are parties.                    “Material Contract” shall mean, as to any Person, (i) each contract or agreement to which   such Person or any of its Subsidiaries is a party involving aggregate annual consideration payable   to or by such Person or such Subsidiary of $10,000,000 or more, and (ii) all other contracts or   agreements, the loss of which could reasonably be expected to result in a Material Adverse Effect.   A reasonably detailed description of each Material Contract is set forth on Schedule 1.01(c) as of   the Closing Date.                    “Material Joint Venture” shall mean Momentum Health Group, LLC, a Delaware limited   liability company.                    “Material Real Property” shall mean any Real Property that has a fair market value in   excess of $2,000,000, as reasonably determined by the Borrower based on information available   to it.                    “Maturity Date” shall mean the date that is the earliest of (a) December 30, 2024, (b) the   date on which the Commitments are voluntarily terminated pursuant to the terms hereof, (c) the   date  on  which  all  amounts  outstanding  under  this  Agreement  have  been  declared  or  have   automatically become due and payable (whether by acceleration or otherwise) in accordance with   the terms hereof, (d) the date that is ninety-one (91) days prior to the maturity date of the 2021   Convertible  Notes;  provided,  that,  clause  (d)  of  this  definition  shall  not  apply  to  the  2021   Convertible Notes, if the Liquidity at all times within the four (4) months prior to the maturity of   such 2021 Convertible Notes, exceeds the sum of (i) the principal amount of such maturing 2021   Convertible Notes, plus (ii) $40,000,000 and (de) the date that is ninety-one (91) days prior to the   maturity date of the 20212024 Convertible Notes; provided, that, clause (de) of this definition shall   not apply to any 20212024 Convertible Notes, as applicable, if the Liquidity at all times within the   four (4) months prior to the maturity of such 20212024 Convertible Notes, exceeds the sum of (i)   the principal amount of such maturing 20212024 Convertible Notes, plus (ii)   $40,000,000.   DB1/ 110631747.4                       26     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Minimum DDTL Borrowing Amount” shall mean $12,500,000.                    “Moody’s”  shall  mean  Moody’s  Investors  Service,  Inc.  or  any  successor  by  merger  or   consolidation to its business.                    “Mortgage” shall mean a mortgage or a deed of trust, deed to secure debt, trust deed or   other security document entered into by any applicable Credit Party and the Administrative Agent   for the benefit of the Secured Parties in respect of any Real Property owned by such Credit Party,   in such form as agreed  between such Credit Party and the Administrative Agent, as amended,   restated, supplemented or otherwise modified from time to time.                    “Mortgaged Property” shall mean each parcel of Real Property and improvements thereto   with respect to which a Mortgage is granted pursuant to Section 8.11(d).                    “Multiemployer Plan” shall mean a “multiemployer plan” within the meaning of Section   3(37) of ERISA to which any Credit Party or any ERISA Affiliate makes, is making, is obligated,   or within the last six (6) years has been obligated, to make contributions, or with respect to which   any Credit Party has any liability, actual or contingent.                    “Net Proceeds” shall mean (a) in respect of a Disposition or Casualty Event, cash proceeds   as  and  when  received  by  the Person  making  a  Disposition,  as  well  as  insurance  proceeds  and   condemnation and similar awards received on account of a Casualty   Event, net of:   (i) in the event of a Disposition (w) the direct costs and expenses relating to such Disposition, (x)   sales, use or other transaction Taxes actually paid, assessed or estimated by such Person (in good   faith) to be payable in cash within the next twelve (12) months in connection with such proceeds   provided, that if, after the expiration of the twelve (12) month period, the amount of estimated or   assessed Taxes, if any, exceeded the Taxes actually paid in cash in respect of proceeds from such   Disposition,  the  aggregate  amount  of such  excess  shall  constitute Net  Proceeds  under Section   5.02 and, subject to Section 5.02(k), be immediately applied to the prepayment of the Obligations   in accordance with Section 5.02(f), (y) amounts required to be applied to pay principal, interest   and prepayment premiums and penalties on Indebtedness (other than the Obligations) secured by   a Lien on the asset which is the subject of such Disposition and (z) with respect to a Disposition,   any  escrow  or  reserve  for  any  indemnification  payments  (fixed  or  contingent)  attributable  to   seller’s indemnities and representations and warranties to purchaser in respect of the applicable   Disposition undertaken by any Credit Party or other liabilities in connection with such Disposition   (provided that upon release of any such escrow or reserve, the amount released shall be considered   Net Proceeds) and (ii) in the event of a Casualty Event, (x) all money actually applied to repair or   reconstruct the damaged property affected thereby or otherwise reinvested in replacement property   in  accordance  with  this  Agreement,  (y)  all  of  the  costs  and  expenses  reasonably  incurred  in   connection with the collection of such proceeds, award or other payments, and (z) any amounts   retained by or paid to parties having superior rights to such proceeds, awards or other payments   and (b) in respect of any incurrence of Indebtedness, cash proceeds, net of underwriting discounts   and out-of-pocket costs and expenses paid or incurred in connection therewith in favor of any   Person not an Affiliate of a Borrower. in respect of any incurrence of Indebtedness, cash proceeds,   net of underwriting discounts and reasonable out-of-pocket costs              DB1/ 110631747.4                       27    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 and expenses paid or incurred in connection therewith in favor of any Person not an Affiliate of a   Borrower.                    “Net Revenue” means, for any period, (a) the gross revenues during such period of the   Credit Parties and their Subsidiaries, less (b)(i) service level adjustments, liquidated damages and   claims interest arising from service arrangements, (ii) discounts, refunds, rebates, charge backs,   retroactive price adjustments and any other allowances which effectively reduce net selling price   and (iii) any other similar and customary deductions used by any Credit Party in determining net   revenues, all, in respect of (a) and (b), as determined in accordance with GAAP and in the ordinary   course of business (and not, for the avoidance of doubt, revenues from extraordinary, nonrecurring   or unusual events).                    “Non-Consenting Lender” shall have the meaning set forth in Section 12.07(b).          “Non-Excluded Taxes” shall have the meaning set forth in Section 5.04(a).          “Non-U.S. Lender” shall have the meaning set forth in Section 5.04(b).          “Note” shall mean, as the context may require, a DDTL Note or a Term Loan Note.          “Notice of Borrowing” shall have the meaning set forth in Section 2.03(a).          “Notice of Conversion or Continuation” shall have the meaning set forth in Section   2.06.                    “Obligations” shall mean all Loans, advances, debts, liabilities, obligations, covenants   and duties owing by any Credit Party to any Lender, Agent, or any other Person required to be   indemnified hereunder, in each case, that arise under any Credit Document, whether or not for the   payment  of  money,  whether  arising  by  reason  of  an  extension  of  credit,  loan,  guaranty,   indemnification or in any other manner, whether direct or indirect (including those acquired by   assignment), absolute or contingent, due or to become due, now existing or hereafter arising and   however acquired, including all fees, expenses and other amounts accruing during the pendency   of  any  proceeding  of  the  type  described  in  Section  10.01(h),  whether  or  not  allowed  in  such   proceeding.                    “OFAC” shall have the meaning set forth in Section 7.26.                    “Organization Documents” shall mean: (a) with respect to any corporation, the certificate   or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents   with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the   certificate or articles of formation or organization and operating agreement; and (c) with respect   to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture   or  other  applicable  agreement  of  formation  or  organization  and,  if  applicable,  any  agreement,   instrument,  filing  or  notice  with  respect  thereto  filed  in  connection  with  its  formation  or   organization with the applicable Governmental Authority in the jurisdiction                         DB1/ 110631747.4                       28    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 of its formation or organization and, if applicable, any certificate or articles of formation or   organization of such entity.                    “Other Connection Taxes” shall mean, with respect to any recipient, Taxes imposed as a   result of a present or former connection between such recipient and the jurisdiction imposing such   Tax (other than connections arising from such recipient having executed, delivered, become a party   to,  performed  its  obligations  under,  received  payments  under,  received  or  perfected  a security   interest  under,  engaged  in  any other  transaction  pursuant  to  or  enforced  any Loan,  or  sold  or   assigned an interest in any Loan).                    “Other  Taxes”  shall  mean  any  and  all  present  or  future  stamp,  court,  documentary,   intangible recording,  filing or similar Taxes or any other excise or property Taxes,  charges or   similar levies (but excluding any Tax, charge or levy that constitutes an Excluded Tax) arising   from any payment made hereunder or from the execution, delivery or enforcement of, from the   receipt or perfection of a security interest under, or otherwise with respect to, this Agreement,   except any such Taxes that are Other Connection Taxes imposed with respect to an assignment   (other than an assignment made pursuant to Section 12.07).                    “Parent” shall have the meaning set forth in the recitals to this Agreement.          “Participant” shall have the meaning set forth in Section 12.06(c)(i).          “Participant Register” shall have the meaning set forth in Section 12.06(c)(iii).          “Passport  Health  Acquisition”  shall  mean  the  acquisition  by  Justify  Holdings,  Inc.  of   substantially all the assets of University Health Care, Inc., d/b/a Passport Health Plan and Passport   Health Solutions, LLC.                    “Passport  Health  Acquisition  Agreement”  shall  mean  the  Asset  Purchase  Agreement   dated as of May 28, 2019, as amended on December 30, 2019, by and between University Health   Care, Inc., Passport Health Solutions, LLC, Justify Holdings, Inc. and Parent.                    “Passport Health Note” shall mean that certain Surplus Note issued by University Health   Care, Inc. in favor of Parent in an aggregate amount equal to $40,000,000.                    “Passport Shareholder Payment” shall mean any payment to the Sponsor Stockholders   required to be made by any Credit Party pursuant to Section 4(b) of the Passport Stockholders   Agreement.                    “Passport  Stockholders  Agreement”  shall  mean  that  certain  Stockholders  Agreement   dated  as  of  December  30,  2019,  made  by  and  among  Justify  Holdings,  Inc.,  University  of   Louisville  Physicians,  Inc.,  Family  Health  Centers,  Inc.,  University  of  Louisville  Research   Foundation,  Inc.,  Louisville  Metro  Department  of  Public  Health  and  Wellness,  Park  DuValle   Community Health Center, Inc., University Norton Healthcare, Inc., University Medical Center,   Inc., EH Holding Company, Inc., Parent, the Jewish Heritage Fund for Excellence, Inc. and each   other Person who executes a joinder attached thereto.             DB1/ 110631747.4                       29    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Patriot Act” shall have the meaning set forth in Section 12.20.                    “PBGC”  shall  mean  the  Pension  Benefit  Guaranty  Corporation  established  pursuant  to   Section 4002 of ERISA, or any successor thereto.                    “Pension Plan” shall mean any single-employer plan, as defined in Section 4001(a)(15) of   ERISA, and subject to Title IV of ERISA, Section 412 of the Code or Sections 302 or 303 of   ERISA,  that  is  or  was  within  any  of  the  preceding  six  plan  years  sponsored,  maintained  or   contributed to (or to which there is or was an obligation to contribute) by any Credit Party or any   ERISA  Affiliate  thereof,  or  respect  of  which  any  Credit  Party  or any  ERISA  Affiliate  thereof   otherwise has any obligation or liability, contingent or otherwise.                    “Permits”  shall  mean,  with  respect  to  any  Person,  any  permit,  approval,  clearance,   authorization, enrollment, license, registration, certificate, concession, grant, franchise, variance   or permission from, and any other contractual obligations with, any Governmental Authority, in   each case, whether or not having the force of law and applicable to or binding upon such Person   or any of its property or Products or to which such Person or any of its property or Products is   subject.                    “Permitted Acquisition” shall mean any acquisition by a Credit Party or a Subsidiary of   (i) all or substantially all of the assets of a target, which assets are located in the United States or   (ii) one hundred percent (100%) of the Capital Stock of a target organized under the laws of any   State in the United States or the District of Columbia, in each case, to the extent that each of the   following conditions shall have been satisfied:                          (a)   the Parent and its Subsidiaries (including any new Subsidiary) shall   execute and deliver the agreements, instruments and other documents required by Section 8.11;   provided, that, the Parent  and its Subsidiaries may acquire Persons that  do not become Credit   Parties and assets that do not become Collateral in an amount not to exceed a total consideration   of $25,000,000 after the Closing Date;                          (b)   such acquisition shall not be  hostile and shall have been approved by the   board of directors (or other similar body) and/or the stockholders or other equityholders of the   target;                          (c)   no  Event  of  Default  shall  then  exist  or  would  exist after giving effect   thereto;                      (d)   pro  forma  Liquidity as  of the date  of  consummation  of  such  acquisition    (after giving effect to the funding of all Loans and use of cash as of such date) of not less than   $40,000,000);                          (e)   Parent and its Subsidiaries shall be in pro forma compliance with the   covenants set forth in Section 9.12 and 9.13;                                    DB1/ 110631747.4                       30    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (f)   the total consideration paid or payable for Permitted Acquisitions shall be   funded solely with (x) net proceeds from an issuance of Qualified Capital Stock or cash on hand   and from operations and (y) proceeds from a DDTL Facility; and                (g)   the total consideration paid with respect to target Persons with pro forma   Target Consolidated Adjusted EBITDA that is less than $0 shall not exceed $10,000,000 in the   aggregate after the Closing Date.                    “Permitted Holders” shall mean TPG Growth II Advisors, Inc., TPG Growth II BDH,   L.P.  and  TPG  Eagle  Holdings  L.P.  and  each  of  their  Affiliates  and  any  funds  or  partnerships   managed by any of them (but not including any portfolio companies or operating companies of   any of the foregoing, notwithstanding the form of ownership of any such portfolio or operating   companies), The Advisory Board Company and University of Pittsburgh Medical Center.                    “Permitted Liens” shall have the meaning set forth in Section 9.02.                    “Permitted  Refinancing  Indebtedness”  shall  mean  Indebtedness  issued  or  incurred   (including by means of the extension or renewal of existing Indebtedness) to refinance, refund,   extend,  renew  or  replace  existing  Indebtedness  of  any  Credit  Party  or  any  of  its  Subsidiaries   permitted  hereunder  (the  “Refinanced  Indebtedness”);  provided,  that  the  original  principal   amount of such refinancing, refunding, extending, renewing or replacing Indebtedness does not   exceed the principal amount of such Refinanced Indebtedness plus the amount of any interest,   premiums or penalties required to be paid thereon plus fees and expenses associated therewith.                    “Person” shall mean any individual, partnership, joint venture, firm, corporation, limited   liability company, association, trust or other enterprise or any Governmental Authority.                    “Plan” shall mean a Pension Plan or a Multiemployer Plan.                    “Prepayment Premium” shall have the meaning set forth in Section 5.01(a).                    “Primary  Obligator”  shall  have  the  meaning  set  forth  in  the  definition  of  “Guarantee   Obligations.”                    “Prime Rate” shall mean a variable per annum rate, as of any date of determination, equal   to the rate as of such date published in The Wall Street Journal as being the “Prime Rate” (or, if   more than one rate is published as the Prime Rate, then the highest of such rates). The Prime Rate   will change as of the date of publication in The Wall Street Journal of a Prime Rate that is different   from that published on the preceding Business Day. In the event that The Wall Street Journal shall,   for any reason, fail or cease to publish the Prime Rate, the Administrative Agent shall choose a   reasonably comparable index or source to use as the basis for the Prime Rate.          “Privacy  and  Security  Rules”  shall  have  the  meaning  set  forth  in  Section  7.31(i).          “Products” shall mean any item or any service that is researched or developed, created,   tested,  packaged,  labeled,  distributed,  manufactured,  managed,  performed,  or  otherwise  used,              DB1/ 110631747.4                       31    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 offered, marketed, sold, or handled by or on behalf of the Credit Parties or any of their   Subsidiaries, whether marketed or in development.          “Pro Forma Basis” shall mean, for purposes of calculating the Total Secured Leverage   Ratio:                (a)  Investments, acquisitions, mergers, consolidations and dispositions of any    Subsidiary, line of business or division, that have been made by the specified Person or any of its   Subsidiaries, or any Person or any of its Subsidiaries acquired by, merged or consolidated with the   specified Person or any of its Subsidiaries, and including any related financing transactions and   incurrences  of  Indebtedness,  and  including  increases  in  ownership  of  Subsidiaries,  during  the   applicable reference period or subsequent to such reference period and on or prior to the date of   determination  will  be  given  pro  forma  effect,  as  if  they  had  occurred  on  the  first  day  of  the   applicable reference period;                (b)   any Person that is a Subsidiary on the date of determination will be   deemed to have been a Subsidiary at all times during such reference period; and                (c)   any Person that is not a Subsidiary on the date of determination will be   deemed not to have been a Subsidiary at any time during such reference period;                    For purposes of this definition, whenever pro forma effect is given to a transaction, the pro   forma calculations shall be made in good faith by an Authorized Officer of the Borrower and shall   be  reasonably  satisfactory  to  the  Administrative  Agent.  Any  such  pro  forma  calculation  may   include adjustments appropriate, in the good faith determination of the Borrower as set forth in an   officers’ certificate, to reflect operating expense reductions (but not revenue increases) expected   to result from the applicable pro forma event if such adjustments are reasonably satisfactory to the   Administrative Agent.                    “Pro Rata Share” shall mean (a) with respect to the Initial Term Loan Commitment of any   Lender  at  any  time,  a  percentage,  the  numerator  of  which  shall  be  the  sum  of  such  Lender’s   unfunded Initial Term Loan Commitment, plus such Lender’s funded Initial Term Loans, and the   denominator  of  which  shall  be  the  sum  of  the  unused  Initial  Term  Loan  Commitments  of  all   Lenders,  plus  all  funded  Initial  Term  Loans  of  all  Lenders  or  (b)  with  respect  to  the  DDTL   Commitment of any Lender at any time, a percentage, the numerator of be the sum of such Lender’s   unfunded  DDTL  Commitment,  plus  such  Lender’s  funded  Delayed  Draw  Term  Loan,  and  the   denominator of which shall be the sum of the DDTL Commitment of all Lenders, plus all funded   Delayed Draw Term Loan of all Lenders.                    “Qualified Capital Stock” shall mean any Capital Stock that is not Disqualified Capital   Stock.                    “Qualified Cash” shall mean, as of any date of determination, the amount of  unrestricted   cash  and  Cash  Equivalents  of  the  Credit  Parties  that  are  in  deposit  accounts  or  in  securities   accounts,  or  any  combination  thereof,  which  deposit  accounts  and  securities  accounts  are  the   subject of Control Agreements and are maintained by a branch office of the applicable bank or   DB1/ 110631747.4                       32    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 securities intermediary located within the United States of America; provided, that, for the first   sixty  (60)  days  (or  such  longer  period  as  reasonably  agreed  to  by  the  Administrative  Agent)   following the Closing Date there shall be no requirement that cash and Cash Equivalents of the   Credit Parties be held in accounts subject to Control Agreements in order for such cash and Cash   Equivalents to be Qualified Cash.                    “Real Property” shall mean, with respect to any Person, all right, title and interest of such   Person  (including,  without  limitation,  any  leasehold  estate) in  and  to  a  parcel  of  real  property   owned,  leased  or  operated  by  such  Person  together  with,  in  each  case,  all  improvements  and   appurtenant  fixtures,  equipment,  personal  property,  easements  and  other  property  and  rights   incidental to the ownership, lease or operation thereof.                    “Refinanced Indebtedness” shall have the meaning set forth in the definition of “Permitted   Refinancing Indebtedness.”                    “Register” shall have the meaning set forth in Section 12.06(b)(iv).                    “Regulatory Matters” shall mean, collectively, activities that are subject to Health Care   Laws.                    “Regulation D” shall mean Regulation D of the Board as from time to time in effect and   any successor to all or a portion thereof establishing reserve requirements.                    “Regulation U” shall mean Regulation U of the Board as from time to time in effect and   any successor to all or a portion thereof establishing margin requirements.                    “Regulation X” shall mean Regulation X of the Board as from time to time in effect and   any successor to all or a portion thereof establishing margin requirements.                    “Regulation Notice” shall have the meaning set forth in Section 5.02(k).                    “Related Parties” shall mean, with respect to any specified Person, such Person’s Affiliates   and the directors, officers, employees, agents, trustees, advisors of such Person and any Person   that possesses, directly or indirectly, the power to direct or cause the direction of the management   or policies of such Person, whether through the ability to exercise voting power, by contract or   otherwise.          “Release” shall mean a “release,” as such term  has the meaning set forth in CERCLA.          “Reportable Event” shall mean an event described in Section 4043 of ERISA and the   regulations  thereunder  (excluding  any  such  event  for  which  the  notice  requirement  has  been   waived by the PBGC).                    “Required Lenders” shall mean, at any date, Lenders having or holding a majority of (a)   unused Commitments of Lenders plus (b) the aggregate outstanding principal amount of the Loans;   provided that the Commitment of, and the portion of the outstanding principal amount of              DB1/ 110631747.4                       33    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 the Loans held or deemed held by, any Defaulting Lender shall be excluded for purposes of   making a determination of Required Lenders.                    “Restricted  Payment”  shall  mean,  with  respect  to  any  Person,  (a)  the  declaration  or   payment of any dividend on, or the making of any payment or distribution on account of, or setting   apart  assets  for  a  sinking  or  other  analogous  fund  for  the  purchase,  redemption,  defeasance,   retirement or other acquisition of, any class of Capital Stock of such Person or any warrants or   options to purchase any such Capital Stock, whether now or hereafter outstanding, or the making   of any other distribution in respect thereof, either directly or indirectly, whether in cash or property   (it  being  understood,  for  the  avoidance  of  doubt,  that  payments  in  the  form  of  Capital  Stock   pursuant to an employee benefit plan shall not constitute Restricted Payments), (b) the payment or   prepayment  of  principal  of,  or  premium  or  interest  or  any  other  amount  in  respect  of,  any   Indebtedness that is contractually subordinate to the Obligations unless such payment is permitted   under the terms of the subordination agreement applicable thereto, (c) any payment in respect of   earn-out obligations and (d) any payment with respect to the Convertible Senior Notes.                    “Sanctions” shall have the meaning set forth in Section 7.26.          “SEC” means the Securities and Exchange Commission.          “S&P”  shall  mean  Standard  &  Poor’s  Ratings  Services  or  any  successor  by  merger  or   consolidation to its business.                    “Secured Parties” shall mean, collectively, (a) the Lenders, (b) the Administrative Agent,   (c) the beneficiaries of each indemnification obligation undertaken by any Credit Party under the   Credit Documents and (d) any successors, endorsees, transferees and permitted assigns of each of   the foregoing.                    “Securitization” shall have the meaning set forth in Section 12.08.                    “Security Agreement” shall mean a Security Agreement, by and among each Credit Party   and  the  Administrative  Agent  for  the  benefit  of  the  Secured  Parties,  in  form  and  substance   reasonably  satisfactory  to  the  Administrative  Agent,  as  amended,  restated,  supplemented  or   otherwise modified from time to time.                    “Security Documents” shall mean, collectively, the Security Agreement, any Mortgage   and  each  other  security  agreement  or  other  instrument  or  document  executed  and  delivered   pursuant  to  Section  8.11  or  pursuant  to  any  of  the  Security  Documents  to  secure  any  of  the   Obligations.                    “Significant Subsidiary” means a Subsidiary of the Borrower that meets the definition of   “significant subsidiary” in Article 1, Rule 1-02 of Regulation S-X under the Exchange Act.                    “Solvency Certificate” shall mean a solvency certificate dated as of the Closing Date, duly   executed and delivered by an Authorized Officer of the Borrower to the Administrative Agent, in   form and substance reasonably satisfactory to the Administrative Agent.             DB1/ 110631747.4                       34    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Solvent” shall mean, with respect to any Person, at any date, that (a) the sum of such   Person’s debt (including Contingent Liabilities) does not exceed the present fair saleable value of   such Person’s present assets, (b) such Person’s capital is not unreasonably small in relation to its   business as contemplated on such date, (c) such Person has not incurred and does not intend to   incur debts including current obligations beyond its ability to pay such debts as they become due   (whether at maturity or otherwise) and (d) such Person is “solvent” within the meaning given that   term and similar terms under Applicable Laws relating to fraudulent transfers and conveyances.   For  purposes  of  this  definition,  the  amount  of  any  Contingent  Liability  at  any  time  shall  be   computed as the amount that, in light of all of the facts and circumstances existing at such time,   represents the amount that can reasonably be expected to become an actual or matured liability   (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of   Financial Accounting Standard No. 5).          “Somos”  shall  mean  Somos  Innovation,  LLC,  a  Delaware  limited  liability  company.          “Somos  Capital  Contributions”  shall  mean  any  capital  contribution,  loan,  advance  or   other Investment made in Somos in an aggregate amount not to exceed $8,000,000, no more than   $4,000,000 of which such amount may be paid in cash, after the Closing Date pursuant to the terms   of that certain Amended and Restated Operating Agreement, dated as of May 21, 2019, by and   among Somos, Borrower and the other members of Somos, as amended, restated, supplemented or   modified from time to time.                    “Sponsor  Stockholder”  shall  have  the  meaning  set  forth  in  the  Passport  Stockholders   Agreement.                    “Statutory Reserve Rate” shall mean, for any day as applied to any Eurodollar Loan, a   fraction (expressed as a decimal), the numerator of which is the number one and the denominator   of which is the number one minus the aggregate of the maximum reserve percentages that are in   effect  on  that  day  (including  any  marginal,  special,  emergency  or  supplemental  reserves),   expressed  as  a  decimal,  as  prescribed  by  the Board  and  to  which  the  Administrative Agent  is   subject,  for  Eurocurrency  funding  (currently  referred  to  as  “Eurocurrency  Liabilities”  in   Regulation D). Such reserve percentages shall include those imposed pursuant to such Regulation   D. Eurodollar Loans shall be deemed to constitute Eurocurrency funding and to be subject to such   reserve requirements without benefit of or credit for proration, exemptions or offsets that may be   available from time to time to any Lender under such Regulation D or any comparable regulation.   The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any   change in any reserve percentage.                    “Subsidiary” of any Person shall mean and include (a) any corporation more than fifty   percent (50%) of whose Voting Stock having by the terms thereof power to elect a majority of the   directors of such corporation (irrespective of whether or not at the time stock of any class or classes   of such corporation shall have or might have voting power by reason of the happening of any   contingency) is at the time owned by such Person, directly or indirectly, through Subsidiaries and   (b) any partnership, association, joint venture or other entity in which such Person, directly or   indirectly, through Subsidiaries, has more than a fifty percent (50%) voting equity interest at the   time. Unless otherwise expressly provided, all references herein to a “Subsidiary” shall mean   DB1/ 110631747.4                       35    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 a Subsidiary of a Credit Party. Notwithstanding the foregoing, solely to the extent the Securities   Exchange  Commission  has  permitted  the  Parent  to  treat  Justify  Holdings,  Inc.  as  being  an   unconsolidated entity, then for the purposes of the definition of “Consolidated Adjusted EBITDA,”   “Consolidated Net Income,” “Consolidated Secured Debt,” “Funded Debt” and Section 8.01(a)-  (c), Section 8.01(f) and Section 9.13 Justify Holdings, Inc. shall not be considered a “Subsidiary.”                    “Target Consolidated Adjusted EBITDA” shall mean, for any specified trailing 12 month   period, an amount determined for any Person equal to (a) the consolidated net income (or deficit)   of such Person in accordance with GAAP after eliminating all extraordinary nonrecurring items of   income, plus (b) without duplication and to the extent deducted in arriving at the consolidated net   income of such Person, the sum of, without duplication, amounts for (i) total interest expense, (ii)   provisions  for  Taxes  based  on  income,  (iii)  total  depreciation  expense,  (iv)  total  amortization   expense, and (v) any other non-cash charges and expenses deducted in arriving at the consolidated   net income of such Person (excluding any such non-cash item to the extent that it represents an   accrual or reserve for potential cash items in any future period or amortization of an item that was   paid in a prior period), minus (c) without duplication and to the extent included in arriving at the   consolidated net income of such Person, amounts for non-cash gains (excluding any such non-cash   item to the extent it represents the reversal of an accrual or reserve for potential cash items in any   prior period).                    “Taxes”  shall  mean  all  income,  stamp  or  other  taxes,  duties,  levies,  imposts,  charges,   assessments,  fees,  deductions  or  withholdings,  now  or  hereafter  imposed,  enacted,  levied,   collected,  withheld  or  assessed  by  any  Governmental  Authority,  and  all  interest,  penalties,   additions to tax or similar liabilities with respect thereto.                    “Term Loan” shall mean the Initial Term Loan or Delayed Draw Term Loan.          “Term Loan Note” shall mean a promissory note substantially in the form of Exhibit T-1.          “Test Period” shall mean, for any date of determination under this Agreement, the four   (4) consecutive fiscal quarters of Borrower most recently ended as of such date of determination.                    “Total Secured Leverage Ratio” shall mean, as of the last day of any Test Period, the ratio   of (a) Consolidated Secured Debt as of such date to (b) Consolidated Adjusted EBITDA for such   Test Period.                    “TRA” shall mean that certain Income Tax Receivables Agreement, dated as of June 4,   2015, by and among Parent, Borrower, TPG Eagle Holdings, L.P., Ptolemy Capital, LLC, The   Advisory Board Company, UPMC, TPG Growth II BDH, L.P., Premier Health Partners, Oxeon   Partners, LLC and Medstar Health, Inc., as amended, restated, supplemented or otherwise modified   from time to time.                    “Transaction Documents” shall mean each of the documents executed and/or delivered in   connection  with  the  Transactions,  including,  without  limitation,  the  Credit  Documents  but   excluding the Warrants.   DB1/ 110631747.4                       36     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Transactions”  shall  mean,  collectively,  the  transactions  contemplated  by  the  Credit   Documents, including the Passport Health Acquisition and the transactions contemplated by the   Passport Health Acquisition Agreement.                    “Transactions Rule” shall have the meaning set forth in Section 7.31(i).                    “Treasury Rate” shall mean as of any prepayment date, shall mean the yield to maturity at   the time of computation of United States Treasury Securities with a constant maturity (as compiled   and published in the most recent Federal Reserve Statistical Release H.15 (519), which has become   publicly available at least (2) two Business Days prior such prepayment (or, if such Statistical   Release is no longer published, any publicly available source or similar market data) most nearly   equal to the period from such prepayment date to the second anniversary of the Closing Date;   provided, however, that if the period from such prepayment date to the second anniversary of the   Closing Date, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest   one twelfth of a year) from the weekly average yields of United States Treasury Securities for   which such yields are given.          “Trustee” shall have the meaning set forth in the definition “2021 Convertible Notes.”          “Type” shall mean, as to any Loan, its nature as an ABR Loan or Eurodollar Loan.          “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the   State of New York.                    “Unasserted Contingent Obligations” shall have the meaning given to such term in the   Security Agreement.                    “Unfunded Current Liability” of any Pension Plan shall mean the amount, if any, by which   the present value of all accumulated benefit obligations under such Pension Plan as of the close of   its most recent plan year, determined in accordance with FASB Accounting Standards Codification   715: Compensation - Retirement Benefits, as in effect on the date hereof, exceeds the fair market   value of the assets of such Pension Plan allocable to such accrued benefits.                    “Unused DDTL Commitment Fee” shall have the meaning set forth in Section 4.01(b).          “U.S.” and “United States” shall mean the United States of America.          “Voting Stock” shall mean, with respect to any Person, shares of such Person’s Capital   Stock having the right  to vote for the election of directors (or Persons acting in a comparable   capacity) of such Person under ordinary circumstances.                    “Warrant Holder” shall mean Ares.                    “Warrants”  shall  mean  the  warrants  and  related  documentation  issued  to  the  Warrant   Holder equal to 1.75% of the fully diluted shares outstanding of Class A common stock of  Parent   with a strike price equal to the amount set forth in the warrantsWarrants.              DB1/ 110631747.4                       37    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       “Write-Down and Conversion Powers” shall mean, with respect to any EEA Resolution   Authority, the write-down and conversion powers of such EEA Resolution Authority from time to   time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and   conversion powers are described in the EU Bail-In Legislation Schedule.          SECTION 1.02  Other Interpretive Provisions. With reference to this Agreement and   each other Credit Document, unless otherwise specified herein or in such other Credit Document:                (a)   The meanings of defined terms are equally applicable to the singular and   plural forms of the defined terms.                (b)   The words “herein,” “hereto,” “hereof” and “hereunder” and words of   similar import when used in any Credit Document shall refer to such Credit Document as a   whole and not to any particular provision thereof.                (c)   Article,  Section,  Exhibit  and  Schedule  references  are  to  the  Credit   Document in which such reference appears.                (d)   The term “including” is by way of example and not limitation.                (e)   The term “documents” includes any and all instruments, documents,   agreements, certificates, notices, reports, financial statements and other writings, however   evidenced, whether in physical or electronic form.                (f)   In  the  computation  of  periods  of  time  from  a  specified  date  to  a  later   specified date, the word “from” means “from and including”; the words “to” and “until” each   mean “to but excluding”; and the word “through” means “to and including.”                (g)   Section headings herein  and in the other Credit  Documents are included   for convenience of reference only and shall not affect the interpretation of this Agreement or any   other Credit Document.          SECTION 1.03  Accounting   Terms  and  Determination.  All accounting terms not   specifically or completely defined herein shall be construed in conformity with, and all financial   data (including financial ratios and other financial calculations) required to be submitted pursuant   to this Agreement shall be prepared in conformity with, GAAP, applied in a manner consistent   with  that  used  in  preparing  the  Historical  Financial  Statements  set  forth  in  clause  (a)  of  such   definition, except as otherwise specifically prescribed herein. Notwithstanding any other provision   contained herein, all terms of an accounting or financial nature used herein shall be construed, and   all computations of amounts and ratios referred to in Article IX shall be made, without giving   effect to any election under Accounting Standards Codification 825-10 or 470-20 (or any other   Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other   liabilities of any Credit Party or any Subsidiary of any Credit Party at “fair value.” A breach of any   Financial Performance Covenant shall be deemed to have occurred as of the last day of the relevant   specified measurement period, regardless of when the financial statements reflecting such breach   are delivered to the Administrative Agent.   DB1/ 110631747.4                       38    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 1.04  Rounding. Any financial ratios required to be maintained or complied   with by the Borrower pursuant to this Agreement (or required to be satisfied in order for a specific   action  to  be  permitted  under  this  Agreement)  shall  be  calculated  by  dividing  the  appropriate   component by the other component, carrying the result to one place more than the number of places   by which such ratio is expressed herein and rounding the result up or down to the nearest number   (with a rounding-up if there is no nearest number).          SECTION 1.05  References  to  Agreements,  Laws,  etc.  Unless otherwise expressly   provided  herein,  (a)  references  to  Organization  Documents,  agreements  (including  the  Credit   Documents) and other Material Contracts shall be deemed to include all subsequent amendments,   restatements,  amendment  and  restatements,  extensions,  supplements  and  other  modifications   thereto, but only to the extent that such amendments, restatements, amendment and restatements,   extensions, supplements and other modifications are permitted by any Credit Document; and (b)   references  to  any  Applicable  Law  shall  include  all  statutory  and  regulatory  provisions   consolidating, amending, replacing, supplementing or interpreting such Applicable Law.          SECTION 1.06  Times  of  Day.  Unless otherwise specified, all references herein to   times of day shall be references to Eastern time (daylight or standard, as applicable).          SECTION 1.07  Timing   of   Payment of  Performance.  When the payment  of any   obligation or the performance of any covenant, duty or obligation is stated to be due or performance   required on a day which is not a Business Day, the date of such payment (other than as described   in the definition of Interest Period) or performance shall extend to the immediately succeeding   Business Day.          SECTION 1.08  Corporate Terminology. Any reference to officers, shareholders, stock,   shares, directors, boards of directors, corporate authority, articles of incorporation, bylaws or any   other  such  references  to  matters  relating  to  a  corporation  made  herein  or  in  any  other  Credit   Document with respect to a Person that is not a corporation shall mean and be references to the   comparable terms used with respect to such Person.          SECTION 1.09  UCC Definitions. When used in this Agreement, the following terms   have  the  same  definitions  as  provided  in  Article  9  of  the  UCC,  but  for  convenience  in  this   Agreement  the  first  letter  of  all  such  terms  shall  be  capitalized: “Accession,”  “Account,”   “Account Debtor,” “Authenticate” (and all derivations thereof), “Certificate Of Title”, “Chattel   Paper,” “Commercial Tort Claim,” “Deposit Account,” “Document,”  “Equipment,” “General   Intangible,”  “Goods,”  “Health-Care-Insurance  Receivable,”  “Instrument,”  “Inventory,”   “Investment  Property,”  “Letter-Of-Credit  Right,”  “Obligor,”  “Proceeds” (as  specifically   defined in Section 9-102(64) of the UCC), “Record,” “Secondary Obligor,” “Secured Party,”   “Software” and “Supporting Obligation.”          SECTION 1.10  Divisions;  Series.  For  all purposes under the Credit Documents, if,  in   connection with any division or plan of division with respect to a limited liability company under   Delaware law (or any comparable event under a different jurisdiction’s laws) or an allocation of   assets to a series of a limited liability company under Delaware law (or any comparable event   under a different  jurisdiction’s  laws),  (a) any asset,  right,  obligation or liability of any  Person   DB1/ 110631747.4                       39    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 becomes the asset, right, obligation or liability of a different Person, then such transaction shall   constitute  a  “transfer”  (as  used  in  the  definition  of  “Disposition”  contained  herein)  from  the   original Person to the subsequent Person, and (b) any new Person comes into existence, such new   Person shall be deemed to have been organized by the holders of its Capital Stock on the first date   of its existence.                                     ARTICLE II                          Amount and Terms of Credit Facilities          SECTION 2.01  Loans.                (a)   Subject to and upon the terms and conditions herein set forth:                      (x) Each Lender having an Initial Term Loan Commitment, severally         agrees to make a term loan (collectively, the “Initial Term Loan”) to the Borrower on the         Closing Date in the amount of the Initial Term Loan Commitment of such Lender.                      (y) Each Lender having a DDTL Commitment, severally agrees to make a         term loan or loans (collectively, the “Delayed Draw Term Loan”) to the Borrower on or         before  the DDTL Commitment  Expiration  Date  in  the  aggregate  amount  of  the  DDTL         Commitment of such Lender.                (b)   Each  of  the  Term  Loans  made  pursuant  to  Section  2.01(a)  may,  at  the   option of the Borrower, (i) be incurred and maintained as, and/or converted into, ABR Loans or   Eurodollar Loans; provided, that all such Term Loans made by each of the Lenders pursuant to the   same  Borrowing  shall,  unless  otherwise  specifically  provided  herein,  consist  entirely  of  Term   Loans of the same Type and (ii) may be repaid or prepaid in accordance with the provisions hereof,   but once repaid or prepaid may not be reborrowed.                (c)   Each Lender, may at its option, make any Eurodollar Loan by causing any   domestic or foreign branch or Affiliate of such Lender to make such Eurodollar Loan; provided,   that (i) any exercise of such option shall not affect the obligation of the Borrower to repay such   Eurodollar Loan and (ii) in exercising such option, such Lender shall use its reasonable efforts to   minimize any increased costs to the Borrower resulting therefrom.                (d)   Reductions in DDTL Commitments. Borrower may at any time upon at   least two (2) Business Days' (or such shorter period as is acceptable to Administrative Agent) prior   written  notice  by  the  Borrower  to  the  Administrative  Agent  permanently  reduce  any  DDTL   Commitment;  provided  that such reductions shall  be in an amount greater than or equal  to   $1,000,000 or, if less, the remaining amount of such DDTL Commitment. All reductions of a   DDTL  Commitment  shall  be  allocated  pro  rata  among  all  Lenders  holding  such  DDTL   Commitment.                (e)   Delayed Draw Term Loan Conditions:    DB1/ 110631747.4                       40    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                   (i)   Delayed Draw Term Loan Conditions.  No Lender with a DDTL   Commitment shall be obligated to fund any Delayed Draw Term Loan, unless each of the following   conditions have been satisfied or waived in accordance with this Agreement (in addition to all   other conditions to the funding of Delayed Draw Term Loan set forth in this Agreement):                                      a. no  Default  or  Event  of  Default  shall  have  occurred  or  be                              continuing prior to and immediately after giving effect to such                              Delayed Draw Term Loan;                                      b. proceeds of the Delayed Draw Term Loan shall be used by the                              Borrower solely for the purposes set forth in Section 8.10;                                      c. to the extent the Delayed Draw Term Loans are to be used for                              the 2021 Convertible Notes Repurchase, Administrative Agent                              shall have received a notice from Parent specifying (i) the date                              of  redemption  and  (ii)  the  principal  amount  of  the  2021                              Convertible  Notes  being  redeemed,  together  with  interest                              thereon payable on such date and evidence satisfactory to the                              Administrative  Agent  that  after  giving  effect  to  such                              redemption,  no  2021  Convertible  Notes  shall  remain                              outstanding;                                      d. Administrative Agent shall have received a Notice of Borrowing                              in  form  and  substance  reasonably  satisfactory  to  the                              Administrative Agent;                                      e. Administrative Agent shall have received a pro forma balance                              sheet of Parent and its Subsidiaries giving effect to the Delayed                              Draw Term Loan;                                      f. immediately  after  giving  effect  to  such  Delayed  Draw  Term                              Loan, no more than four (4) Delayed Draw Term Loans have                              been made;                                      g. Liquidity on a pro forma basis shall not be less  than                              $40,000,000;                                      h. Administrative Agent shall have received evidence, in form and                              substance  satisfactory  to  the  Administrative  Agent,  that  the                              Borrower  has  achieved  a  minimum  Net  Revenue  of  (i)  on  or                              before March 31, 2020, $850,000,000 or (i) after April 1, 2020,                              $800,000800,000,000, in each case, for the twelve-month period                              ending as of the last day of the fiscal quarter for which financial                              statements were delivered in accordance with Section 8.01(b);                              provided, that, to the extent True Health New Mexico,              DB1/ 110631747.4                       41     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                            Inc.  is  sold,  transferred  or  otherwise  disposed  of  for  Net                              Proceeds  of  $12,500,000  or  more  during  any  fiscal  quarter                              pursuant to a transaction permitted hereunder, then the minimum                              Net  Revenue  required  by  this  subclause  shall  thereafter  be                              reduced by an amount equal to the lesser of (x)                              $150,000,000  and  (y)  the  Net  Revenue  contributed  by  True                              Health New Mexico, Inc. for the twelve (12) month period ended                              as  of  last  fiscal  quarter  for  which  such  Net  Revenue  was                              calculated immediately prior to the consummation of such sale,                              transfer or disposition; and                                      i. each of the conditions set forth in Section 6.02 shall have been                              satisfied (it being understood that all references to “the date of                              such Credit Extension” or similar language in Section 6.02 shall                              be deemed to refer to date of funding of the Delayed Draw Term                              Loan).                                (ii)  Terms.  Each Delayed Draw Term Loan shall have the same   pricing and maturity as the Initial Term Loan.                                (iii) Required Amendments. The Loans and Commitments  established   pursuant to this Section 2.01 shall constitute Term Loans and Commitments hereunder and shall   be entitled to all the benefits afforded by, this Agreement and the other Credit Documents, and   shall, without limiting the foregoing, benefit equally and ratably from the guarantees and security   interests created by the applicable Collateral Documents. The Credit Parties shall take any actions   reasonably required by the Administrative Agent to ensure that the Liens and security interests   granted  by  the  applicable  Collateral  Documents  continue  to  be  perfected  under  the  UCC  or   otherwise after giving effect to the establishment of any such new Loans and Commitments to the   extent provided in any Collateral Documents. Each of the parties hereto, hereby agrees that the   Administrative Agent may, in consultation with the Borrower, take any and all action as may be   reasonably necessary to ensure that all Delayed Draw Term Loans, which are not separate tranches,   when originally made, are included in each Borrowing of outstanding Term Loans on a pro rata   basis. This may be accomplished by requiring each outstanding Borrowing of Term Loans that are   Eurodollar Loans to be converted into a Borrowing of Term Loans that are ABR Loans on the date   of each such Delayed Draw Term Loan, or by allocating a portion of each such Delayed Draw   Term Loan to each outstanding Borrowing of Term Loans that are Eurodollar Loans on a pro rata   basis. Any conversion of Eurodollar Loans to ABR Loans required by the preceding sentence shall   be subject to Section 2.11.                    SECTION 2.02  Minimum  Amount   of   Each   Borrowing;   Maximum   Number   of   Borrowings. The aggregate principal amount of each Borrowing of Delayed Draw Term Loan shall   not be less than the Minimum DDTL Borrowing Amount. More than one (1) Borrowing may be   incurred on any date; provided, that at no time shall there be outstanding more than five   (5) Borrowings of Eurodollar Loans under this Agreement.                    SECTION 2.03  Notice of Borrowing.   DB1/ 110631747.4                       42    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (a)   The Borrower shall give the Administrative Agent prior written notice in   the form of Exhibit N-1 (a “Notice of Borrowing”) (or telephonic notice promptly confirmed in   writing) (i) prior to 1:00 p.m. (New York time) at least three (3) Business Days’ prior to each   Borrowing of Term Loans, which are to be initially Eurodollar Loans and (ii) prior to 12:00 noon   (New York time) on the date of each Borrowing of Term Loans which are to be ABR Loans.   Except  as  otherwise  expressly  provided  in  Section  2.10,  each  Notice  of  Borrowing  shall  be   irrevocable and shall specify (A) the aggregate principal amount of the Term Loans to be made,   (B) the date of the Borrowing (which shall be, in the case of Term Loans, the Closing Date) and   (C) whether the Term Loans shall consist of ABR Loans and/or Eurodollar Loans and, if the Term   Loans are to include Eurodollar Loans, the Interest Period to be initially applicable thereto. The   Administrative  Agent  shall  promptly  give  each  Lender  written  notice  (or  telephonic  notice   promptly confirmed in writing) of each proposed Borrowing of Term Loans, of such Lender’s Pro   Rata Share thereof and of the other matters covered by the related Notice of Borrowing.                          (b)   [Reserved].                          (c)   Without in any way limiting the obligation of the Borrower to confirm in   writing any notice it may give hereunder by telephone, the Administrative Agent may act prior to   receipt of written confirmation without liability upon the basis of such telephonic notice believed   by the Administrative Agent in good faith to be from an Authorized Officer of the Borrower. In   each such case, the Borrower hereby waives the right to dispute the Administrative Agent’s record   of the terms of any such telephonic notice.                    SECTION 2.04  Disbursement of Funds.                          (a)   No later than (i) 2:00 p.m. (New York time), in the case of each Borrowing   of  Delayed  Draw  Term  Loans  for  which  a  Notice  of  Borrowing  has  been  timely  delivered  in   accordance with Section 2.03 (other than for Borrowings on the Closing Date), each Lender will   make available its Pro Rata Share, if any, of the Borrowing requested to be made on such date in   the manner provided below, and (ii) 5:00 p.m. (New York time), in the case of the making of the   Initial Term Loan, if the conditions set forth in Article VI to the effectiveness of this Agreement   are met prior to 4:00 p.m. (New York time) on the Closing Date, each Lender will make available   its Pro Rata Share of the Initial Term Loan in the manner provided below.                          (b)   Each Lender shall make available all amounts it is to fund to the Borrower,   under  any  Borrowing,  in  immediately  available  funds  to  the  Administrative  Agent,  and  the   Administrative Agent will make available to the Borrower, the aggregate of the amounts so made   available in Dollars. Unless the Administrative Agent shall have been notified by any Lender prior   to  the  date  of  any  Borrowing  that  such  Lender  does  not  intend  to  make  available  to  the   Administrative Agent its portion of the Borrowing or Borrowings to be made on such date, the   Administrative  Agent  may  assume  that  such  Lender  has  made  such  amount  available  to  the   Administrative Agent on such date of Borrowing, and the Administrative Agent, in reliance upon   such assumption, may (in its sole discretion and without any obligation to do so) make available   to  the  Borrower  a  corresponding  amount.  If  such  corresponding  amount  is  not  in  fact  made   available to the Administrative Agent by such Lender and the Administrative Agent has made   available the same to the Borrower, the Administrative Agent shall be entitled to recover such   DB1/ 110631747.4                       43    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 corresponding amount from such Lender. If such Lender does not pay such corresponding amount   forthwith  upon  the  Administrative  Agent’s  demand  therefor,  the  Administrative  Agent  shall   promptly notify the Borrower and the Borrower shall promptly pay such corresponding amount to   the Administrative Agent. The Administrative Agent shall also be entitled to recover from such   Lender or the Borrower, as the case may be, interest on such corresponding amount in respect of   each day from the date  such corresponding amount was made available  by the Administrative   Agent to the Borrower, to the date such corresponding amount is recovered by the Administrative   Agent, at a rate per annum equal to (i) if paid by such Lender, the Federal Funds Rate or (ii) if paid   by the Borrower, the then-applicable rate of interest, calculated in accordance with Section 2.08,   applicable to ABR Loans. If the Borrower and such Lender shall pay interest to the Administrative   Agent for the same (or a portion of the same) period, the Administrative Agent shall promptly   remit to the Borrower the amount of such interest paid by the Borrower for such period.                (c)   Nothing in this Section 2.04 shall be deemed to relieve any Lender from   its obligation to fulfill its commitments hereunder or to prejudice any rights that the Borrower may   have against any Lender as a result of any default by such Lender hereunder (it being understood,   however,  that  no  Lender  shall  be  responsible  for  the  failure  of  any  other  Lender  to  fulfill  its   commitments hereunder).          SECTION 2.05  Payment of Loans; Evidence of Debt.                (a)   Borrower agrees to pay to the Administrative Agent, for the benefit of the   Lenders, on the Maturity Date, the aggregate amount of all outstanding Term Loans.                (b)   Each Lender shall maintain in accordance with its usual practice an   account or accounts evidencing the Indebtedness of the Borrower to the appropriate lending office   of such Lender resulting from each Loan made by such lending office of such Lender from time   to time, including the amounts of principal and interest payable and paid to such lending office of   such Lender from time to time under this Agreement.                (c)   The Borrower agrees that from time to time on and after the Closing  Date,   upon the request to Administrative Agent by any Lender, at Borrower’s own expense, the Borrower   will execute and deliver to such Lender a Note, evidencing the Loans made by, and payable to   such  Lender  or  registered  assigns  in  a  maximum  principal  amount  equal  to  such  Lender’s   applicable Initial Term Loan Commitment, DDTL Commitment. The Administrative Agent shall   maintain the Register pursuant to Section 12.06(b)(iv), and a subaccount for each Lender, in which   Register and subaccounts (taken together) shall be recorded (i) the amount of each Loan made   hereunder, the Type of each Loan made and the Interest Period applicable thereto, (ii) the amount   of any principal or interest due and payable or to become due and payable from the Borrower to   each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent from   the Borrower and each Lender’s share thereof.                (d)   The entries made in the Register and accounts and subaccounts maintained   pursuant to paragraphs (c) and (d) of this Section 2.05 shall, to the extent permitted by   Applicable Law, be prima facie evidence of the existence and amounts of the obligations of the   DB1/ 110631747.4                       44     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Borrower therein recorded; provided, that the failure of any Lender or Administrative Agent to   maintain such account, such Register or such subaccount, as applicable, or any error therein, shall   not in any manner affect the obligation of the Borrower to repay (with applicable interest) the   Loans made to the Borrower by such Lender in accordance with the terms of this Agreement.          SECTION 2.06  Conversions  and  Continuations.  (a) The Borrower shall have  the   option on any Business Day to convert all or a portion of the outstanding principal amount of Term   Loans of one Type into a Borrowing or Borrowings of another Type and the Borrower shall have   the option on any Business Day to continue the outstanding principal amount of any Eurodollar   Loans as Eurodollar Loans for an additional Interest Period; provided, that (i) no partial conversion   of  Eurodollar  Loans  shall  reduce  the  outstanding  principal  amount  of  Eurodollar  Loans  made   pursuant to a single Borrowing to less than the Minimum DDTL Borrowing Amount, (ii) ABR   Loans may not be converted into Eurodollar Loans if an Event of Default is in existence on the   date of the proposed conversion and the Administrative Agent has, or the Required Lenders in   respect of the Credit Facility that is the subject of such conversion have, determined in its or their   sole  discretion  not  to  permit  such  conversion,  (iii)  Eurodollar  Loans  may  not  be  continued  as   Eurodollar Loans if an Event of Default is in existence on the date of the proposed continuation   and the Administrative Agent has, or the Required Lenders in respect of the Credit Facility that is   the subject of such conversion have, determined in its or their sole discretion not to permit such   continuation and (iv) Borrowings resulting from conversions pursuant to this Section 2.06 shall be   limited  in  number  as  provided  in  Section  2.02.  Each  such  conversion  or  continuation  shall  be   effected by the Borrower by giving the Administrative Agent written notice (or telephonic notice   promptly confirmed in writing) prior to 1:00 p.m. (New York time) at least three Business Days   (or one (1) Business Day in the case of a conversion into ABR Loans) (and in either case on not   more than five (5) Business Days) prior to such proposed conversion or continuation, in the form   of Exhibit N-2 (each, a “Notice of Conversion or Continuation”) specifying the Loans to be so   converted or continued, the Type of Loans to be converted or continued into and, if such Loans are   to be converted into or continued as Eurodollar Loans, the Interest Period to be initially applicable   thereto. The Administrative Agent shall give each Lender notice as promptly as practicable of any   such proposed conversion or continuation affecting any of its Loans.                (b)   If any Event of Default is in existence at the time of any proposed   continuation of any Eurodollar Loans and the Administrative Agent has, or the Required Lenders   in respect of the Credit Facility that is subject of such continuation have, determined in its or their   sole  discretion  not  to  permit  such  continuation,  such  Eurodollar  Loans  shall  be  automatically   converted  into  a  Borrowing  of ABR  Loans  effective  as  of the expiration  date  of  such  Interest   Period. If, upon the expiration of any Interest Period in respect  of Eurodollar Loans, the Borrower   has failed to elect a new Interest Period to be applicable thereto as provided in Section 2.06(a),   Borrower shall be deemed to have elected to convert such Borrowing of Eurodollar Loans into a   Borrowing of ABR Loans effective as of the expiration date of such current Interest Period.          SECTION 2.07  Pro Rata Borrowings.   Borrowing of the Initial Term Loan funded on   the Closing Date under this Agreement shall be made by each Lender with an Initial Term Loan   DB1/ 110631747.4                       45     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Commitment on the basis of its then-applicable Initial Term Loan Commitment. Each  Borrowing   of Delayed Draw Term Loan under this Agreement shall be made by each Lender with a DDTL   Commitment  on  the  basis  of  its  then-applicable  DDTL  Commitment.  It  is  understood  that  no   Lender shall be responsible for any default by any other Lender in its obligation to make Loans   hereunder and that each Lender shall be obligated to make the Loans provided to be made by it   hereunder, regardless of the failure of any other Lender to fulfill its commitments hereunder.          SECTION 2.08  Interest. (a) The unpaid principal amount of each ABR Loan shall  bear   interest from the date of the Borrowing thereof until repayment or prepayment thereof at a rate per   annum that shall at all times be the Applicable Margin plus the ABR in effect from time to time.                (a)   The unpaid principal amount of each Eurodollar Loan shall bear interest   from the date of the Borrowing thereof until repayment or prepayment thereof at a rate per annum   that  shall  at  all  times  be  the  Applicable  Margin  in  effect  from  time  to  time  plus  the  relevant   Eurodollar Rate.                (b)   From and after the occurrence and during the continuance of any Event of   Default, upon notice by the Administrative Agent or the Required Lenders to the Borrower (or   automatically while any Event of Default under Section 10.01(a) or Section 10.01(h) exists), the   Borrower shall pay interest on the principal amount of all Loans and all other due and unpaid   Obligations, to the extent permitted by Applicable Law, at the rate described in Section 2.08(a) or   Section 2.08(b), as applicable, plus two (2) percentage points per annum (the “Default Rate”). All   such interest at the Default Rate shall be payable on demand of the Administrative Agent or the   Required Lenders and in cash.                (c)   Interest on each Loan shall accrue from and including the date of any   Borrowing to but excluding the date of any repayment thereof and shall be payable (i) in respect   of  each  ABR  Loan,  quarterly  in  arrears  on  the  last  day  of  each  March,  June,  September  and   December, beginning with the fiscal quarter ending March 31, 2020 (the “ABR Interest Payment   Date”), (ii) in respect of each Eurodollar Loan, quarterly in arrears on the last day of each March,   June,  September  and  December,  commencing  on  March  31,  2020  (the  “Eurodollar  Interest   Payment Date”) and (iii) in respect of each Loan, on any prepayment (on the amount prepaid), at   maturity (whether by acceleration or otherwise) and, after such maturity, on demand.                (d)   [Reserved].                (e)   On each of the ABR Interest Payment Date or Eurodollar Interest Payment   Date, as applicable, Borrower shall  pay all accrued and unpaid interest on the Term Loans by   paying all such accrued interest in cash. All accrued, but unpaid Interest shall be payable in cash   on the Maturity Date.                (f)   The Administrative Agent, upon determining the interest rate for  any   Borrowing of Eurodollar Loans, shall promptly notify the Borrower and the relevant Lenders    DB1/ 110631747.4                       46     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 thereof.  Each such determination shall, absent clearly demonstrable error, be final and   conclusive and binding on all parties hereto.          SECTION 2.09  Interest Periods. At the time the Borrower gives a Notice of Borrowing   or  a  Notice  of  Conversion  or  Continuation  in  respect  of  the  making  of,  or  conversion  into  or   continuation  as,  a  Borrowing  of  Eurodollar  Loans  (in  the  case  of  the  initial  Interest  Period   applicable thereto) or prior to 1:00 p.m. (New York time) on the third Business Day (and in any   event, on not more than five Business Days’ notice) prior to the expiration of an Interest Period   applicable  to  a  Borrowing  of  Eurodollar  Loans,  the  Borrower  shall  have,  by  giving  the   Administrative Agent written notice (or telephonic notice promptly confirmed in writing) elected   the Interest Period applicable to such Borrowing, which Interest Period shall be a three (3)-month   period (subject to clause (a) below):                (a)   the initial Interest Period for any Borrowing of Eurodollar Loans shall   commence on the date of such Borrowing (including the date of any conversion from a Borrowing   of ABR Loans), and each Interest Period occurring thereafter in respect of such Borrowing shall   commence on the day on which the immediately preceding Interest Period expires; provided, that,   (i) the initial Interest Period commencing on the Closing Date shall expire on March 31, 2020 and   (ii) subject to clause (b) below, each Interest Period thereafter shall expire on the last day of each   June, September, December and March, regardless of the commencement date of such Interest   Period; and                (b)   if any Interest Period would otherwise expire on a day that is not a   Business Day, such Interest Period shall expire on the next succeeding Business Day; and                (c)   the Borrower shall not be entitled to elect any Interest Period in respect of   any Eurodollar Loan if such Interest Period would extend beyond the Maturity Date.          SECTION 2.10  Increased Costs, Illegality, etc. (a)  In the event that (x) in the case of   clause (i) below, the Administrative Agent or (y) in the case of clauses (ii) and (iii) below, any   Lender, in each case, shall have reasonably determined (which determination shall, absent clearly   demonstrable error, be final and conclusive and binding upon all parties hereto):                      (i)   on any date for determining the Eurodollar Rate for any Interest   Period that (A) deposits in the principal amounts of the Loans comprising any Eurodollar Loan are   not generally available in the relevant market or (B) by reason of any changes arising on or after   the Closing Date affecting the interbank Eurodollar market, adequate and fair means do not exist   for ascertaining the applicable interest rate on the basis provided for in the definition of Eurodollar   Rate; or                      (ii)  at  any time,  after the later of the Closing Date and the date such   entity became a Lender hereunder, that such Lender shall incur increased costs or reductions in the   amounts received  or receivable hereunder with  respect  to  any Eurodollar  Loans  (excluding all   Taxes except any Other Connection Taxes that are not Connection Income Taxes) because of (A)   any change since the date hereof in any Applicable Law (or in the interpretation or administration   thereof and including the introduction of any new Applicable Law), such as, for example,   DB1/ 110631747.4                       47    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 without limitation, a change in official reserve requirements (but excluding changes in the rate of   tax  on  the  overall  net  income  of  such  Lender),  and/or  (B)  other  circumstances  affecting  the   interbank Eurodollar market or the position of such Lender in such market; or                      (iii) at any time, that the making or continuance of any Eurodollar Loan   has become unlawful by compliance by such Lender in good faith with any Applicable Law (or   would conflict with any such Applicable Law not having the force of law even though the failure   to  comply  therewith  would  not  be  unlawful),  or  has  become  impracticable  as  a  result  of  a   contingency  occurring  after the date  hereof  that  materially  and  adversely  affects  the  interbank   Eurodollar market,              then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i)   above) shall promptly give notice (if by telephone, confirmed in writing) to the Borrower and the   Administrative  Agent  of  such  determination  (which  notice  the  Administrative  Agent  shall   promptly transmit to each of the other Lenders). Thereafter (A) in the case of clause (i) above,   Eurodollar Loans shall no longer be available until such time as the Administrative Agent notifies   the  Borrower  and  the  Lenders  that  the  circumstances  giving  rise  to  such  notice  by  the   Administrative Agent no longer exist (which notice the Administrative Agent agrees to give at   such time when such circumstances no longer exist), and any Notice of Borrowing or Notice of   Conversion or Continuation given by the Borrower with respect to Eurodollar Loans that have not   yet been incurred shall be deemed rescinded by the Borrower, (B) in the case of clause (ii) above,   the  Borrower  shall,  pay  to  such  Lender,  within  five  (5)  days  after  receipt  of  written  demand   therefor, such additional amounts (in the form of an increased rate of, or a different method of   calculating, interest or otherwise as such Lender in its reasonable discretion shall determine) as   shall be required to compensate such Lender for such increased costs or reductions in amounts   receivable hereunder (it being agreed that a written notice as to the additional amounts owed to   such Lender, showing in reasonable detail the basis for the calculation thereof, submitted to the   Borrower by such Lender shall, absent clearly demonstrable error, be final and conclusive and   binding upon all parties hereto) and (C) in the case of clause (iii) above, the Borrower shall take   one of the actions specified in Section 2.10(b) as promptly as possible and, in any event, within   the time period required by law.              Notwithstanding the other provisions of this Agreement, if the Administrative Agent shall have   determined (which determination shall be conclusive absent manifest error), or the Borrower and   Required Lenders shall collectively notify the Administrative Agent in writing, that either (i) the   circumstances set forth in Section 2.10(a)(i) have arisen and such circumstances are unlikely to be   temporary, (ii) syndicated or comparable loans are currently being executed and/or amended to   include or adopt a new benchmark rate or rates (including, without limitation, credit or similar   adjustments,  in  each  case,  to  such  rate  or  rates)  or  (iii)  the  circumstances  set  forth  in  Section   2.10(a)(i) have not arisen but the supervisor for the administrator of LIBOR (or any component   thereof) or a Governmental Authority having jurisdiction over the Administrative Agent has made   a public statement identifying a specific date after which LIBOR (or any component thereof) shall   no longer be published for use in determining interest rates for loans (in the case of either such   clause (i), (ii) or (iii), an “Alternative Interest Rate Election Event”), then reasonably promptly   thereafter the Administrative Agent and Borrower may endeavor to establish an              DB1/ 110631747.4                       48    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 alternate  rate  of  interest  to  LIBOR  that  gives  due  consideration  to  the  then  prevailing  market   convention for determining a rate of interest for leveraged comparable loans in the United States   at such time (which may include such credit adjustments or other adjustments, in each case, to such   rate as are present in the market for leveraged comparable loans in the United States at such time),   and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and   such other related changes to this Agreement as may be applicable (including, without limitation   operational,  term,  conforming  and  other  changes  as  may  be  reasonably  determined  by  the   Administrative  Agent).  Notwithstanding  anything  to  the  contrary  in  this  Agreement,  such   amendment shall become effective without any further action or consent of any other party to this   Agreement so long as the Administrative Agent shall not have received, within five (5) Business   Days after the date notice of such alternate rate of interest is provided to the Lenders, a written   notice from Required Lenders stating that they object to such amendment (which amendment shall   not be effective prior to the end of such five (5) Business Day notice period). To the extent an   alternate rate of interest is adopted as contemplated hereby, the approved rate shall be applied in a   manner consistent with prevailing market convention. From such time as an Alternative Interest   Rate  Election  Event  has  occurred  and  continuing  until  an  alternate  rate  of  interest  has  been   determined  in  accordance  with  the  terms  and  conditions  of  this  paragraph,  (A)  any  Notice  of   Borrowing  that  requests  the  conversion  of  any  Loan  to,  or  continuation  of  any  Loan  as,  a   Eurodollar Loan shall be ineffective, and (B) if any Notice of Borrowing requests a Eurodollar   Loan,  such  Loan  shall  be made  as  a  ABR  Loan;  provided  that,  to  the  extent  such  Alternative   Interest Rate Election Event is as a result of clause (ii) above, then clauses (A) and (B) of this   sentence shall apply during such period only if LIBOR for such Interest Period is not available or   published at such time on a current basis.                (a)   At any time that any Eurodollar Loan is affected by the  circumstances   described in (i) Section 2.10(a)(ii), the Borrower may either (A) if the affected Eurodollar Loan is   then being made pursuant to a Borrowing, cancel said Borrowing by giving the Administrative   Agent  telephonic  notice  (confirmed  promptly  in  writing)  thereof  on  the  same  date  that  the   Borrower was notified by a Lender pursuant to Section 2.10(a)(ii) or (B) if the affected Eurodollar   Loan is then outstanding, upon at least three (3) Business Days’ notice to the Administrative Agent,   require the affected Lender to convert each such Eurodollar Loan into an ABR Loan; provided,   that if more than one Lender is so affected at any time, then all affected Lenders must be treated   in the same manner pursuant to this Section 2.10(b) or (ii) Section 2.10(a)(iii), (A) if the affected   Eurodollar Loan is then being made pursuant to a Borrowing, such Borrowing shall automatically   be deemed cancelled and rescinded and (B) if the affected Eurodollar Loan is then outstanding,   each such Eurodollar Loan shall automatically be converted into an ABR Loan; provided, that if   more than one Lender is affected at any time, then all affected Lenders must be treated in the same   manner pursuant to this Section 2.10(b).                (b)   If, after the later of the date hereof, and that date such entity becomes a   Lender hereunder, the adoption of any Applicable Law regarding capital adequacy, or any change   therein,  or  any  change  in  the  interpretation  or  administration  thereof  by  any  Governmental   Authority, central bank or comparable agency charged with the interpretation or administration   thereof, or compliance by a Lender or its parent with any request or directive made or adopted   after such date regarding capital adequacy (whether or not having the force of law) of any such   DB1/ 110631747.4                       49    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 authority, association, central bank or comparable agency, has the effect of reducing the rate of   return  on  such  Lender’s  or  its  parent’s  capital  or  assets  as  a  consequence  of  such  Lender’s   commitments or obligations hereunder to a level below that which such Lender or its parent could   have  achieved  but  for  such  adoption,  effectiveness,  change  or  compliance  (taking  into   consideration such Lender’s or its parent’s policies with respect to capital adequacy), then within   five (5) days after written demand by such Lender (with a copy to the Administrative Agent), the   Borrower shall pay to such Lender such additional amount or amounts as will compensate such   Lender or its parent for such reduction, it being understood and agreed, however, that a Lender   shall not be entitled to such compensation as a result of such Lender’s compliance with, or pursuant   to any request or directive to comply with, any such Applicable Law as in effect on the date hereof.   Each Lender (on its own behalf), upon determining in good faith that any additional amounts will   be payable pursuant  to this Section 2.10(c),  will, as  promptly as practicable upon ascertaining   knowledge thereof, give written notice thereof to the Borrower, which notice shall set forth in   reasonable detail the basis of the calculation of such additional amounts. The failure to give any   such notice, with respect to a particular event, within the time frame specified in Section 2.13,   shall not release or diminish any of the Borrower’s obligations to pay additional amounts pursuant   to this Section 2.10(c) for amounts accrued or incurred after the date of such notice with respect to   such event.                (c)   Notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall   Street  Reform  and  Consumer  Protection  Act  and  all  requests,  rules,  guidelines  or  directives   thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives   promulgated  by  the  Bank  for  International  Settlements,  the  Basel  Committee  on  Banking   Supervision  (or  any  successor  or  similar  authority)  or  the  United  States  or  foreign  regulatory   authorities, in each case pursuant to Basel III, shall in each case be deemed to be a change in   Applicable Law, regardless of the date enacted, adopted or issued.                (d)  This Section 2.10 shall not apply to Taxes to the extent duplicative of   Section 5.04.          SECTION 2.11  Compensation.  If (a) any payment of principal of a Eurodollar Loan is   made by the Borrower to or for the account of a Lender other than on the last day of the Interest   Period for such Eurodollar Loan as a result of a payment or conversion pursuant to Section 2.05,   2.06, 2.10, 5.01 or 5.01(d), as a result of acceleration of the maturity of the Loans pursuant to   Article X or for any other reason, (b) any Borrowing of Eurodollar Loans is not made as a result   of a withdrawn Notice of Borrowing (except with respect to a revocation as provided in Section   2.10 or by reason of a Lender being a Defaulting Lender), (c) any ABR Loan is not converted into   a  Eurodollar  Loan  as  a  result  of  a  withdrawn  Notice  of  Conversion  or  Continuation,  (d)  any   Eurodollar  Loan  is  not  continued  as  a  Eurodollar  Loan  as  a  result  of  a  withdrawn  Notice  of   Conversion or Continuation or (e) any prepayment of principal of a Eurodollar Loan is not made   as a result of a withdrawn notice of prepayment pursuant to Section 5.01 or 5.01(d), the Borrower   shall, after receipt of a written request by such Lender (which request shall set forth in reasonable   detail the basis for requesting such amount), pay to the Administrative Agent for the account of   such Lender any amounts required to compensate such Lender for any additional losses, costs or   expenses that such Lender may reasonably incur as a result of such payment, failure to convert,   DB1/ 110631747.4                       50    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 failure to continue, failure to prepay, reduction or failure to reduce, including any loss, cost or   expense (excluding loss of anticipated profits) actually incurred by reason of the liquidation or   reemployment  of  deposits  or  other  funds  acquired  by  such  Lender  to  fund  or  maintain  such   Eurodollar Loan.          SECTION 2.12  Change   of  Lending  Office.  Each   Lender   agrees   that,   upon   the   occurrence of any event giving rise to the operation of Section 2.10(a)(ii), 2.10(a)(iii), 2.10(b)  or   5.04 with respect  to such Lender, it will, if requested by the Borrower, use  reasonable efforts   (subject to overall policy considerations of such Lender) to designate another lending office for   any Loans affected by such event; provided, that such designation is made on such terms that such   Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object   of avoiding the consequence of the event giving rise to the operation of any such Section. Nothing   in this Section 2.12 shall affect or postpone any of the obligations of the Borrower or the rights of   any Lender provided in Section 2.10 or 5.04.          SECTION 2.13  Notice of Certain Costs. Notwithstanding anything in this Agreement   to the contrary, to the extent any notice required by Section 2.10, 2.11 or 5.04 is given by any   Lender more than one hundred twenty (120) days after such Lender has knowledge (or should have   had  knowledge)  of  the  occurrence  of  the  event  giving  rise  to  the  additional  cost,  reduction  in   amounts, loss, tax or other additional amounts described in such Sections, such Lender shall not   be entitled to compensation under Section 2.10, 2.11 or 5.04, as the case may be, for any such   amounts incurred or accruing prior to the giving of such notice to the Borrower.          SECTION 2.14  [Reserved].          SECTION 2.15  Defaulting Lenders.                (a)   Adjustments. Notwithstanding anything to the contrary contained in this   Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no   longer a Defaulting Lender, to the extent permitted by Applicable Law:                      (i)   Waivers  and  Amendments.  That Defaulting Lender’s right to   approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be   restricted as set forth in Section 12.01.                      (ii)  Reallocation of Payments. Any payment of principal, interest, fees   or other amounts received by the Administrative Agent for the account of that Defaulting Lender   (whether voluntary or mandatory, at maturity, pursuant to Section 5.02(j) or Article X or otherwise,   and including any amounts made available to the Administrative Agent by that Defaulting Lender   pursuant to Section 12.09), shall be applied at such time or times as may be determined by the   Administrative Agent as follows: first, to the payment of any amounts owing by that Defaulting   Lender to the Administrative Agent hereunder; second, as the Borrower may request (so long as   no Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender   has  failed  to  fund  its  portion  thereof  as  required  by  this  Agreement,  as  determined  by  the   Administrative Agent; third, if so determined by the Administrative Agent and the Borrower, to   be held in a noninterest bearing deposit account and released in order to satisfy   DB1/ 110631747.4                       51    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 such Defaulting Lender’s potential future funding with respect to Loans under this Agreement;   fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court   of competent jurisdiction obtained by any Lender against that Defaulting Lender as a result of that   Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no Event of   Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment   of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a   result of that Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to that   Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if   such payment is a payment of the principal amount of any Loans in respect of which that Defaulting   Lender has not fully funded its appropriate share. Any payments, prepayments or other amounts   paid  or  payable  to  a  Defaulting  Lender  that  are  applied  (or  held)  to  pay  amounts  owed  by  a   Defaulting Lender shall be deemed paid to and redirected by that Defaulting Lender, and each   Lender irrevocably consents hereto.                      (iii) Certain  Fees. A  Lender  that  is  a  Defaulting Lender  shall  not  be   entitled to receive any Unused DDTL Commitment, for any period during which that Lender is a   Defaulting Lender (and  the Borrower shall not be required to pay  any such fee that otherwise   would have been required to have been paid to that Defaulting Lender).                (b)   Defaulting Lender Cure.  If the Borrower and the Administrative Agent   agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be   a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of   the  effective date  specified  in  such  notice  and  subject  to  any  conditions  set  forth  therein,  that   Lender  will,  to  the  extent  applicable,  purchase  that  portion  of  outstanding  Loans  of  the  other   Lenders or take such other actions as the Administrative Agent may determine to be necessary to   cause the Lenders to hold their respective Pro Rata Share of Loans, whereupon that Lender will   cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with   respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was   a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by   the  affected  parties,  no  change  hereunder  from  Defaulting  Lender  to  a  Lender  that  is  not  a   Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising   from that Lender’s having been a Defaulting Lender.                                     ARTICLE III                                    [RESERVED]                                                                                 DB1/ 110631747.4                       52    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                                 ARTICLE IV                                    Fees and Commitment Terminations                            SECTION 4.01  Fees.                          (a)   The Borrower agrees to pay to the Administrative Agent, all the Fees set  forth in the Fee Letter.                          (b)   The Borrower agrees to pay to each Lender having a DDTL Commitment a   commitment fee (the “Unused DDTL Commitment Fee”) calculated at the rate of one percent  (1.00%) on the daily balance of the DDTL Commitment of such Lender during each fiscal quarter  or portion thereof from the Closing Date to the DDTL Commitment Expiration Date.  The Unused  DDTL Commitment Fee shall be payable quarterly in arrears on the last day of each March, June,  September and December, beginning with the fiscal quarter ending March 31, 2020, and on the  DDTL Commitment Expiration Date or any earlier date on which the DDTL Commitments shall  terminate.                   SECTION 4.02  Mandatory Termination of Commitments.                         (a)   The  Initial  Term  Loan  Commitment  shall  terminate  at  5:00  p.m.  (New  York time) on the Closing Date.                         (b)   The DDTL Commitment shall terminate at 5:00 p.m. (New York time) on  the DDTL Commitment Expiration Date.                                              ARTICLE V                                               Payments                            SECTION 5.01  Prepayments Premium; Voluntary Prepayments.                          (a)   Subject  to  the  terms  and  conditions  set  forth  in  this  Section  5.01,  the  Borrower shall have the right to prepay the Loans, in whole or in part, from time to time subject  to  payment  of  the  following  Make-Whole  Premium  or  prepayment  premium  (expressed  as  a  percentage  of  the  principal  amount  of  the  Term  Loans  being  prepaid)  (the  “Prepayment  Premium”), as applicable, plus accrued and unpaid interest on the principal amount being prepaid  to the prepayment date. Each prepayment (x) made on or prior to the second anniversary of the  Closing Date shall be made subject to payment of the Make-Whole Premium and (y) made after  the  second  anniversary  of  the  Closing  Date  shall  be  subject  to  payment  of  the  applicable  Prepayment Premium set forth below (which shall be calculated as the percentage set forth below  multiplied by the amount being prepaid):                            Time Period             Prepayment     Premium                  After     the     second 4.0%             DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

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                anniversary,  but  on  or  prior                   to  the  third  anniversary  of                  the Closing Date                  After  the  third  anniversary, 3.0%                  but on or prior to the fourth                  anniversary  of  the  Closing                  Date                  After the fourth anniversary, 2.0%                  but  prior  to  the  fifth                  anniversary  of  the  Closing                  Date                  On  or  after  the  fifth 0.0%                  anniversary of the  Closing                  Date                          (b)   When making a voluntary partial prepayment, the Borrower shall give the   Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of (i) its   intent  to  make  such  prepayment,  (ii)  the  amount  of  such  prepayment  and  (iii)  in  the  case  of   Eurodollar Loans, the specific Borrowing(s) pursuant to which such prepayment will be made, no   later than (A) in the case of Eurodollar Loans, 1:00 p.m. (New York time) three (3) Business Days   prior  to,  and  (B)  in  the  case  of  ABR  Loans,  1:00  p.m.  (New  York  time)  on  the  date  of  such   prepayment, and such prepayment shall promptly be transmitted by the Administrative Agent to   each of the relevant Lenders, as the case may be.                          (c)   Each voluntary partial prepayment of any Loans shall be in a multiple of   $500,000  and  in  aggregate  principal  amount  of  at  least  $100,000;  provided,  that  no  partial   prepayment  of  Eurodollar  Loans  outstanding  under  a  single  Borrowing  shall  reduce  the   outstanding Eurodollar Loans outstanding under such Borrowing to an amount less than   $500,000.                          (d)   With respect to each prepayment of Term Loans pursuant to this Section   5.01,  the  Borrower  may  designate  the  Types  of  Loans  that  are  to  be  prepaid  and  the  specific   Borrowing(s)  pursuant  to  which  made;  provided,  that  the  Borrower  pays  any  amounts,  if  any,   required to be paid pursuant to Section 2.11 with respect to prepayments of Eurodollar Loans made   on any date other than the last day of the applicable Interest Period. In the absence of a designation   by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to   the above, make such designation in its reasonable discretion with a view, but no obligation, to   minimize breakage costs owing under Section 2.11. Each such prepayment shall  be accompanied   by all accrued interest on the Loans so prepaid, through the date of such prepayment.                          (e)   Each prepayment in respect of any Term Loans pursuant to this Section   5.01 shall be applied ratably to Term Loans.                    SECTION 5.02  Mandatory Prepayments.              DB1/ 110631747.4                       54     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (a)   Within five (5) Business Days of the receipt by any Credit Party of any Net   Proceeds from any Disposition (other than a Disposition under Section 9.04(b)-(k), (m), (p), (q) or   (r)), the Borrower shall prepay the Loans in an amount equal to one hundred percent (100%) of   the Net Proceeds from such Disposition in excess of $3,000,000 in any fiscal year (when combined   with Net Proceeds from other Dispositions and Casualty Events received in such fiscal year), to be   applied as set forth in Section 5.02(g); provided, that, except with respect to a Disposition of True   Health New Mexico, Inc., the Borrower may, at its option by notice in writing to the Administrative   Agent, which such notice shall be received within thirty (30) days of the receipt of the Net Proceeds   from such Disposition, within one hundred eighty (180) days after such event (or, if such Credit   Party shall have entered into a binding commitment for the use of such Net Proceeds within such   one hundred eighty (180) days, three hundred sixty (360) days after such event), instead reinvest   such Net Proceeds in assets to be used in the business of the Borrower so long as no Event of   Default  shall  have  occurred  and  be  continuing  at  such  time,  in  each  case  as  certified  by  the   Borrower in writing to the Administrative Agent. Nothing in this Section 5.02(a) shall be construed   to permit or waive any Default or Event of Default arising from any Disposition not permitted   under the terms of this Agreement.                (b)   Within five (5) Business Days of the receipt by any Credit Party of any Net   Proceeds from any Casualty Event, the Borrower shall prepay the Loans in an amount equal to one   hundred percent (100%) of such Net Proceeds in excess of $3,000,000 in any fiscal year (when   combined with Net Proceeds from Dispositions and other Casualty Events received in such fiscal   year), to be applied as set forth in Section 5.02(g); provided, that so long as no Event of Default   shall have occurred and be continuing, the Borrower may, at its option by notice in writing to the   Administrative Agent, which such notice shall be received within thirty (30) days of the receipt of   the  Net  Proceeds  from  such  Casualty  Event,  apply  such  Net  Proceeds  to  the  rebuilding  or   replacement of such damaged, destroyed or condemned assets or property, or otherwise reinvest   such Net Proceeds in assets to be used in the business, so long as such Net Proceeds are in fact   used to rebuild or replace the damaged, destroyed or condemned assets or property, or otherwise   so reinvested, within one hundred eighty (180) days following the receipt of such Net Proceeds   (or, if such Credit Party shall have entered into a binding commitment for the  use  of  such  Net   Proceeds  within  such  one hundred eighty (180) days, three hundred sixty   (360) days  after such event), with the amount of Net Proceeds  unused  after such  period to be   applied as set forth in Section 5.02(g).                (c)   [Reserved].                (d)   Concurrently with the incurrence of any Indebtedness by any Credit Party   (other than Indebtedness permitted under Section 9.01), the Borrower shall prepay the Loans in an   amount equal to one hundred percent (100%) of such Net Proceeds, to be applied as set forth in   Section 5.02(g). Nothing in this Section 5.02(d) shall be construed to permit or waive any Default   or Event of Default arising from any incurrence of Indebtedness not permitted under the terms of   this Agreement.                (e)   Substantially concurrently with any Change of Control, the Borrower shall   prepay the Loans in full, to be applied as set forth in Section 5.02(g).   DB1/ 110631747.4                       55    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (f)   Immediately upon any acceleration of any Loans pursuant to  Section   10.02, the Borrower shall repay all the Loans and other Obligations, unless only a portion of all   the Loans and other Obligations is so accelerated (in which case the portion so accelerated shall   be so repaid).                (g)   Subject to Section 5.02(k), amounts to be applied in connection  with   prepayments and Commitment reductions made pursuant to this Section 5.02 shall be applied, first,   to the prepayment of the Term Loans, together with any accrued and unpaid interest thereon, until   such  Term  Loans  are  repaid  in  full  and,  second,  to  the  prepayment  of  any  other  outstanding   Obligations.                (h)   Each prepayment of the Loans under Section 5.02 shall be accompanied by   accrued interest to the date of such prepayment on the principal amount prepaid and the   Prepayment Premium or Make-Whole Premium, as applicable.                (i)   Application  to  Loans. With  respect  to  each  prepayment  of Term  Loans   required by this Section 5.02, the Borrower may designate the Types of Loans that are to be prepaid   and  the  specific  Borrowing(s)  pursuant  to  which  made;  provided,  that  the  Borrower  pays  any   amounts,  if  any,  required  to  be  paid  pursuant  to  Section  2.11  with  respect  to  prepayments  of   Eurodollar Loans made on any date other than the last day of the applicable Interest Period. In the   absence  of  a  designation  by  the  Borrower  as  described  in  the  preceding  sentence,  the   Administrative  Agent  shall,  subject  to  the  above,  make  such  designation  in  its  reasonable   discretion with a view, but no obligation, to minimize breakage costs owing under Section 2.11.   Subject  to clause (g), each prepayment in respect of any Term Loans pursuant to this Section   5.02 shall be applied ratably to the outstanding Term Loans.                (j)   Application   of   Collateral   Proceeds and   Payments.  Notwithstanding   anything  to  the  contrary  in  Section  5.01,  Section  5.02  or  any  other  provision  of  any  Credit   Document,  (x)  all  payments  (including,  without  limitation,  prepayments)  in  respect  of  the   Obligations after acceleration and (y) all proceeds of Collateral and other payments received by   the Administrative Agent pursuant to the exercise of remedies against the Collateral, applied as set   forth in this clause (j), as follows:                      (i)   first, ratably to pay any fees then due to the Administrative Agent   under the Credit Documents and any costs or expense reimbursements of the Administrative Agent   and any indemnities then due to the Administrative Agent under the Credit Documents, until paid   in full,                      (ii)  second,  ratably,  to  pay   any   fees  or  premiums  (including   Prepayment Premiums and Make-Whole Premiums, if applicable) then due to any of the Lenders   of any Term Loans until paid in full,                      (iii) third, ratably to pay any costs or expense reimbursements of   Lenders of any Term Loans and indemnities then due to any of the Lenders of any Term Loans   until paid in full,    DB1/ 110631747.4                       56    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                   (iv) Te fourth, ratably to pay interest due in respect of the outstanding the   rm Loans until paid in full,                      (v)   fifth, ratably to pay the outstanding principal balance of the Term    Loans (in the inverse order of the maturity of the installments due thereunder) until the Term   Loans are paid in full,                                             (vi)  sixth, to pay any other Obligations in respect of Term Loans,                                      (vii) seventh, to Borrower or such other Person entitled thereto  under   Applicable Law.               Prepayment Premium and/or Make-Whole Premium, if any, shall constitute part of the Obligations,   in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual   agreement of the parties as to a reasonable calculation of each Lender’s lost profits  as  a  result   thereof. Any Prepayment Premiums and/or Make-Whole Premiums payable in accordance with   this Section 5.02(j) shall be presumed to be the liquidated damages sustained by each Lender as   the result of any of the events described in this Section 5.02 and the Credit Parties agree that such   Prepayment  Premium  and/or  Make-Whole  Premium  are  reasonable  under  the  circumstances   currently existing. THE CREDIT PARTIES EXPRESSLY WAIVE THE PROVISIONS OF ANY   PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE   COLLECTION OF THE FOREGOING PREPAYMENT PREMIUM AND/OR MAKE-WHOLE   PREMIUM IN CONNECTION WITH ANY OF THE EVENTS DESCRIBED IN CLAUSE (i)   ABOVE INCLUDING IN CONNECTION WITH ANY VOLUNTARY OR INVOLUNTARY   ACCELERATION  OF  THE  OBLIGATIONS  PURSUANT  TO  ANY  INSOLVENCY   PROCEEDING OR OTHER PROCEEDING PURSUANT TO ANY DEBTOR RELIEF LAWS   OR PURSUANT  TO A PLAN OF   REORGANIZATION.  The  Credit  Parties  expressly  agree  that:  (w)  each  of  the  Prepayment   Premium  and  Make-Whole  Premium  is  reasonable  and  are  the  product  of  an  arm’s  length   transaction between sophisticated business people, ably represented by counsel; (x) each of the   Prepayment  Premium  and  Make-Whole  Premium  shall  be  payable  notwithstanding  the  then   prevailing market rates at the time payment is made; (y) there has been a course of conduct between   Lenders and the Credit Parties giving specific consideration in this transaction for such agreement   to pay each of the Prepayment Premium and/or Make-Whole Premium; and (z) the Credit Parties   shall be estopped hereafter from claiming differently than as agreed to in this paragraph. The Credit   Parties expressly acknowledge that their agreement to pay each of the Prepayment Premium and/or   Make-Whole Premium to the Lenders is a material inducement to Lenders to make the Loans.                          (k)   Notwithstanding the foregoing, each Lender may reject all or a portion of   its  Pro  Rata  Share  of  any  mandatory  prepayment  (such  declined  amounts,  the  “Declined   Proceeds”) of any class of Term Loans required to be made pursuant to clauses (a), (b), or (c) of   this Section 5.02 by providing written notice (each, a “Rejection Notice”) to the Administrative   Agent  and  the  Borrower  no  later  than  1:00  p.m.  one  (1)  Business  Day  after  the  date  of  such   Lender’s receipt of notice from the Administrative Agent regarding such prepayment (subject to   extension by Administrative Agent in its sole discretion). Each Rejection Notice from a Lender   DB1/ 110631747.4                       57    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 shall specify the principal amount of the mandatory prepayment of Term Loans to be rejected by   such Lender. If a Lender fails to deliver a Rejection Notice to Administrative Agent within the   time frame specified above or such Rejection Notice fails to specify the principal amount of the   Term Loans to be rejected, any such failure will be deemed an acceptance of the total amount of   such mandatory prepayment of such Term Loans. Any Declined Proceeds may be retained by the   Borrower.          SECTION 5.03  Payment of Obligations; Method and Place of Payment.                (a)   The  obligations  of  the  Borrower  hereunder  and  under  each  other Credit   Document are not subject to counterclaim, set-off, rights of rescission or any other defense. Subject   to  Section  5.02,  and  except  as  otherwise  specifically  provided  herein,  all  payments  under  this   Agreement shall be made by the Borrower, without set-off, rights of rescission, counterclaim or   deduction of any kind, to the Administrative Agent for the ratable account of the Secured Parties   entitled thereto, as the case may be, not later than 2:00 p.m. (New York time) on the date when   due and shall be made in immediately available funds in Dollars to the Administrative Agent. The   Administrative  Agent  will  thereafter  cause to  be  distributed  on  the  same day  (if  payment  was   actually received by the Administrative Agent prior to 2:00 p.m. (New York time), on such day)   like funds relating to the payment of principal or interest or Fees ratably to the Secured Parties   entitled thereto.                (b)   For purposes of computing interest or fees, any payments under this   Agreement that are made later than 2:00 p.m. (New York time), shall be deemed to have been   made on the next succeeding Business Day. Whenever any payment to be made hereunder shall   be stated to be due on a day that is not a Business Day, the due date thereof shall be extended to   the  next  succeeding  Business  Day  and,  with  respect  to  payments  of  principal,  interest  shall   continue to accrue during such extension at the applicable rate in effect immediately prior to such   extension.          SECTION 5.04  Net Payments.                (a)   Subject to the following sentence, all payments made by or on behalf of   the Borrower under this Agreement or any other Credit Document shall be made free and clear of,   and without deduction or withholding for or on account of, any current or future Taxes (including   Other Taxes) other than Excluded Taxes. If any such non-excluded taxes, levies, imposts, duties,   charges, fees, deductions or withholdings (“Non-Excluded Taxes”) are required to be withheld   from any amounts payable under this Agreement, the Borrower shall increase the amounts payable   to the Administrative Agent or such Lender to the extent necessary to yield to the Administrative   Agent  or  such  Lender  (after  payment  of  all  Non-Excluded  Taxes,  including  any  such  Non-  Excluded Taxes payable in respect of additional amounts paid pursuant to this Section 5.04(a))   interest or any such other amounts payable hereunder at the rates or in the amounts specified in   this Agreement. Whenever any Non-Excluded Taxes are payable by the Borrower, as promptly as   possible thereafter, the Borrower shall send to the Administrative Agent for its own account or for   the account of such Secured Party, as the case may be, a certified copy of an original official receipt   (or  other  evidence  acceptable  to  such  Lender,  acting  reasonably)  received  by  the  Borrower   showing payment thereof. If the Borrower fails to pay any   DB1/ 110631747.4                       58    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Non-Excluded  Taxes  when  due  to  the  appropriate  taxing  authority  or  fails  to  remit  to  the   Administrative Agent the required receipts or other required documentary evidence, the Borrower   shall indemnify the Administrative Agent and the Lenders for any incremental Taxes, interest,   costs or penalties that may become payable by the Administrative Agent or any Lender as a result   of  any  such  failure.  In  addition,  the  Borrower  shall  pay  any  Other  Taxes  to  the   relevant   Governmental  Authority  in  accordance  with  Applicable  Law.  The  agreements  in  this  Section   5.04(a) shall survive the termination of this Agreement and the payment of the Loans and all other   amounts payable hereunder.                (b)   Each Lender that is not organized under the laws of the United States of   America or any state thereof (a “Non-U.S. Lender”) shall:                      (i)   deliver to the Borrower and the Administrative Agent (2) two   copies  of  either  (A)  in  the  case  of  Non-U.S.  Lender  claiming  exemption  from  U.S.  federal   withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio   interest,” United States Internal Revenue Service Form W-8BEN or W-8BEN-E (together with a   certificate representing that such Non-U.S. Lender is not a bank for purposes of Section 881(c) of   the Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code)   of the Borrower and is not a controlled foreign corporation related to the Borrower (within the   meaning of Section 864(d)(4) of the Code)), (B) Internal Revenue Service Form W-8BEN, W-  8BEN-E or Form W-8ECI, or (C) to the extent a Non-U.S. Lender is not the beneficial owner,   executed originals of  IRS Form W-8IMY,  accompanied by  IRS  Form  W-8ECI,  IRS  Form W-  8BEN, IRS Form W-8BEN-E, IRS Form W-9, the certificate described in   (A)  above,  if  applicable,  and/or  other  certification  documents  from  each  beneficial  owner,  as   applicable; provided, that if the Non-U.S. Lender is a partnership and one or more direct or indirect   partners of such Non-U.S. Lender are claiming the portfolio interest exemption, such Non-U.S.   Lender will provide the documents set forth in (A) above on behalf of each such direct and indirect   partner, in each case, properly completed and duly executed by such Non-U.S. Lender claiming   complete exemption from, or reduced rate of, U.S. federal withholding tax on payments by the   Borrower under this Agreement;                      (ii)  deliver to the Borrower and the Administrative Agent two (2)   further copies of any such form or certification (or any applicable successor form) promptly upon   the obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender; and                      (iii) obtain such extensions of time for filing and complete such forms   or certifications as may reasonably be requested by the Borrower or the Administrative Agent,   unless in any such case any change in treaty, law or regulation has occurred prior to the date on   which any such delivery would otherwise be required that renders any such form inapplicable or   would prevent such Lender from duly completing and delivering any such form with respect to it   and such Lender so advises the Borrower and the Administrative Agent, in which case such Lender   shall not be required to provide any form under subparagraphs (i) or (ii) above. Each Person that   shall become a Participant pursuant to Section 12.06 or a Lender pursuant to  Section   12.06 shall, upon the effectiveness of the related transfer, be required to provide all the forms and   statements required pursuant to this Section 5.04(b) or Section 5.04(c), as applicable; provided,   that  in  the  case  of  a  Participant  such  Participant  shall  furnish  all  such  required  forms and   DB1/ 110631747.4                       59    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 statements  to  the  Lender  from  which  the  related  participation  shall  have  been  purchased.   Notwithstanding any other provision of this paragraph, a Non-U.S. Lender shall not be required to   deliver any form pursuant to this paragraph that such Non-U.S. Lender is not legally able to deliver.                (c)   Each Lender that is entitled to an exemption from or reduction of non-U.S.   withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to   which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to   the  Borrower  (with  a  copy  to  the  Administrative  Agent),  at  the  time  or  times  prescribed  by   Applicable Law or reasonably requested by the Borrower, such properly completed and executed   documentation prescribed by Applicable Law as will permit such payments to be made without   withholding or at a reduced rate; provided, that such Lender is legally entitled to complete, execute   and  deliver  such  documentation  and  in  such  Lender’s  reasonable  judgment  such  completion,   execution or submission would not materially prejudice the legal position of such Lender.                (d)   The Borrower shall indemnify the Administrative Agent and each Lender   within ten (10) days after written demand therefor, for the full amount of any Non-Excluded Taxes   or Other Taxes paid by the Administrative Agent or such Lender, as the case may be, on or with   respect to any payment by or on account of any obligation of the Borrower hereunder (including   Non-Excluded Taxes or Other Taxes imposed or asserted on or attributable to amounts payable   under this Section) and any penalties, interest, additions to tax and reasonable expenses arising   therefrom or with respect thereto, whether or not such Non-Excluded Taxes or Other Taxes were   correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as   to  the  amount  of  such  payment  or  liability  delivered  to  the  Borrower  by  a  Lender  or  by  the   Administrative  Agent  on  its  own  behalf  or  on  behalf  of  a  Lender  shall  be  conclusive  absent   manifest error.                (e)   If  a  payment  made  to  a  Lender  would  be subject  to  U.S.  federal   withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable   reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the   Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at   the time or times prescribed by law and at such time or times reasonably requested by the Borrower   or  the  Administrative  Agent  such  documentation  prescribed  by  applicable  law  (including  as   prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably   requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and   the Administrative Agent to comply with their obligations under FATCA and to determine that   such  Lender  has  complied  with  such  Lender’s  obligations  under  FATCA  or  to  determine  the   amount  to  deduct  and  withhold  from  such  payment.  Solely  for  purposes  of  this  clause  (e),   “FATCA” shall include any amendments made to FATCA after the date of this Agreement.                (f)   If any Lender or the Administrative Agent determines, in its sole discretion   exercised in good faith, that it has received a refund of a Tax for which an additional payment has   been made by the Borrower pursuant to this Section 5.04 or Section 12.05 of this Agreement, then   such Lender or the Administrative Agent, as the case may be, shall reimburse the Borrower   DB1/ 110631747.4                       60     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 for such amount (but only to the extent of indemnity payments made, or additional amounts paid,   by the Borrower under this Section 5.04 and Section 12.05 with respect to the Tax giving rise to   such  refund),  net  of  all  out-of-pocket  expenses  of  the  Administrative  Agent  or  such  Lender   (including any Taxes imposed on the receipt of such refund) and without interest (other than any   interest paid by the relevant Governmental Authority with respect to such refund); provided, that   the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the   amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the   relevant Governmental Authority) to the Administrative Agent or such Lender in the event the   Administrative  Agent  or  such  Lender  is  required  to  repay  such  refund  to  such  Governmental   Authority. This paragraph shall not be construed to require the Administrative Agent or any Lender   to make available its tax returns (or any other information relating to its taxes which it deems   confidential) to the Borrower or any other Person.                (g)   Any Lender claiming any additional amounts payable pursuant to this   Section 5.04 shall use its reasonable efforts (consistent with its internal policies and requirements   under Applicable Laws) to change the jurisdiction of its lending office if such a change would   reduce any such additional amounts (or any similar amount that may thereafter accrue) and would   not, in the reasonable determination of such Lender, be otherwise disadvantageous to such Lender.                (h)   Each  party’s  obligations  under  this  Section  5.04  shall  survive  the   resignation or replacement of the Administrative Agent  or any assignment  of rights by, or the   replacement  of,  a  Lender,  the termination  of  the  Loans  and Commitments  and  the repayment,   satisfaction or discharge of all obligations under any Credit Document.          SECTION 5.05  Computations  of  Interest  and  Fees.  All interest and fees shall be   computed on the basis of the actual number of days (including the first day but excluding the last   day) occurring during the period for which such interest or fee is payable over a year comprised of   (a) three hundred and sixty five (365) (or three hundred and sixty six (366) as appropriate) days in   the case of ABR Loans and (b) three hundred and sixty (360) days in all other cases. Payments due   on a day that is not a Business Day shall (except as otherwise required by Section 2.09(c)) be made   on the next succeeding Business Day and such extension of time shall be included in computing   interest and fees in connection with that payment.                                     ARTICLE VI                                 Conditions Precedent          SECTION 6.01  Conditions Precedent to Initial Credit Extension. The making of the    initial Credit Extension is subject to the satisfaction (or waiver) of the following conditions   precedent on or before the Closing Date:                (a)   Credit  Documents.  The Administrative Agent shall have received the   following documents, duly executed by an Authorized Officer of each Credit Party and each   other relevant party:   DB1/ 110631747.4                       61    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                   (i)   this Agreement;                                (ii)  the Fee Letter;                                (iii) the Intercompany Subordination Agreement;                                (iv)  the Guarantee Agreement;                                (v)   the Security Agreement;                                              (vi)  each Note requested by any Lender;                                              (vii) A the  Notice  of  Borrowing,  reasonably  satisfactory  to  the    dministrative Agent; and                                (viii) t the Letter of Direction and flow of funds, reasonably satisfactory to   he Administrative Agent.                (b)   Collateral.                                (i)   To the extent  required under the Security Documents, all  Capital   Stock of each Subsidiary (other than Excluded Subsidiaries) of each Credit Party shall have been   pledged to the Administrative Agent.                                (ii)  For all Indebtedness for borrowed money owed to any of the Credit   Parties in excess of $2,000,000 that is evidenced by one or more promissory notes, such promissory   notes shall have been pledged pursuant to the Security Agreement, and the Administrative Agent   shall have received all such promissory notes, together with instruments of transfer with respect   thereto endorsed in blank.                                (iii) The Administrative Agent shall have received the results of  a   search of the UCC filings (or equivalent filings), in addition to tax Lien, judgment Lien, bankruptcy   and litigation searches made with respect to each Credit Party, together with copies of the financing   statements and other filings (or similar documents) disclosed by such searches, and accompanied   by evidence satisfactory to the Administrative Agent that the Liens indicated in any such financing   statement and other filings (or similar document) are Permitted Liens or have been released or will   be released substantially simultaneously with the initial Credit Extensions hereunder.                                (iv)  The  Administrative  Agent  shall  have  received,  in  form  and   substance satisfactory to the Administrative Agent, the appropriate UCC (or equivalent) financing   statements  for  filing  in  such  office  or  offices  as  may  be  necessary  or,  in  the  opinion  of   Administrative  Agent,  desirable,  to  perfect  the  Administrative  Agent’s  Liens  in  and  to  the   Collateral.                          (c)   Legal Opinions. The Administrative Agent shall have received  executed   legal opinions of King & Spalding LLP, counsel to the Borrower and the other Credit Parties,   DB1/ 110631747.4                       62    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 which opinion shall be addressed to the Administrative Agent and the Lenders and shall be in   form and substance reasonably satisfactory to the Administrative Agent.                (d)   Warrants.  The Administrative Agent shall have received, in form and   substance satisfactory to the Administrative Agent, the Warrants executed by Parent.                (e)   Legal and Collateral Due Diligence. The Administrative Agent shall have   completed its legal and collateral due diligence, including a satisfactory review of regulatory due   diligence and a satisfactory review of the terms of the Convertible Senior Notes.                (f)   Officer’s  Certificates.  The  Administrative  Agent  shall  have  received  a   certificate for each Credit Party, dated the Closing Date, duly executed  and delivered by such   Credit  Party’s  General  Counsel,  secretary,  other  duly  authorized  officer,  sole  shareholder,   managing member or general partner, as applicable, as to:                      (i)   resolutions of each such Person’s board of managers/directors (or   other managing body, in the case of a Person that is not a corporation) or shareholder(s) then in   full force and effect expressly and specifically authorizing, to the extent relevant, all aspects of the   Credit  Documents  and  the  other  Transaction  Documents  applicable  to  such  Person  and  the   execution,  delivery  and  performance  of  each  Credit  Document  and  each  other  Transaction   Document, in each case, to be executed by such Person;                      (ii)  the incumbency and signatures of its certain of its Authorized   Officers and any other of its officers, managing member or general partner, as applicable,   authorized to act with respect to each Credit Document to be executed by such Person;                      (iii) each  such  Person’s  Organization  Documents,  as  amended,   modified or supplemented as of Closing Date, with the certificate or articles of incorporation or   formation certified by the appropriate officer or official body of the jurisdiction of organization of   such Person;                      (iv)  certificates of good standing with respect to each Credit Party from   its relevant jurisdiction of incorporation or formation, each dated within a recent date prior to the   Closing  Date,  such  certificates  to  be  issued  by  the  appropriate  officer  or  official  body  of  the   jurisdiction of organization of such Credit Party, which certificate shall indicate that such Credit   Party is in good standing in such jurisdiction.                (g)   Other Documents and Certificates.   The Administrative Agent shall have   received the following documents and certificates, each of which shall be dated the Closing Date   and  properly  executed  by  an  Authorized  Officer  of  each  applicable  Credit  Party,  in  form  and   substance reasonably satisfactory to the Administrative Agent and its legal counsel a certificate of   an Authorized Officer of the Borrower, certifying as to such items as reasonably requested by the   Administrative Agent, including, without limitation:                            (A)   the consummation of the Transactions, all in accordance   with Applicable Laws and the Transaction Documents;   DB1/ 110631747.4                       63    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                         (B)   the receipt of all required approvals and consents of all   Governmental Authorities and other third parties with respect to the consummation of the   Transactions (if any) and the transactions contemplated by the Transaction Documents; and                            (C)   the names of each of the officers and directors of each   Credit Party as of the Closing Date.                (h)   Solvency  Certificate.  The Administrative Agent shall have received a   Solvency Certificate of the chief financial officer of the Borrower, on behalf of the Credit Parties,   confirming  the  Solvency  of  the  Credit  Parties  and  their  Subsidiaries  after  giving  effect  to  the   Transactions.                (i)   Passport Health Note. The Administrative Agent shall have received the   Passport Health Note, together with an instrument of transfer with respect thereto endorsed in   blank.                (j)   Minimum Liquidity. Liquidity shall not be less than $25,000,000.                (k)   Financial Information. The Administrative Agent shall  have received (or   in the case of clause (i) below, made available to the Administrative Agent through the materials   filed with the SEC) the following documents and reports (each in form and substance reasonably   satisfactory to the Administrative Agent):                      (i)   the Historical Financial Statements;                      (ii)  the forecasted financial projections of the Credit Parties (including   Liquidity calculations) for the fiscal years 2020-2022 as of the Closing Date along with a pro forma   balance sheet of the Parent and its Subsidiaries as of September 30, 2019 after giving effect to the   Transactions; and                      (iii) a detailed sources and uses statement which reflects (A) the   sources of all funds to be used by the Credit Parties to consummate the Transactions and to pay all   transaction expenses incurred in connection therewith (including the fees, costs and expenses due   and payable pursuant to the Fee Letter, Sections 4.01 and 12.05) and (B) all uses of such funds,   which  sources  and  uses  shall  be  attached  as  an  exhibit  to  the  Notice  of  Borrowing  delivered   pursuant to Section 6.01(a).                (l)   Insurance. The Administrative Agent shall have received a certificate of   insurance, in each case, as to the insurance required by Section 8.03, in form and substance   reasonably satisfactory to Administrative Agent.                (m)   Payment  of  Outstanding  Indebtedness.  (A)  On  the  Closing  Date,  the   Credit Parties and each of their respective Subsidiaries shall have no outstanding Indebtedness for   borrowed money other than the Loans hereunder and the Indebtedness (if any) listed on Schedule   7.24,  and  the  Administrative  Agent  shall  have  received  copies  of  all  documentation  and   instruments  evidencing the discharge of all  such  Indebtedness  paid  off in connection with  the   DB1/ 110631747.4                       64    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Transactions on the Closing Date, and (B) all Liens (other than Permitted Liens) securing payment   of  any  such  Indebtedness  shall  have  been  released  and  the  Administrative  Agent  shall  have   received pay-off letters and all form UCC-3 termination statements and other instruments as may   be reasonably requested by Administrative Agent in connection therewith. The terms, maturity and   subordination  of  any  indebtedness  listed  on  Schedule  7.24  shall  be  satisfactory  to  the   Administrative Agent.                (n)   Material  Adverse  Effect.  There has been no Material Adverse Effect,   since December 31, 2018.                (o)   Fees and Expenses. Each of the Administrative Agent and each Lender   shall have received, for its own respective account, (i) all fees and expenses due and payable to   such Person under the Fee Letter and (ii) the reasonable fees, costs and expenses due and payable   to such Person pursuant Sections 4.01 and 12.05 (including the reasonable and documented fees,   disbursements and other charges of counsel) for which invoices have been presented at least one   (1) Business Day prior to the Closing Date.                (p)   Patriot Act Compliance. The Administrative Agent shall have received, at   least three (3) Business Days prior to the Closing Date, all documentation and other information   required  by  banking  regulatory  authorities  under  applicable  “know  your  customer”  and  Anti-  Money  Laundering  Laws,  rules  and  regulations,  and  any  required  Patriot  Act  compliance,  the   results of which are satisfactory to Administrative Agent in its sole discretion.                (q)   No  Adverse  Actions.  The Administrative Agent shall be  reasonably   satisfied  that  there  is  no  action  or  proceeding  before  any  court  or  Governmental  Authority,   litigation  or  investigation,  pending  or  threatened  in  writing  against  the  Borrower  or  any  other   Credit Party, or any of their respective Subsidiaries wherein an unfavorable judgment, decree or   order would (w) prevent the consummation of any of the Transactions, (x) declare unlawful any   of the Transactions, (y) reasonably be expected to cause any of the Transactions to be rescinded or   (z) result in damages owing by Ares in connection with the consummation of the Transactions.                (r)   Passport  Health  Acquisition.  Substantially concurrently with the initial   funding of the Loans hereunder, the Passport Health Acquisition shall have been consummated in   all material respects in accordance with the terms of the Passport Health Acquisition Agreement.          SECTION 6.03  Conditions Precedent to all Credit Extensions.                (a)   No  Default;  Representations  and  Warranties.  The  agreement  of  each   Lender to make any Loan requested to be made by it on any date is subject to the satisfaction of   the condition precedent that at the time of each such Credit Extension and also after giving effect   thereto, and in the case of the Credit Extensions on the Closing Date, both before and after giving   effect  to  the  consummation  of  the  Transactions:  (i)  no  Default  or  Event  of Default  shall  have   occurred  and  be  continuing,  (ii)  all  representations  and  warranties  made  by  each  Credit  Party   contained herein or in the other Credit Documents shall be true and correct in all material respects   (except in the case of the initial Credit Extensions to occur on the Closing Date, in which case all   representations and warranties made by each Credit Party contained herein or in   DB1/ 110631747.4                       65    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 the other Credit Documents shall be true and correct in all respects), in each case, with the same   effect as though such representations and warranties had been made on and as of the date of such   Credit Extension (except where such representations and warranties expressly relate to an earlier   date, in which case such representations and warranties shall have been true and correct in all   material respects  as of such earlier date); provided, that any representation or warranty that is   qualified  as  to  “materiality,”  “Material  Adverse  Effect”  or  similar  language  shall  be  true  and   correct in all respects on such respective dates, and (iii) no injunction, writ, restraining order, or   other order of any nature restricting or prohibiting, directly or indirectly, such Credit Extension   shall have been issued and remain in force by any Governmental Authority against the Borrower,   the Administrative Agent, any Lender. The acceptance of the benefits of each Credit Extension   shall constitute a representation and warranty by each Credit Party to each of the Lenders that all   the applicable conditions specified above are satisfied as of that time.                (b)   Notice   of   Borrowing.  Prior to the making of each Loan, the   Administrative Agent shall have received a Notice of Borrowing (whether in writing or by   telephone) meeting the requirements of Section 2.03.                                              ARTICLE VII                                 Representations, Warranties and Agreements                    In order to induce the Lenders to enter into this Agreement, make the Loans as provided   for herein, the Credit Parties make the following representations and warranties as of the Closing   Date and as of the date of making of each Loan thereafter, all of which shall survive the execution   and delivery of this Agreement:                    SECTION 7.01  Corporate Status.  Each Credit Party and each of their Subsidiaries (a)   is a duly organized or formed and validly existing corporation, limited liability company or other   registered entity in good standing under the laws of the jurisdiction of its organization and has the   corporate or other organizational power and authority to own its property and assets and to transact   the business in which it is engaged and (b) has duly qualified and is authorized to do business and   is in good standing in all jurisdictions where it does business or owns assets, except where the   failure to be so qualified, authorized or in good standing could not reasonably be expected to result   in a Material Adverse Effect.                    SECTION 7.02  Corporate Power and Authority. Each Credit Party has the corporate or   other organizational power and authority to execute, deliver and carry out the terms and provisions   of  the  Credit  Documents  to  which  it  is  a  party  and  has  taken  all  necessary  corporate  or other   organizational  action  to  authorize  the  execution,  delivery  and  performance  of  the  Credit   Documents to which it is a party. Each Credit Party has duly executed and delivered the Credit   Documents  and  each  other  Transaction  Document  to  which  it  is  a party  and  such  Transaction   Documents constitute the legal, valid and binding obligation of such Credit Party enforceable in   accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,   moratorium,  reorganization  and  other  similar  laws  relating  to  or  affecting  creditors’  rights   generally and general principles of equity (whether considered in a proceeding in equity or law).   DB1/ 110631747.4                       66     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 7.03  No Violation.   None of (a) the execution, delivery and performance  by   any Credit Party of the Credit Documents to which it is a party and compliance with the terms and   provisions thereof, (b) the consummation of the Transactions, or (c) the consummation of the other   transactions contemplated hereby or thereby on the relevant dates therefor will (i) contravene in   any material respect any applicable provision of any material Applicable Law of any Governmental   Authority, (ii) result in any breach of any of the terms, covenants, conditions or provisions of, or   constitute a default under, or result in the creation or imposition of (or the obligation to create or   impose) any Lien upon any of the property or assets of any Credit Party (other than Permitted   Liens and Liens created under the Credit Documents) pursuant to, (A) the terms  of any material   indenture, loan agreement, lease agreement, mortgage or deed of trust or   (B) any other Material Contracts, in the case, of either clause (A) and (B) to which any Credit Party   is a party or by which it or any of its property or assets is bound or (iii) violate any provision of   the  Organization  Documents  any  Credit  Party,  except  with  respect  to  any  conflict,  breach  or   contravention or default (but not the creation of Liens other than Permitted Liens) referred to in   clauses (ii)(A) or (ii)(B), to the extent that such conflict, breach, contravention or default could not   reasonably be expected to have a Material Adverse Effect.          SECTION 7.04  Litigation,  Labor  Controversies,  etc.  There is no litigation,  action,   proceeding or labor controversy (including, without limitation, strikes, lockouts or slowdowns)   against the Credit Parties or any of their respective Subsidiaries that is pending or, to the knowledge   of any Credit Party, threatened in writing (a) except as disclosed in Schedule 7.04 and other matters   that  could  not  reasonably  be  expected  to  (x)  have  a  Material  Adverse  Effect,  or  (y)  result  in   monetary judgments or relief, individually or in the aggregate, in excess of $5,000,000 or (b) which   purports to affect the legality, validity or enforceability of any Credit Document, any Transaction   Document or the Transactions.          SECTION 7.05  Use of Proceeds; Regulations U and X.  The proceeds of the Loans are   intended to be and shall be used solely for the purposes set forth in and permitted by Section   8.10. No Credit Party is engaged in the business of extending credit for the purpose of purchasing   or carrying margin stock, and no proceeds of any Credit Extension will be used to purchase or   carry  margin  stock  or  otherwise  for  a  purpose  which  violates,  or  would  be  inconsistent  with   Regulation U or Regulation X. No Credit Party and no Subsidiary of any  Credit Party owns any   margin stock.          SECTION 7.06  Approvals, Consents, etc.  No authorization or approval or other  action   by, and no notice to or filing with, any Governmental Authority or other Person, and no consent or   approval under any contract or instrument (other than (a) those that have been duly obtained or   made and which are in full force and effect, or if not obtained or made, individually or in the   aggregate, could not reasonably be expected to have a Material Adverse Effect, (b) the filing of   UCC financing statements and other equivalent filings for foreign jurisdictions and (c) to the extent   the Capital Stock of any Licensed Insurance Entity is subject to any Applicable Laws affecting   any future rights or remedies of a Secured Party with respect to such Capital Stock) is required for   the consummation of the Transactions or the due execution, delivery or performance by any Credit   Party  of  any  Credit  Document  to  which  it  is  a  party,  or  for  the  due  execution,  delivery  or   performance of the other Transaction Documents, in each case by any of the parties   DB1/ 110631747.4                       67    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 thereto. There does not exist any judgment, order, injunction or other restraint issued or filed with   respect to the transactions contemplated by the Transaction Documents, the consummation of the   Transactions, the making of any Credit Extension or the performance by the Credit Parties or any   of their respective Subsidiaries of their Obligations under the Credit Documents.          SECTION 7.07  Investment Company Act. No Credit Party is required to be  registered,   or will be required to be registered after giving effect to the Transactions and the transactions   contemplated  under  the  Credit  Documents,  as  an  “investment  company”  or  a  company   “controlled” by an “investment company,” within the meaning of the Investment Company Act of   1940.          SECTION 7.08  Full Disclosure.                (a)   In connection with the execution of this Agreement and the Transactions,   Credit  Parties  have  disclosed  to  the  Administrative  Agent  and  the  Lenders  all  agreements,   instruments and corporate or other restrictions to which any Credit Party or any of its Subsidiaries   is  subject,  and  all  other  matters  known  to  them,  that,  individually  or  in  the  aggregate,  could   reasonably be expected to have Material Adverse Effect. None of the factual written information   and data (taken as a whole) at any time furnished by any Credit Party, any of their respective   Subsidiaries or any of their respective authorized representatives in writing to the Administrative   Agent or any Lender (including all information contained in the representations and warranties,   reports, exhibits or otherwise in the Credit Documents but excluding the Budget, any pro forma   financial information or projections, which are subject to the requirements of clause (b) below) for   purposes of or in connection with this Agreement or any of the Transactions contains any untrue   statement of a material fact or omits to state any material fact necessary to make such information   and data (taken as a whole) not materially misleading, in each case, at the time such information   was provided in light of the circumstances under which such information or data was furnished.                (b)   The  Budget,  pro  forma  financial  information,  Liquidity calculations  and   projections  provided  pursuant  to  this  Agreement  were  prepared  in  good  faith  based  upon   assumptions believed by the Credit Parties to be reasonable at the time made in light of then current   market conditions, it being recognized by the Administrative Agent  and the Lenders that such   projections  as  to  future  events  are  not  to  be  viewed  as  facts,  are  subject  to  uncertainties  and   contingencies, and that actual results during the period or periods covered by any such projections   are not guaranties of financial performance and may differ from the projected results and such   differences may be material.          SECTION 7.09  Financial Condition; No Material Adverse Effect.                (a)   The Historical Financial Statements present fairly in all material respects   the financial position and results of operations of the Credit Parties at the respective dates of such   information  and  for  the  respective  periods  covered  thereby,  subject  in  the  case  of  unaudited   financial  information,  to  changes  resulting  from  normal  year  end  audit  adjustments  and  to  the   absence  of  footnotes.  The  Historical  Financial  Statements  and  all  of  the  balance  sheets,  all   statements of income and of cash flow and all other financial information furnished pursuant to   DB1/ 110631747.4                       68     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Section  8.01  have  been  and  will  for  all  periods  following  the  Closing  Date  be  prepared  in   accordance with GAAP consistently applied. All of the financial information furnished pursuant   to  Section  8.01  presents  fairly  in  all  material  respects  the  financial  position  and  results  of   operations of the Credit Parties at the respective dates of such information and for the respective   periods  covered  thereby,  subject  in  the  case  of  unaudited  financial  information,  to  changes   resulting from normal year end audit adjustments and to the absence of footnotes.                (b)   There are no material liabilities of any Credit Party of any  kind   whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, and   there is no existing condition, situation or set of circumstances which could reasonably be expected   to result in any such liabilities, other than those liabilities provided for or disclosed in the most   recently delivered financial statements pursuant to Section 8.01 or otherwise disclosed hereunder.                (c)   Since December 31, 2018, there has been no circumstance, event or   occurrence, and no fact is known to the Credit Parties that has resulted in or could reasonably be   expected to result in a Material Adverse Effect.          SECTION 7.10  Tax Returns and Payments. Each Credit Party has filed all applicable   federal and state income Tax returns and  all  other  material Tax returns,  domestic and foreign,   required to be filed by them and has paid all material Taxes and assessments payable by them that   have become due, other than those not yet delinquent or being diligently contested in good faith   by appropriate proceedings and by proper proceedings which stay the enforcement of any Lien as   to which such Credit Party has maintained adequate reserves in accordance with GAAP.          SECTION 7.11  Compliance with ERISA.  Except as could not reasonably be  expected,   individually or in the aggregate, to have a Material Adverse Effect: (a) each Pension Plan is in   compliance with ERISA, the Code and any Applicable Law; (b) no ERISA Event has occurred (or   is reasonably likely to occur); (c) each Pension Plan that is intended to qualify under Section 401(a)   of the Code has received a favorable determination or opinion letter from the Internal Revenue   Service, and nothing has occurred subsequent to the issuance of such determination letter which   would reasonably be expected to prevent, or cause the loss of, such qualification; (d) no failure by   any Credit Party or any ERISA Affiliate to make any required contribution to a Multiemployer   Plan when due has occurred; (e) none of the Credit Parties or any ERISA Affiliate has incurred (or   is reasonably expected to incur) any liability to or on account of a Plan pursuant to Section 409,   502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section   4971 or 4975 of the Code; and (f) no Lien imposed under the Code or ERISA on the assets of any   of the Credit Parties or any ERISA Affiliate exists (or is reasonably likely to exist). Except as could   not reasonably be expected to have a Material Adverse Effect, no employee welfare benefit plan   within the meaning of § 3(1) or § 3(2)(B) of ERISA of any Credit Party provides benefit coverage   subsequent to termination of employment except as required by Title I, Subtitle B, Part 6 of ERISA   or applicable state insurance laws. With respect to any Foreign Plan, except as could not reasonably   be expected, individually or in the aggregate, to have a Material Adverse Effect:   (a) all employer and employee contributions required by applicable law or by the terms of such   Foreign Plan have been  made or, if applicable, accrued in accordance with normal accounting   practices; (b) the accrued benefit obligations of each Foreign Plan (based on those assumptions   DB1/ 110631747.4                       69     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 used to fund such Foreign Plan) with respect to all current and former participants do not exceed   the assets of such Foreign Plan; (c) each Foreign Plan that is required to be registered has been   registered and has been maintained in good standing and applicable regulatory authorities; and   (d) each Foreign Plan is in compliance in all material respects with applicable law and regulations   and with the terms of such Foreign Plan.                    SECTION 7.12  Capitalization and Subsidiaries.  Except as set forth on Schedule 7.12   as  of  the  Closing  Date,  no  Credit  Party  and  no  Subsidiary  of  any  Credit  Party  (a)  has  any   Subsidiaries or (b) is engaged in any joint venture or partnership with any other Person. All of the   issued and outstanding Capital Stock of each of the Credit Parties and their Subsidiaries is validly   issued, fully paid and nonassessable, free and clear of all Liens, except those created under the   Credit  Documents.  All  such  securities  were  issued  in  compliance  with  all  Applicable  Laws   concerning the issuance of securities. Except as set forth in Schedule 7.12, on the Closing Date   there are no pre-emptive or other outstanding rights to purchase, options, warrants or similar rights   or agreements (other than stock options granted to employees) pursuant to which any Credit Party   may be required to issue, sell, repurchase or redeem any of its Capital Stock or any Capital Stock   of its Subsidiaries.                    SECTION 7.13  Intellectual Property.  Each Credit Party and each of its Subsidiaries   owns, or possesses the right to use, all of the material trademarks, service marks, trade names,   copyrights, patents, patent rights, licenses and other intellectual property rights that are reasonably   necessary for the operation of their respective businesses. To the knowledge of each Credit Party,   the use of such material intellectual property does not infringe upon any intellectual property rights   held by any other Person, except as could not reasonably be expected to have a Material Adverse   Effect. Except as specifically set forth on Schedule 7.04 and as could not reasonably be expected   to have a Material Adverse Effect, no claim or litigation regarding any of the foregoing is pending   or, to the knowledge of such Credit Party threatened in writing.                    SECTION 7.14  Environmental.                          (a)   Except as would not reasonably be expected to result in a Material   Adverse Effect: (i) the Credit Parties and each of their respective Subsidiaries are in compliance   with  all  material  Environmental  Laws  in  all  jurisdictions  in  which  the  Credit  Parties  or  such   Subsidiary, as the case may be, are currently doing business (including obtaining, maintaining in   full force and effect, and complying with all Permits required under Environmental Laws to operate   the business of the Credit Parties and their respective Subsidiaries as currently conducted); (ii)   none  of  the  Credit  Parties  or  any  of  their  respective  Subsidiaries  is  subject  to  any  material   Environmental Claim or any other material liability under any Environmental Law that is pending   or, to the knowledge of such Credit Party, threatened in writing; (iii) to the knowledge of the Credit   Parties, there are no conditions relating to the formerly owned Real Property that could reasonably   be expected to give rise to any material Environmental Claim against any of the Credit Parties or   any of their Subsidiaries and (iv) no Lien in favor of any Governmental Authority securing, in   whole or in part, material Environmental Claims has attached to any Real Property of any of the   Credit Parties or any of their Subsidiaries.                         DB1/ 110631747.4                       70    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (b)   None of the Credit Parties or any of their respective Subsidiaries has   treated, stored, transported, Released or disposed of Hazardous Materials at, from, on or under any   currently or formerly owned Real Property, facility relating to its business, or, to the knowledge   of any Credit Party, any other location, in each case, in a manner that could reasonably be expected   to give rise to an Environmental Claim that could result in a Material Adverse Effect.                (c)   Each Credit Party has made available to the Administrative Agent copies   of  all  existing  material  environmental  assessment  reports,  assessments,  reviews,  audits,   correspondence and other documents and data that have a material bearing on actual or potential   Environmental Claims or compliance with Environmental Laws, in each case to the extent such   reports, assessments, reviews, audits and documents and data are in their possession or reasonable   control.                (d)   This Section 7.14 contains the sole and exclusive representations and   warranties of the Credit Parties with respect to matters arising under or relating to Environmental   Laws, Environmental Claims, Hazardous Materials, Releases, or any other environmental, health   or safety matters.          SECTION 7.15  Ownership of Properties.  Set forth on Schedule 7.15 is a list of all of   the Real Property owned or leased by any of the Credit Parties or their respective Subsidiaries as   of the Closing Date, indicating, in each case, whether the respective property is owned or leased,   the identity of the owner or lessor and the location of the respective property. Each Credit Party   owns (a) in the case of owned Real Property, good, indefeasible and marketable fee simple title to   such Real Property, (b) in the case of owned personal property, good and valid title to such personal   property  and  (c)  in  the  case  of  leased  Real  Property  or  personal  property,  valid,  subsisting,   marketable,  insurable  and  enforceable  (except  as  may  be  limited  by  bankruptcy,  insolvency,   moratorium, fraudulent conveyance or other laws applicable to creditors’ rights generally and by   generally  applicable  equitable  principles,  whether  considered  in  an  action  at  law  or  in  equity)   leasehold interests (as the case may be) in such leased property, in each case, free and clear in each   case of all Liens, except for Permitted Liens.          SECTION 7.16  No  Default.  None of the Credit Parties or any of their respective   Subsidiaries is in default under or with respect to, or a party to, any Material Contract (copies of   which have been received by the Administrative Agent) (other than any such Material Contract in   respect of Indebtedness) that could, either individually or in the aggregate, reasonably be expected   to have a Material Adverse Effect. Upon the effectiveness of this Agreement and the other Credit   Documents, none of the Credit Parties or any of their respective Subsidiaries is in default under or   with  respect  to  any  Material  Contract  in  respect  of  Indebtedness  the  breach  of  which  could   reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continue   or would result from the consummation of the transactions contemplated by this Agreement or any   other Credit Document.          SECTION 7.17  Solvency. On the Closing Date after giving effect to the Transactions,   Parent and its Subsidiaries, on a consolidated basis, are Solvent.   DB1/ 110631747.4                       71     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 7.18  Licensed Insurance Entities. Except as set forth on Schedule 7.18 or  as   otherwise permitted under this Agreement, no Licensed Insurance Entity is (i) party to any credit   agreement, loan agreement, indenture, guarantee, letter of credit, note, bond or other arrangement   providing  for  or  otherwise  relating  to  any  Indebtedness  owed  to  any  third  party  for  borrowed   money or any extension of credit (or commitment for any extension of credit), or (ii) subject to   any Lien upon any property or assets of any kind (real or personal, tangible or intangible) of any   such Licensed Insurance Entities (including its Capital Stock). Notwithstanding anything in this   Agreement to the contrary, the existence of restrictions or requirements under Applicable Laws   with respect to Licensed Insurance Entities shall not be deemed to constitute a Lien or contravene   any provision hereof, including this Section 7.18.          SECTION 7.19  Compliance with Laws; Authorizations. Each Credit Party and each of   its Subsidiaries (a) has complied and is complying with all Applicable Laws, (b) is in possession   of and has  all  requisite  Permits, governmental licenses, authorizations, consents and approvals   required under Applicable Laws and (c) to the extent due and owing has fully paid all applicable   user fees, to operate its business and relating to the Credit Party’s Products as currently conducted   except, in each case, to the extent that failure to do so could not, in the aggregate, reasonably be   expected to have a Material Adverse Effect.          SECTION 7.20  Contractual  or Other  Restrictions.  Other  than  the  Credit  Documents   and to the extent permitted by Section 9.10, no Credit Party or any of its Subsidiaries, other than   the  Licensed  Insurance  Entities,  is  a  party  to  any  agreement  or  arrangement  or  subject  to  any   Applicable Law that limits its ability to pay dividends to, or otherwise make Investments in or   other  payments  to  any  Credit  Party,  that  limits  its  ability  to  grant  Liens  in  favor  of  the   Administrative  Agent  or  that  otherwise  limits  its  ability  to  perform  the  terms  of  the  Credit   Documents.          SECTION 7.21  Transaction Documents.  All representations and warranties of (a) the   Credit Parties set forth in the Transaction Documents and (b) to the best knowledge of the Credit   Parties, of each other Person (other than Lenders) party to the Transaction Documents, were true   and correct in all material respects as of the time as of which such representations and warranties   were made and shall be true and correct in all material respects as of the Closing Date as if such   representations and warranties were made on and as of such date (unless such representation or   warranty  is  given  as  of  a  specific  date).  No  default  or  event  of  default  has  occurred  and  is   continuing  under  any  Transaction  Document.  Each  Transaction  Document  is  in  full  force  and   effect, enforceable against each of the parties thereto (except as may be limited by bankruptcy,   insolvency,  moratorium,  fraudulent  conveyance  or  other  laws  applicable  to  creditors’  rights   generally and by generally applicable equitable principles, whether considered in an action at law   or in equity), no Transaction Document has been amended or modified except as disclosed to the   Administrative Agent on or prior to the Closing Date or otherwise in accordance with Section 9.07,   and no waiver or consent has been granted under any such document, except in accordance with   Section 9.07. There are no agreements, contracts or other arrangements entered into by any Credit   Party or Subsidiary of any Credit Party for the payment of fees, compensation or other similar   amounts to any employee or member of the management of any Credit Party.    DB1/ 110631747.4                       72    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 7.22  Collective Bargaining Agreements. Set forth on Schedule 7.22 is a  list   (including  dates  of  expiration)  of  all  collective  bargaining  or  similar  agreements  between  or   applicable to any Credit Party or any of its Subsidiaries and any union, labor organization or other   bargaining agent in respect of the employees of any Credit Party or any of its Subsidiaries as of   the date hereof.          SECTION 7.23  Insurance.  The properties of each Credit Party are insured with   financially sound and reputable insurance companies which are not Affiliates of any Credit Party   against loss and damage in such amounts, with such deductibles and covering such risks as are   customarily carried by Persons of comparable size and of established reputation engaged in the   same  or  similar  businesses  and  owning  similar  properties  in  the  general  locations  where  such   Credit Party operates, in each case as described on Schedule 7.23 as in effect on the Closing Date.          SECTION 7.24  Evidence  of  Other  Indebtedness.  Schedule 7.24 is a complete  and   correct list of each credit agreement, loan agreement, indenture, purchase agreement, guarantee,   letter of credit or other arrangement providing for or otherwise relating to any Indebtedness or any   extension of credit (or commitment for any extension of credit) to, any Credit Party outstanding   on  the  Closing  Date  which  will  remain  outstanding  after  the  Closing  Date  (other  than  this   Agreement  and  the  other  Credit  Documents),  and  the  aggregate  principal  or  face  amount   outstanding or that may become outstanding under each such arrangement as of the Closing Date   is correctly described in Schedule 7.24.          SECTION 7.25  Deposit Accounts and Securities Accounts. Set forth in Schedule  7.25   is a list of all of the deposit accounts and securities accounts of each Credit Party, including, with   respect to each bank or securities intermediary at which such accounts are maintained by such   Credit Party (a) the name and location of such Person and (b) the account numbers of the deposit   accounts or securities accounts maintained with such Person, in each case, as of the Closing Date.          SECTION 7.26  Foreign   Assets   Control   Regulations;   Anti-Money  Laundering and   Anti-Corruption Practices. Each Credit Party and each Subsidiary of each Credit Party is (x) in   compliance in all material respects with all U.S. economic sanctions laws, executive orders and   implementing regulations (“Sanctions”) as promulgated by the U.S. Treasury Department’s Office   of  Foreign  Assets  Control  (“OFAC”),  and  (y)  in  compliance  in  all  material  respects  with  all   applicable anti-money laundering and counter-terrorism financing provisions of the Bank Secrecy   Act and all regulations issued pursuant to it. No Credit Party and no Subsidiary or Affiliate of a   Credit  Party  (i)  is  a  Person  designated  by  the  U.S.  government  on  the  list  of  the  Specially   Designated Nationals and Blocked Persons (the “SDN List”) with which a U.S. Person cannot deal   with or otherwise engage in business transactions, (ii) is a Person who is otherwise the target of   U.S. economic sanctions laws such that a U.S. Person cannot deal or otherwise engage in business   transactions with such Person or (iii) is controlled by (including without limitation, by virtue of   such Person being a director or owning voting shares or interests), or acts, directly or indirectly,   for or on behalf of, any Person or entity on the SDN List or a foreign government that is the target   of  U.S.  economic  sanctions  prohibitions  such  that  the  entry  into,  or  performance  under,  this   Agreement  or  any other  Credit  Document  would  be prohibited  under   DB1/ 110631747.4                       73     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 U.S.  law.  Each  Credit  Party  and  each  Subsidiary  of  each  Credit  Party  is  in  compliance  in  all   material  respects  with  all  applicable  Anti-Corruption  Laws.  None  of  the  Credit  Parties  or  any   Subsidiary thereof, nor to the knowledge of the Borrower, any director, officer, agent, employee,   or other person acting on behalf of a Credit Party or any Subsidiary, has taken any action, directly   or indirectly, that would result in a violation in any material respect of applicable Anti-Corruption   Laws. Each Credit Party and each Subsidiary of a Credit Party has instituted  and will continue to   maintain  policies  and  procedures  reasonably  designed  to  promote  compliance with  Applicable   Anti-Corruption laws.          SECTION 7.27  Patriot Act.  The Credit Parties, each of their Subsidiaries and each of   their controlled Affiliates are in compliance in all material respects with (a) the Trading with the   Enemy  Act,  and  each  of  the  foreign  assets  control  regulations  of  the  United  States  Treasury   Department (31 CFR, Subtitle B Chapter V, as amended) and any other enabling legislation or   executive order relating thereto, (b) the Patriot Act and (c) other federal or state laws relating to   “know your customer” and Anti-Money Laundering Laws, rules and regulations. No part of the   proceeds  of  any  Loan  will  be  used directly  or  indirectly  for any  payments  to  any  government   official or employee, political party, official of a political party, candidate for political office or   anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any   improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977.          SECTION 7.28  [Reserved].          SECTION 7.29  Flood  Insurance.  Parent and its Subsidiaries maintain, if available,    fully paid flood hazard insurance on all Real Property that is located in a special flood hazard area   and that constitutes Collateral, on such terms and in such amounts as required by Flood Insurance   Laws or as otherwise reasonably required by the Administrative Agent.          SECTION 7.30  Location of Collateral; Equipment List. Schedule 7.30 lists:                (a)   all  places  at  which  Records  relating to  the Collateral,  including, but not   limited to, all Documents and Instruments relating to receivables and Inventory, are maintained   by Borrower or by any other Person; and                (b)   subject to Section 9.15, all places where the Credit Parties’ Collateral is   located and whether the premises are owned or leased by Credit Parties or whether the premises   are the premises of a warehouseman, bailee or other third party, and if owned by a third party, the   name and address of such third party.          SECTION 7.31  Health Care Matters.                (a)   Compliance   with   Health   Care  Laws;   Permits.  Parent, each of  its   Subsidiaries and each Licensed  Insurance Entity is and has been in compliance  in all material   respects with all Health Care Laws applicable to it, its products and its properties or other assets   or its business or operation. Parent, each of its Subsidiaries and each Licensed Insurance Entity   and,  any  Person  acting  on  their  behalf,  has  in  effect  all  material  Permits,  including,  without   limitation, all Permits necessary for it to own, lease or operate its properties and other assets and   DB1/ 110631747.4                       74    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 to carry on its business and operations, as presently conducted. All such Permits are in full force   and effect and there exists no default under, or material violation of, any such Permit and none of   Parent, any of its Subsidiaries or any Licensed Insurance Entity has received notice of any current   or proposed limitation, suspension, termination or revocation of any such Permit. Except as set   forth on Schedule 7.31, no action, demand, requirement or investigation by any Governmental   Authority and no suit, action or proceeding by any other person, in each case with respect to any   of Parent, any Subsidiary or any Licensed Insurance Entity is pending or, to the knowledge of such   Person, threatened.                (b)    Filings.  Except as set forth on Schedule 7.31, all material reports,   documents, claims, notices or approvals required to be filed, obtained, maintained or furnished   pursuant to any Health Care Law to any Governmental Authority have been so filed, obtained,   maintained  or  furnished,  and  all  such  material  reports,  documents,  claims  and  notices  were   complete and correct in all material respects on the date filed (or were corrected in or supplemented   by a subsequent filing).                (c)   Material  Statements.  None of Parent, its Subsidiaries or any Licensed   Insurance Entity has made an untrue statement of a material fact or fraudulent statement to any   Governmental Authority, or, to the knowledge of any of Parent, its Subsidiaries or any Licensed   Insurance Entity, failed to disclose a material fact required to any Governmental Authority, or   committed an act, or made a statement that, at the time such statement was made, would reasonably   be expected to constitute a violation of any Health Care Law. None of Parent, its Subsidiaries or   any Licensed Insurance Entity, officer, nor to the knowledge of any of Parent, its Subsidiaries or   any Licensed Insurance Entity, any affiliate, employee or agent of any of Parent, its Subsidiaries   or any Licensed Insurance Entity, has made any untrue statement of fact regarding material claims   incurred but not reported.                (d)   Contracts.  Each Licensed Insurance Entity has the requisite  contract,   license,  enrollment,  or  other  Permit  to  fulfill  its  obligations  as  (i)  a  MA  organization  in  the   Medicare program, (ii) a managed care organization in the respective Medicaid program in the   state or states in which such Licensed Insurance Entity operates, (iii) a provider service network   in  the  state  or  states  in  which  such  Licensed  Insurance  Entity  operates,  or  (iv)  as  a  health   maintenance  organization,  managed  care  organization,  or  health  insurance  plan  providing   commercial  health  insurance  in  the  state  or  states  in  which  such  Licensed  Insurance  Entity   operates. Except as set forth on Schedule 7.31 there is no investigation, audit, claim, or other action   pending, or to the knowledge of any of Parent, its Subsidiaries or any Licensed Insurance Entity,   threatened  which  could  result  in  a  revocation,  suspension,  termination,  probation,  restriction,   limitation, or non-renewal of the contract or other Permit necessary for a Licensed Insurance Entity   to operate as a managed care organization under the Medicare program, the respective Medicaid   program in the state or states in which such entity operates, or as a managed care organization   providing commercial health insurance in the state or states in which such Licensed Insurance   Entity operates.                (e)   Accreditation. Each of Parent, its Subsidiaries and any Licensed Insurance   Entity has received and maintains accreditation in good standing and without limitation or   DB1/ 110631747.4                       75    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 impairment by all applicable accrediting organizations, to the extent required by law (including   any foreign law or equivalent regulation).                (f)   Proceedings.  Except as  set forth on Schedule 7.31, to the knowledge of   any Credit Party, there are no facts, circumstances or conditions that would reasonably be expected   to form the basis for any material investigation, suit, claim, audit, action (legal or regulatory) or   proceeding (legal or regulatory) by a Governmental Authority against or affecting any of Parent,   its Subsidiaries or any Licensed Insurance Entity relating to any of the Health Care Laws. As of   the Closing Date, none of Parent, its Subsidiaries or any Licensed Insurance Entity   (1) is a party to a corporate integrity agreement or (2) has any reporting obligations pursuant to a   settlement  agreement,  plan  of  correction  or  other  remedial  measure  entered  into  with  any   Governmental Authority.                (g)   Prohibited Transactions. None of Parent, its Subsidiaries or any  Licensed   Insurance Entity has, directly or indirectly: (1) given or agreed to give, or is aware that there has   been made or that there is any illegal agreement to make, any illegal gift or gratuitous payment of   any kind, nature or description (whether in money, property or services) to any past, present or   potential patient, supplier, contractor, or any other person in material violation in any material   respect of any Health Care Law; (2) made or agreed to make, or is aware that there has been made   or that there is any agreement to make, any contribution, payment or gift of funds or property to,   or  for  the  private  use  of,  any  governmental  official,  employee  or  agent  where  either  the   contribution, payment or gift or the purpose of such contribution, payment or gift is or was illegal   in any material respect under the laws of any Governmental Authority having jurisdiction over   such payment, contribution or gift; (3) established or maintained any unrecorded fund or asset for   any purpose or made any misleading, false or artificial entries on any of its books or records for   any reason to the extent  any such action would reasonably be expected to result in a Material   Adverse Effect; or (4) made, or agreed to make, or is aware that there has been made or that there   is any agreement to make, any payment to any person with the intention or understanding that any   part of such payment would be in material violation in any material respect of any Health Care   Law.                (h)   Exclusion.  None  of  Parent,  its  Subsidiaries  or  any  Licensed  Insurance   Entity is or has been threatened to be, (i) excluded from any federal health care program pursuant   to  42  U.S.C.  §  1320a-7b  and  related  regulations,  (ii)  “suspended”  or  “debarred”  from  selling   products to the U. S. government or its agencies pursuant to the Federal Acquisition Regulation,   relating to  debarment  and suspension applicable to federal government  agencies generally (42   C.F.R. Subpart 9.4), or other Applicable Laws, or (iii) made a party to any other action by any   Governmental Authority that may prohibit it from selling products to any governmental or other   purchaser pursuant to any federal, state or local laws or regulations.                (i)   HIPAA  Compliance.  To  the  extent  applicable  to  any  of  Parent,  its   Subsidiaries or any Licensed Insurance Entity and for so long as (1) any of Parent, its Subsidiaries   or any Licensed Insurance Entity is a “covered entity” as defined in 45 C.F.R. § 160.103, (2) any   of Parent, its Subsidiaries or any Licensed Insurance Entity is a “business associate” as defined in   45 C.F.R. § 160.103, (3) any of Parent, its Subsidiaries or any Licensed Insurance Entity is subject   to or covered by the HIPAA Administrative Requirements codified  at   DB1/ 110631747.4                       76    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 45 C.F.R. Parts 160 & 162 (the “Transactions Rule”) and/or the HIPAA Security and Privacy   Requirements codified at 45 C.F.R. Parts 160 & 164 (the “Privacy and Security Rules”), and/or   (4) any of Parent, its Subsidiaries or any Licensed Insurance Entity sponsors any “group health   plans”  as  defined  in  45  C.F.R.  §  160.103,  such  Person  has:  (i)  developed  and  implemented   appropriate safeguards to comply with HIPAA and (ii) is and has been in material compliance with   HIPAA.                (j)   Corporate Integrity Agreement. None of Parent, its Subsidiaries or any   Licensed  Insurance  entity,  nor  any  officer,  director,  partner,  agent,  or  managing  employee  of   Parent, its Subsidiaries, or any Licensed Insurance Entity, is party to or bound by any individual   integrity  agreement,  corporate  integrity  agreement,  corporate  compliance  agreement,  deferred   prosecution agreement, or other formal or informal agreement with any Governmental Authority   concerning compliance any Applicable Laws.                                              ARTICLE VIII                                           Affirmative Covenants                    The Credit Parties hereby covenant and agree that on the Closing Date and thereafter, until   the Commitments have been terminated and the Loans and all other Obligations incurred hereunder   (other than Unasserted Contingent Obligations) are paid in full in accordance with the terms of   this Agreement:                    SECTION 8.01  Financial Information, Reports, Notices and Information. The Credit   Parties will furnish the Administrative Agent for further distribution to each Lender copies of the   following  financial  statements,  reports,  notices  and  information  provided,  that  as  to  any   information contained in materials filed with the SEC, Parent shall not be separately required to   furnish such information under Sections 8.01(b) and (c) below):                          (a)   Liquidity Certificate. Within thirty (30) days after the end of each  month,   a  monthly  Liquidity  report  based  upon  (and  including)  Parent’s  and  its  Subsidiaries’  account   statements, together with a certification from an Authorized Officer of Parent, that Parent is in   compliance  with  the  minimum  Liquidity  requirement  set  forth  in  Section  9.13(b)  in  a  form   reasonably acceptable to Administrative Agent.                          (b)   Quarterly Financial Statements.  Within forty-five (45) days after the end   of each fiscal quarter of Parent and its Subsidiaries, (i) unaudited consolidated balance sheets of   the Parent and its Subsidiaries as of the end of such fiscal quarter and (i) unaudited consolidated   statements  of  income  and  cash  flow  of  the  Parent  and  its  Subsidiaries  for  such  fiscal  quarter,   including,  in  comparative  form  (both  in  Dollar  and  percentage  terms)  the  figures  for  the   corresponding fiscal quarter in, and year-to-date portion of, the immediately preceding fiscal year   of Parent, certified as complete and correct by an Authorized Officer of the Borrower.                          (c)   Annual  Financial  Statements.  Within  ninety (90)  days  after  the  end of   each fiscal year of Parent, copies of the consolidated balance sheets of Parent and its   Subsidiaries, and the related consolidated statements of income and cash flows of Parent and its   DB1/ 110631747.4                       77    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Subsidiaries for such fiscal year, setting forth in comparative form the figures for the immediately   preceding fiscal year, such consolidated statements to be audited and certified accompanied by a   report  and  unqualified  opinion  of  Deloitte  or  another  independent  firm  of  certified  public   accountants  of  nationally  recognized  standing  (or  regionally  recognized  standing  if  reasonably   acceptable to the Administrative Agent) (which report and opinion shall (x) state that such financial   statements present fairly in all material respects the financial position for the periods indicated in   conformity with GAAP applied on a basis consistent with prior years and (y) not be subject to any   “going concern” or like qualifications or exceptions or any qualifications or exception as to the   scope of the audit (other than as may be required as a result of (A) an actual or prospective default   or event of default with respect to any financial covenant (including the financial covenant set forth   in Section 9.13) or (y) the impending maturity of any Indebtedness)).                (d)   Compliance Certificates. Concurrently with the delivery of the financial   information  pursuant  to  clauses  (b)  and  (c)  above,  a  Compliance  Certificate,  executed  by  an   Authorized  Officer  of  the  Borrower,  (i)  showing  compliance  with  the  Financial  Performance   Covenants and stating that no Default or Event of Default has occurred and is continuing (or, if a   Default or an Event of Default has occurred, specifying the details of such Default or Event of   Default and the actions taken or to be taken with respect thereto) and (ii) specifying any change in   the identity of the Subsidiaries as at the end of such fiscal year or period, as the case may be, from   the Subsidiaries identified to the Lenders on the Closing Date or the most recent fiscal quarter or   period, as the case may be.                (e)   Other Entity Reporting. To  the  extent  not  delivered  in accordance with   clause (b) above, concurrently with the delivery of the financial information pursuant to clause   (b) above, the Credit Parties shall deliver to the Administrative Agent statutory reporting provided   in  the  ordinary  course  of  business  and  consistent  with  past  practices  with  respect  to  Justify   Holdings, Inc. and Momentum Health Group, LLC and quarterly summaries of operations provided   to the respective board of directors (or equivalent governing body) of each of Justify Holdings,   Inc. and Momentum Health Group, LLC.                (f)   Budget.  Within sixty (60) days after to the commencement of each fiscal   year of Parent, commencing with its fiscal year 2020, the forecasted financial projections for the   then  current  fiscal  year  (on  a  month-by-month  basis),  in  each  case  (including  projected   consolidated balance sheet of Parent and its Subsidiaries as of the end of the following fiscal year,   the related consolidated statements of projected cash flow, and projected income and a description   or  discussion  of  the  underlying  assumptions  applicable  thereto),  in  each  case,  as  customarily   prepared by management of the Credit Parties for their internal use consistent in scope with the   financial statements provided pursuant to Section 8.01(b), setting forth (or offering a discussion   of) the principal assumptions on which such projections are based (such projections, collectively,   the “Budget”).                (g)   Defaults. As soon as possible and in any event within five (5) Business   Days after an Authorized Officer of the Borrower or any of its Subsidiaries obtains knowledge   thereof, notice from an Authorized Officer of the Borrower of (i) the occurrence of any event that   constitutes a Default or an Event of Default, which notice shall specify the nature thereof, the   period of existence thereof and what action the applicable Credit Parties propose to take with   DB1/ 110631747.4                       78    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 respect thereto or (ii) the occurrence of a breach or nonperformance of, or any default under, any   other Material Contracts of any Credit Party or any Subsidiary of a Credit Party, or any violation   of, or noncompliance with any Applicable Laws (including Health Care Laws), in each case, which   would  reasonably  be  expected  to  result,  either  individually  or  in  the  aggregate,  in  a  Material   Adverse Effect.                (h)   Other Litigation.  As  soon  as  possible  and  in  any  event  within  five  (5)   Business  Days  after  an  Authorized  Officer  of  the  Borrower  or  any  of  its  Subsidiaries  obtains   knowledge thereof, notice from an Authorized Officer of the Borrower of (i) the commencement   of,  or  any  material  development  in,  any  litigation,  action,  proceeding  or  labor  controversy  or   proceeding  affecting  any  Credit  Party  or  any  Subsidiary  of  any  Credit  Party  or  its  respective   property (A) in which the amount of damages claimed is $5,000,000 or more, (B) which would   reasonably be expected to have a Material Adverse Effect, (C) which purports to affect the legality,   validity or enforceability of any Credit Document, any other Transaction Document or   (D) in which the relief sought is an injunction or other stay of the performance of this Agreement,   any other Credit Document or any Transaction Document or any other document or instrument   referred to in Section 9.07, or (ii) the occurrence of any development with respect to any litigation,   action,  proceeding  or  labor  controversy  described  in  Schedule  7.04  that  would  reasonably  be   expected to result in a Material Adverse Effect, and, in each case, together with a statement of an   Authorized Officer of the Borrower, which notice shall specify the nature thereof, and what actions   the  applicable  Credit  Parties  propose  to  take  with  respect  thereto,  and,  to  the  extent  the   Administrative Agent requests, copies of all documentation related thereto.                (i)   Transaction Documents. As soon as possible and in any event within five   (5) Business  Days  after  any  Credit  Party  obtains  knowledge  of  the  occurrence  of  a  breach  or   default or notice of termination by any party under, or material amendment entered into by any   party to, any Transaction Document or any other document or instrument referred to in Section   9.07, a statement of an Authorized Officer of the Borrower setting forth details of such breach or   default or notice of termination and the actions taken or to be taken with respect thereto and, if   applicable, a copy of such amendment.                (j)   Management  Letters.  Promptly upon, and in any event within five  (5)   Business Days after, receipt thereof, copies of all “management letters” submitted to any Credit   Party by the independent public accountants referred to in Section 8.01(b) in connection with each   audit made by such accountants.                (k)   [Reserved].                (l)   Other Information. With reasonable promptness, such other information   (financial or otherwise) as the Administrative Agent on its own behalf or on behalf of any Lender   may reasonably request in writing from time to time, including with respect to any wind down   process or release of statutory capital or other capital reserves; provided, that, notwithstanding   anything herein to the contrary, none of the Parent nor any Subsidiary will be required to disclose   or permit the inspection or discussion of, any document, information or other matter (i) in respect   of which disclosure to the Administrative Agent or any Lender (or their respective contractors) is   prohibited by law or any binding agreement (or would otherwise cause a breach or default   DB1/ 110631747.4                       79    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 thereunder) or (ii) that is subject to attorney-client or similar privilege or constitutes attorney   work product.                (m)   Insurance Report.  Within ten (10) Business days (or such longer prior as   reasonably  agreed  to  by  the  Administrative  Agent)  of  the  delivery  of  the  financial  statements   provided for in Section 8.01(c), a report of a reputable insurance broker with respect to insurance   policies maintained by the Credit Parties.                (n)   Convertible Senior Notes. No event later than five (5) days after delivery   thereof, copies of all material statements, reports and notices made available to or from the   Trustee with respect to any Convertible Senior Notes.                (o)   Health Care Reporting.                      (i)   In no event later than five (5) Business Days after delivery thereof,   of  any  notice  from  any  Governmental  Authority  of  any  investigation  or  audit,  or  pending  or   threatened  proceedings  relating  to,  any  violation  by  Parent,  any  Subsidiary,  or  any  Licensed   Insurance Entity of any Applicable Laws, including or Health Care Laws, in each case, solely to   the extent the same would reasonably be expected to result in a Material Adverse Effect.                      (ii)  No later than five (5) Business Days after delivery thereof, the   receipt  of  notice  from  any  Governmental  Authority  threatening  to  limit,  revoke,  suspend  or   materially  modify  any  Permit  or  contract  held  by  any  Licensed  Insurance  Entity  that  would   reasonably be expected to result in a Material Adverse Effect.                      (iii) Promptly notify,  in  the  event  that  Parent, any Subsidiary, or any   Licensed Insurance Entity experiences any (I) Breach of Unsecured Protected Health Information   as “Breach,” “Unsecured Protected Health Information” and “Protected Health Information” are   defined by HIPAA, or (II)  a Security Incident as "Security Incident" is defined by HIPAA, in each   case which materially impacts the security or integrity of Parent, any Subsidiary, or any Licensed   Insurance Entity.                      (iv)  In no event later than five (5) Business Days after execution   thereof, in the event that Parent, any Subsidiary, or any Licensed Insurance Entity becomes a party   to  or  becomes  bound  by  any  corporate  integrity  agreement,  corporate  compliance  agreement,   deferred  prosecution  agreement,  or  other  formal  agreement  with  any  Governmental  Authority   concerning compliance with Health Care Laws.                (p)   [Reserved].                (q)   Wind  Down  Process.  With respect to Justify Holdings, Inc., promptly   upon any material development relating to any wind down process, provide the Administrative   Agent with a written notification setting forth the details of such material development, along with   copies of any relevant documentation relating to such material development, including any notices   or  written  communications  from  any  Governmental  Authority  with  respect  to  such  material   development   DB1/ 110631747.4                       80    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Notwithstanding the foregoing, the obligations in clauses (b) and (c) of this Section 8.01 may be   satisfied with respect to financial information of the Parent and the Subsidiaries by furnishing the   Form  10-K,  10-Q  or  8-K,  as  applicable,  of  the  Parent  filed  with  the  Securities  Exchange   Commission.    Documents required to be delivered pursuant to clauses (b) and (c) of this Section 8.01 may be   delivered electronically and if so delivered, shall be deemed to have been delivered on the earliest   date on which (i) the Borrower posts such documents, or provides a link thereto on the Borrower’s   website on the Internet and (ii) such financial statements and/or other documents are posted on the   Securities Exchange Commission’s website on the internet at www.sec.gov; provided, that, (A)   the Borrower shall, at the request of the Administrative Agent, continue to deliver copies (which   delivery may be by electronic transmission) of such documents to the Administrative Agent and   (B) the Borrower shall notify (which notification may be by facsimile or electronic transmission)   the Administrative Agent of the posting of any such documents on any website described in this   paragraph.  Each  Lender  shall  be  solely  responsible  for  timely  accessing  posted  documents  or   requesting  delivery  of  paper  copies  of  such  documents  from  the  Administrative  Agent  and   maintaining its copies of such documents.          SECTION 8.03  Books, Records and Inspections. Parent will, and will cause each of  its   Subsidiaries to, maintain proper books of record and account, in which entries that are full, true   and correct in all material respects and are in conformity with GAAP shall be made of all material   financial transactions and matters involving the assets and business of the Credit Parties or such   Subsidiary,  as  the case  may  be.  Parent  will,  and  will  cause  each  of its  Subsidiaries  to,  permit   representatives and independent contractors of the Administrative Agent to visit and inspect any   of its properties (to the extent authorized pursuant to any leases for such properties), to examine   its  corporate,  financial  and  operating  records,  and  make  copies  thereof  or  abstracts  therefrom   (subject  to  applicable  confidentiality  agreements  or  undertakings  and  copyright  laws),  and  to   discuss  its  affairs,  finances  and  accounts  with  its  directors  and  officers  (provided,  that  an   authorized representative of the Credit Parties shall be allowed to be present and that any such   inspection  of  properties  shall  not  include  any  invasive  or  physically  intrusive  environmental   sampling), all at the expense of the Credit Parties and (unless an Event of Default then exists) as   often  as  the  Administrative  Agent  may  reasonably  request,  at  reasonable  times  during  normal   business hours, upon reasonable advance notice to the Credit Parties; provided that during any   calendar year, absent the continuation of an Event of Default, reasonable expenses of a reasonable   number of people in connection with only one (1) inspection by Administrative Agent shall be at   the Borrower’s expense and reimbursable under this Agreement. Any information obtained by the   Administrative Agent pursuant to this Section 8.02 may be shared with the Administrative Agent   or any Lender upon the request of such Secured Party; provided, further, that, notwithstanding   anything herein to the contrary, none of the Parent nor any Subsidiary will be required to disclose   or permit the inspection or discussion of, any document, information or other matter (i) in respect   of which disclosure to the Administrative Agent or any Lender (or their respective contractors) is   prohibited  by  law  or  any  binding  agreement  (or  would  otherwise  cause  a  breach  or  default   thereunder) or (ii) that is subject to attorney-client or similar privilege or constitutes attorney work   product.    DB1/ 110631747.4                       81    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 8.04  Maintenance of Insurance.                (a)   Parent will, and will cause each of its Subsidiaries to, at all times  maintain   in full force and effect, with insurance companies that Parent believes (in its reasonable business   judgment)  are  financially  sound  and  reputable  at  the  time  the  relevant  coverage  is  placed  or   renewed, insurance in at least such amounts and against at least such risks (and with such risk   retentions)  as  are  usually  insured  against  in  the  same  general  area  by  companies  engaged  in   businesses similar to those engaged in by the Credit Parties; and will furnish to the Administrative   Agent for further delivery to the Lenders, upon written request from the Administrative Agent,   information  presented  in  reasonable  detail  as  to  the  insurance  so  carried,  including  (i)   endorsements to (A) all casualty policies of the Credit Parties naming the Administrative Agent,   on behalf of the Secured Parties, as loss payee and (B) all property policies of the Credit Parties   naming the Administrative Agent, on behalf of the Secured Parties, as additional insured and (ii)   legends  providing  that  no  cancellation,  material  reduction  in  amount  or  material  change  in   insurance  coverage  thereof shall  be effective until  at  least  thirty  (30)  days after receipt  by  the   Administrative Agent of written notice thereof.                (b)   Within  thirty  (30)  days  after  the  Closing  Date,  the  Borrower  shall  have   delivered to the Administrative Agent copies of each insurance policy (or binders in respect   thereof).                (c)   Without limiting the foregoing, Parent will, and will cause each of  its   Subsidiaries to, (i) maintain, if available, fully paid flood hazard insurance on all owned or leased   Real Property that is located in a special flood hazard area and that constitutes Collateral, on such   terms  and  in  such  amounts  as  required  by  Flood  Insurance  Laws  or  as  otherwise  reasonably   required  by  the  Administrative  Agent  or  any  Lender,  (ii)  furnish  to  the  Administrative  Agent   evidence of the renewal (and payment of renewal premiums therefor) of all such policies prior to   the expiration or lapse thereof and (iii) furnish to the Administrative Agent prompt written notice   of any redesignation of any such owned or leased improved Real Property into or out of a special   flood hazard area.          SECTION 8.05  Payment of Taxes. The Credit Parties will pay and discharge, and will   cause each of their respective Subsidiaries to pay and discharge, all material Taxes payable by   them that have become due, other than those not yet delinquent or being diligently contested in   good faith and by proper proceedings, which stay the enforcement of any Lien as to which such   Credit Party has maintained adequate reserves in accordance with GAAP.          SECTION 8.06  Maintenance of Existence; Compliance with Laws, etc.                (a)   Each Credit Party will, and will cause its Subsidiaries to, (i) preserve and   maintain in full force and effect its organizational existence and good standing under the laws of   its jurisdiction of incorporation, organization or formation as applicable, except as permitted by   Section 9.03 or Section 9.04 and (ii) preserve and maintain its good standing under the laws of   each state or other jurisdiction where such Person is required to be so qualified, to do business as   a foreign entity, except in the case of this clause (ii) where the failure to do so would not reasonably   be expected to have a Material Adverse Effect.   DB1/ 110631747.4                       82    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (b)   Each Credit Party shall, and shall cause each of its Subsidiaries to, comply   with  all  Applicable  Laws  and  Permits  (including  without  limitation,  all  Registrations)  of  any   Governmental Authority having jurisdiction over it, its business or its Products, except where such   failures  to  comply  would  not  reasonably  be  expected  to  have,  either  individually  or  in  the   aggregate, a Material Adverse Effect. Without limiting the generality of the foregoing, each Credit   Party  and  its  Subsidiaries  shall  comply  with  all  material  Health  Care  Laws  and  their   implementation  by  any  applicable  Governmental  Authority  and  all  lawful  requests  of  any   Governmental Authority applicable to its operations.          SECTION 8.07  Environmental Compliance.                (a)   Each Credit Party will, and will cause its Subsidiaries to, use and operate   all of its and their facilities and Real Property in compliance with all Environmental Laws, keep   all  necessary  permits,  approvals,  certificates,  licenses  and  other  authorizations  relating  to   environmental matters in effect and remain in compliance therewith, and handle all Hazardous   Materials in compliance with all Environmental Laws, and keep its and their Real Property free of   any Lien imposed by any Environmental Law, in each case, except where the failure to do so could   not reasonably be expected to have a Material Adverse Effect.                (b)   The Borrower will promptly give notice to the Administrative Agent  upon   any Credit Party or Subsidiary thereof becoming aware of: (i) any violation by any Credit Party or   any of its Subsidiaries of any Environmental Law which could reasonably be expected to result in   a Material Adverse Effect, (ii) any proceeding against or investigation of any Credit Party under   any Environmental Law, including a written request for information or a written notice of violation   or potential environmental liability from any Governmental Authority or any other Person, which   could  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect,  (iii)  the  occurrence  or   discovery of a new Release or new threat of a Release (or discovery of any Release or threat of a   Release previously undisclosed by any Credit Party to Administrative Agent) at, on, under or from   any of the Real Property of any Credit Party or any facility or assets therein in excess of reportable   or allowable standards or levels under any Environmental Law, or under circumstances, or in a   manner or amount which could reasonably be expected to result in a Material Adverse Effect or   (iv)  any  Environmental  Claim  arising  or  existing  on  or  after  the  Closing  Date  which  could   reasonably be expected to result in a Material Adverse Effect.                (c)   In the event of a Release of any Hazardous Material on any Real Property   of any Credit Party which could reasonably be expected to result in material liability on the part   of any Credit Party under any Environmental Law, such Credit Party, upon discovery thereof, shall   take all necessary steps to initiate and expeditiously complete all response, corrective and other   action to mitigate and resolve any such violation or potential liability in accordance with and to   the  extent  required  of  such  Credit  Party  under  Environmental  Law,  and  shall  keep  the   Administrative Agent informed on a regular basis of their actions and the results of such actions;   provided,  however,  that  no  Credit  Party  (or  its  respective  Subsidiaries)  shall  be  required  to   undertake any such response, corrective action or other action to the extent that its obligation to   do so is being contested in good faith and by proper proceedings and appropriate reserves are being   maintained with respect to such circumstances in accordance with GAAP.   DB1/ 110631747.4                       83    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (d)   Each Credit Party shall  provide the Administrative Agent with copies of   any material demand, request for information, notice, submittal, documentation or correspondence   received or provided by any Credit Party or any of its Subsidiaries from or to any Governmental   Authority or other Person under any Environmental Law to the extent the same would reasonably   be expected to result in a Material Adverse Effect. Such notice, submittal or documentation shall   be provided to the Administrative Agent promptly and, in any event, within five (5) Business Days   after such material is provided to any Governmental Authority or third party.                (e)   At the reasonable written request of the Administrative Agent, the   Borrower  shall  obtain  and  provide,  at  its  sole  expense,  an  environmental  site  assessment   (including, without limitation, the results of any groundwater or other testing, conducted at the   Administrative Agent’s reasonable request) concerning any Real Property now or hereafter owned   by any Credit Party or any of its Subsidiaries, conducted by an environmental consulting firm   approved  by  the  Administrative  Agent  indicating,  to  the  reasonable  satisfaction  of  the   Administrative Agent, the likely presence or absence of Hazardous Materials and the potential cost   of any required action in connection with any Hazardous Materials on, at, under or emanating from   such Real Property; provided, that such request may be made only if (i) there has occurred and is   continuing an Event of Default, or (ii) circumstances exist that in the reasonable judgment of the   Administrative Agent could be expected to result in a material violation of or material liability   under  any  Environmental  Law  on  the  part  of  any  Credit  Party  or  its  respective  Subsidiaries;   provided  further,  if  the  Borrower  fails  to  provide  the  same  within  ninety  (90)  days after  such   request was made, the Administrative Agent may but is under no obligation to conduct the same,   and the Credit Parties shall grant and hereby do grant to the Administrative Agent and its agents   access  to  such  Real  Property  and  specifically  grants  the  Administrative  Agent  an  irrevocable   nonexclusive license, subject to the rights of tenants, to undertake such an assessment, all at the   Borrower’s sole cost and expense.          SECTION 8.08  ERISA. (a)  Promptly after  any Credit  Party or  any Subsidiary of  any   Credit  Party  knows  or  has  reason  to  know  of  the  occurrence  of  any  of  the  following  events   (including such events previously disclosed or exempt from disclosure hereunder, to the extent the   liability therefor remains outstanding), the Borrower will deliver to the Administrative Agent and   each Lender a certificate of an Authorized Officer of the Borrower setting forth details as to such   occurrence and the action, if any, that such Credit Party, such Subsidiary or such ERISA Affiliate   is required or proposes to take, together with any notices (required, proposed or otherwise) given   to or filed with or by such Credit Party, such Subsidiary, such ERISA Affiliate, the PBGC, a Plan   participant  (other  than  notices  relating  to  an  individual  participant’s  benefits)  or  the  Plan   administrator and all documentation with respect thereto: that a Reportable Event has occurred;   that a failure to satisfy the minimum funding standard of Section 412 of the Code or Section 302   of ERISA (whether or not waived in accordance with Section 412(c) of the Code or Section 302(c)   of ERISA) has occurred (or is reasonably likely to occur) or an application is to be made to the   Secretary of the Treasury for a waiver or modification of the minimum funding standard (including   any required installment payments) or an extension of any amortization period under Section 412,   430 or 431 of the Code with respect to a Plan; the failure to make a required contribution to any   Plan if such failure is sufficient to give rise to a Lien under Section   DB1/ 110631747.4                       84     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 303(k) or 4068 of ERISA or under Section 430(k) of the Code; that a Pension Plan having an   Unfunded Current Liability has been or is to be terminated, reorganized or partitioned under Title   IV of ERISA (including the giving of written notice thereof); the taking of any action with respect   to a Plan which would reasonably be expected to result in the requirement that any Credit Party   furnish a bond or other security to the PBGC or such Plan; that a proceeding has been instituted   against  a Credit  Party,  a  Subsidiary  thereof  or  an  ERISA  Affiliate  pursuant  to  Section  515  of   ERISA to collect a delinquent contribution to a Multiemployer Plan; or that the PBGC has notified   any Credit Party, any Subsidiary thereof or any ERISA Affiliate of its intention to appoint a trustee   to administer any Plan; or the occurrence of any event with respect to any Plan which could result   in the incurrence by any Credit Party or any Subsidiary of any Credit Party of any material liability   (including any contingent or secondary liability), fine or penalty.                (b)   Promptly following any request therefor, copies of any documents or   notices described in Sections 101(f), 101(k) or 101(l) of ERISA that any Credit Party or any ERISA   Affiliate may reasonably request with respect to any Plan; provided, that if any Credit Party or any   ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of   the applicable Plan, the applicable Credit Party or the ERISA Affiliate(s) shall promptly make a   request for such documents or notices from such administrator or sponsor and shall provide copies   of such documents and notices promptly after receipt thereof.          SECTION 8.09  Maintenance of Property and Assets.  Each Credit Party will, and will   cause its Subsidiaries to, maintain, preserve, protect and keep its properties and assets in good   repair,  working  order  and  condition  (ordinary  wear  and  tear  and  casualty  excepted  in  the   commercially reasonably business judgment of the Borrower and subject to dispositions permitted   pursuant to Section 9.04), and make necessary repairs, renewals and replacements thereof and will   maintain and renew as necessary all licenses, permits and other clearances necessary to use and   occupy such properties and assets, in each case, so that the business carried on by such Person may   be properly conducted  at  all  times, except  where the failure to  do  so  could  not  reasonably  be   expected to have a Material Adverse Effect.          SECTION 8.10  End  of  Fiscal  Years;  Fiscal  Quarters.  The Credit Parties will,  for   financial reporting purposes, cause (a) each of their, and each of their Subsidiaries’, fiscal years to   end  on  December  31  of  each  year and  (b)  each  of their  and  each  of  their  Subsidiaries’,  fiscal   quarters to end on dates consistent with such fiscal year-end; provided, that the Credit Parties may   change their, and each of their respective Subsidiaries’, fiscal year-end (and change the end of the   fiscal  quarters  in  a  corresponding  manner)  upon  fifteen  (15)  days’  prior  written  notice  to  the   Administrative Agent.          SECTION 8.11  Use of Proceeds.   The proceeds of the Initial Term Loan shall be used   (i) to finance the Passport Health Acquisition, (ii) to pay fees and expenses incurred in connection   with the transactions contemplated hereby and the Passport Health Acquisition and   (iii) to fund ongoing working capital needs and other growth capital expenditure investments, to   the extent not prohibited by this Agreement. The proceeds of the DDTL Facility shall be used (i)   to  finance  the  2021  Convertible  Notes  Repurchase,  (ii)  to  pay  fees  and  expenses  incurred  in   connection with the transactions contemplated hereby and the 2021 Convertible Notes Repurchase   and (iii) to fund Permitted Acquisitions and growth capital expenditures.  The Credit   DB1/ 110631747.4                       85    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Parties shall not use the proceeds of any Credit Extension made hereunder, or use or allow its   respective directors, officers, employees and agents to use, the proceeds of any extension of credit   (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving   of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, Anti-  Terrorism Laws or Anti-Money Laundering Laws, (ii) for the purpose of funding, financing or   facilitating any activities, business or transaction of or with any Person on the SDN List or (iii) in   any manner that would result in the violation of any Sanctions applicable to any party.          SECTION 8.12  Further Assurances; Additional Guarantors and Grantors.                (a)   The Credit Parties will and will cause their Subsidiaries (other than   Excluded Subsidiaries) to execute any and all further documents, financing statements, agreements   and instruments, and take all such further actions (including the filing and recording of financing   statements, fixture filings, mortgages, deeds of trust (excluding leasehold deeds of trust) and other   documents), which may be required under any Applicable Law, or which the Administrative Agent   may reasonably request, in order to grant, preserve, protect and perfect the validity and priority of   the security interests created or intended to be created by the Security Agreement, any Mortgage   or any other Security Document, all at the sole cost and expense of the Borrower.                (b)   Subject to any applicable limitations set forth in the Guarantee  Agreement   and the Security Agreement, as applicable, the Credit Parties will promptly upon the formation or   acquisition  thereof  (and  in  any  event  within  thirty  (30)  days  after  the  formation,  division  or   acquisition thereof (or such later date as agreed by the Administrative Agent)) cause any direct or   indirect Subsidiary formed or otherwise purchased or acquired after the Closing Date to execute   (i) a supplement to the Guarantee Agreement in the form of Annex I to the Guarantee Agreement   or a guarantee in form and substance reasonably satisfactory to Administrative Agent, and (ii) a   supplement to the Security Agreement in the form of Annex I to the Security Agreement or a   security  agreement  in  form  and  substance  reasonably  satisfactory  to  Administrative  Agent;   provided, however, that no Excluded Subsidiary shall be required to execute the documentation   described in clauses (i) and (ii) above for so long as it is an Excluded Subsidiary.                (c)   Subject to any applicable limitations set forth in the Security Agreement   and, in the case of the Licensed Insurance Entities, subject to Applicable Laws, the Credit Parties   (i) will promptly upon the formation or acquisition thereof (and in any event within thirty (30) days   after  the  formation  or  acquisition  thereof  (or  such  later  date  as  agreed  by  the  Administrative   Agent)) pledge to the Administrative Agent for the benefit of the Secured Parties, all the Capital   Stock of each Subsidiary (other than Excluded Subsidiaries) held by such Credit Party in each   case, formed or otherwise purchased or acquired after the Closing Date; provided, however, that,   with respect to any pledge of the Capital Stock of any Foreign Subsidiary or Domestic Holding   Company, such pledge shall be limited to sixty five percent (65%) of the issued and outstanding   Voting Stock and one hundred percent (100%) of the outstanding nonvoting Capital Stock of each   Foreign  Subsidiary  and  Domestic  Holding  Company,  and  (ii)  will  promptly  deliver  to  the   Administrative  Agent  any  promissory  notes  executed  after  the  Closing  Date  evidencing   Indebtedness of any Credit  Party or Subsidiary of any Credit  Party that  is owing to any other   DB1/ 110631747.4                       86     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Credit Party or any other promissory notes executed after the Closing Date evidencing   Indebtedness in excess of $2,000,000 owing to the Credit Parties.                (d)   Subject to any applicable limitations set forth in any applicable Security   Document, if any fee simple interest in Material Real Property is acquired by any Credit Party after   the Closing Date, the Borrower will notify the Administrative Agent and the Lenders thereof and   will cause such assets to be subjected to a Lien securing the applicable Obligations and will take,   and  cause  the  other  Credit  Parties  to  take,  such  actions  as  shall  be  necessary  or  reasonably   requested  by  the  Administrative  Agent  to  grant  and/or  perfect  such  Liens  consistent  with  the   applicable requirements of the Security Documents, including actions described in this Section   8.11(d), all at the sole cost and expense of the Borrower within sixty (60) days after the acquisition   of such Material Real Property (or such longer period as the Administrative Agent may agree).   Any Mortgage delivered to the Administrative Agent in accordance with the preceding sentence   shall be accompanied by (A) a policy or policies (or unconditional binding commitment thereof)   of title insurance issued by a nationally recognized title insurance company insuring the Lien of   each Mortgage as a valid Lien (with the priority described therein) on the Mortgaged Property   described therein, free of any other Liens except as expressly permitted by Section 9.02, together   with such endorsements as the Administrative Agent may reasonably request and (B) if requested   by the Administrative Agent, an opinion of local counsel to the applicable Credit Party(ies) in form   and substance reasonably satisfactory to the Administrative Agent. In addition to the obligations   set  forth  in  Section  8.03(a),  the  Credit  Parties  shall,  in  connection  with  the  grant  to  the   Administrative Agent for the benefit of the Secured Parties of any Mortgage with respect to any   Real Property, (X) provide at least twenty (20) days’ prior written notice to the Administrative   Agent of the contemplated pledge of such Real  Property as Collateral, (Y) the Borrower shall   provide each of the documents and determinations required by the Real Property Flood Insurance   Requirements and (Z) notwithstanding anything to the contrary contained herein or in any other   Credit Document, the Administrative Agent shall not enter into, accept or record (and no Credit   Party  shall  be  required  to  grant)  any  mortgage  in  respect  of  such  Real  Property  until  the   Administrative  Agent  shall  have  received  written  confirmation  (which  shall,  for  purposes   hereunder, include email) from each Lender that flood insurance compliance has been completed   by  such  Lender  with  respect  to  such  Real  Property  (such  written  confirmation  not  to  be   unreasonably withheld or delayed). Any increase, extension or renewal of this Agreement shall be   subject to flood insurance due diligence and flood insurance compliance reasonably satisfactory to   the Administrative Agent and each Lender.                (e)   Notwithstanding anything herein to the contrary, if the  Administrative   Agent determines that the cost of creating or perfecting any Lien on any property is excessive in   relation  to  the  practical  benefits  afforded  to  the  Lenders  thereby,  then  such  property  may  be   excluded from the Collateral for all purposes of the Credit Documents.                (f)   For the avoidance of doubt, for all purposes under this Section 8.11, the   formation and acquisition of a Person shall be deemed to include any formations and acquisitions   by division; provided that compliance with the requirements of this Section 8.11 shall not cure any   Default or Event of Default for the occurrence of such division.    DB1/ 110631747.4                       87    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 8.13  Bank Accounts.                (a)   Within sixty (60) days after the Closing Date (or such longer period as the   Administrative  Agent  may  agree),  the  Borrower  shall  establish  and  deliver  to  Administrative   Agent  a  Control  Agreement  with  respect  to  each  of  the  Credit  Parties’  respective  securities   accounts,  deposit  accounts  and  investment  property  set  forth  on  Schedule  7.25  (other  than   Excluded Accounts); provided, that, so long as no Event of Default has occurred and is continuing,   the Credit Parties may establish new deposit accounts or securities accounts so long as, no longer   than  thirty  (30)  days  following  the  time  such  account  is  established  the  Credit  Parties  have   delivered to Administrative Agent a Control Agreement with respect to such account (other than   any Excluded Account).                (b)   If, after the occurrence and during the continuance of an Event of Default,   any of the Credit Parties receive or otherwise have dominion over or control of any Collections or   other  amounts,  the  Borrower  shall  hold,  and shall  cause  each  other  Credit  Party  to  hold,  such   Collections  and  amounts  in  trust  for  the  Administrative  Agent,  and  shall  not  commingle  such   Collections with any other funds of any Credit Party or other Person or deposit such Collections   in any account other than those accounts set forth on Schedule 7.25 (unless otherwise instructed   by the Administrative Agent).          SECTION 8.14  Compliance with Health Care Laws.                (a)   Without limiting or qualifying any other provision of this Agreement,   Parent will comply, and will cause each other Credit Party, each Subsidiary and each Licensed   Insurance Entity, to comply in all material respects, with all applicable Health Care Laws relating   to the operation of such Person’s business.                (b)   Parent   will   maintain,  and   will   cause  each   other  Credit   Party,   each   Subsidiary and each Licensed Insurance Entity, to maintain, all records required to be maintained   by any Governmental Authority or otherwise required under any Health Care Law except where   failure could not reasonably be expected to have a Material Adverse Effect.                (c)   Parent will, and will cause each other Credit Party, each Subsidiary and   each Licensed Insurance Entity, to keep in full force and effect all material Permits required to   operate such the business of Parent each other Credit Party, each Subsidiary, and each Licensed   Insurance Entity under applicable Health Care Laws.                (d)   Parent will maintain, and will cause each other Credit Party, Subsidiary   and Licensed Insurance Entity, to maintain on its behalf, a corporate compliance program that is   reasonably designed to promote compliance with applicable Health Care Laws. Parent will permit   and will cause such other Credit Parties, Subsidiaries and Licensed Insurance Entities to permit,   Administrative Agent and/or any of its outside consultants to review such corporate compliance   program(s) from time to time.    Notwithstanding  anything  to  the  contrary  in  this  Agreement,  no  Credit  Party,  Subsidiary,  or   Licensed Insurance Entity shall be required to furnish to Administrative Agent or Lender any   DB1/ 110631747.4                       88    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 protected health information or any patient related information, to the extent such disclosure to   Administrative Agent or Lender is prohibited by Health Care Laws.          SECTION 8.15  Intellectual Property.                (a)   Each Credit Party will (i) maintain its ownership of all Intellectual   Property owned by such Credit Party, and shall not do any act knowingly or omit to do any act   whereby  any  owned  Intellectual  Property  may  lapse,  expire,  become  abandoned  or  cancelled,   dedicated to the public, or unenforceable, or which would adversely affect the validity, grant, or   enforceability of the security interest granted hereunder and (ii) take all reasonable steps in the   United States Patent and Trademark Office and the United States Copyright Office and any other   applicable Governmental Authority to pursue any application and maintain any registration of each   trademark, patent, and copyright owned by such Credit Party, in each of (i) and (ii) except as could   not reasonably be expected to have, either individually or in the aggregate, a Material Adverse   Effect.                (b)   Each Credit Party will (i) maintain all licenses for third party Intellectual   Property (including commercial software) licensed to such Credit Party and (ii) not violate any   such licenses and not cause any such license to cease to be legal, valid, binding, enforceable and   in full force and effect following the Closing Date, except for licenses that expire or are terminated   in accordance with their terms and in the ordinary course of business (other than a termination   resulting from a default or breach by the applicable Credit Party), in each of (i) and (ii), except as   could not reasonably be expected to have a Material Adverse Effect.          SECTION 8.16  Distributable Cash. At least once in each fiscal year the Credit Parties   shall evaluate (a) whether any Licensed Insurance Entity (or any Person that was previously a   Licensed Insurance Entity) holds any cash or Cash Equivalents that were previously subject to   risk-based capital requirements or other statutory capital reserve requirements under Applicable   Laws or pursuant to the discretion of any Governmental Authority and (b) whether it is reasonably   likely  (in  the  reasonable  business  judgment  of  the  Credit  Parties)  that  the  cash  and  Cash   Equivalents described in clause (a) are no longer required to be restricted by such Applicable Laws   or would be released with the consent of such Governmental Authority, as applicable, (collectively,   “Subject  Cash”).  To  the  extent  that  the  Credit  Parties  determine  in  their  reasonable  business   judgment  during  such  evaluation  period  that  any  Subject  Cash  is  likely  to  be  permitted  to  be   distributed to the Credit Parties, then the Credit Parties shall use commercially reasonable efforts   to promptly cause such Subject Cash to be so distributed.          SECTION 8.17  Post-Closing. Notwithstanding anything to the contrary set forth in this   Agreement and the Loan Documents:                (a)   Reorganization.  Within (i) one hundred eighty (180) days following the   Closing Date (or such later date approved by Administrative Agent), in the case of any Licensed   Insurance Entity and (ii) sixty (60) days following the Closing Date (or such later date approved   by Administrative Agent), in the case of any joint venture, the Administrative Agent shall have   received evidence that such Person and any Credit Party’s interest in such Person is   DB1/ 110631747.4                       89    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 wholly-owned by EH Holding Company, Inc. or such other Holding Company Guarantor, as   determined by the Administrative Agent in its reasonable discretion.                (b)   Stock Certificates. Within forty-five (45) days following the Closing Date   (or  such  later  date  approved  by  Administrative  Agent),  the  Administrative  Agent  shall  have   received all existing certificates representing securities (if such securities are certificated securities   for purposes of Article 8 of the UCC) pledged under the Security Agreement, accompanied by   instruments of transfer and undated stock powers endorsed in blank.                (c)   Joinder. Within thirty (30) days after the date hereof (or such later date   approved by Administrative Agent), The Accountable Care Organization Ltd. shall be joined as a   Guarantor and deliver and execute all documents required to be delivered pursuant to Section   8.11 of the Credit Agreement.                (d)   Endorsements. Within thirty (30) days after the date hereof (or such later   date approved by Administrative Agent), the Borrower shall deliver to the Administrative Agent,   in  form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent,  such  insurance   endorsements as required to be delivered pursuant to Section 8.03 of the Credit Agreement.                (e)   Control Agreements. Within sixty (60) days after the date hereof (or such   later date approved by Administrative Agent), the Borrower shall deliver to the Administrative   Agent all Control Agreements required to be delivered under this Agreement, in each case in a   form and substance reasonably satisfactory to the Administrative Agent and duly executed by the   parties thereto.                                               ARTICLE IX                                            Negative Covenants                    Each Credit Party hereby covenants and agrees that on the Closing Date and thereafter,   until the Commitments have been terminated and the Loans and all other Obligations incurred   hereunder (other than Unasserted Contingent Obligations) are paid in full in accordance with the   terms of this Agreement:                    SECTION 9.01  Limitation on Indebtedness. No Credit Party shall, and no Credit Party   shall permit any of its Subsidiaries or  any Licensed  Insurance Entity to, directly or indirectly,   create, incur, issue, assume, guarantee, suffer to exist or otherwise become directly or indirectly   liable, contingently or otherwise with respect to any Indebtedness, except for:                          (a)   Indebtedness in respect of the Obligations;                          (b)   Indebtedness  existing as  of the Closing Date (other than the Convertible   Senior Notes) which is identified in Schedule 7.24 and which is not otherwise permitted by this   Section 9.01, and, Permitted Refinancing Indebtedness thereof;                                    DB1/ 110631747.4                       90    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (c)   unsecured Indebtedness (i) incurred in the ordinary course of business of   such Credit Party and its Subsidiaries in respect of open accounts extended by suppliers on normal   trade terms in connection with purchases of goods and services, which are not overdue for a period   of more than ninety (90) days or, if overdue for more than ninety (90) days, as to which a dispute   exists and adequate reserves in conformity with GAAP have been established on the books of such   Credit Party or Subsidiary and (ii) in respect of performance, surety or appeal bonds, bid bonds   and similar obligations provided in the ordinary course of business, but excluding (in each case)   Indebtedness incurred through the borrowing of money or Contingent Liabilities in respect thereof;                (d)   Indebtedness (i) evidencing the deferred purchase price of newly acquired   property  or  incurred  to  finance  the  acquisition  of  equipment  of  such  Credit  Party  and  its   Subsidiaries (pursuant to purchase money mortgages or otherwise, whether owed to the seller or a   third  party),  provided,  that  such  Indebtedness  is  incurred  within  ninety  (90)  days  after  such   acquisition of such equipment, and (ii) Capitalized Lease Obligations, and, with respect to each of   clause  (i)  and  (ii),  Permitted  Refinancing  Indebtedness  thereof;  provided,  that  the  aggregate   amount of  all Indebtedness outstanding pursuant to this clause (d) shall not at any time exceed   $2,000,000;                (e)   intercompany Indebtedness permitted pursuant to Section 9.05;                (f)   Contingent Liabilities of the Credit Parties and their Subsidiaries arising in   the ordinary course of business with respect to surety and appeals bonds, bid bonds, performance   bonds and other similar obligations;                (g)   Hedging Obligations not prohibited by Section 9.11;                (h)   Indebtedness incurred in the ordinary course of business to finance   insurance policy premiums;                (i)   Indebtedness incurred in the ordinary course of business in respect of   netting services, overdraft protection, returned items, employee credit card programs and other   similar services in connection with cash management and deposit accounts;                (j)   (i) 2021  Convertible  Senior  Notes  and  any  Additional  Notes  exchanged   therefor and (ii) 2024 Convertible Senior Notes and any Additional Notes exchanged therefor;                                 (k)   2025 Convertible Senior Notes and any Additional Notes exchanged   therefor;                      (l)   Additional Notes issued after the Closing Date;                                 (m)   Letters of credit and reimbursement obligations in respect thereof in favor    of  suppliers,  landlords  and  other  counterparties  at  any  one  time  outstanding  not  to exceed   $15,000,000  in  the  aggregate  after  taking  into  account  any outstanding  letters  of  credit and                         DB1/ 110631747.4                       91    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

similar reimbursement obligations scheduled pursuant to Section 9.01(b), and Permitted  Refinancings thereof;               (n)   Guarantee Obligations of any Credit Party and its Subsidiaries in respect  of  Indebtedness  otherwise  permitted  hereunder  or  other  obligations  not  prohibited  hereunder;  provided that if such Indebtedness is subordinated to the Obligations, such Guarantee Obligation  shall be subordinated to the same extent; and                             (o)   other unsecured Indebtedness not to exceed $5,000,000 at any time  outstanding;                (p)   the Existing Earnouts and the Global Share Backstop;                             (q)   Indebtedness of the type set forth in Section 9.01(d) of a Person whose   assets or Capital Stock are acquired by a Credit Party or any of its Subsidiaries in a Permitted  Acquisition so long as (i) such Indebtedness was in existence prior to the date of such acquisition  and was not incurred in connection with, or in contemplation of, such acquisition, (ii) no Credit  Party (other than such Person so acquired in such acquisition or any other Person that such Person  merges with or that acquires the assets of such Person in connection with such acquisition) shall  have any liability or other obligation with respect to such Indebtedness, (iii) if such Indebtedness  is secured, no Lien thereon shall extend to or cover any other assets other than the property or  equipment acquired in such acquisition (other than the proceeds or products thereof, accessions or  additions thereto and improvements thereon) or attach to any other property of any Credit Party  and  (iv)  the  aggregate  outstanding  principal  amount  of  such  Indebtedness  does  not  exceed  $2,500,000 at any time;                         (r)   Indebtedness consisting of promissory notes issued by any Credit Party or  Subsidiary to former employees, officers, former officers, directors, and former directors (or any  spouses, ex-spouses, beneficiaries, or estates of any of the foregoing) of any Credit Party or any  Subsidiary  issued  to  purchase  or  redeem  Capital  Stock  of  Parent  (“Shareholder  Redemption  Notes”) issued in lieu of Restricted Payments permitted under Section 9.06(k);                         (s)   Indebtedness (x) arising from the honoring by a bank or other financial  institution  of  a  check,  draft  or  similar instrument  inadvertently  (except  in  the case  of  daylight  overdrafts) drawn against insufficient funds in the ordinary course of business, (y) in respect of  netting services, overdraft protection and other similar arrangements in connection with deposit or  securities accounts in the ordinary course of business and (z) incurred in respect of credit cards,  credit card processing services, debit cards, stored value cards, purchase cards (including so-called  “procurement cards” or “P-cards”), or cash management services, in each case, incurred  in  the  ordinary course of business;                         (t)   endorsement of negotiable instruments for deposit in the ordinary course  of business;                 (u)   unsecured   contingent   liabilities   arising   with   respect   to   customary   indemnification provisions or deferred purchase price adjustments in connection with any   DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

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 Investment permitted hereunder or in connection with any asset sale or other dispositions   permitted hereunder;                (v)   Indebtedness in respect of (x) workers’ compensation claims  and   self-insurance  obligations  (in  each  case  other  than  for  or  constituting  an  obligation  for  money   borrowed), including guarantees or obligations of Parent, the Borrower and Restricted Subsidiaries   with  respect  to  letters  of  credit  supporting  such  workers’  compensation  claims  and/or  self-  insurance  obligations  and  (y)  bankers’  acceptances,  bank  guarantees,  letters  of  credit  and  bid,   performance, surety bonds or similar instruments issued for the account of Parent, the Borrowers   and their Subsidiaries in the ordinary course of business, including guarantees or obligations of   any such Person with respect to bankers’ acceptances and bid, performance or surety and appeals   obligations;                (w)   to the extent constituting Indebtedness, deferred compensation to   employees, former employees, officers, former officers, directors, former directors, consultants (or   any spouses, ex-spouses, or estates of any of the foregoing) incurred in the ordinary course of   business  or  in  connection  with  the  Transactions,  Permitted  Acquisitions  or  other  Investments   permitted hereunder; and                (x)   unsecured earn-outs, seller notes, deferred purchase price obligations,   holdbacks or similar obligations of any Credit Party, to the extent subordinated to the Obligations   on terms and conditions reasonably satisfactory to the Administrative Agent.          SECTION 9.02  Limitation on Liens.  No Credit Party shall, and no Credit Party shall   permit any of its Subsidiaries or any Licensed Insurance Entity to, directly or indirectly, create,   incur, assume or suffer to exist any Lien upon any property or assets of any kind (real or personal,   tangible or intangible) of any such Person (including its Capital Stock), whether now owned or   hereafter acquired, except for the following (collectively, the “Permitted Liens”):                (a)   Liens securing the Obligations;                (b)   Liens existing as of the Closing Date and disclosed in Schedule 9.02   securing Indebtedness permitted under Section 9.01(b) (other than the Convertible Senior Notes)   and any renewals or extensions thereof; provided, that no such Lien shall (1) secure Indebtedness   under any Convertible Senior Notes or (2) encumber any additional property and the principal   amount of Indebtedness secured by such Lien shall not be increased (as such Indebtedness may be   permanently reduced subsequent to the Closing Date), except to the extent permitted by Section   9.01(b);                (c)   Liens  securing  Capitalized  Lease  Liabilities  and  Liens  securing   Indebtedness of the type permitted under Section 9.01(d)(i); provided, that (i) the principal amount   of the Indebtedness secured thereby does not exceed the cost of the applicable property at the time   of  such  acquisition,  replacement  or  construction  and  any  fees,  costs  and  expenses  incurred  in   connection with the incurrence of such Indebtedness and (ii) such Lien secures only the assets that   are the subject of the Indebtedness referred to in such clause and proceeds thereof;    DB1/ 110631747.4                       93    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (d)   Liens arising by operation of law in favor of carriers, warehousemen,   mechanics, materialmen, suppliers, laborers and landlords and other similar Liens incurred in the   ordinary course of business for amounts not overdue or being diligently contested in good faith by   appropriate proceedings and for which adequate reserves in accordance with GAAP shall have   been established on its books;                (e)   Liens incurred or deposits made in the ordinary course of business  in   connection with worker’s compensation, unemployment insurance or other forms of governmental   insurance or benefits, or to secure performance of tenders, statutory obligations, bids, leases or   other similar obligations (other than for borrowed money) entered into in the ordinary course of   business or to secure obligations on surety, bid, appeal or performance bonds;                (f)   judgment  Liens  not  constituting  an  Event  of  Default  under  Section   10.01(f);                (g)   easements,  rights-of-way,  zoning  restrictions,  minor  defects  or    irregularities in title and other similar encumbrances not interfering in any material respect with   the value or use of the property to which such Lien is attached and other Liens on any Real Property   subject  to  a  Mortgage  that  are  identified  in  any  title  insurance  policy  issued  in  favor  of  the   Administrative Agent;                (h)   Liens for Taxes, assessments or other governmental charges or levies not   yet due and payable or the non-payment of which is permitted by Section 7.10;                (i)   Liens arising in the ordinary course of business by virtue of any   contractual,  statutory  or  common  law  provision  relating  to  banker’s  Liens,  rights  of  set-off  or   similar rights and remedies covering deposit or securities accounts (including funds or other assets   credited thereto) or other funds maintained with a depository institution or securities intermediary,   so long as the applicable provisions of Section 8.12 have been complied with, in respect of such   deposit accounts (other than Excluded Accounts);                (j)   Nonexclusive  licenses,  leases  and  sublicenses,  and  subleases  granted  by   any Credit Party or any Subsidiary of a Credit Party or leases or subleases by any Credit Party or   any Subsidiary of a Credit Party, in the ordinary course of its business and covering only the assets   so licensed, sublicensed, leased or subleased;                (k)   Liens that are customary rights of set-off relating to the establishment of   depository relations with banks not given in connection with the issuance of Indebtedness;                (l)   Liens arising from precautionary Uniform Commercial Code financing   statements (or similar filings under other applicable law) regarding operating leases or   consignment or bailee arrangements in the ordinary course of business;                (m)   Cash collateral securing Indebtedness permitted under Section 9.01(m) in   an amount not to exceed one hundred and ten percent (110%) of the amount of such   Indebtedness;   DB1/ 110631747.4                       94    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (n)   the put and call arrangements and any payment obligations set forth in the   Passport Stockholders Agreement;                (o)   Liens in favor of the Borrower or any other Credit Party securing   intercompany Indebtedness permitted under the Credit Documents so long as any such Liens on   the Collateral are subject to the Intercompany Subordination Agreement;                (p)   statutory and common law landlords’ liens under leases to which Parent or   any of its Subsidiaries is a party;                (q)   Liens of counterparties attaching solely to cash earnest money deposits   made by Credit Parties or their Subsidiaries in connection with any letter of intent or purchase   agreement entered into with respect to Permitted Acquisitions or capital expenditures permitted   hereunder; and                (r)   other  Liens  securing  Indebtedness  or  other  obligations  in  an  aggregate   principal amount at the time of incurrence of any such Indebtedness or other obligations not   exceeding $2,500,000.          SECTION 9.03  Consolidation, Merger, etc. No Credit Party shall, and no Credit Party   shall permit any of its Subsidiaries to, liquidate or dissolve, consolidate with, or merge into or with,   any other Person or purchase or otherwise acquire all or substantially all of the assets of any Person   (or  any  division  thereof),  except  Permitted  Acquisitions  and  other  Investments  permitted   hereunder, provided, that (a) any Credit Party or Subsidiary of any Credit Party may liquidate or   dissolve voluntarily into, and may merge with and into, the Borrower (so long as the Borrower is   the surviving entity), (b) any Guarantor may liquidate or dissolve voluntarily into, and may merge   with  and  into  any  Credit  Party,  (c)  any  Subsidiary  that  is  not  a  Credit  Party  may  liquidate  or   dissolve voluntarily into, and may merge  with and into any other Subsidiary, (d) the  assets or   Capital Stock of any Credit Party may be purchased or otherwise acquired by any other Credit   Party, (e) the assets or Capital Stock of any Subsidiary that is not a Credit Party may be purchased   or otherwise acquired by the Borrower or any Subsidiary and (f) any Subsidiary of any Credit Party   may file a certificate of division, adopt a plan of division or otherwise take any action to effectuate   a division pursuant to Section 18-217 of the Delaware Limited Liability Company Act (or any   analogous  action  taken  pursuant  to  Applicable  Law  with  respect  to  any  corporation,  limited   liability  company,  partnership  or  other  entity),  so  long  as  such  surviving  Person  shall  have   complied with the requirements of Section 8.11 within the time periods set forth therein.          SECTION 9.04  Permitted Dispositions. No Credit Party shall, and no Credit Party shall   permit  any  of  its  Subsidiaries  to,  make  a  Disposition,  or  enter  into  any  agreement  to  make  a   Disposition, of such Credit Party’s or such other Person’s assets (including receivables and Capital   Stock of Subsidiaries) to any Person in one transaction or a series of transactions, unless such   Disposition:                (a)   is in the ordinary course of its business and is of surplus, used, obsolete or   worn-out property or property no longer used or useful in its business;   DB1/ 110631747.4                       95     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (b)   is a sale of Inventory in the ordinary course of business;                (c)   is the leasing, subleasing or licensing, as lessor, of real or personal   property no longer used or useful in such Person’s business or otherwise in the ordinary course of   business;                (d)   is a sale or disposition of equipment to the extent that such equipment is   exchanged for credit against the purchase price of similar replacement equipment, or the proceeds   of such Dispositions are reasonably promptly applied to the purchase price of similar replacement   equipment, all in the ordinary course of business;                (e)   is otherwise permitted by Section 9.02(j), 9.03, 9.05 (other than  9.05(l))   and 9.06 (other than 9.06(s));                (f)   is a Disposition of property by one Credit Party to another Credit Party;   provided, that no Credit Party shall consummate a Disposition of the Capital Stock of a Licensed   Insurance Entity to another Credit Party, unless such Credit Party is subject to and in compliance   with Section 9.16;                (g)   is a Disposition of property by a non-Credit Party to a Credit Party if the   purchase price of said property is not higher than its fair market value;                (h)   is a Disposition of property by a non-Credit Party to a non-Credit Party;                (i)   is a Disposition of accounts receivable in connection with the collection or    compromise thereof in the ordinary course of business or consistent with past practice (and not   for financing purposes);                (j)   is the lapse or abandonment of Intellectual Property that is in the   reasonable  judgment  of  the  Borrower  or  its  Subsidiaries  no  longer  commercially  desirable  to   maintain  or  necessary  or  material  for  the  conduct  of  the  business  of  the  Borrower  or  its   Subsidiaries;                (k)   so long as no Event of Default has occurred and is continuing, is  a   Disposition of Lighthouse;                (l)   so long as (i) no Event of Default has occurred and is continuing and (ii)   the Credit Parties will be in pro forma compliance with Section 9.13, is a Disposition of (x) True   Health New Mexico, Inc. or (y) Dispositions set forth on Schedule 9.04;                (m)   is a Disposition of cash or Cash Equivalents;                (n)   is  a  Disposition  of  assets  acquired  in  connection  with  a  Permitted   Acquisition which is made to obtain the approval of an anti-trust authority;    DB1/ 110631747.4                       96    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (o)   is a Disposition constituting a taking by condemnation or eminent domain   or transfer in lieu thereof, or a Disposition consisting of or subsequent to a total loss or   constructive total loss of property;                (p)   is the surrender or waiver of contractual rights and settlement or waiver  of   contractual or litigation claims;                (q)   is the unwinding of any Hedging Transaction pursuant to its terms;                (r)   is,  to  the  extent  required  by  applicable  law  and  with  respect  to  any   Subsidiary that is a Foreign Subsidiary, the sale or other disposition of a nominal amount of Capital   Stock  in  any  Subsidiary  in  order  to  qualify  members  of  the  board  of  directors  or  equivalent   governing body of such Subsidiary; or                (s)   so long as no Event of Default has occurred and is continuing, is  a   Disposition the purchase price of which is paid with not less than 75% of cash and the seller thereof   receives not less than fair market value for such assets, not to exceed a value of   $2,500,000 in the aggregate for all Credit Parties and their Subsidiaries in any fiscal year;              provided, that, notwithstanding the foregoing, in no event shall any Credit Party, nor shall any   Credit Party permit any of its Subsidiaries to, directly or indirectly, sell or otherwise dispose of   any Capital Stock of any of its Subsidiaries, except (1) to qualify directors if required by Applicable   Law or (2) pursuant to clause (e), (f), (g), (h), (k) or (l) above;              provided, further, that notwithstanding the foregoing, in no event shall any Credit Party, nor shall   any Credit Party permit any of its Subsidiaries to, directly or indirectly, sell or otherwise dispose   of any Intellectual Property, except in accordance with (j) above.                    SECTION 9.06  Investments. No  Credit  Party shall,  and  no  Credit  Party shall  permit   any of its Subsidiaries to, purchase, make, incur, assume or permit to exist any Investment in any   other Person, except:                          (a)   Investments existing on the Closing Date and identified in Schedule 7.12;                          (b)   Investments in cash and Cash Equivalents;                          (c)   Investments received in connection with the bankruptcy or reorganization   of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each case   in the ordinary course of business;                          (d)   Investments by way of contributions to capital or purchases of  Capital   Stock (i) outstanding as of the date hereof and (ii) hereafter (x) by any Credit Party in any other   Credit Party and (y) by any Subsidiary that is not a Credit Party in any Subsidiary that is not a   Credit Party;                                    DB1/ 110631747.4                       97    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (e)   Investments constituting (i) receivables arising, (ii) trade debt granted, or   (iii) deposits made in connection with the purchase price of goods or services, in each case, in the   ordinary course of business;                (f)   Investments consisting of any deferred portion of the sales price received   by any Credit Party in connection with any Disposition permitted under Section 9.04;                (g)   Investments consisting of intercompany loans, other extensions of credit or   other Investments (i) outstanding as of the date hereof and (ii) hereafter (x) by a Credit Party to   any other Credit Party, (y) by a Subsidiary that is not a Credit Party to a Credit Party or another   Subsidiary that is not a Credit Party or (z) by a Credit Party to any Subsidiary that is not a Credit   Party or to any Licensed Insurance Entity, in each case so long as at the time of such Investment   pursuant to this clause (z), (x) no Event of Default has occurred and is continuing and (y) either   such  Investment  is  scheduled  on  Schedule  9.05(g)  or  the  amount  of  such  non-scheduled   Investments  shall  not  exceed  $2,500,000  in  the  aggregate  at  any  time;  provided,  that,  any   intercompany Indebtedness described above: (1) shall be evidenced by one or more promissory   notes in form and substance reasonably satisfactory to the Administrative Agent, duly executed   and delivered in pledge to the Administrative Agent pursuant to the Security Documents, and shall   not  be  forgiven  or  otherwise  discharged  for  any consideration  other  than  and  to  the  extent  of   repayment in cash; and (2) shall be subordinated to the Obligations pursuant to the subordination   terms set forth therein;                (h)   Permitted Acquisitions;                (i)   the maintenance of deposit accounts in the ordinary course of business so    long as the applicable provisions of Section 8.12 have been complied with in respect of such   deposit accounts;                (j)   Investments made by Credit Parties in the form of the Passport   Shareholder  Payment  (or  any  other  payment  obligations  under  the  Passport  Shareholders   Agreement), to the extent required by and made pursuant to the Passport Stockholders Agreement   and,  with  respect  to  the  Passport  Shareholder  Payment,  resulting  in  Justify  Holdings,  Inc.   becoming 100% owned by EH Holding Company, Inc.;                (k)   Investments  in  any  Person  to  the  extent  such  Investment  represents  the   non-cash portion of the consideration received in a Disposition permitted pursuant to Section   9.04(i) or (m);                (l)   Investments consisting of (i) Indebtedness permitted by Section 9.01 (other   than Section 9.01(e)), (ii) transactions permitted by Section 9.03, (iii) Dispositions permitted by   Section  9.04  (other  than  Section  9.04(e)),  (iv)  Restricted  Payments  permitted  by  Section  9.06   (other than Section 9.06(s)) and (v) transactions permitted under Section 9.09 (other than Section   9.09(b);                (m)   the Credit Parties and their Subsidiaries may (i) extend trade credit in  the   ordinary course of business and (ii) acquire and hold accounts receivables owing to any of them   DB1/ 110631747.4                       98    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 if created or acquired in the ordinary course of business and payable or dischargeable in   accordance with customary terms;                (n)   the Credit Parties and their Subsidiaries may endorse negotiable   instruments held for collection in the ordinary course of business;                (o)   to the extent constituting Investments, the Credit Parties and  their   Subsidiaries may make earnest money deposits made in connection with the acquisition of   property or assets not prohibited hereunder;                (p)   Investments consisting of extensions of credit in the nature of accounts   receivable  or  notes  receivable  arising  from  the  grant  of  trade  credit  in  the  ordinary  course  of   business, and Investments received in satisfaction or partial satisfaction thereof in connection with   the  settlement  of  delinquent  accounts  in  the  ordinary  course  of  business  or  from  financially   troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;                (q)   prepaid expenses or lease, utility and other similar deposits, in each case   made in the ordinary course of business;                (r)   promissory notes or other obligations of officers or other employees of   such Credit Party or such Subsidiary acquired in connection with such officers’ or employees’   acquisition of Capital Stock in such Credit Party or such Subsidiary, so long as no cash is advanced   by the Borrower or any of its Subsidiaries in connection with such Investment;                (s)   Investments of any person that becomes a Subsidiary on or after the   Closing Date; provided that (i) such Investments exist at the time such person is acquired, (ii) such   Investments are not made in anticipation or contemplation of such person becoming a Subsidiary,   and (iii) such Investments are not directly or indirectly recourse to any Credit Party or any other   Subsidiary or any of their respective assets, other than to the person that becomes a Subsidiary;                (t)   so long as no Default or Event of Default has occurred and is continuing,   Investments funded with equity proceeds of Qualified Capital or consideration paid in respect of   the Capital Stock of Parent and contributed as Qualified Capital Stock to the Borrower;                                 (u)   the Transactions;                                 (v)   the Lighthouse Capital Contributions;                          (w)   the Somos Capital Contributions; and                          (x)   Investments made in any Licensed Insurance Entity and Justify Holdings,    Inc. to be used as statutory capital or for other capital reserves to the extent required by Applicable   Laws or regulations or to the extent required by any Governmental Authority; provided, that, any   Investments described in this clause (x) in an aggregate amount exceeding   $2,000,000 at any time shall be evidenced by one or more promissory notes in form and substance  reasonably satisfactory to the Administrative  Agent  (it  being  understood  that  any DB1/ 110631747.4                                        99    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 provisions required to be included in such note or notes under Applicable Law or as required by   any applicable regulator or regulatory entity shall be satisfactory to the Administrative Agent),   duly  executed  and  delivered  in  pledge  to  the  Administrative  Agent  pursuant  to  the  Security   Documents, and shall not be forgiven or otherwise discharged for any consideration other than and   to the extent of repayment in cash;                (y)   loans and other advances to officers, director and employees in an amount   not to exceed $1,000,000 at any time;               (z)    the put and call arrangements set forth in the Passport Stockholders   Agreement;                (aa)  (i) to the extent constituting Investments, cost plus margin  arrangements    pursuant to the Intercompany Service Agreement and (ii) Investments in Evolent Health   International Private Limited in an amount not to exceed $2,500,000 at any time; and                (bb)  so long as no Event of Default has occurred and is continuing, additional   Investments in an amount not to exceed $5,000,000 at any time.    In addition, to the extent an Investment is permitted to be made by a Subsidiary directly in any   Subsidiary or any other Person who is not a Credit Party (each such person, a “Target Person”)   under any provision of this Section 9.05, such Investment may be made by advance, contribution   or distribution by a Credit Party to a Subsidiary or Parent, which is further contemporaneously   advanced or contributed to a Subsidiary for purposes of making the relevant Investment in the   Target Person without such initial advance, contribution or distribution constituting an Investment   (it  being  understood  that  such  ultimate  Investment  in  the  Target  Person  must  satisfy  the   requirements of, and shall count towards any thresholds in, a provision of this Section 9.05 as if   made by the applicable Subsidiary directly to the Target Person).          SECTION 9.07  Restricted Payments, etc. No Credit Party shall, and no Credit Party   shall permit any of its Subsidiaries to, make any Restricted Payment, or make any deposit for any   Restricted Payment, other than:                (a)   payments by any Subsidiary of the Borrower to the Borrower or its direct   parent  (and,  in  the  case  of  a  Restricted  Payment  by  a  non-wholly  owned  Subsidiary,  to  the   Borrower and any other Subsidiaries and to each other owner of Capital Stock of such Subsidiary   based on their relative ownership interests of the relevant class of Capital Stock);                (b)   Restricted Payments by any Credit Party or any of its Subsidiaries to pay   dividends with respect to its Capital Stock payable solely in additional shares of its common   stock (other than Disqualified Capital Stock);                (c)   Restricted Payments by any Credit Party or any of its Subsidiaries to   Parent to enable Parent to pay any applicable income or franchise Taxes then due and payable, to   the  extent  such  Taxes  are  attributable  to  the  activities  or  income  of  the  Borrower  and  its   Subsidiaries;   DB1/ 110631747.4                      100    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (d)   regularly scheduled, nonaccelerated payments with respect to Indebtedness   subordinated to the Obligations (including, without limitation, seller notes and earnout obligations)   to  the  extent  expressly  permitted  by  the  applicable  subordination  agreement  or  such  other   subordination terms with respect thereto;                (e)   (i) the  2021  Convertible  Notes  Repurchase  on  the  maturity  date  (as  set   forth in the 2021 Convertible Notes) and (ii) the 2024 Convertible Notes Repurchase on the   maturity date (as set forth in the 2024 Convertible Notes);                (f)   redemptions, repurchases, retirements or other acquisitions of Capital   Stock (i) deemed to occur on the exercise of options by the delivery of Capital Stock in satisfaction   of the exercise price of such options or (ii) in consideration of withholding or similar taxes payable   by any future, present or former officer, employee, director, member of management, or consultant   (or their respective estates, executors, administrators, heirs, family members, legatees, distributees,   spouses,  former  spouses,  domestic  partners  and  former  domestic  partners),  including  deemed   repurchases  in  connection  with  the  exercise  of  stock  options;  provided,  that,  any  Restricted   Payments made pursuant to this clause (f) are not be made in cash;                (g)   conversion of the 2021 Convertible Notes, the 2024 Convertible Notes and   the 2025 Convertible Notes into Qualified Capital Stock of Parent in accordance with the terms   thereof;                (h)   all mandatory or scheduled payments (including, for the avoidance of   doubt, scheduled interest payments) in respect of the Convertible Senior Notes;                (i)   payment and/or satisfaction of the (i) Existing Earnouts (whether by way   of cash payments or issuance of Capital Stock of the Parent) and (ii) the Global Share Backstop;                (j)   payments in respect of the Warrants;                (k)   to  the  extent  no  Event  of  Default  has  occurred  and  is  continuing  at  the   time of such distribution (both before and after giving effect thereto), any Credit Party and any of   its Subsidiaries may make distributions in an amount sufficient to make payments (with cash or   Shareholder Redemption Notes) on account of the purchase, redemption, or other acquisition or   retirement  of  any  shares  of  the  Capital  Stock  of  a  Credit  Party  or  Subsidiary  from  former   employees, officers, or directors of the Credit Parties and their Subsidiaries (or any spouses, ex-  spouses, beneficiaries or estates of any of the foregoing) which may be in the form of forgiveness   of  Indebtedness,  and  Parent  may  make  such  payments  (with  cash  or  Shareholder  Redemption   Notes) on account of the purchase, redemption, or other acquisition or retirement of any shares of   its  Capital  Stock,  and,  in  each  case,  make  distributions  to  satisfy  any  tax  liabilities  arising  in   connection with such transactions; provided that the amount of such distributions and repurchases   (including any such distributions or repurchases in the form of forgiveness of Indebtedness) may   not exceed the sum of (x) $1,000,000 in any fiscal year plus (y) the amount of the cash proceeds   of any permitted issuance of Qualified Capital Stock received by the Parent or Borrower for the   purpose of making such payments and used solely for such purpose plus (z) key    DB1/ 110631747.4                      101    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 man life insurance proceeds received by the Parent, Borrower or any of their Subsidiaries during   such fiscal year;                (l)   the put and call arrangements and any payment obligations set forth in the   Passport Stockholders Agreement;                (m)   the making of any Restricted Payment within 60 days after the date of   declaration thereof, if at the date of such declaration such Restricted Payment would have complied   with another provision of this Section 9.06; provided that the making of such Restricted Payment   will reduce capacity for Restricted Payments pursuant to such other provision when so made;                (n)   to the extent constituting Restricted Payments, the consummation of the   Transactions;                (o)   (i) the redemption, repurchase, retirement or other acquisition of  any    Capital Stock (“Retired Capital Stock”) of Parent in exchange for, or out of the proceeds of, the   substantially concurrent sale of, Capital Stock of Parent or contributions to the equity capital of   Parent (other than any Disqualified Capital Stock) (collectively, including any such contributions,   “Refunding  Capital  Stock”)  and  (ii)  the  declaration  and  payment  of  dividends  on  the  Retired   Capital Stock out of the proceeds of the substantially concurrent sale of Refunding Capital Stock;                (p) t the  Parent  and  its  Subsidiaries  may make  any payments  required by the   erms of the TRA;                (q)   the  Parent  or  any of  the Subsidiaries  may pay cash in  lieu of  fractional    Capital  Stock  in  connection  with  any  dividend,  split  or  combination  thereof,  any  Permitted   Acquisition  or  any  exercise  of  warrants,  options  or  other  securities  convertible  into  or   exchangeable for Capital Stock;                (r)   to the extent no Event of Default has occurred or is continuing and to the   extent not prohibited by the applicable subordination provisions applicable thereto, the Parent and   its Subsidiaries may pay earn-outs, seller notes, deferred purchase price obligations, holdbacks or   similar obligations that were incurred pursuant to Section 9.01(x); and                (s)   to the extent constituting Restricted Payments, the Borrower and its   Subsidiaries may enter into and consummate transactions permitted by Section 9.04 (other than   Section 9.04(e)) and Section 9.05 (other than Section 9.05(l));                (t)   solely to the extent that Parent and its Subsidiaries are in pro forma   compliance with Section 9.13(b), any 2021 Convertible Notes Buyback;                (u) S any  refinancing  of  Convertible  Senior  Notes  to  the  extent  permitted  by    ection 9.01; and                (v)   Restricted Payments to be used for the payment of (x) a cash payment to    holders of the 2021 Convertible Notes or the 2025 Convertible Notes in an aggregate amount not  DB1/ 110631747.4                      102   DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 to exceed 3.00% of the aggregate principal amount of the 2024 Convertible Notes in connection   with the exchange of 2021 Convertible Notes or 2025 Convertible Notes for 2024 Convertible   Notes, (y) agent fees payable by the Parent in respect of agent services performed in connection   with the closing and issuance of the 2024 Convertible Notes, in an amount not to exceed 2.00% of   the total principal amount of the 2024 Convertible Notes and (z) out-of-pocket costs and expenses   of the Parent incurred in connection with the development, preparation, negotiation and execution   of the documentation relating to the 2024 Convertible Notes, in an amount not to exceed $600,000.    To the extent that the Parent or its Subsidiaries are permitted to make any Restricted Payments   pursuant to this Section 9.06, the same may be made as a loan or advance to the recipient thereof,   and in such case the amount of such loan or advance so made shall reduce the amount of Restricted   Payments that may be made by the Parent or its Subsidiaries in respect thereof.          SECTION 9.08  Modification  of Certain  Agreements.  No Credit Party shall, and no   Credit Party shall permit any of its Subsidiaries to, consent to any amendment, supplement, waiver   or other modification of, or enter into any forbearance from exercising any rights with respect to   the terms or provisions contained in (a) any of the Organization Documents if such amendment,   modification or change would (i) require any mandatory redemption date of any Capital Stock, (ii)   require any cash dividends or other payments in cash to be made earlier than the Maturity Date,   (iii) in the case of a Credit Party, modify any name, jurisdiction of organization, organizational   identification number or federal identification number unless at least five (5) Business Days prior   written notice shall be given to the Administrative Agent (or such shorter period of time reasonably   agreed to by the Administrative Agent) or (iv) otherwise be materially adverse to the interests of   the Administrative Agent or the Lenders in any respect, (b) any document, agreement or instrument   evidencing  or  governing  any  Indebtedness  that  has  been  contractually  subordinated  to  the   Obligations in right of payment or any Liens that have been contractually subordinated in priority   to the Liens of the Administrative Agent, unless such amendment, supplement, waiver or other   modification is permitted under the terms of the subordination agreement applicable thereto or (c)   any Material Contract, except to the extent that such amendment, modification or change could   not,  individually  or  in  the  aggregate,  reasonably  be  expected  to  be  materially  adverse  to  the   interests of the Lender.          SECTION 9.09  Sale and Leaseback. No Credit Party shall, and no Credit  Party shall   permit any of its Subsidiaries to, directly or indirectly, enter into any agreement or arrangement   providing for the sale or transfer by it of any property (now owned or hereafter acquired) to a   Person and the subsequent lease or rental of such property or other similar property from such   Person.          SECTION 9.10  Transactions with Affiliates.  No Credit Party shall, and no Credit Party   shall permit any of its Subsidiaries to, enter into or cause or permit to exist any arrangement,   transaction or contract (including for the purchase, lease or exchange of property or the rendering   of services) with any Affiliate except (a) on fair and reasonable terms no less favorable to such   Credit Party or such Subsidiary than it could obtain in an arm’s-length transaction with a Person   that is not an Affiliate, (b) any transaction expressly permitted under Section 9.03, Section 9.05(d),    Section  9.05(g),  Section  9.05(j),  Section  9.05(r),  Section  9.05(v),  Section  9.05(w),   DB1/ 110631747.4                      103     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Section 9.05(y) or Section 9.06, (c) customary fees to, and indemnifications of, directors, officers,   consultants and employees of the Credit Parties and their respective Subsidiaries, (d) the payment   of reasonable and customary compensation and indemnification arrangements and benefit plans   (including, without limitation, health, disability and insurance plans) for officers and employees   of  the  Credit  Parties  and  their  respective  Subsidiaries  in  the  ordinary  course  of  business,  (e)   arrangements, transactions and contracts consented to by the Administrative  Agent,   (f) employment agreements and severance arrangements entered into by a Credit Party or any of   the Subsidiaries in the ordinary course of business, (g) capital contributions by Parent or any of its   Subsidiaries to any Subsidiary, to the extent otherwise permitted hereunder, (h) payments of loans   (or  cancellations  of  loans)  to  employees  that  are  (A)  approved  by  a  majority  of  the  board  of   directors  (or  other  governing  body)  of  Borrower  in  good  faith,  (B)  made  in  compliance  with   applicable law, and (C) otherwise permitted under this Agreement, (i) arrangements, transactions   or contracts among the Credit Parties, their Subsidiaries, (j) the Transactions and performance of   the Credit Parties and their Subsidiaries of their obligations under the Passport Health Acquisition   Agreement,  (k)  the  non-exclusive  licensing  of  patents,  trademarks,  software,  know-how,   copyrights or other intellectual property rights in the ordinary course of business to permit the   commercial exploitation of intellectual property rights, (l) payments to or from, and transactions   with,  joint  ventures,  in  the  ordinary  course  of  business,  in  each  case  to  the  extent  otherwise   permitted under Section 9.05 and (m) arrangements, transactions or contracts set forth on Schedule   9.09.          SECTION 9.11  Restrictive Agreements, etc. No Credit Party shall, and no Credit  Party   shall permit any of its Subsidiaries to, enter into any agreement (other than a Transaction   Document) prohibiting:                (a)   the creation or assumption by any Credit Party of any Lien upon  its   properties, revenues or assets, whether now owned or hereafter acquired;                (b)  the  ability  of  such  Person  to  amend  or  otherwise  modify  any   Credit   Document; or                (c)  the ability of such Person to make any dividends, directly or indirectly, to    the Credit Parties.              The foregoing prohibitions shall not apply to (i) customary restrictions of the type described in   clause (a) above (which do not prohibit the Credit Parties from complying with or performing the   terms of this Agreement and the other Credit Documents) which are contained in any agreement,   (A) governing  any  Indebtedness  permitted  by  Section  9.01(d)  as  to  assets  financed  with  the   proceeds of such Indebtedness, (B) for the creation or assumption of any Lien on the sublet or   assignment of any leasehold interest of any Credit Party or any of its Subsidiaries entered into in   the ordinary course of business, (C) for the assignment of any contract entered into by any Credit   Party or any of its Subsidiaries in the ordinary course of business or (D) for the transfer of any   asset pending the close of the sale of such asset pursuant to a Disposition permitted under this   Agreement,  (ii)  the  agreements  listed  on  Schedule  9.10,  (iii)  agreements  in  relation  to  the   obligations set forth in Section 9.01(q) and (iv) any subordination agreement entered into by the   Administrative Agent and any applicable counterparty as required hereunder;   DB1/ 110631747.4                      104    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 9.12  Hedging Transactions. No Credit Party shall, and no Credit Party shall   permit  any  of  its  Subsidiaries  to,  enter  into  any  Hedging  Transaction,  except  (a)  Hedging   Transactions entered into to hedge or mitigate risks to which such Credit Party or such Subsidiary   has actual exposure (other than those in respect of Capital Stock) and (b) Hedging Transactions   entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating   rate,  from  one  floating  rate  to  another  floating  rate  or  otherwise)  with  respect  to  any  interest-  bearing liability or investment of such Credit Party or such Subsidiary.                    SECTION 9.13  Changes in Business.  No Credit Party shall, and no Credit Party shall   permit any of its Subsidiaries to engage in any business other than the businesses the Credit Parties   and their Subsidiaries are engaged in as of the date hereof and other businesses that are reasonably   related, ancillary or incidental thereto or reasonable extensions thereof.                    SECTION 9.14  Financial Performance Covenant. The Credit Parties will not permit:                          (a)   Minimum  Net  Revenue. (i)  Net  Revenue  on  a  consolidated  basis  to  be   less than $850,000,000 for the twelve (12) month period to be tested for the fiscal quarter ending   March 31, 2020, (ii) Net Revenue on a consolidated basis to be less than $800,000,000 for each   twelve (12) month period to be tested for the fiscal quarters ending June 30, 2020, September 30,   2020 and December 31, 2020 and (iii) thereafter, Net Revenue on a consolidated basis to be less   than $750,000,000 for each twelve (12) month period to be tested quarterly commencing with the   fiscal quarter ending March 31, 2021 through and including the fiscal quarter ending December   31,  2021;  provided,  that,  to  the  extent  True  Health  New  Mexico,  Inc.  is  sold,  transferred  or   otherwise disposed of for Net Proceeds of $12,500,000 or more during any such fiscal quarter   pursuant to a transaction permitted hereunder, then the minimum Net Revenue required by this   Section 9.13(a) shall thereafter be reduced by an amount equal to the lesser of (x) $150,000,000   and (y) Net Revenue contributed by True Health New Mexico, Inc. for the twelve (12) month   period ended as of last fiscal quarter for which such Net Revenue was calculated immediately prior   to the consummation of such sale, transfer or disposition.                          (b)   Minimum Liquidity. Liquidity to be less than the amount set forth below   opposite such relevant measurement period:                             Measurement Period                         Liquidity          January 1, 2020-March 31, 2020      $20,000,000 (or, to the extent one or more draws                                             on the DDTL Facility has occurred, $40,000,000)          April 1, 2020- December 31, 2020    $25,000,000038,500,000 (or, to the extent one or                                             more draws on the DDTL Facility has occurred,                                             $40,000,00053,500,000)          Each date thereafter                $40,000,000$53,500,000                                                                                                            DB1/ 110631747.4                      105    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Notwithstanding  the  foregoing,  after any  2021  Convertible Notes  Buyback  following  the First   Amendment Effective Date, the covenants set forth in this Section 9.13(b) shall be reduced on a   dollar-by-dollar basis by the amount of such 2021 Convertible Notes Buyback; provided that in no   event shall the minimum Liquidity covenant be less than for the measurement period of (a) April   1, 2020-December 31, 2020, $25,000,000 (or to the extent one or more draws under the DDTL   Facility has occurred, $40,000,000) and (b) January 1, 2021 and each date thereafter,   $40,000,000.                (c)   Total Secured Leverage Ratio.  The Total Secured Leverage Ratio, as of   the last day of each fiscal quarter set forth in the chart below (provided for the Test Periods ending   March 31, 2021, June 30, 2021 and September 30, 2021, Total Secured Leverage Ratio shall mean:   (i) for the Test Period ending March 31, 2021, the ratio of (x) Consolidated Secured Debt as of   March 31, 2021, to (y) Consolidated Adjusted EBITDA for the three month period ending March   31,  2021,  multiplied  by  4;  (ii)  for  the  Test  Period  ending  June  30,  2021,  the  ratio  of  (x)   Consolidated Secured Debt as of June 30, 2021, to (y) Consolidated Adjusted EBITDA for the six   (6)-month  period  ending  June  30,  2021,  multiplied  by  2;  and  (iii)  for  the  Test  Period  ending   September 30, 2021, the ratio of (x) Consolidated Secured Debt as of September 30, 2021, to (y)   Consolidated  Adjusted  EBITDA  for  the  nine  (9)-month  period  ending  September  30,  2021,   multiplied by 4/3), to be greater than the ratio set forth below opposite such measurement date:                Test Period                             Total Secured Leverage Ratio      4 Quarters ending March 31, 2021        5.50:1.00      4 Quarters ending June 30, 2021         5.50:1.00      4 Quarters ending September 30, 2021    5.50:1.00      4 Quarters ending December 31, 2021     5.50:1.00      4 Quarters ending March 31, 2022 and ending 4.50:1.00     each fiscal quarter thereafter                      SECTION 9.15  Disqualified Capital Stock. No Credit Party shall, and no Credit Party   shall permit any of its Subsidiaries to, issue any Disqualified Capital Stock.                    SECTION 9.16  [Reserved].                    SECTION 9.17  Holdings Covenant.               (a)   Parent.                                       (i)   Parent shall not own or acquire any assets (other than Capital    Stock, cash and Cash Equivalents) or engage in any business or activity other than (i) the  DB1/ 110631747.4                      106    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 ownership of Capital Stock, and activities and assets incidental thereto, (ii) the maintenance of its   corporate  existence  and  activities  incidental  thereto  and  to  its  existence  as  a  public  company,   including general and corporate overhead and the ability to incur fees, costs and expenses relating   to such maintenance, (iii) activities required to comply with Applicable Laws, (iv) maintenance   and administration of stock option and stock ownership plans and activities incidental thereto, (v)   the receipt of Restricted Payments to the extent permitted by Section 9.06, (vi) concurrently with   any issuance of Capital  Stock,  the redemption, purchase or  retirement of any Capital Stock of   Parent using the proceeds of, or conversion or exchange of any Capital Stock of, Parent for, such   Capital Stock, (viii) the obtainment of, and the payment of any fees and expenses for, management,   consulting, investment banking and advisory services to the extent otherwise permitted by this   Agreement, (ix) compliance with its obligations under the Credit Documents or any Indebtedness   or guarantees permitted under Section 9.16(a)(ii), (x) activities necessary or reasonably advisable   for  or  incidental  to  the  registration  and  listing  of  Parent’s  common  stock  and  the  continued   existence of Parent as a public company, (xi) any public offering of its common stock or any other   issuance of its Capital Stock (including Qualified Capital Stock) (xii) the execution, delivery and   performance of contracts in the ordinary course of business and consistent with past practice, (xiii)   any transaction that Parent is expressly permitted to enter into or consummate under this Article   IX, (xiv) providing indemnification and contribution to directors, officers, employees, members of   management, and consultants, (xv) activities incidental to any of the foregoing activities.                      (ii)  Parent shall not create, incur, assume or permit to exist any   Indebtedness  except  (i)  Indebtedness  created  under  the  Credit  Documents  (or  any  Permitted   Refinancing  thereof),  (ii)  other  unsecured  Indebtedness  permitted  under  Section  9.01,  (iii)   unsecured Guarantee Obligations of obligations of Borrower and its Subsidiaries to the extent not   prohibited herein and (iv) liabilities imposed by law, including Tax liabilities, and other liabilities   incidental to its existence and permitted business and activities.                      (iii) Parent  shall not create, incur, assume or permit to exist any Lien   (other than Liens permitted by Sections 9.02(a), (f) and (h) or other non-consensual Permitted   Liens arising by operation of applicable law) on any of the Voting Stock issued by the Borrower   to Parent.                (b)   EH Holding Company, Inc.                      (i)   EH Holding Company, Inc. shall not own or acquire any  assets   (other than Capital Stock, cash and Cash Equivalents) or engage in any business or activity other   than  (i)  the  ownership  of  Capital  Stock,  and  activities  and  assets  incidental  thereto,  (ii)  the   maintenance  of  its  corporate  existence  and  activities  incidental  thereto,  including  general  and   corporate overhead, (iii) activities required to comply with Applicable Laws, (iv) maintenance and   administration of stock option and stock ownership plans and activities incidental thereto, (v) the   receipt of Restricted Payments to the extent permitted by Section 9.06, (vi) concurrently with any   issuance of Capital Stock, the redemption, purchase or retirement of any Capital Stock of Parent   using the proceeds of, or conversion or exchange of any Capital Stock of, EH Holding Company,   Inc. for, such Capital Stock, (viii) the obtainment of, and the payment of any fees and expenses   for, management, consulting, investment banking and advisory services to the extent   DB1/ 110631747.4                      107     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 otherwise  permitted  by  this  Agreement,  (ix)  compliance  with  its  obligations  under  the  Credit   Documents  or  any  Indebtedness  or  guarantees  permitted  under  Section  9.16(b)(ii),  (x)  any   transaction that EH Holding Company, Inc. is expressly permitted to enter into or consummate   under this Article IX and (xi) activities incidental to any of the foregoing activities.                      (ii)  EH Holding Company, Inc. shall not create, incur, assume or   permit to exist any Indebtedness except (i) Indebtedness created under the Credit Documents (or   any Permitted Refinancing thereof) and (ii) liabilities imposed by law, including Tax liabilities,   and other liabilities incidental to its existence.                      (iii) EH Holding Company, Inc. shall not create, incur, assume or   permit to exist any Lien on any Capital Stock of any Subsidiary or joint venture of EH Holding   Company, Inc. to EH Holding Company, Inc.                (c)   Holding Company Guarantor.                      (i)   No  Holding Company Guarantor shall  own  or acquire any assets   (other than Capital Stock, cash and Cash Equivalents) or engage in any business or activity other   than  (i)  the  ownership  of  Capital  Stock,  and  activities  and  assets  incidental  thereto,  (ii)  the   maintenance  of  its  corporate  existence  and  activities  incidental  thereto,  including  general  and   corporate overhead, (iii) activities required to comply with Applicable Laws, (iv) maintenance and   administration of stock option and stock ownership plans and activities incidental thereto, (v) the   receipt of Restricted Payments to the extent permitted by Section 9.06, (vi) concurrently with any   issuance of Capital Stock, the redemption, purchase or retirement of any Capital Stock of Parent   using the proceeds of, or conversion or exchange of any Capital Stock of, such Holding Company   Guarantor  for,  such  Capital  Stock,  (viii)  the  obtainment  of,  and  the  payment  of  any  fees  and   expenses for, management, consulting, investment banking and advisory services to the  extent   otherwise  permitted  by  this  Agreement,  (ix)  compliance  with  its  obligations  under  the  Credit   Documents  or  any  Indebtedness  or  guarantees  permitted  under  Section  9.16(c)(ii),  (x)  any   transaction that Holding Company Guarantor is expressly permitted to enter into or consummate   under this Article IX and (xi) activities incidental to any of the foregoing activities.                      (ii)  No Holding Company Guarantor shall create, incur, assume  or   permit to exist any Indebtedness except (i) Indebtedness created under the Credit Documents (or   any Permitted Refinancing thereof) and (ii) liabilities imposed by law, including Tax liabilities,   and other liabilities incidental to its existence.                      (iii) No Holding Company Guarantor shall create, incur, assume  or   permit to exist any Lien on any Capital Stock of any Subsidiary or joint venture of such Holding   Company Guarantor to such Holding Company Guarantor.                                                          DB1/ 110631747.4                      108    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                                  ARTICLE X                                             Events of Default                               SECTION 10.01 Listing   of   Events  of  Default.  Each  of  the  following  events  or    occurrences described in this Section 10.01 shall constitute an “Event of Default”:                          (a)  Nonpayment of Obligations. The Borrower shall default in the payment   of:                                 (i)   any principal of any Loan when such amount is due; or                                (ii)  any interest on any Loan when such amount is due and such default   shall continue unremedied for a period of five (5) Business Days after such amount is due; or                                (iii) any fee described in Article IV or any other monetary Obligation   under the Credit Documents when such amount is due and such default shall continue   unremedied for a period of five (5) Business Days after such amount is due.                          (b)   Breach of Warranty. Any representation or warranty of any Credit Party   made or deemed to be made in any Credit Document (including any certificates delivered pursuant   to Article VI) which, by its terms, is subject to a materiality qualifier, is or shall be incorrect in any   respect when made or deemed to have been made or any other representation or warranty of any   Credit  Party  made  or  deemed  to  be  made  in  any  Credit  Document  (including  any  certificates   delivered pursuant to Article VI) is or shall be incorrect in any material respect when made or   deemed to have been made.                          (c)   Non-Performance of Certain Covenants and Obligations. Any Credit Party   shall  default  in  the  due  performance  or  observance  of  any  of  its  obligations  under  (i)  Section   8.01(a) through (d), Section 8.01(f), Section 8.03, Section 8.05(a)(i) (solely with respect to the   existence of the Parent and the Borrower), Section 8.10, Section 8.11(b), Section 8.11(c), Section   8.12, Section 8.15, Section 8.16 or Article IX and (ii) Section 8.01(e) and such default under this   subclause (ii) shall continue unremedied for a period of five (5) Business Days after the earlier of   (x) any officer of any Credit Party shall first have actual knowledge thereof or (y) any Credit Party   receives written notice from the Administrative Agent or the Required Lenders in respect thereof.                          (d)   Non-Performance of Other Covenants and Obligations. Any Credit Party   shall default in the due performance and observance of any covenant obligation contained in any   Credit Document executed by it (other than as specified in Section 10.01(a), Section 10.01(b) or   Section 10.01(c)), and such default shall continue unremedied for a period of thirty (30) Business   Days after the earlier of (i) any officer of any Credit Party shall first have actual knowledge thereof   or (ii) any Credit Party receives written notice from the Administrative Agent or the Required   Lenders in respect thereof.                                    DB1/ 110631747.4                      109    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (e)   Default on Other Indebtedness. (i) A default shall occur in the payment of   any  amount  when  due  (subject  to  any  applicable  grace  period  or  cure  period),  whether  by   acceleration  or  otherwise,  of  any  principal  or  stated  amount  of,  or  interest  or  fees  on,  any   Indebtedness (other than the Obligations) of any Credit Party, or Subsidiary of any Credit Party   having a principal or stated amount, individually or in the aggregate, in excess of $15,000,000, or   a default shall occur in the performance or observance of any obligation or condition with respect   to  any  such  Indebtedness  if  the  effect  of  such  default  is  to  accelerate  the  maturity  of  such   Indebtedness or to permit the holder or holders of such Indebtedness, or any trustee or agent for   such holders, to cause or declare such Indebtedness to become immediately due and payable or   (iii) an “Event of Default” (as defined in the Convertible Senior Notes) shall have occurred and be   continuing under the Convertible Senior Notes if the effect of such Event of Default is to permit   the holder or holders of such Indebtedness, or any trustee or agent for such holders, to cause or   declare such Indebtedness to become immediately due and payable or if, as a result of such Event   of  Default  thereunder,  the  maturity  of  any  Notes  (as  defined  in  the  Convertible  Senior  Notes)   thereunder has been accelerated, the Commitments (as defined therein) shall have been terminated   or the noteholders otherwise shall cause such Notes to become due and payable (or require the   conversion  of  such  Convertible  Senior  Notes)  in  its  entirety  prior  to  its  expressed  maturity;   provided  that  clauses  (i)  and  (ii)  shall  not  apply  to  (x)  Indebtedness  which  is  convertible into   Capital Stock and converts to Capital Stock in accordance with its terms and such conversion is   not  prohibited  hereunder  or  (y) any  breach  or  default  that  is  waived  (including  in  the  form  of   amendment or forbearance) by the required holders of the applicable item of Indebtedness, in either   case, prior to the acceleration of Loans pursuant to Section 10.02.                (f)   Judgments.  Any final judgment or order for the payment of  money   individually or in the aggregate in excess of $15,000,000 (exclusive of any amounts fully covered   by insurance (less any applicable deductible) and as to which the insurer has been notified of the   claim  and  has  not  disputed  coverage)  shall  be rendered  against  any  Credit  Party  or any  of  its   Subsidiaries and such judgment shall not have been satisfied, vacated or discharged or stayed or   bonded pending appeal within sixty (60) days after the entry thereof or enforcement proceedings   shall have been commenced by any creditor upon such judgment or order.                (g)   Plans.  An ERISA Event occurs that has resulted or could reasonably be   expected to result in a Material Adverse Effect.                (h) S Bankruptcy, Insolvency, etc. Any Credit Party or any of its Significant   ubsidiaries shall:                      (i)   become  insolvent  or  generally fail  to  pay,  or admit  in  writing its   inability or unwillingness generally to pay, its debts as they become due;                      (ii)  apply for, consent to, or acquiesce in the appointment of a trustee,   receiver, sequestrator or other custodian for any substantial part of the assets or other property of   any such Person, or make a general assignment for the benefit of creditors;                      (iii) in the absence of such application, consent or acquiesce to or   permit or suffer to exist, the appointment of a trustee, receiver, sequestrator or other custodian for   DB1/ 110631747.4                      110    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 a substantial part of the property of any thereof, and such trustee, receiver, sequestrator or other   custodian shall not be discharged within sixty (60) days; provided, that each Credit Party hereby   expressly authorizes each Secured Party to appear in any court conducting any relevant proceeding   during such sixty (60)-day period to preserve, protect and defend their  rights under the Credit   Documents;                      (iv)  permit or suffer to exist the commencement of any bankruptcy,   reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency   law or any dissolution, winding up or liquidation proceeding, in respect thereof, and, if any such   case or proceeding is not commenced by such Person, such case or proceeding shall be consented   to or acquiesced in by such Person, or shall result in the entry of an order for relief or shall remain   for sixty (60) days undismissed; provided, that each Credit Party hereby expressly authorizes each   Secured Party to appear in any court conducting any such case or proceeding during such 60-day   period to preserve, protect and defend their rights under the Credit Documents; or                      (v)  take any action authorizing, or in furtherance of, any of the   foregoing.                (i)   Impairment  of Security, etc.  Any Credit Document or any Lien granted   thereunder with respect to any material portion of the Collateral (except in accordance with its   terms), in whole or in part, terminate, cease to be effective or cease to be the legally valid, binding   and enforceable obligation of any Credit Party thereto, or any Credit Party or any other Person   shall contest in writing such effectiveness, validity, binding nature or enforceability; or, except as   permitted under any Credit Document, any Lien on any material portion of the Collateral shall   cease to be a perfected Lien (other than as a result of the Administrative Agent’s failure to take   any action within its control).                (j)   Change of Control. Any Change of Control shall occur.                (k)   Subordination.  The subordination provisions of any subordination   agreement or any subordination provisions governing any subordinated Indebtedness shall for any   reason be revoked or invalidated, or otherwise cease to be in full force and effect, or any Credit   Party or any Affiliate of a Credit Party shall contest in writing the validity or enforceability thereof   or deny in writing that it has any further liability or obligation thereunder, or the Obligations, for   any reason shall not have the priority contemplated by such subordination provisions (other than   as a result of the Administrative Agent’s failure to take any action within its control).          SECTION 10.02   Remedies Upon Event of Default.   If any Event of Default shall occur   for any reason, whether voluntary or involuntary, and be continuing, the Administrative Agent   may,  and  upon  the  direction  of  the  Required  Lenders  shall,  by  notice  to  the  Borrower  (a)   permanently reduce the Commitment in whole or in part or (b) declare all or any portion of the   outstanding principal amount of the Loans and other Obligations to be due and payable and the   Commitments (if not theretofore terminated) to be terminated, whereupon the full unpaid amount   of such Loans and other Obligations which  shall be so declared due and payable shall be and   DB1/ 110631747.4                      111     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 become immediately due and payable,  without further notice, demand or presentment, and the   Commitments shall terminate. The Lenders and the Administrative Agent shall have all other rights   and remedies available at law or in equity or pursuant to any Credit Documents.                                     ARTICLE XI                               The Administrative Agent          SECTION 11.01 Appointment. Each Lender (and, if applicable, each other Secured    Party) hereby appoints Ares as its Administrative Agent under and for purposes of each Credit   Document and hereby authorizes the Administrative Agent to act on behalf of such Lender (or, if   applicable, each other Secured Party) under each Credit Document and, in the absence of other   written instructions from the Lenders, pursuant to the terms of the Credit Documents received from   time to time by the Administrative Agent, to exercise such powers hereunder and thereunder as are   specifically delegated to or required of the Administrative Agent by the terms hereof and thereof,   together with such powers as may be incidental thereto. Each Lender (and, if applicable, each other   Secured Party) hereby irrevocably designates and appoints the Administrative Agent as the agent   of such Lender. Notwithstanding any provision to the contrary elsewhere in this Agreement, the   Administrative Agent shall not have any duties or responsibilities, except those expressly set forth   herein,  or  any  fiduciary  relationship  with  any  Lender  or  other  Secured  Party,  and  no  implied   covenants,  functions,  responsibilities,  duties,  obligations  or  liabilities  shall  be  read  into  this   Agreement or any other Credit Document or otherwise exist against the Administrative Agent.          SECTION 11.02 Delegation of Duties. The Administrative Agent may execute any of its   duties under this Agreement and the other Credit Documents by or through agents or attorneys-in-  fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The   Administrative Agent shall not be responsible for the negligence or misconduct of any agents or   attorneys-in-fact selected by it with reasonable care.          SECTION 11.03 Exculpatory Provisions.   Neither the Administrative Agent nor any of   its respective officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be (a) liable   for any action lawfully taken or omitted to be taken by it or such Person under or in connection   with this Agreement or any other Credit Document (except to the extent that any of the foregoing   are  found  by  a  final  and  nonappealable  decision  of  a  court  of  competent  jurisdiction  to  have   resulted from its or such Person’s own gross negligence or willful misconduct) or (b) responsible   in  any  manner  to  any  of  the  Lenders  or  any  other  Secured  Party  for  any  recitals,  statements,   representations or warranties made by any Credit Party or any officer thereof contained in this   Agreement or any other Credit Document or in any certificate, report, statement or other document   referred to or provided for in, or received by the Administrative Agent under or in connection with,   this Agreement or any other Credit Document or for the value, validity, effectiveness, genuineness,   enforceability or sufficiency of this Agreement or any other Credit Document or for any failure of   any  Credit  Party  or  other  Person  to  perform  its  obligations  hereunder  or  thereunder.  The   Administrative Agent shall not be required to take any action that, in its opinion or the opinion of   its  counsel,  may  expose  the  Administrative  Agent  to  liability  or that  is contrary  to  any  Credit   Document or applicable law, including for the avoidance   DB1/ 110631747.4                      112    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 of  doubt  any  action  that  may  be  in  violation  of  the  automatic  stay  under  any  bankruptcy  or   insolvency law or other similar law or that may effect a forfeiture, modification or termination of   property of a Defaulting Lender in violation of any bankruptcy or insolvency law or other similar   law. The Administrative Agent shall not be under any obligation to any Lender to ascertain or to   inquire as to the observance or performance of any of the agreements contained in, or conditions   of, this Agreement or any other Credit Document, or to inspect the properties, books or records of   any Credit Party.          SECTION 11.04 Reliance by Administrative Agent. The Administrative Agent shall be   entitled to rely, and shall be fully protected in relying, upon any instrument, writing, resolution,   notice, consent, certificate, affidavit, letter, electronic mail, statement, order or other document or   conversation believed by it to be genuine and correct and to have been signed, sent or made by the   proper Person or Persons and upon advice and statements of legal counsel (including counsel to   the  Credit  Parties),  independent  accountants  and  other  experts  selected  by  the  Administrative   Agent. The Administrative Agent may deem and treat the payee of any note as the owner thereof   for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have   been filed with the  Administrative Agent. The Administrative Agent  shall be fully justified in   failing or refusing to take any action under this Agreement or any other Credit Document unless it   shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this   Agreement, all or other requisite Lenders) as it deems appropriate or it shall first be indemnified   to its satisfaction by the Lenders against any and all liability and expense that may be incurred by   it by reason of taking or continuing to take any such action. The Administrative Agent shall in all   cases be fully protected in acting, or in refraining from acting, under this Agreement and the other   Credit Documents in accordance with a request of the Required Lenders (or, if so specified by this   Agreement, all Lenders), and such request and any action taken or failure to act pursuant thereto   shall be binding upon all the Lenders and all future holders of the Loans and all other Secured   Parties.          SECTION 11.05 Notice of Default.  The Administrative Agent shall not be deemed to   have knowledge or notice of the occurrence of any Default or Event of Default hereunder, except   with  respect  to  any  Default  or Event  of  Default  in  the  payment  of  principal,  interest  and  fees   required  to  be  paid  to  the  Administrative  Agent  for  the  account  of  the  Lenders  unless  the   Administrative  Agent  has  received  notice  from  a  Lender  or  the  Borrower  referring  to  this   Agreement, describing such Default or Event of Default and stating that such notice is a “notice   of default.” In the event that the Administrative Agent receives such a notice, the Administrative   Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action   with respect to such Default or Event of Default as shall be reasonably directed by the Required   Lenders  (or,  if  so  specified  by  this  Agreement,  all  Lenders  or  any  other  instructing  group  of   Lenders specified by this Agreement); provided, that unless and until the Administrative Agent   shall have received such directions, the Administrative Agent may (but shall not be obligated to)   take  such  action,  or  refrain  from  taking  such  action,  with  respect  to  such  Default  or  Event  of   Default  as  the  Administrative  Agent  shall  deem  advisable  in  the  best  interests  of  the  Secured   Parties.    DB1/ 110631747.4                      113    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 11.06 Nonreliance on Administrative Agent and Other Lenders. Each Lender   (and,  if  applicable,  each  other  Secured  Party)  expressly  acknowledges  that  neither  the   Administrative Agent nor any of its respective officers, directors, employees, agents, attorneys-in-  fact  or  Affiliates  have  made  any  representations  or  warranties  to  it  and  that  no  act  by  the   Administrative Agent hereafter taken, including any review of the affairs of a Credit Party or any   Affiliate of a Credit Party, shall be deemed to constitute any representation or warranty by the   Administrative Agent to any Lender or any other Secured Party. Each Lender (and, if applicable,   each other Secured Party) represents to the Administrative Agent that it has, independently and   without reliance upon the Administrative Agent or any other Lender or any other Secured Party,   and based on such documents and information as it has deemed appropriate, made its own appraisal   of  an  investigation  into  the  business,  operations,  property,  financial  and  other  condition  and   creditworthiness of the Credit Parties and their Affiliates and made its own decision to make its   Loans  hereunder  and  enter  into  this  Agreement.  Each  Lender  (and,  if  applicable,  each  other   Secured  Party)  also  represents  that  it  will,  independently  and  without  reliance  upon  the   Administrative  Agent  or  any  other  Lender  or  any  other  Secured  Party,  and  based  on  such   documents and information as it shall deem appropriate at the time, continue to make its own credit   analysis, appraisals and decisions in taking or not taking action under this Agreement and the other   Credit Documents, and to make such investigation as it deems necessary to inform itself as to the   business, operations, property, financial and other condition and creditworthiness of the Credit   Parties and their Affiliates. Except for notices, reports and other documents expressly required to   be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall   not have any duty or responsibility to provide any Lender or any other Secured Party with any   credit or other information concerning the business, operations, property, condition (financial or   otherwise), prospects or creditworthiness of any Credit Party or any Affiliate of a Credit Party that   may  come  into  the  possession  of  the  Administrative  Agent  or  any  of  its  officers,  directors,   employees, agents, attorneys-in-fact or Affiliates.          SECTION 11.07 Indemnification.   The Lenders  agree to  indemnify the Administrative   Agent  in  its  capacity  as  such  (to  the  extent  not  reimbursed  by  the  Credit  Parties  and  without   limiting the obligation of the Credit Parties to do so), ratably according to their respective Total   Credit  Exposure  in  effect  on  the  date  on  which  indemnification  is  sought  under  this  Section   11.07  (or,  if  indemnification  is sought  after  the date  upon  which  the  Commitments  shall  have   terminated and the Loans shall have been paid in full, ratably in accordance with such Total Credit   Exposure immediately prior to such date), from and against any and all  liabilities, obligations,   losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind   whatsoever that may at any time (whether before or after the payment of the Loans) be imposed   on, incurred by or asserted against the Administrative Agent in any way relating to or arising out   of, the Commitments, this Agreement, any of the other Credit Documents, any Specified Hedging   Agreement or any documents contemplated by or referred to herein or therein or the transactions   contemplated hereby or thereby or any action taken or omitted by the Administrative Agent under   or in connection with any of the foregoing; provided, that no Lender shall be liable for the payment   of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,   costs, expenses or disbursements that are found by a final and nonappealable decision of a court   of competent jurisdiction to have  resulted   DB1/ 110631747.4                      114     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 from the Administrative Agent’s gross negligence or willful misconduct. The agreements in this   Section 11.07 shall survive the payment of the Loans and all other amounts payable hereunder.          SECTION 11.08  Agent  in  Its Individual  Capacity.  The Administrative Agent and its   Affiliates may make loans to, accept deposits from and generally engage in any kind of business   with any Credit Party as though the Administrative Agent were not the Administrative Agent. With   respect to its Loans made or renewed by it, the Administrative Agent shall have the same rights   and powers under this Agreement and the other Credit Documents as any Lender and may exercise   the same as though it  were not the  Administrative Agent, and the terms “Lender,” “Lenders,”   “Secured Party” and “Secured Parties” shall include the Administrative Agent in its individual   capacity.          SECTION 11.09 Successor  Agents.  The  Administrative  Agent  may   resign  as   Administrative  Agent,  upon  twenty  (20)  days’  notice  to  the  Lenders  and  the  Borrower.  If  the   Administrative Agent shall resign as Administrative Agent under this Agreement and the other   Credit Documents, then the Required Lenders shall appoint from among the Lenders a successor   agent,  which  successor  agent  shall  (unless  an  Event  of  Default  shall  have  occurred  and  be   continuing) be subject to approval by the Borrower (which approval shall not be unreasonably   withheld or delayed), whereupon such successor agent shall succeed to the rights (other than any   rights to indemnity payments owed to the retiring Administrative Agent), powers and duties of the   Administrative  Agent,  and  the  term  “Administrative  Agent”  shall  mean  such  successor  agent   effective upon such appointment and approval, and the former Administrative Agent’s rights (other   than any rights to indemnity payments owed to the retiring Administrative Agent), powers and   duties as Administrative Agent shall be terminated, without any other or further act or deed on the   part of such former Agent or any of the parties to this Agreement or any holders of the Loans. If   no applicable successor agent has accepted appointment as Administrative Agent by  the date that   is  twenty  (20) days following  such  retiring  Administrative Agent’s  notice of  resignation,  such   retiring Agent’s resignation shall nevertheless thereupon become effective (except that in the case   of any Collateral held by the Administrative Agent for the benefit of the Secured Parties under any   of the Credit Documents, the Administrative Agent will continue to hold such collateral security   until such time as a successor Administrative Agent is appointed) and the Lenders shall assume   and perform all of the duties of the Administrative Agent hereunder until such time, if any, as the   Required Lenders appoint a successor agent as provided for above. After an Agent’s resignation   as the Administrative Agent, the provisions of this Article XI shall inure to its benefit as to any   actions taken or omitted to be taken by it while it was an Agent under this Agreement and the other   Credit Documents.          SECTION 11.10 Agents   Generally.  Except as expressly set forth herein, the   Administrative Agent shall not have any duties or responsibilities hereunder in its capacity as   such.          SECTION 11.11 Restrictions on Actions by Lenders; Sharing of Payments.                (a)   Each  of  the  Lenders  agrees  that  it  shall  not,  without  the express written   consent of the Administrative Agent, and that it shall, to the extent it is lawfully entitled to do so,   upon the written request of Administrative Agent, set-off against the Obligations, any amounts   DB1/ 110631747.4                      115    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 owing by such Lender to any Credit Party or any of their respective Subsidiaries or any deposit   accounts of any Credit Party or any of their respective Subsidiaries now or hereafter maintained   with such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested   to do so in writing by Administrative Agent, take or cause to be taken any action, including, the   commencement of any legal or equitable proceedings to enforce any Credit Document against any   Credit Party or to foreclose any Lien on, or otherwise enforce any security interest in, any of the   Collateral.                (b)   Subject to Section 12.09, if, at any time or times any Lender shall receive   (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or any payments with   respect to the Obligations, except for any such proceeds or payments received by such Lender from   the  Administrative  Agent  pursuant  to  the  terms  of  this  Agreement,  or  (ii)  payments  from the   Administrative Agent in excess of such Lender’s pro rata share of all such distributions by the   Administrative Agent, such Lender promptly shall (A) turn the same over to the Administrative   Agent,  in-kind,  and  with  such  endorsements  as  may  be  required  to  negotiate  the  same  to  the   Administrative Agent, or in immediately available funds, as applicable, for the account of all of   the Lenders and for application to the Obligations in accordance with the applicable provisions of   this  Agreement,  or  (B)  purchase,  without  recourse  or  warranty,  an  undivided  interest  and   participation in the Obligations owed to the other Lenders, so that such excess payment received   shall be applied ratably as among the Lenders in accordance with their pro rata shares; provided,   that to the extent that such excess payment received by the purchasing party is thereafter recovered   from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and   the applicable portion of the purchase price paid therefor shall be returned to such purchasing party,   but without interest except to the extent that such purchasing party is required to pay interest in   connection with the recovery of the excess payment.          SECTION 11.12  Agency  for  Perfection.  Administrative Agent hereby appoints  each   other Secured Party as its agent (and each Secured Party hereby accepts such appointment) for the   purpose of perfecting the Administrative Agent’s Liens in assets which, in accordance with Article   7 or Article 8, as applicable, of the Uniform Commercial Code of any applicable state can be   perfected only by possession or control. Should any Secured Party obtain possession or control of   any such Collateral, such Secured Party shall notify Administrative Agent thereof, and, promptly   upon Administrative Agent’s request therefor shall deliver possession or control of such Collateral   to Administrative Agent or in accordance with Administrative Agent’s instructions.          SECTION 11.13  Authorization  to File Proof of Claim.   In  case of the pendency of   any   bankruptcy,  insolvency  or  other  similar  proceeding  with  respect  to  any  Credit  Party,  the   Administrative Agent (irrespective of whether the principal of any Loan shall then be due and   payable  or  whether  the  Administrative  Agent  shall  have  made  any  demand  therefor)  shall  be   entitled: (i) to file and prove a claim in such proceeding for the full amount of the principal and   interest owing and unpaid in respect of the Loans and to file such other documents as may be   necessary or advisable in order to have the claims of the Lenders and the Administrative Agent   (including any claim for reimbursement under Section 12.05) allowed in such proceeding; and   (ii) to collect and receive any monies or other property payable or deliverable on any such claims   DB1/ 110631747.4                      116     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 and  to  distribute  the  same;  and  any  trustee,  liquidator  or  another  similar  official  in  any  such   proceedings is hereby authorized by each Lender to make such payments to the Administrative   Agent for the account of such Lender. Nothing contained herein shall be deemed to authorize the   Administrative  Agent  to  consent  to  or  accept  or  adopt  on  behalf  of  any  Lender  any  plan  of   reorganization,  arrangement,  adjustment  or  composition  affecting  the  obligations  of  the  Credit   Party hereunder or the rights of any Lender, or to authorize the Administrative Agent to vote in   respect of the claim of any Lender in any such proceeding.          SECTION 11.14 Credit   Bids.  Each Credit Party and each Secured Party hereby   irrevocably authorizes Administrative Agent, based upon the written instruction of the Required   Lenders, to bid and purchase (either directly or through one (1) or more acquisition vehicles) all   or any portion of the Collateral at any sale thereof conducted (i) by the Administrative Agent under   the provisions of the Code, including pursuant to Sections 9-610 or 9-620 of the Code (ii) under   the provisions of the Bankruptcy Code, including Section 363, 365 and/or 1129 of the Bankruptcy   Code or (iii) by the Administrative Agent (whether by judicial action or otherwise, including a   foreclosure sale) in accordance with applicable law (clauses (i), (ii) an (iii), a “Collateral Sale”);   and in connection with any Collateral Sale based upon the written instruction of Required Lenders,   the Administrative Agent may accept noncash consideration, including debt and equity securities   issued by such acquisition vehicle under the direction or control of the Administrative Agent and   the Administrative Agent may offset all or any portion of the Obligations against the purchase   price of such Collateral. Each Secured Party hereby agrees that, except as otherwise provided in   any Credit Documents, or with the written consent of the Administrative Agent and the Required   Lenders,  it  will  not  take  any  enforcement  action,  accelerate  obligations  under  any  Credit   Documents, or exercise any right that it might otherwise have under applicable law to credit bid at   foreclosure sales, UCC sales or other similar dispositions of Collateral.          SECTION 11.15 Binding Effect.  Each Secured Party, by accepting the benefits of the   Credit Documents, agrees that (i) any action taken by the Administrative Agent or the Required   Lenders (or, if expressly required hereby, a greater proportion of the Lenders) in accordance with   the  provisions  of  the  Credit  Documents,  (ii)  any  action  taken  by  the  Administrative  Agent  in   reliance upon the instructions of Required Lenders (or, where so required, such greater proportion)   and (iii) the exercise by the Administrative Agent or the Required Lenders (or, where so required,   such greater proportion) of the powers set forth herein or therein, together with such other powers   as are reasonably incidental thereto, shall be authorized and binding upon all of the Secured Parties.                                    ARTICLE XII                                     Miscellaneous          SECTION 12.01 Amendments  and  Waivers.  Neither this Agreement nor any other    Credit Document, nor any terms hereof or thereof, may be amended, supplemented or modified   except in accordance with the provisions of this Section 12.01. The Required Lenders may, or,   with the consent of the Required Lenders or the Administrative Agent, as applicable, may, from   time to time, (a) enter into with the relevant Credit Party or Credit Parties written amendments,   DB1/ 110631747.4                      117     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 supplements or modifications hereto and to the other Credit Documents for the purpose of adding   any provisions to this Agreement or the other Credit Documents or changing in any manner the   rights of the Lenders or the Credit Parties hereunder or thereunder or (b) waive, on such terms and   conditions as the Required Lenders or the Administrative Agent, as the case may be, may specify   in such instrument, any of the requirements of this Agreement or the other Credit Documents or   any Default or Event of Default and its consequences; provided, that no such waiver, amendment,   supplement or modification shall directly:                      (i)   (A) reduce or forgive any portion of any Loan or extend the final   expiration date of any Lender’s Commitment or extend the final scheduled maturity date of any   Loan or reduce the stated interest rate (it being understood that only the consent of the Required   Lenders shall be necessary to waive any obligation of the Borrower to pay interest at the Default   Rate or amend Section 2.08(c)), or (B) reduce or forgive any portion or extend the date for the   payment, of any interest or fee payable hereunder (other than as a result of waiving the applicability   of any post-default increase in interest rates) or (C) amend or modify any provisions of Section   12.09(b)  or  any  other  provision  that  provides  for  the  pro  rata  nature  of  disbursements  by  or   payments  to  Lenders,  in  each  case,  without  the  written  consent  of  each  Lender  directly  and   adversely affected thereby;                      (ii)  amend, modify or waive any provision of this Section 12.01 or   reduce the percentages specified in the definitions of the term “Required Lenders” or consent to   the  assignment  or  transfer  by  any  Credit  Party  of  its  rights  and  obligations  under  any  Credit   Document  to  which  it  is  a  party  (except  as  permitted  pursuant  to  Section  9.03),  in  each  case,   without the written consent of each Lender directly and adversely affected thereby;                      (iii) increase the aggregate amount of any Commitment of any Lender   without the consent of such Lender;                      (iv)  amend, modify or waive any provision of Article XI applicable to   the Administrative Agent without the written consent of the Administrative Agent;                      (v)   release all or substantially all of the Guarantors under the   Guarantee Agreement (except as expressly permitted by the Guarantee Agreement), or release all   or substantially all of the Collateral under the Security Agreement and the Mortgages (except as   expressly permitted thereby and in Section 12.19), in each case without the prior written consent   of each Lender;                      (vi)  amend Section 2.10 so as to permit Interest Period intervals greater   than three months if not agreed to by all applicable Lenders; or    Notwithstanding the foregoing or anything to the contrary herein:                      (i)   this  Agreement  may be  amended  (or  amended  and restated) with   the written consent of the Required Lenders, the Administrative Agent, and the Borrower (x) to   add one or more additional credit facilities to this Agreement and to permit the extensions of credit   from time to time outstanding thereunder and the accrued interest and fees in  respect   DB1/ 110631747.4                      118    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 thereof to share ratably in the benefits of this Agreement and the other Credit Documents with the   Loans and the accrued interest  and fees in respect thereof  and (y) to include appropriately the   Lenders holding such credit facilities in any determination of the Required Lenders;                      (ii)  no Defaulting Lender shall have any right to approve or disapprove   any amendment, waiver or consent hereunder, except that the Commitment of such Lender may   not  be  increased  or  extended,  and  amounts  payable  to  such  Lender  hereunder  may  not  be   permanently reduced without the consent of such Lender (other than reductions in fees and interest   in which such reduction does not disproportionately affect such Lender);                      (iii) schedules to this Agreement and the Security Agreement may be   amended or supplemented with the consent of the Administrative Agent; and                      (iv)  this Agreement and any other Credit Document may be amended   solely with the consent of the Administrative Agent and the Borrower without the need to obtain   the consent of any other Lender if such amendment is delivered in order to (x) correct or cure   ambiguities,  errors,  omissions,  defects,  (y)  effect  administrative  changes  of  a  technical  or   immaterial nature or (z) correct or cure incorrect cross references or similar inaccuracies in this   Agreement or the applicable Credit Document, in each case, with regards to clauses (x) through   (z), the correction of which is not adverse to the interest of any Lender. Guarantees, collateral   documents,  security  documents,  intercreditor  agreements,  and  related  documents  executed  in   connection with this Agreement may be amended, modified, terminated or waived, and consent to   any departure therefrom may be given, without the consent of any Lender if such amendment,   modification, waiver or consent is given in order to cause such guarantee, collateral document,   security  document,  intercreditor  agreement  or  related  document  to  be  consistent  with  this   Agreement and the other Credit Documents. Any such amendment shall become effective without   any further consent of any other party to such Credit Document.          SECTION 12.03 Notices and Other Communications; Facsimile Copies.                (a)   General. Unless otherwise expressly provided herein, all notices and other   communications provided for hereunder or under any other Credit Document shall be in writing   (including  by  electronic  transmission).  All  such  written  notices  shall  be  mailed,  e-mailed  or   delivered  to  the  applicable  address  or  electronic  mail  address,  and  all  notices  and  other   communications  expressly  permitted  hereunder  to  be  given  by  telephone  shall  be made to  the   applicable telephone number, as follows:                      (i)   if to the Credit Parties, the Administrative Agent, to the  address,   electronic mail address or telephone number specified for such Person on Schedule 12.02 or to   such other address, electronic mail address or telephone number as shall be designated by such   party in a notice to the other parties; and                      (ii)  if to any other Lender, to the address, facsimile number, electronic   mail address or telephone number specified in its Administrative Questionnaire or to such other   address, facsimile number, electronic mail address or telephone number as shall be designated by   such party in a notice to the Borrower, and the Administrative Agent.   DB1/ 110631747.4                      119    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       All such notices and other communications shall be deemed to be given or made upon the   earlier to occur of: (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand   or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail,   three (3) Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile,   when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail   (which form of delivery is subject to the provisions of Section 12.02(c)), when delivered; provided,   that notices and other communications to the Administrative Agent pursuant to Article II shall not   be effective until actually received by such Person.                (c)   Effectiveness of Electronic Documents and Signatures. Credit Documents   may be transmitted and/or signed by email or other electronic communication. The effectiveness   of any such documents and signatures shall have the same force and effect as manually signed   originals and shall be binding on all Credit Parties, the Administrative Agent and the Lenders.                (d)   Reliance by the Administrative Agent and Lenders. The Administrative   Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic   Notices of Borrowing) purportedly given by or on behalf of any Credit Party even if (i) such notices   were not made in a manner specified herein, were incomplete or were not preceded or followed by   any other form of notice specified herein or (ii) the terms thereof, as understood by the recipient,   varied from any confirmation thereof. All telephonic notices to the Administrative Agent may be   recorded  by  the  Administrative Agent,  and  each  of the parties  hereto  hereby  consents  to  such   recording.          SECTION 12.04 No Waiver; Cumulative Remedies. No failure to exercise and no delay   in exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or   privilege hereunder or under the other Credit Documents shall operate as a waiver thereof, nor   shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any   other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The   rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any   rights, remedies, powers and privileges provided by law.          SECTION 12.05  Survival  of  Representations and  Warranties.  All representations and   warranties made hereunder and in the other Credit Documents shall survive the execution and   delivery of this Agreement and the making of the Loans hereunder.          SECTION 12.06  Payment of Expenses; Indemnification.   The Borrower agrees,  subject   to any limitations set forth in the Fee Letter, (a) to pay or reimburse the Administrative Agent and   the Lenders for all their reasonable and documented out-of-pocket costs and expenses incurred in   connection with the development, preparation, negotiation and execution of, and any amendment,   waiver, supplement or modification to, this Agreement and the other Credit Documents and any   other  documents  prepared  in  connection  herewith  or  therewith,  and  the  consummation  and   administration of the transactions contemplated hereby and thereby, including the reasonable and   documented fees, disbursements and other charges of one counsel (and, to the extent necessary,   one local counsel in any relevant jurisdiction and, if reasonably required, one regulatory counsel)   to  the  Administrative  Agent,  (b)  to  pay  or  reimburse  (i)  a  single  firm  of  counsel   to   the    Administrative  Agent,  (ii) if reasonably necessary,  one local  counsel  in   each   DB1/ 110631747.4                      120    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 relevant jurisdiction (which may include special counsel acting in multiple jurisdictions) and (iii)   solely in the case of an actual or perceived conflict of interest, one additional primary counsel and   one additional counsel in each relevant jurisdiction (which may include a single special counsel   acting in multiple jurisdictions) for each group of affected Lenders similarly situated taken as a   whole,  for  all  their  reasonable  and  documented  out-of-pocket  costs  and  expenses  incurred  in   connection with the enforcement or preservation of any rights under this Agreement, the other   Credit Documents and any such other documents, and (c) to pay, indemnify and hold harmless   each Lender and the Administrative Agent and their respective Related Parties from and against   any and all other actual liabilities, obligations, losses, damages, penalties, actions, judgments, suits,   and reasonable out-of-pocket costs, expenses or disbursements of any kind or nature whatsoever,   including  reasonable  and  documented  fees,  disbursements  and  other  charges  of  one  counsel,   arising as a result of the execution, delivery, enforcement, performance and administration of this   Agreement,  the  other  Credit  Documents  and  any  such  other  documents,  including  any  of  the   foregoing relating to the violation of, noncompliance with or liability under, any Environmental   Law on the part of any Credit Party or any of its Subsidiaries or any actual or alleged presence of   Hazardous Materials as a result of the operations of each Credit Party or any of its Subsidiaries,   including  at  any  of  their  Real  Property  (all  the  foregoing  in  this  clause  (c),  collectively,  the   “indemnified liabilities”); provided, that the Credit Parties shall have no obligation hereunder to   the Administrative Agent or any Lender nor any of their Related Parties with respect to indemnified   liabilities arising from (i) the gross negligence or willful misconduct of the party to be indemnified   or one of their Related Parties; (ii) disputes among the Administrative Agent, the Lenders and/or   their transferees; or (iii) diminution in value of any Real Property of any Credit Party resulting   from the presence of Hazardous Materials existing at such Real Property on or before the Closing   Date. The agreements in this Section 12.05 shall survive repayment of the Loans and all other   amounts payable hereunder and termination of this Agreement. To the fullest extent permitted by   Applicable  Law,  no  Credit  Party  shall  assert,  and  each  Credit  Party  hereby  waives,  any  claim   against any Lender, the Administrative Agent and their respective Related Parties, on any theory   of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual   damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit   Document or any agreement or instrument contemplated hereby, the transactions contemplated   hereby or thereby, any Loan or the use of the proceeds thereof. No Lender, the Administrative   Agent nor any of their respective Related Parties shall be liable for any damages arising from the   use  by  unintended  recipients  of  any  information  or  other  materials  distributed  by  it  through   telecommunications, electronic or other information transmission systems in connection with this   Agreement or the other Credit Documents or the transactions contemplated hereby or thereby. This   Section 12.05 shall not apply to Taxes other than any Taxes that represent losses, claims, damages,   etc., arising from a non-Tax claim.          SECTION 12.07 Successors and Assigns; Participations and Assignments.                (a)   The provisions of this Agreement shall be binding upon and inure to the   benefit of the parties hereto and their respective successors and assigns permitted hereby, except   that (i) except as set forth in Section 9.03, no Credit Party may assign or otherwise transfer any of   its  rights  or  obligations  hereunder  without  the  prior  written  consent  of  each  Lender  (and  any   DB1/ 110631747.4                      121     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 attempted assignment or transfer by any Credit Party without such consent shall be null and void)   and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in   accordance with this Section 12.06. Nothing in this Agreement, expressed or implied, shall be   construed to confer upon any Person (other than the parties hereto, their respective successors and   assigns permitted hereby, Participants (to the extent provided in paragraph (c) of this Section   12.06)  and,  to  the  extent  expressly  contemplated  hereby,  the  Related  Parties  of  each  of  the   Administrative Agent, and the Lenders) any legal or equitable right, remedy or claim under or by   reason of this Agreement. Notwithstanding anything to the contrary herein, (a) any Lender shall   be permitted to pledge or grant a security interest in all or any portion of such Lender’s rights   hereunder including, but not limited to, any Loans (without the consent of, or notice to or any other   action by, any other party hereto) to secure the obligations of such Lender or any of its Affiliates   to any Person providing any loan, letter of credit or other extension of credit to or for the account   of such Lender or any of its Affiliates and any agent, trustee or representative of such Person and   (b) the Administrative Agent shall be permitted to pledge or grant a security interest in all or any   portion of its respective rights hereunder or under the other Credit Documents, including, but not   limited to, rights to payment (without the consent of, or notice to or any other action by, any other   party hereto), to secure the obligations of the Administrative Agent or any of its Affiliates to any   Person providing any loan, letter of credit or other extension of credit to or for the account of the   Administrative  Agent  or  any  of  its  Affiliates  and  any  agent,  trustee  or  representative  of  such   Person.                (b)   (i)  Subject to the conditions set forth in paragraph (b)(ii) below, any   Lender may assign to one or more assignees (other than to a Defaulting Lender or to the Borrower   or  to  any  of  the Borrower’s  Affiliates  or  Subsidiaries)  (each,  an  “Eligible  Assignee”)  all  or  a   portion  of  its  rights  and  obligations  under  this  Agreement  (including  all  or  a  portion  of  its   Commitments and the Loans at the time owing to it) with the prior written consent (which consent   in each case shall not be unreasonably withheld or delayed) of:                            (A)   the Borrower; provided, that (1) no consent of the Borrower   shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if   Default or an Event of Default pursuant to Section 10.01(a), 10.01(c) (solely with respect to a   default under Section 8.01(b) through (d) and Section 9.13) or Section 10.01(h) has occurred and   is continuing, any other assignee and (2) the Borrower shall be deemed to have consented to any   such assignment unless it shall object thereto by written notice to the Administrative Agent within   five (5) Business Days after having received notice thereof;                            (B)   the Administrative Agent; provided, that no consent of the   Administrative Agent shall be required for an assignment to a Lender, an Affiliate of a Lender or   an Approved Fund.                      (ii)  Assignments  shall  be  subject  to  the  following  additional   conditions:                            (A)   except in the case of an assignment to a Lender, an Affiliate   of a Lender or an Approved Fund or an assignment of the entire remaining amount of the   assigning Lender’s Commitments or Loans, the amount of the Commitments or Loans of the   DB1/ 110631747.4                      122    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 assigning Lender subject to each such assignment (determined as of the date the Assignment and   Acceptance with respect to such assignment is delivered to the Administrative Agent) shall not be   less  than  $1,000,000,  unless  each  of  the  Borrower  and  the  Administrative  Agent  otherwise   consents, which consent, in each case, shall not be unreasonably withheld or delayed; provided,   however, that no such consent  of the Borrower shall be required if an Event  of Default under   Section 10.01(a), (c) (solely in respect of a breach of Section 8.01(a), (b), (c), (d) or (e), or Section   9.13)  or  Section  10.01(h)  has  occurred  and  is  continuing;  and  provided  further,  that   contemporaneous assignments to a single assignee made by affiliated Lenders or related Approved   Funds  and  contemporaneous  assignments  by  a  single  assignor  to  affiliated  Lenders  or  related   Approved Funds shall be aggregated for purposes of meeting the minimum assignment amount   requirements stated above;                            (B)   each partial assignment shall be made as an assignment of a   proportionate  part  of  all  the  assigning  Lender’s  rights  and  obligations  under  this  Agreement;   provided, that this paragraph shall not be construed to prohibit the assignment of a proportionate   part of all the assigning Lender’s rights and obligations in respect of Commitments or Loans;                            (C)   the parties to each assignment shall execute and deliver to   the  Administrative  Agent  an  Assignment  and  Acceptance,  together  with  a  processing  and   recordation fee of $3,500; provided, that only one such fee shall be payable in connection with   simultaneous assignments to two or more Approved Funds;                            (D)   the assignee, if it shall not be a Lender, shall deliver to the   Administrative Agent an Administrative Questionnaire; and                            (E)   No  Lender  may  assign  or  otherwise  transfer  its  rights  or   obligations hereunder to any of the Credit Parties.          In  connection  with  any  assignment  of  rights  and  obligations  of  any  Defaulting  Lender   hereunder, no such assignment shall be effective unless and until, in addition to the other conditions   thereto set forth herein, the parties to such assignment shall make such additional payments to the   Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate   (which may be outright payment, purchases by the assignee of participations or subparticipations,   or  other  compensating  actions,  including  funding,  with  the  consent  of  the  Borrower  and  the   Administrative Agent, the applicable pro rata share of Loans previously requested but not funded   by the Defaulting Lender, to each of which the applicable assignee (by its execution and delivery   of the applicable Assignment and Acceptance to the Administrative Agent) and assignor hereby   irrevocably  consent),  to  (x)  pay  and  satisfy  in  full  all  payment  liabilities  then  owed  by  such   Defaulting Lender to the Administrative Agent, or any Lender hereunder (and interest accrued   thereon) and (y) acquire (and fund as appropriate) its full respective Pro Rata Share of all Loans.   Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any   Defaulting Lender hereunder shall become effective under applicable Law without compliance   with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a   Defaulting Lender for all purposes of this Agreement until such compliance occurs.   DB1/ 110631747.4                      123     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                   (iii) Subject to acceptance and recording thereof pursuant to paragraph   (b)(v) of this Section 12.06, from and after the effective date specified in each Assignment and   Acceptance,  the  assignee  thereunder  shall  be  a  party  hereto  and,  to  the  extent  of  the  interest   assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under   this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned   by such Assignment and Acceptance, be released from its obligations under this Agreement (and,   in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and   obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue   to be entitled to the benefits of Sections 2.10, 2.11, 5.03 and 12.05); provided, that except to the   extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender   will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s   having been a Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations   under this Agreement that does not comply with this Section 12.06 shall be treated for purposes of   this  Agreement  as  a  sale  by  such  Lender  of  a  participation  in  such  rights  and  obligations  in   accordance with paragraph (c) of this Section 12.06.                      (iv)  The Administrative Agent, acting solely for this purpose as an   agent of the Borrower, shall maintain a copy of each Assignment and Acceptance delivered to it   and a register for the recordation of the names and addresses of the Lenders, and the Commitments   of, and principal amount of the Loans owing to, each Lender pursuant to the terms hereof from   time to time (the “Register”).  Further,  the  Register  shall  contain  the  name  and  address  of  the   Administrative  Agent  and  the  lending  office  through  which  each  such  Person  acts  under  this   Agreement. The entries in the Register shall be conclusive absent manifest error, and the Credit   Parties, the Administrative Agent, and the Lenders shall treat each Person whose name is recorded   in  the  Register  pursuant  to  the  terms  hereof  as  a  Lender  hereunder  for  all  purposes  of  this   Agreement, notwithstanding notice to the contrary. In addition, the Administrative Agent shall   maintain on the Register information regarding the designation, and revocation of designation, of   any  Lender  as  a  Defaulting  Lender.  The  Register,  as  in  effect  at  the  close  of  business  on  the   preceding Business Day, shall be available for inspection by the Borrower, and any Lender, at any   reasonable time and from time to time upon reasonable prior notice.                      (v)   Upon its receipt of a duly completed Assignment and Acceptance   executed  by  an  assigning  Lender  and  an  assignee,  the  assignee’s  completed  Administrative   Questionnaire (unless the assignee shall already be a Lender hereunder) and any written consent   to such assignment required by paragraph (b)(i) of this Section 12.06, the Administrative Agent   shall accept such Assignment and Acceptance and record the information contained therein in the   Register. No assignment shall be effective for purposes of this Agreement unless and until it has   been recorded in the Register as provided in this paragraph.                      (vi)  Disqualified Institutions.                            (A)   No assignment or participation shall be made to any  Person   that was a Disqualified Institution as of the date (the “Trade Date”) on which the assigning or   transferring Lender entered into a binding agreement to sell and assign, or grant a participation in,   all or a portion of its rights and obligations under this Agreement, as applicable, to such Person   unless  Administrative  Agent  and  the  Borrower  (unless  a  Default  or  Event  of  Default   DB1/ 110631747.4                      124    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 under Section 10.01(a) or 10.01(h) has occurred and is continuing, in which case no consent from   the Borrower is required) have consented in writing in their sole and absolute discretion to such   assignment  or  participation,  in  which  case  such  Person  will  not  be  considered  a  Disqualified   Institution for the purpose of such assignment or participation. For the avoidance of doubt, (x)  no   assignment or participation shall be retroactively invalidated pursuant to this Section 12.06(b)(vi)   if the Trade Date therefor occurred prior to the assignee’s or participant’s becoming a Disqualified   Institution (including as a result of the delivery of a notice pursuant to, and/or the expiration of the   notice period referred to in, the definition of “Disqualified Institution”), and (y) the execution by   the Borrower or Agent of an Assignment and Acceptance with respect to such an assignment will   not by itself result in such assignee no longer being considered a Disqualified Institution.                            (B)   Administrative Agent and each assignor of a Loan or seller   of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee   Lender or Participant in the relevant Assignment or participation agreement, as applicable, that   such assignee or purchaser is not a Disqualified Institution. The Administrative Agent shall have   the right, and the Borrower hereby expressly authorizes Administrative Agent, to verbally disclose   to  any  potential  Lender  or  Participant  whether  not  such  Person  is  on  the  list  of  Disqualified   Institutions provided by the Borrower and any updates thereto from time to time (collectively, the   “DQ List”).  Any  assignment  to  a  Disqualified  Institution  or  grant  or sale of  participation  to  a   Disqualified Institution in violation of this Section 12.06(b)(vi) shall not be void, but the other   provisions of this Section 12.06 shall apply.                (c)   (i)  Any  Lender  may,  without  the  consent  of  the  Borrower,  or  the   Administrative Agent, sell participations to one or more banks or other entities (other than a natural   person, a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries)   (each,  a  “Participant”)  in  all  or  a  portion  of  such  Lender’s  rights  and  obligations  under  this   Agreement (including all or a portion of its Commitments and the Loans owing to it); provided,   that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender   shall remain solely responsible to the other parties hereto for the performance of such obligations   and (C) the Borrower, the Administrative Agent, and the other Lenders shall continue to deal solely   and directly with such Lender in connection with such Lender’s rights and obligations under this   Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation   shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve   any amendment, modification or waiver of any provision of this Agreement or any other Credit   Document; provided, that such agreement or instrument may provide that such Lender will not,   without the consent of the Participant, agree to any amendment, modification or waiver described   in clause (i) of the first proviso to Section 12.01. Subject to paragraph (c)(ii) of this Section 12.06,   the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.10, 2.11,   and 5.04 to the same extent as if it were a Lender  and  had  acquired  its  interest  by  assignment   pursuant  to  paragraph  (b)  of  this  Section   12.06. To the extent permitted by law, each Participant also shall be entitled to the benefits of   Section 12.09(b) as though it were a Lender, provided, that such Participant agrees to be subject   to Section 12.09(a) as though it were a Lender.    DB1/ 110631747.4                      125     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                   (i)   A Participant shall not be entitled to receive any greater payment   under Section 2.10, 2.11 or 5.04 than the applicable Lender would have been entitled to receive   with respect to the participation sold to such Participant, unless the sale of the participation to such   Participant is made with the Borrower’s prior written consent. A Participant that would be  a Non-  U.S. Lender if it were a Lender shall not be entitled to the benefits of Section 5.04 unless the   Borrower is notified of the participation sold to such Participant and such Participant agrees, for   the benefit of the Borrower, to comply with Section 5.04(b) as though it were a Lender.                      (ii)  Each  Lender that  sells  a  participation  shall,  acting solely for this   purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name   and address of each Participant and the principal amounts (and stated interest) of each Participant’s   interest  in  the  Lender’s  obligations  hereunder  (the  “Participant  Register”);  provided  that  no   Lender shall have any obligation to disclose all or any portion of the Participant Register (including   the  identity  of  any  Participant  or  any  information  relating  to  a  Participant’s  interest  in  any   commitments, loans, letters of credit or its other obligations under any Credit Document) to any   Person except to the extent that such disclosure is necessary to establish that such commitment,   loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United   States  Treasury  Regulations.  The  entries  in  the Participant  Register shall  be conclusive  absent   manifest error, and such Lender shall treat each Person whose name is recorded in the Participant   Register as the owner of such participation for all purposes of this Agreement notwithstanding any   notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as   Administrative Agent) shall not have any responsibility for maintaining a Participant Register.          SECTION 12.08 Replacements of Lenders Under Certain Circumstances.                (a)   The Borrower, at its sole cost and expense, shall be permitted to replace   any  Lender  (or  any  Participant),  other  than  an  Affiliate  of  the  Administrative  Agent,  that  (i)   requests reimbursement for amounts owing pursuant to Section 2.10, Section 2.11, Section 2.12 or   Section 5.04, or (ii) is affected in the manner described in Section 2.10(a)(iii) and as a result thereof   any  of  the  actions  described  in  such  Section  is  required  to  be  taken,  provided,  that  (A)  such   replacement does not conflict with any Applicable Law, (B) no Default or Event of Default shall   have occurred and be continuing at the time of such replacement, (C) the Borrower shall repay (or   the replacement bank or institution shall purchase, at par) all Loans and other amounts (other than   any disputed amounts) pursuant to Section 2.10, Section 2.11, Section 2.12 or Section 5.04, as the   case may be, owing to such replaced Lender prior to the date of replacement, (D) the replacement   bank or institution, if not already a Lender, and the terms and conditions of such replacement, shall   be reasonably satisfactory to the Administrative Agent, (E) the replaced Lender shall be obligated   to make such replacement in accordance with the provisions of Section   12.06  (except  that  such  replaced  Lender  shall  not  be  obligated  to  pay  any  processing  and   recordation fee required pursuant thereto) and (F) any such replacement shall not be deemed to be   a waiver of any rights that the Borrower, the Administrative Agent or any other Lender shall have   against the replaced Lender.                (b)   If  any  Lender  (a  “Non-Consenting  Lender”)  has  failed  to  consent  to  a   proposed amendment, waiver, discharge or termination, which pursuant to the terms of Section   DB1/ 110631747.4                      126     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 12.01 requires the consent of all of the Lenders affected or the Required Lenders and with respect   to which the Required Lenders shall have granted their consent, then, provided that no Default or   Event  of  Default  then  exists,  the  Borrower  shall  have  the  right  (unless  such  Non-Consenting   Lender grants such consent), at its own cost and expense, to replace such Non-Consenting Lender   by requiring such Non-Consenting Lender to assign its Loans and Commitments to one or more   assignees reasonably acceptable to the Administrative Agent, provided, that: (i) all Obligations of   the Borrower owing to such Non-Consenting Lender being replaced shall be paid in full to such   Non-Consenting Lender concurrently with such assignment and (ii) the replacement Lender shall   purchase the foregoing by paying to such Non-Consenting Lender a price equal to the principal   amount thereof plus accrued and unpaid interest thereon. In connection with any such assignment,   the Borrower, the Administrative Agent, such Non-Consenting Lender and the replacement Lender   shall otherwise comply with Section 12.06 (except that such Non-Consenting Lender shall not be   obligated to pay any processing and recordation fee required pursuant thereto).          SECTION 12.09 Securitization. The Credit Parties hereby acknowledge that the Lenders   and their Affiliates may securitize the Loans (a “Securitization”) through the pledge of the Loans   as collateral security for loans to the Lenders or their Affiliates or through the sale of the Loans or   the issuance of direct or indirect interests in the Loans to their controlled Affiliates, which loans   to the Lenders or their Affiliates or direct or indirect interests will be rated by Moody’s, S&P or   one or more other rating agencies. The Credit Parties shall, to the extent commercially reasonable,   cooperate  with  the  Lenders  and  their  Affiliates  to  effect  any  and  all  Securitizations.   Notwithstanding the foregoing, no such Securitization shall release the Lender party thereto from   any of its obligations hereunder or substitute any pledgee, secured party or any other party to such   Securitization for such Lender as a party hereto and no change in ownership of the Loans may be   effected except pursuant to Section 12.06.          SECTION 12.10  Adjustments; Set-off.  (a) If any Lender (a “Benefited Lender”) shall at   any time receive any payment of all or part of its Loans, or interest thereon, or receive any collateral   in  respect  thereof  (whether  voluntarily  or  involuntarily,  by  set-off,  pursuant  to  events  or   proceedings of the nature referred to in Section 10.01(h) or otherwise), in a greater proportion than   any such payment to or collateral received by any other Lender, if any, in respect of such other   Lender’s Loans or interest thereon, such Benefited Lender shall (i) notify the Administrative Agent   of such fact and (ii) purchase for cash from the other Lenders a participating interest in such portion   of each such other Lender’s Loans, or shall provide such other Lenders with the benefits of any   such collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to   share  the  excess  payment  or  benefits  of  such  collateral  or  proceeds  ratably  with  each  of  the   Lenders; provided, that (x) if all or any portion of such excess payment or benefits is thereafter   recovered from such Benefited Lender, such purchase shall be rescinded, and the purchase price   and benefits returned, to the extent of such recovery, but without interest and (y) the provisions of   this  Section  shall  not  be  construed  to  apply  to  (A)  any  payment  made  by  or  on  behalf  of  the   Borrower pursuant to and in accordance with the express terms of this Agreement (including the   application  of  funds  arising  from  the  existence  of  a  Defaulting  Lender)  or  (B)  any  payment   obtained by a Lender as consideration for    DB1/ 110631747.4                      127     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 the assignment of or sale of a participation in any of its Loans to any assignee or participant (as to   which the provisions of this Section shall apply).                    Notwithstanding the foregoing, in the event that any Defaulting Lender shall exercise any   such right of setoff, (1) all amounts so set-off shall be paid over immediately to the Administrative   Agent for further application in accordance with the provisions of Section 2.05(d) and, pending   such payment, shall be segregated by such Defaulting Lender from its other funds and deemed   held in trust for the benefit of the Administrative Agent and the Lenders, and (2) the Defaulting   Lender shall provide promptly to the Administrative Agent a statement describing in reasonable   detail the Obligations owing to such Defaulting Lender as to which it exercised such right of set-  off.                    Each Credit Party consents to the foregoing and agrees, to the extent it may effectively do   so  under  applicable  law,  that  any  Lender  acquiring  a  participation  pursuant  to  the  foregoing   arrangements  may  exercise  against  such  Credit  Party  rights  of  set-off  and  counterclaim  with   respect to such participation as fully as if such Lender were a direct creditor of such Credit Party   in the amount of such participation.                          (a)   After the occurrence and during the continuance of an Event of Default,  to   the extent consented to by Administrative Agent, in addition to any rights and remedies of the   Lenders provided by law, each Lender shall have the right, without prior notice to the Borrower or   any other Credit Party, any such notice being expressly waived by the Credit Parties to the extent   permitted  by  Applicable  Law,  upon  any  amount  becoming  due  and  payable  by  the  Borrower   hereunder (whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate   and apply against such amount any and all deposits (general or special, time or demand, provisional   or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each   case, whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or   owing by such Lender or any branch or agency thereof to or for the credit or the account of the   Borrower,  as  the  case  may  be.  Each  Lender  agrees  promptly  to  notify  the  Borrower  and  the   Administrative Agent after any such set-off and application made by such Lender; provided, that   the failure to give such notice shall not affect the validity of such set-off and application.                    SECTION 12.11 Counterparts. This Agreement and the other Credit Documents may be   executed by one or more of the parties thereto on any number of separate counterparts (including   by  electronic  transmission),  and  all  of  said  counterparts  taken  together  shall  be  deemed  to   constitute one and the same instrument. A set of the copies of this Agreement signed by all the   parties shall be lodged with the Borrower and the Administrative Agent.                    SECTION 12.12 Severability.  Any provision  of  this  Agreement  that  is  prohibited or   unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such   prohibition or unenforceability without invalidating the remaining provisions hereof, and any such   prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such   provision in any other jurisdiction. Without limiting the  foregoing provisions of this Section 12.11,   if  and  to  the  extent  that  the  enforceability  of  any  provisions  in  this   Agreement   relating   to    Defaulting  Lenders  shall  be  limited  by  bankruptcy,  insolvency,   DB1/ 110631747.4                      128     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 fraudulent conveyance, moratorium, reorganization and other similar laws relating to or affecting   creditors’ rights generally and general principles of equity (whether considered in a proceeding in   equity or law), as determined in good faith by the Administrative Agent, then such provisions shall   be deemed to be in effect only to the extent not so limited.          SECTION 12.13 Integration. This Agreement and the other Credit Documents represent   the agreement of the Credit Parties, the Administrative Agent and the Lenders with respect to the   subject matter hereof, and there are no promises, undertakings, representations or warranties by   any party hereto or thereto relative to the subject matter hereof not expressly set forth or referred   to herein or in the other Credit Documents.          SECTION 12.14 GOVERNING  LAW.  THIS AGREEMENT, THE OTHER CREDIT   DOCUMENTS  (UNLESS  EXPRESSLY  PROVIDED  OTHERWISE  THEREIN)  AND  THE   RIGHTS  AND  OBLIGATIONS  OF  THE  PARTIES  HEREUNDER  AND  THEREUNDER   SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE   WITH, THE LAW OF THE STATE OF NEW YORK.          SECTION 12.15  Submission   to   Jurisdiction;   Waivers.  Each party hereto hereby   irrevocably and unconditionally:                (a)   agrees that it will not commence any action, litigation or proceeding of any   kind or description, whether in law or equity, whether in contract or in tort or otherwise, against   the Administrative Agent, any Lender, or any Affiliate of the foregoing in any way relating to this   Agreement or any other Credit Document or the transactions relating hereto or thereto, in any   forum other than the courts of the State of New York sitting in New York County, and of the   United States District Court of the Southern District of New York, and any appellate court from   any  thereof,  and  each  of  the  parties  hereto  irrevocably  and  unconditionally  submits  to  the   jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or   proceeding may be heard and determined in such New York State court or, to the fullest extent   permitted by applicable law, in such federal court;                (b)   consents that any such action or proceeding may be brought in such  courts   and waives any objection that it may now or hereafter have to the venue of any such action or   proceeding in any such court or that such action or proceeding was brought in an inconvenient   court and agrees not to plead or claim the same;                (c)   agrees that service of process in any such action or proceeding may be   effected by mailing a copy thereof by registered or certified mail (or any substantially similar form   of mail), postage prepaid, to the applicable party at its respective address set forth on Schedule   12.02 or at such other address of which the Administrative Agent shall have been notified pursuant   thereto;                (d)   agrees that nothing herein shall affect the right to effect service of process   in any other manner permitted by law or shall limit any right that the Administrative Agent or   any Lender may otherwise have to bring any action or proceeding relating to this Agreement or    DB1/ 110631747.4                      129    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 any other Credit Document against the Borrower or any other Credit Party or their respective   properties in the courts of any jurisdiction;                (e)   waives, to the maximum extent not prohibited by law, all rights of   rescission, set-off, counterclaims, and other defenses in connection with the repayment of the   Obligations; and                (f)   waives,  to  the  maximum  extent  not  prohibited  by law,  any right  it  may   have to claim or recover in any legal action or proceeding referred to in this Section 12.14 any   special, exemplary, punitive or consequential damages.          SECTION 12.16 Acknowledgments. Each Credit Party hereby acknowledges that:                (a)   it has been advised by counsel in the negotiation, execution and delivery of   this Agreement and the other Credit Documents;                (b)   neither  the  Administrative  Agent   nor  any  Lender  has  any  fiduciary   relationship with or duty to the Credit Parties arising out of or in connection with this Agreement   or any of the other Credit Documents, and the relationship between the Administrative Agent and   Lenders, on one hand, and the Credit Parties, on the other hand, in connection herewith or therewith   is solely that of debtor and creditor; and                (c)   no  joint  venture  is  created  hereby  or  by  the  other  Credit  Documents  or   otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among   the Credit Parties and the Lenders.          SECTION 12.17  WAIVERS  OF   JURY  TRIAL.   THE CREDIT PARTIES, THE   ADMINISTRATIVE  AGENT  AND  THE  LENDERS  HEREBY  IRREVOCABLY  AND   UNCONDITIONALLY  WAIVE  TRIAL  BY  JURY  IN  ANY  LEGAL  ACTION  OR   PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT   AND FOR ANY COUNTERCLAIM THEREIN.          SECTION 12.18 Confidentiality. The Administrative Agent and Lender shall hold all   Confidential Information confidential in accordance with its customary procedure for handling   confidential information of this nature and (in the case of a Lender that is a bank) in accordance   with safe and sound banking practices; provided, that Confidential Information may be disclosed   by the Administrative Agent or Lender:                (a)   as required by any governmental agency or representative  thereof   (including, without limitation, public disclosures by the Administrative Agent, Lender, or any of   their Related Parties required by the SEC or any other governmental or regulatory authority);                (b)   pursuant to legal process;                (c)   in connection with the enforcement of any rights or exercise of any   remedies by the Administrative Agent or Lender under this Agreement or any other Credit  Document or any action or proceeding relating to this Agreement or any other Credit Document;  DB1/ 110631747.4                      130    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

             (d)   to the Administrative Agent’s or Lender’s attorneys, professional advisors,   independent auditors or Affiliates,                (e)   in connection with:                                             (i)   the establishment of any special purpose funding vehicle  with   respect to the Loans,                        (ii)  any Securitization permitted under Section 12.08;                                             (iii) any prospective assignment of, or participation in, its rights and    obligations pursuant to Section 12.06, to prospective assignees or Participants, as the case may   be;                                (iv)  any Hedging Transaction entered into or proposed to be entered   into in connection with the Loans made hereunder, to actual or proposed direct or indirect   contractual counterparties; and                                (v)   any actual or proposed credit facility for loans, letters of credit or   other extensions of credit to or for the account of the Administrative Agent or Lender or any of its   Affiliates,  to  any  Person  providing  or  proposing to  provide  such  loan,  letter of credit  or other   extension of credit or any agent, trustee or representative of such Person; or                          (f)   with the consent of the Borrower;              provided, that in the case of clause (e) hereof, the Person to whom Confidential Information is so   disclosed is advised of and has been directed to comply with the provisions of this Section 12.17.              For purposes of this Section, “Confidential Information” means all information received from a   Credit Party or any Subsidiary, whether directly or from a Credit Party or a Subsidiary’s managers,   officers,  employees,  attorneys,  agents,  or  other  advisors,  relating  to  the  Credit  Parties  or  any   Subsidiary or any of their respective businesses, other than any such information that is available   to the Administrative Agent or any Secured Party on a nonconfidential basis prior to disclosure by   or on behalf of such Credit Party or any Subsidiary.              Notwithstanding  the  foregoing,  (A)  each  of  the  Administrative  Agent,  the  Lenders  and  any   Affiliate thereof is hereby expressly permitted by the Credit Parties to refer to any Credit Party and   any of their respective Subsidiaries in connection with any promotion or marketing undertaken by   the Administrative Agent, Lender or Affiliate and, for such purpose, the Administrative Agent,   Lender  or  Affiliate  may  utilize  any  trade  name,  trademark,  logo  or  other  distinctive  symbol   associated  with  such  Credit  Party  or  such  Subsidiary  or  any  of  their businesses  and  (B)  any   information that is or becomes generally available to the public (other than as a result of prohibited   disclosure by the Administrative Agent or Lender) shall not be subject to the provisions of this   Section 12.17.          EACH  LENDER  ACKNOWLEDGES  THAT  CONFIDENTIAL  INFORMATION  (AS  DEFINED IN THIS SECTION 12.17) FURNISHED TO IT PURSUANT TO THIS   DB1/  110631747.4                           131    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 AGREEMENT      MAY    INCLUDE     MATERIAL     NON-PUBLIC      INFORMATION   CONCERNING  THE  BORROWER  AND  ITS  RELATED  PARTIES  OR  THEIR   RESPECTIVE  SECURITIES,  AND  CONFIRMS  THAT  IT  HAS  DEVELOPED   COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC   INFORMATION  AND  THAT  IT  WILL  HANDLE  SUCH  MATERIAL  NON-PUBLIC   INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE   LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.          ALL  INFORMATION,  INCLUDING  WAIVERS  AND   AMENDMENTS,   FURNISHED BY THE CREDIT PARTIES OR THE ADMINISTRATIVE AGENT   PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT   WILL   BE  SYNDICATE-LEVEL   INFORMATION,  WHICH  MAY  CONTAIN   MATERIAL NONPUBLIC INFORMATION ABOUT THE CREDIT PARTIES AND   THEIR    RELATED     PARTIES    OR   THEIR     RESPECTIVE   SECURITIES.   ACCORDINGLY, EACH LENDER REPRESENTS TO THE CREDIT PARTIES AND   THE   ADMINISTRATIVE       AGENT    THAT  IT   HAS     IDENTIFIED   IN    ITS   ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE   INFORMATION THAT MAY CONTAIN MATERIAL NONPUBLIC INFORMATION   IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE   LAW.          SECTION 12.19 Press Releases, etc. Each Credit Party will not, and will not permit any   of its respective Subsidiaries, directly or indirectly, to publish any press release or other similar   public  disclosure  or  announcements  (including  any  marketing  materials)  regarding  this   Agreement, the other Credit Documents, the Transaction Documents, or any of the Transactions,   without  the  consent  of  the  Administrative  Agent,  which  consent  shall  not  be  unreasonably   withheld.          SECTION 12.20 Releases of Guarantees and Liens. (a) Notwithstanding anything to  the   contrary contained herein or in any other Credit Document, the Administrative Agent is hereby   irrevocably authorized and directed by each Secured Party (without requirement of notice to or   consent of any Secured Party except as expressly required by Section 12.01) (x) to take any action   requested by the Borrower having the effect of releasing any Collateral or guarantee obligations   (i) to the extent necessary to permit consummation of any transaction not prohibited by any Credit   Document  or  that  has  been  consented  to  in  accordance  with  Section  12.01  or  (ii)  under  the   circumstances described in paragraph (b) below and (y) enter into subordination or intercreditor   agreements with respect to Indebtedness to the extent the Administrative Agent or the Collateral   Agent is otherwise contemplated herein as being a party to such intercreditor or subordination   agreement.                (a)   At such time as (i) the Loans and the other Obligations (other than   Unasserted Contingent Obligations) shall have been paid in full and (ii) the Commitments have   been  terminated,  the  Collateral  shall  be  automatically  released  from  the  Liens  created  by  the   Security Documents, and the Security Documents and all pledges and obligations (other than those   expressly stated to survive such termination) of the Administrative Agent and each Credit   DB1/ 110631747.4                      132    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

 Party under the Security Documents shall terminate, all without delivery of any instrument or   performance of any act by any Person.                (b)   Upon request by the Administrative Agent at any time, the Required   Lenders  will  confirm  in  writing  the  Administrative  Agent’s  authority  to  release  its  interest  in   particular  types  or  items  of  property,  or  to  release  any  guarantee  obligations  pursuant  to  this   Section 12.19. In each case as specified in this Section 12.19, the Administrative Agent will (and   each Lender irrevocably authorizes and directs the Administrative Agent to), at the Borrower’s   request and expense, (i) execute and deliver any termination statements, lien releases, discharges   of  security  interests,  and  other  similar  discharge  or  release  documents  (and,  if  applicable,  in   recordable form) as are reasonably necessary to release, as of record, the Administrative Agent’s   Liens and all notices of security interests and liens previously filed by the Administrative Agent   and  (ii)  deliver  all  possessory  collateral  in  the  Administrative  Agent’s  possession,  custody  or   control to the Borrower (or the Borrower’s designee), and (iii) execute and deliver to the applicable   Credit Party such other documents as such Credit Party may reasonably request to evidence the   release  of  such  item  of  Collateral  or  obligation  from  the  assignment,  lien  or  security  interest   granted under the Security Documents, in each case in accordance with the terms of the Credit   Documents and this Section 12.19.          SECTION 12.21 USA Patriot Act.  Each Lender hereby notifies each Credit Party that   pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law   October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that   identifies the Credit Parties, which information includes the name and address of each Credit Party   and other information that will allow such Lender to identify each Credit Party in accordance with   the  Patriot  Act.  Each  Credit  Party  agrees  to  provide  all  such  information  to  the  Lenders  upon   request by the Administrative Agent at any time, whether with respect to any Person who is a   Credit Party on the Closing Date or who becomes a Credit Party thereafter.          SECTION 12.22  No  Fiduciary  Duty.  Each Credit Party, on behalf of itself and  its   Subsidiaries, agrees that in connection with all aspects of the transactions contemplated hereby   and any communications in connection therewith, the Credit Parties, their respective Subsidiaries   and Affiliates, on the one hand, and the Administrative Agent, the Lenders and their respective   Affiliates, on the other hand, will have a business relationship that does not create, by implication   or otherwise, any fiduciary duty on the part  of the Administrative Agent, the Lenders or their   respective Affiliates, and no such duty will be deemed to have arisen in connection with any such   transactions or communications.          SECTION 12.23 Authorized  Officers.  The execution of any certificate requirement   hereunder  by  an  Authorized  Officer  shall  be  considered  to  have  been  done  solely  in  such   Authorized Officer’s capacity as an officer of the applicable Credit Party (and not individually).   Notwithstanding anything to the contrary set forth herein, the Secured Parties shall be entitled to   rely and act on any certificate, notice or other document delivered by or on behalf of any Person   purporting to be an Authorized Officer of a Credit Party and shall have no duty to inquire as to the   actual incumbency or authority of such Person.    DB1/ 110631747.4                      133    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       SECTION 12.24 Acknowledgement  and  Consent  to  Bail-In  of  EEA  Financial   Institutions. Notwithstanding anything to the contrary in any Credit Document  or in any other   agreement, arrangement or understanding among any such parties, each party hereto acknowledges   that any liability of any EEA Financial Institution arising under any Credit Document, to the extent   such liability is unsecured, may be subject to the write-down and conversion powers of an EEA   Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:   (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority   to any such liabilities arising hereunder which may be payable to it by any party hereto that is an   EEA Financial Institution, and (b) the effects of any Bail-in Action on any such liability, including,   if applicable: (i) a reduction in full or in part or cancellation of any such liability, (ii) a conversion   of all, or a portion of, such liability into shares or other instruments of ownership in such EEA   Financial  Institution,  its  parent  undertaking,  or  a  bridge institution  that  may  be  issued  to  it  or   otherwise conferred on it, and that such shares or other instruments of ownership will be accepted   by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit   Document or (iii) the variation of the terms of such liability in connection with the exercise of the   write-down and conversion powers of any EEA Resolution Authority.                                [SIGNATURE PAGES FOLLOW]                                                                                                                                                                                                                                                               DB1/ 110631747.4                      134     DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

       IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this   Agreement to be duly executed and delivered as of the date first above written.             BORROWER:                               EVOLENT HEALTH LLC,                                          a Delaware limited liability company                                                                By:                                               Name:                                              Title:                                      PARENT:                                 EVOLENT HEALTH, INC.,                                          a Delaware corporation                                                                By:                                                                               Name:                                                                          Title:                                                               OTHER GUARANTORS:                       EH HOLDING COMPANY, INC.,                                          a Delaware corporation                                                                By:                                                                               Name:                                                                          Title:                                                                                                       EVOLENT CARE PARTNERS HOLDING                                          COMPANY, INC.,                                          a Delaware corporation                                                                By:                                                                               Name:                                                                          Title:                                                                                                                                               Signature Page to Credit Agreement  DB1/ 110631747.4   DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

                                                   NCIS HOLDINGS, INC.,                                          a Delaware corporation                                                                By:                                                                               Name:                                                                          Title:                                                                                                       NCH MANAGEMENT SYSTEMS, INC.,                                          a California corporation                                                                By:                                                                               Name:                                                                          Title:                                                                                                       EVOLENT CARE PARTNERS OF TEXAS,                                          INC.,                                          a Texas corporation                                                                By:                                                                               Name:                                                                          Title:                                DB1/ 110631747.4         Signature Page to Credit Agreement    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20 

 

           ADMINISTRATIVE      AGENT    AND     A ARES CAPITAL MANAGEMENT LLC,  LENDER:                                a Delaware limited liability company                                                                                                                           By:                                                Name:                                             Title:    DB1/ 110631747.4         Signature Page to Credit Agreement    DMSLIBRARY01\28390\059001\36918934.v2-5/20/20

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