Document:

Exhibit

         Exhibit 4.3

GENERAL DYNAMICS UNITED KINGDOM
SHARE SAVE PLAN
(as amended and restated on February 9, 2019)

HM Revenue and Customs Reference: SRS 104410
Adopted by the Company on March 4, 2009
Approved by HM Revenue and Customs on August 11, 2009
Renewed by the Company for a further ten year period from March 4, 2019 on February 9, 2019, incorporating, inter alia, (a) amendments that took effect automatically from July 17, 2013 by virtue of section 14 of and Schedule 2 to the Finance Act 2013 and (b) amendments that took effect automatically from April 6, 2014 by virtue of section 51 of and Schedule 8 to the Finance Act 2014

		
	1.
	Definitions

1.1In these Rules the following words and expressions shall have, where the context so admits, the following meanings:
	
				
	“Accounting Period”
	__
	an accounting reference period of the Company;

	“Act”
	__
	the Income Tax (Earnings and Pensions) Act 2003;

	“Acquiring Company”
	__
	where the conditions of paragraph 38 of Schedule 3 are met, such company as shall be at any time the “acquiring company” as defined in that paragraph;

	“Adoption Date”
	__
	the date on which the Plan is adopted by a resolution of the Board;

	“Announcement Date”
	__
	the date on which the results of the Company are announced for any period;

	“Application”
	__
	an application for an Option in the form as approved by the Committee from time to time;

	“Approval Date”
	__
	the date upon which HM Revenue and Customs approves the Plan;

	“Associated Company”
	__
	has the same meaning as in paragraph 47 of Schedule 3;

	“Auditors”
	__
	the auditors for the time being of the Company (acting as experts and not as arbitrators);

	“Board”
	__
	the board of directors of the Company or a duly constituted committee thereof at which a quorum is present;

	“Bonus Date”
	__
	where repayments under the relevant Savings Contract are taken as including the Maximum Bonus, the earliest date on which the Maximum Bonus is payable and in any other case the earliest date on which a bonus is payable under the relevant Savings Contract;

	“Committee”
	__
	the Compensation Committee of the Board of Directors of the Company comprising two or more members of the Board of Directors, all of whom shall be “non-employee directors” or the Board of Directors of any Participating Company to which such authority is delegated by the Compensation Committee;

	“Company”
	__
	General Dynamics Corporation or save for Rules 2, 3, 4, 5 and 10.2;

	 
	__
	(i) 
	the Acquiring Company; or

	 
	__
	(ii)     
	some other company falling within sub-paragraph (b) or sub-paragraph (c) of paragraph 10 of Schedule 3 over whose shares a New Option has been granted;

	“Common Stock”
	__
	General Dynamics Corporation Common Stock;

	“Control”
	__
	has the same meaning as in section 719 of the Act;

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	“Date of Grant”
	__
	the date on which an Option is, was or is to be granted under the Plan, pursuant to Rule 4.1, or on which an Option is or was treated as being granted pursuant to Rule 4.3;

	“Dealing Day”
	__
	a day on which The New York Stock Exchange is open for the transaction of business;

	“Eligible Employee”
	__
	any employee or director of any Participating Company who:

	(a)
	__
	(i)          
	in the case of a director, normally devotes more than 25 hours per week to his duties (exclusive of meal breaks);

	 
	__
	(ii)
	has earnings from his office or employment which meet (or would meet if there were any) the requirements set out in paragraphs 6(2)(c) of Schedule 3;

	 
	__
	(iii)
	is employed by any Participating Company on the date on which the Committee grants an Option pursuant to Rule 4.1 below;

	(b)
	__
	has been nominated by the Committee either individually or as a member of a category of directors or employees for participation in the Plan;

	(c)
	__
	is not prohibited from participating by the provisions of Paragraph 8 of Schedule 3 (whether falling within (a) or (b) above);

	“Exercise Price”
	__
	the amount as determined by the Board and expressed in dollars, which a Participant shall pay to acquire Common Stock on the exercise of an Option being, subject to Rule 4.3 and Rule 8 not less than 80% or other such percentage as is for the time being permitted by statute or other statutory provision of Fair Market Value of Common Stock on the day the Invitation was issued pursuant to Rule 2 if the Exercise Price is specified in the Invitation or, if the Exercise Price is notified to the Eligible Employees after the Invitations are issued but before the Options are granted in accordance with Rule 2.2, on the date the Eligible Employees are so notified;

	“Fair Market Value”
	__
	on any day an amount equal to the closing middle market quotation of Common Stock on the New York Stock Exchange for the immediately preceding Dealing Day or if on that day the Shares are not so listed, the market value of Common Stock determined in accordance with the provisions of Part VIII of the Taxation of Chargeable Gains Act 1992 and agreed with HM Revenue and Customs Shares and Assets Valuation on or before that day, in either case determining (if so required for the purposes of any relevant provisions in Schedule 3) the market value of Common Stock that is subject to a Restriction as if it was not subject to any Restriction;

	“Group”
	__
	the Company and its Subsidiary companies and the phrase “Group Company” shall be construed accordingly;

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	“Group Employee”
	__
	a director or employee of any Group Company;

	“ICTA”
	__
	means the Income and Corporate Taxes Act 1988;

	“Injury or Disability”
	__
	the cessation of employment or office by reason of injury or disability provided the Committee are satisfied, on production of such evidence as it may reasonably require:

	 
	__
	(i)
	that the individual has ceased to exercise and, by reason of injury or disability, is incapable of exercising that office or employment; and

	 
	__
	(ii)
	that the individual is likely to remain so incapable for the foreseeable future;

	“Invitation”
	__
	a letter of invitation to participate in the Plan in a form approved by the Committee from time to time;

	“Invitation Period”
	__
	subject to Rule 10.6 any time following the Approval Date;

	“Maximum Bonus”
	__
	the bonus payable to the Participant at the maturity of a Savings Contract which matures after seven years;

	“New Option”
	__
	an option over shares meeting the requirements of sub-paragraphs 39 (4)(a) to (d) of Schedule 3, granted in consideration for the release of a Subsisting Option within the relevant period specified in paragraph 58(3) of Schedule 3;

	“Nominated Savings Authority”  
	__
	the savings authority or the savings authorities (as the case may be) nominated by the Company for the purposes of the Plan;

	“Non-UK Company Reorganisation Arrangement”
	__
	has the same meaning as in paragraph 47A of Schedule 3;

	“Option”
	__
	a right to purchase Common Stock granted or to be granted pursuant to Rules 4.1, 4.2 or 4.3;

	“Option Certificate”
	__
	an option certificate in a form approved by the Committee from time to time;

	“Participant”
	__
	a person who has been granted an Option or (where the context admits) his legal personal representative(s);

	“Participating Company”
	__
	any Group Company nominated by the Committee to participate in the Scheme from time to time;

	“Recognised Exchange”
	__
	a recognised stock exchange within the meaning of section 109 of the Finance Act 2007 or a recognised investment exchange within the meaning of the Financial Services and Markets Act 2000;

	“this Plan” or “the Plan”
	__
	the General Dynamics United Kingdom Share Save Plan constituted and governed by the Rules with, and subject to any amendments thereto properly effected;

	“Redundancy”
	__
	the cessation of employment or office by reason of redundancy within the meaning of the Employment Rights Act 1996;

	“Renewal Date”
	__
	March 4, 2019;

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	“Restriction”
	__
	a restriction within the meaning given to that term by paragraph 48(3) of Schedule 3;

	“Retirement”
	__
	the cessation of employment or office by reason of retirement

	“Rules”
	__
	the rules of the Plan as the same may be amended from time to time and “Rule” shall be construed accordingly;

	“Savings Contract”
	__
	a 3 or 5 year contract under a certified contractual savings scheme (within the meaning of section 702 of the Income Tax (Trading and Other Income) Act 2005 entered into by an Eligible Employee with a Nominated Savings Authority;

	“Schedule 3”
	__
	Schedule 3 to the Act;

	“Schedule 3 SAYE Option Scheme”
	__
	has the same meaning as in paragraph 1 of Schedule 3;

	“Specified Age”
	__
	age 65;

	“Standard 3 Year Bonus”
	__
	the bonus (if any) payable to the Participant under a Savings Contract which matures after three years;

	“Standard 5 Year Bonus”
	__
	the bonus (if any) payable to the Participant under a Savings Contract which matures after five years;

	“Subsidiary”
	__
	a company which is under the Control of the Company and which is a subsidiary of the Company within the meaning of section 1159 of the Companies Act 2006;

	“Subsisting Option”
	__
	an Option which has been granted and which has not lapsed, been surrendered, renounced or been exercised in full.

		
	1.2
	In these Rules, except insofar as the context otherwise requires:

		
	(i)
	words denoting the singular shall include the plural and vice versa;

		
	(ii)
	words importing a gender shall include every gender and references to a person shall include bodies corporate and unincorporated and vice versa;

		
	(iii)
	reference to any enactment shall be construed as a reference to that enactment as from time to time amended, modified, extended or re-enacted and shall include any orders, regulations, instruments or other sub-ordinate legislation made under the relevant enactment;

		
	(iv)
	words have the same meanings as in Schedule 3 unless the context otherwise requires; and

		
	(v)
	headings and captions are provided for reference only and shall not be considered as part of the Plan.

1.3This Plan is intended to be a Schedule 3 SAYE Option Scheme for the purposes of the Act and this Plan and any Option granted under it shall be interpreted, operated and administered in a manner that is consistent with that intention and in the case of any conflict 

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between the Rules and the provisions of sections 516 to 519 and Schedule 3 (the “legislation”), the legislation shall prevail so that this Plan may be treated as a Schedule 3 SAYE Option Scheme.
		
	2.
	Invitation to apply for Options

2.1The Committee may during any Invitation Period but not later than the tenth anniversary of the Renewal Date invite every Eligible Employee by issuing an Invitation to apply for the grant of an Option, providing that at the intended Date of Grant the Common Stock satisfies the conditions of paragraphs 18 to 22 inclusive of Schedule 3.
2.2Each Invitation shall specify:
		
	(i)
	the date, being not less than 14 days after the issue of the Invitation, by which an application must be made;

		
	(ii)
	whether or not the Eligible Employee may take out a 3 or 5 year Savings Contract;

		
	(iii)
	the Exercise Price or that the Exercise Price will be notified to Eligible Employees at a reasonable time prior to the closing date for Applications;

		
	(iv)
	whether or not for the purpose of determining the number of shares of Common Stock over which an Option may be exercised, the repayment under the Savings Contract is to be taken:

		
	(a)
	as including the Maximum Bonus;

		
	(b)
	as including only the Standard 5 Year Bonus or the Standard 3 Year Bonus;

		
	(c)
	as not including a bonus;

		
	(v)
	the maximum permitted aggregate monthly savings contribution being the lesser of the maximum amount specified in Paragraph 25 of Schedule 3 or such other maximum as may be determined by the Committee, and be permitted by HM Revenue and Customs pursuant to Schedule 3 and by the Nominated Savings Authority;

and the Committee may determine and include in the Invitations details of the maximum value on the date of the issue of the Invitation of shares of Common Stock over which Options may be granted on that occasion and a statement that in the event of excess Applications, each Application may be scaled down in accordance with the Rules.
		
	2.3
	Each Invitation shall be accompanied by an Application which shall provide for the applicant to state:

		
	(i)
	the monthly savings contribution being a multiple of £1 and not less than £5 which he wishes to make under the related Savings Contract;

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	(ii)
	whether or not he wishes to take out a 3 or 5 year Savings Contract;

		
	(iii)
	that his proposed monthly savings contribution, when added to any monthly savings contributions then being made under any other Savings Contract will not exceed the maximum permitted aggregate monthly savings contribution specified in the Invitation;

		
	(iv)
	his election as to whether for the purpose of determining the maximum value of shares of Common Stock over which an Option is to be granted, the repayment under the Savings Contract is to be taken as including the Maximum Bonus, the Standard 5 Year Bonus, or the Standard 3 Year Bonus or as not including a bonus,

and shall authorise the Committee to enter on the Savings Contract such monthly savings contributions, not exceeding the maximum stated on the Application, as shall be determined pursuant to Rule 3 below.
		
	2.4
	Each Application shall be deemed to be for an Option to acquire such number of shares of Common Stock as can be bought at the Exercise Price with the repayment under the related Savings Contract.

		
	3.
	Scaling Down

3.1If the Committee receives valid Applications over an aggregate value of Common Stock which exceeds the amount stated pursuant to Rule 2.2 or any limitation determined pursuant to Rule 5, then the following steps shall be carried out successively to the extent necessary to eliminate the excess:
		
	(i)
	the excess over £5 of the monthly savings contribution chosen by each applicant shall be reduced pro rata to the extent necessary;

		
	(ii)
	each election for a Maximum Bonus to be included in the repayment under the Savings Contract shall be deemed to be an election for the Standard 5 Year Bonus to be included;

		
	(iii)
	each election for a Standard 5 Year Bonus or a Standard 3 Year Bonus to be included in the repayment under the Savings Contract shall be deemed to be an election for the bonus to be excluded;

		
	(iv)
	applications will be selected by lot, each based on a monthly savings contribution of £5 and the inclusion of no bonus in the repayment under the Savings Contract.

3.2If after applying the provisions of Rule 3.1(i) to (iii) inclusive the value of Common Stock available is still insufficient to enable an Option based on monthly savings contributions of £5 to be granted to each Eligible Employee who made a valid Application the Committee may, as an alternative to selecting by lot as in (iv) above, determine in its absolute discretion that no Options shall be granted.

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3.3If the Committee so determines the provision in Rule 3.1(i) to (iv) inclusive may be modified or applied in any manner as may be permitted by Schedule 3.
3.4Each Application shall be deemed to have been modified or withdrawn in accordance with the application of the foregoing provisions and the Committee shall complete each Savings Contract proposal form to reflect any reduction in monthly savings contributions resulting therefrom.
		
	4.
	Grant of Options

4.1Within 30 days of the first day by reference to which the Fair Market Value of the Common Stock is determined (or within 42 days of that day when Rule 3 applies and Options cannot be granted within the 30 day period), the Committee shall grant to each applicant who is still an Eligible Employee an Option over such number of shares of Common Stock as can be purchased on the date of exercise of that Option with the repayment under the relevant Savings Contract.
4.2If the Company is prevented by statute, order, regulation or government directive from granting Options within any such periods, then the Committee may grant Options within twenty one days of the lifting of such restrictions providing the grant takes place not more than 30 days following the date on which Fair Market Value was determined for the purposes of the Option grant in question or not later than 42 days following the date Fair Market Value was determined if Applications have been scaled down pursuant to Rule 3.1.
4.3Where the circumstances noted in Rule 7.4 apply New Options may be granted within the terms of paragraph 38(1) Schedule 3 in consideration for the release of Options previously granted under this Plan. Such New Options are deemed to be equivalent to the old Options and to have been granted within the terms of this Plan.
4.4No Option may be transferred, assigned or charged and any purported transfer, assignment or charge shall be void ab initio. Each Option Certificate shall carry a statement to this effect. For the avoidance of doubt, this Rule 4.4 shall not prevent the Option of a deceased Participant being exercised by his personal representative(s) within the terms of these Rules.
4.5As soon as possible after Options have been granted the Committee shall issue an Option Certificate specifying the Date of Grant and the Exercise Price. If the shares of Common Stock which are the subject of an Option are subject to any Restriction, the Committee shall as soon as practicable after the Date of Grant notify Participants of that fact and the details of any such Restriction.
		
	5.
	Limitations on Grant

5.1Before Invitations are issued on any occasion, the Committee may determine a limit on the value of shares of Common Stock which are to be available in respect of that issue of Invitations.
5.2Further, subject to any adjustment as contemplated by Rule 8, the total number of shares of Common Stock which may be issued and/or delivered under this Plan is (a) 600,000 

8

in respect of the ten-year period from the Adoption Date, and (b) 450,000 in respect of the ten-year period from the Renewal Date. The Committee may not grant Options which would cause this limit to be exceeded. In determining this limit, no account shall be taken of any Options to the extent they have ceased to be exercisable.
		
	6.
	Exercise of Options

6.1Subject to each of the succeeding sections of this Rule 6 and Rule 9 any Subsisting Option may be exercised by the Participant or, if deceased, by his personal representatives in whole or in part at the time of or at any time following the occurrence of the earliest of the following events:
		
	(i)
	the Bonus Date;

		
	(ii)
	the death of the Participant;

		
	(iii)
	upon the Participant ceasing to be a Group Employee where that cessation was by reason of Injury, Disability, Redundancy, or Retirement or by reason of a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006; 

		
	(iv)
	an opportunity to exercise the Option pursuant to Rule 7;

		
	(v)
	upon the Participant ceasing to be a Group Employee, where that cessation was by reason only that his employing company which is an associated company of the Company (within the meaning given to that term in paragraph 35(4) of Schedule 3) ceases to be such an associated company by reason of a change of control (as determined in accordance with sections 450 and 451 of the Corporation Tax Act 2010), or that the office or employment relates to a business or part of a business which is transferred to a person who is neither an Associated Company of the Company nor a company of which the Company has Control where the transfer is not a relevant transfer within the meaning of the Transfer of Undertaking (Protection of Employment) Regulations 2006.

6.2An Option shall lapse and become thereafter incapable of exercise on the earliest of the following events:
		
	(i)
	except where the Participant has died, the expiry of six months following the Bonus Date;

		
	(ii)
	where the Participant has died within six months following the Bonus Date, the first anniversary of the Bonus Date;

		
	(iii)
	where the Participant has died before the Bonus Date, the first anniversary of his death;

		
	(iv)
	unless the Participant has died, on the expiry of six months after the Option has become exercisable by virtue of Paragraph (iii) or (v) of Rule 6.1;

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	(v)
	immediately following the Participant ceasing to be a Group Employee save when the Participant ceases to be a Group Employee in the circumstances in Rule 6.1(ii), (iii), (iv) and (v) above, and save when the Participant ceases to be a Group Employee but continues to be an employee or director of any Associated Company or company of which the Company has Control;

		
	(vi)
	the expiry of six months after the Option has first become exercisable in accordance with Rule 7;

		
	(vii)
	the Participant being adjudicated bankrupt;

		
	(viii)
	upon the Participant giving notice, (or under the terms of his Savings Contract being deemed to have given notice), to the Nominated Savings Authority that he intends to stop paying monthly contributions under his Savings Contract prior to the date upon which a right to exercise the Option shall arise;

		
	(ix)
	on the winding up other than a voluntary winding up of the Company; and

		
	(x)
	six months following a voluntary winding up of the Company.

6.3If a Participant continues to be employed by a Group Company after the date on which he reaches the Specified Age he may exercise any Subsisting Option which was granted before July 17, 2013 within six months following that date.
6.4No person shall be treated for the purposes of this Rule 6 as ceasing to be a Group Employee until he is no longer a director or employee of the Company, and Associated Company of the Company or a company of which the Company has Control.
		
	7.
	Take-overs, Reconstructions and Liquidations

7.1If any person obtains Control of the Company as a result of making:
		
	(i)
	a general offer to acquire the whole of the issued share capital of the Company (other than that which is already owned by him) which is unconditional or which is made on a condition such that if it is satisfied the person making the offer will have Control of the Company; or

		
	(ii)
	a general offer to acquire all the shares (other than shares which are already owned by him) in the Company which are of the same class as Common Stock subject to a Subsisting Option 

then the Committee shall notify all Participants as soon as is practicable of the offer in accordance with Rule 10.4. Any Subsisting Option may be exercised from the date of the receipt of that notification up to the expiry of a period ending six months from the time when the person making the offer has obtained Control of the Company and any condition subject to which the offer is made has been satisfied.
7.2If under Section 900 of the Companies Act 2006 it is proposed that the Court sanctions a compromise or arrangement applicable to or affecting (i) all of the ordinary share capital 

10

of the Company or all of the shares in the Company which are of the same class as Common Stock which may be acquired by exercise of Options, or (ii) all the shares, or all the shares of the same class which are held by a class of shareholders identified otherwise than by reference to their employment or directorships or their participation in a Schedule 3 SAYE Option Scheme, then the Company shall give notice thereof to all Participants at the same time as it sends notices to members of the Company calling the meeting to consider such a compromise or arrangement. Any Subsisting Option may be exercised by a Participant subject to the terms of this Rule before the expiry of six months from the date on which the Court sanctions such compromise or arrangement. Subject to Rule 7.6, at the end of the relevant period an unexercised Option shall lapse. If any person obtains Control of the Company as a result of a Non-UK Company Reorganisation Arrangement which becomes binding on the shareholders covered by it any Subsisting Options may be exercised before the expiry of six months from the date on which such Non-UK Company Reorganisation Arrangement becomes binding. For the purposes of this Rule 7.2, the reference to the ordinary share capital of the Company does not include any capital already held by the person making the offer or a person connected with that person, and the reference to the shares does not include any shares already held by the person making the offer or a person connected with that person.
7.3If any person becomes bound or entitled to acquire Common Stock under sections 976 to 981 or 983 to 985 of the Companies Act 2006 (or similar circumstances occur which are acceptable to HM Revenue and Customs) any Subsisting Option may be exercised at any time when that person remains so bound or entitled.
7.4If as a result of the events specified in Rules 7.1 or 7.2 an Acquiring Company has obtained Control of the Company, or if an Acquiring Company has become bound or entitled as mentioned in Rule 7.3, the Participant may, if the Acquiring Company so agrees, release any Subsisting Option he holds in consideration for the grant of a New Option. A New Option issued in consideration of the release of an Option shall be evidenced by an Option Certificate which shall import the relevant provisions of these Rules. A New Option shall, for all other purposes of this Plan, be treated as having been acquired at the same time as the corresponding released Option. An exchange of Options pursuant to this Rule 7.4 shall not alter the fact that this Plan remains that of the Company as the original scheme organiser.
7.5If a resolution is passed at a general meeting for the voluntary winding-up of the Company, an Option shall notwithstanding Rule 6.1(i) be exercisable in whole or in part for a period of six months after which the Option shall to the extent unexercised thereupon lapse.
7.6An Option whether or not exercisable prior to or as a result of the occurrence of an event specified in Rule 7.1, 7.2, 7.3 or 7.5 shall if an event so specified occurs lapse in accordance with the relevant sub-rule of Rule 7, or if earlier, as determined by Rule 6.2(i) to (x), save that in the case of any Option granted on or after April 6, 2014 which has become exercisable under Rules 6.2(ii) and (iii), such Option shall not lapse in accordance with Rules 7.1, 7.2 or 7.3 but shall lapse only on the expiry of the relevant 12 month period under Rules 6.2(ii) and (iii). Where prior to the date an Option lapses there occurs one or more 

11

further events specified in Rules 7.1, 7.2, 7.3 or 7.5 an Option shall lapse on the earlier of the date determined by the preceding part of this Rule 7.6 and the date of lapse relevant to the further event or events.
7.7For the purpose of this Rule 7 other than Rule 7.4 a person shall be deemed to have obtained Control of a Company if he and others acting in concert with him have together obtained Control of it.
7.8The exercise of an Option pursuant to the preceding provisions of this Rule 7 shall be subject to the provisions of Rule 9.
7.9A New Option shall not be exercisable by virtue of the event pursuant to which it was granted.
7.10Notwithstanding any provision to the contrary, where this Rule 7 applies or is expected to apply, and in consequences of an event specified in Rule 7.1, 7.2, 7.3 or 7.5, the Common Stock no longer meets, or is not expected to meet, the requirements of paragraphs 17 to 20 and 22 of Part 4 of Schedule 3, the Committee may determine that Options may be exercised within a period of 20 days ending on such specified event (conditional upon and with effect from that event occurring) or a period of 20 days after such event. The Committee shall act fairly and reasonably in exercising its discretion under this Rule. 
		
	8.
	Variation of Share Capital

8.1In the event of any variation of the share capital of the Company affecting the Common Stock, including, but without prejudice to the generality of the preceding words, any capitalisation or rights issue or any consolidation, sub-division or reduction of capital by the Company, the number and nominal amount of Common Stock subject to any Option and the Exercise Price may be adjusted by the Committee in such manner as the Auditors confirm in writing to be, in their opinion, fair and reasonable provided that:
		
	(i)
	the aggregate amount payable on the exercise of an Option in full is neither materially changed nor increased beyond the expected repayment under the Saving Contract at the Bonus Date;

		
	(ii)
	at any time when the Plan remains approved by HM Revenue and Customs no adjustment shall take effect without the prior approval of HM Revenue and Customs; 

		
	(iii)
	following the adjustment the Common Stock shall continue to satisfy the conditions specified in paragraphs 10 to 14 inclusive of Schedule 3; and

		
	(iv)
	the total Fair Market Value of Common Stock subject to any Option is immediately after the adjustment or adjustments substantially the same as what it was immediately before the adjustment or adjustments. 

8.2Such variation shall be deemed to be effective from the record date at which the respective variation applied to other stock of the same class as Common Stock. Any Options 

12

exercised within that period shall be treated as exercised with the benefit of the variation confirmed by the Auditors.
8.3If an adjustment is made pursuant to Rule 8.1 above with the intention that the Plan shall cease to be approved by HM Revenue and Customs, the Company shall immediately notify HM Revenue and Customs.
8.4The Committee shall take such steps as it considers necessary to notify Participants of any adjustment made under Rule 8.1 and may call in, cancel, endorse, issue or reissue any Option Certificate consequent upon such adjustment.
		
	9.
	Manner of Exercise of Options

9.1No Option may be exercised whilst the Plan is approved by HM Revenue and Customs unless the Common Stock satisfies the conditions specified in paragraphs 18 to 22 inclusive of Schedule 3.
9.2An Option may only be exercised over as a maximum, the number of shares of Common Stock which may be acquired with the sum obtained by way of payment under the related Savings Contract converted into US dollars at the exchange rate prevailing on the day preceding the date on which the Option is exercised.
9.3An Option shall be exercised by the Participant, or as the case may be by his personal representatives, delivering notice in writing to the Committee, detailing the number of shares of Common Stock in respect of which he wishes to exercise the Option accompanied by the appropriate payment (which shall not exceed the sum obtained by way of repayment under the related Savings Contract) or authority to the Company to withdraw and apply monies from the Savings Contract to acquire the Common Stock over which the Option is to be exercised and the relevant Option Certificate and shall be effective on the date of its receipt by the Committee. The Group Company which employs the Participant shall meet or procure the meeting of any stamp duty liability on the exercise of an Option.
9.4Where an Option is exercised, the number of shares of Common Stock specified in the notice of exercise given in accordance with Rule 9.3 shall be transferred to the participant within 30 days of the date of exercise and the Company shall arrange for the delivery of evidence of title thereof. Save for any rights determined by reference to a record date preceding the date of transfer, such Common Stock shall rank pari passu with the other Common Stock of the same class in issue.
9.5When an Option is exercised only in part, it shall lapse to the extent of the unexercised balance.
9.6For the purpose of Rules 9.2 and 9.3 above, any repayment under the Savings Contract shall exclude the repayment of any contribution the due date for payment of which falls after the date on which repayment is made unless provided for in the terms of the Savings Contract.

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9.7For so long as Common Stock is quoted on The New York Stock Exchange, the Company shall apply for Common Stock in respect of which an Option has been exercised to be quoted if it were not so quoted already.
9.8Where Common Stock is listed or dealt in or any Recognised Exchange no Option may be exercised in contravention of any securities transactions rules of the Recognised Exchange as may from time to time be in force.
		
	10.
	Administration and Amendment

10.1The Plan shall be administered by the Committee whose decision on all disputes shall be final save where the Rules require the concurrence of the Auditors.
10.2The Committee may from time to time amend these Rules provided that:
		
	(i)
	no amendment to a “key feature” (as defined in paragraph 40B(8) of Schedule 3) shall have effect whilst the Plan is and is intended to remain a Schedule 3 SAYE Option Scheme, and if such status is not to be maintained, this Rule shall not apply; and

		
	(ii)
	the Company shall provide such information and make such declarations to HM Revenue and Customs in relation to any amendment to “a “key feature” (as defined in paragraph 40B(8) of Schedule 3) as is required for the purposes of Schedule 3. 

10.3The cost of establishing and operating the Plan shall be borne by the Group Companies in such proportions as the Board shall determine.
10.4Any notice or other communication under or in connection with the Plan may be given by the Committee either personally or by post, and to the Committee either personally or by post to the Secretary of the Committee; items sent by post shall be pre-paid and shall be deemed to have been received 72 hours after posting.
10.5The Company shall at all times keep available sufficient Common Stock to satisfy the exercise to the full extent still possible of all Subsisting Options.
10.6The Plan shall terminate upon the tenth anniversary of the Renewal Date or at any earlier time by the passing of a resolution of the Committee. Termination of the Plan shall be without prejudice to the subsisting rights of Participants.
10.7The rights and obligations of any individual under terms of his office or employment with any Group Company shall not be affected by his participation in the Plan or any right which he may have to participate therein, and an individual who participates therein shall waive any and all rights to compensation or damages in consequence of the termination of his office or employment for any reason whatsoever insofar as those rights arise or may arise from his ceasing to have rights under or be entitled to exercise any Option under the Plan as a result of such termination.

14

10.8Neither the grant of an Option nor any benefit which may accrue to a Participant on the exercise of an Option shall form part of that Participant’s pensionable remuneration for the purposes of any pension scheme or similar arrangement which may be operated by any Group Company.

15exhibit103

   FIRST AMENDMENT TO CREDIT AGREEMENT AND SECURITY AND PLEDGE AGREEMENT                       AND GUARANTOR JOINDER AGREEMENT          THIS  FIRST  AMENDMENT  TO  CREDIT  AGREEMENT  AND  SECURITY  AND  PLEDGE  AGREEMENT  AND  GUARANTOR  JOINDER  AGREEMENT,  dated  as  of  February  28,  2019  (this  “Amendment”), is entered into by and among HEALTH PLAN INTERMEDIARIES HOLDINGS, LLC,  a  Delaware  limited  liability  company  (the  “Borrower”),  the  Guarantors  party  hereto  and  SUNTRUST  BANK (the “Lender”).  Capitalized terms used herein and not otherwise defined shall have the meanings  ascribed thereto in the Credit Agreement (as defined below).                                      RECITALS          WHEREAS,  the  Borrower,  the  Guarantors  from  time  to  time  party  thereto  and the  Lender  are  parties to that certain Credit Agreement, dated as of July 17, 2017 (as amended, restated, supplemented or  otherwise modified from time to time, the “Credit Agreement”) and parties to that certain Security and  Pledge Agreement, dated as of July 17, 2017 (as amended, restated, supplemented or otherwise modified  from time to time, the “Security Agreement”);                WHEREAS, the Borrower has requested an increase of the Aggregate Revolving Commitments  and certain other modifications to the Credit Agreement and the Security Agreement; and         WHEREAS, the Lender has agreed to provide such requested amendments, subject to the terms  and conditions herein;          NOW, THEREFORE,  in consideration  of the  agreements  contained  herein,  and  for  other  good  and  valuable  consideration,  the  receipt  and  sufficiency  of  which  is  hereby  acknowledged,  the  parties  hereto agree as follows:                                     AGREEMENT          1.    Amendments to Credit Agreement.                (a)   The text, “WHEREAS, the Borrower has requested that the Lender provide, in its        favor,  a  $30,000,000  revolving  credit  facility;”  in  the  preliminary  statements  to  the  Credit        Agreement is hereby amended to read, “WHEREAS, the Borrower has requested that the Lender        provide, in its favor, a revolving credit facility;”.               (b)   The  following  definitions  are  hereby  added  to  Section  1.1  of  the  Credit        Agreement in the appropriate alphabetical order to read as follows:                                  “Annual Statutory Statement” shall mean the annual statutory financial statement              of the Insurance Subsidiary required to be filed with the Arkansas Department.                                        “Arkansas Department” shall mean the Arkansas Department of Insurance.                                        “Beneficial  Ownership  Certification”  shall  mean  a  certification  regarding              beneficial ownership as required by the Beneficial Ownership Regulation.                                  “Beneficial Ownership Regulation” shall mean 31 C.F.R. § 1010.230.                                  “First Amendment Effective Date” shall mean February 28, 2019.       

 

                                         “Insurance Subsidiary” shall mean Benefytt, LLC, an Arkansas limited liability              company.                                         “Quarterly  Statutory  Statement”  shall  mean  the  quarterly  statutory  financial              statement of the Insurance Subsidiary required to be filed with the Arkansas Department.                                  (c)   The  following  definitions  in  Section  1.1  of  the  Credit  Agreement  are  hereby        amended and restated in their entirety to read as follows:                                  “Aggregate  Revolving  Commitments”  shall  mean  the  Revolving  Commitments              of  the  Lender  at  any  time  outstanding.   On  the  First  Amendment  Effective  Date,  the              aggregate  amount  of  the  Aggregate  Revolving  Commitments  is  Seventy-Five  Million              Dollars ($75,000,000).                                        “Applicable Insurance Regulatory Authority” shall mean, (a) with respect to any              Insurance  Brokerage  Entity,  the  Governmental  Authority  located  in  the  jurisdiction  in              which such Insurance Brokerage Entity is domiciled or such other jurisdiction which due              to  the  nature  of  such  Insurance  Brokerage  Entity’s  activities,  has  regulatory  authority              over  such  Person,  and  any  federal  Governmental  Authority  regulating  the  insurance              industry  and/or  the  insurance  brokerage  industry  and  (b)  with  respect  to  the  Insurance              Subsidiary, the Arkansas Department and, to the extent it has regulatory authority over              the  Insurance  Subsidiary,  the  insurance  department  or  similar  Governmental  Authority              charged  with  regulating  insurance  companies  or  insurance  holding  companies  in  each              other jurisdiction in which the Insurance Subsidiary conducts business or is licensed to              conduct business.                                        “Capital  Expenditures”  shall  mean  for  any  period,  without  duplication,  (a)  the              additions to property, plant and equipment and other capital expenditures of the Parent              and its Subsidiaries (other than the Insurance Subsidiary) that are (or would be) set forth              on a consolidated statement of cash flows of the Parent for such period and (b) Capital              Lease Obligations incurred by the Parent and its Subsidiaries (other than the Insurance              Subsidiary) during such period.                                        “Consolidated  EBITDA”  shall  mean,  for  the  Parent  and  its  Subsidiaries  (other              than  the  Insurance  Subsidiary)  for  any  period,  determined  on  a  consolidated  basis,  an              amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the              extent  deducted  in  determining  Consolidated  Net  Income  for  such  period,  without              duplication, (i) Consolidated Interest Expense for such period, (ii) income tax expense for              such  period,  (iii)  depreciation  and  amortization  for  such  period,  (iv)  non-cash  charges,              expenses or losses (including, without limitation, non-cash costs and/or expenses incurred              pursuant  to  any  management  equity  plan,  stock  option  plan  or  any  other  stock              subscription or shareholder agreement but excluding (A) any regular operating non-cash              charge, loss or expense that is an accrual of a reserve for a cash expense or payment to be              made,  or  anticipated  to  be  made,  in  a  future  period  and  (B)  any  expenses  or  charges              related to accounts receivable), (v) reasonable and documented costs, fees and expenses              incurred on or before the date that is ninety (90) days after Closing Date in connection              with  the  negotiation,  execution  and  delivery  of  this  Agreement  and  the  other  Loan              Documents,  (vi)  liability  adjustments  (or minus  gains)  under  the  Tax  Receivable              Agreement, (vii) reasonable and documented out-of-pocket fees and expenses incurred in              connection  with (A)  Acquisitions  (whether  consummated  or not)  and  any  attempted or                                         2  CHAR1\1639159v5  

 

               consummated  sale,  issuance  or  disposition  of  Capital  Stock  or  Investments  permitted              hereunder, including secondary offerings of Class B Shares (as defined in the Exchange              Agreement) and (B) one-time regulatory fines or penalties, restructuring, severance and              headcount reductions; provided, that the aggregate amount of all such fees and expenses              with  respect  to  the  items  described  in  this  clause  (vii)  shall  not  exceed  twenty-five              percent (25.0%) of Consolidated EBITDA for the period of four (4) Fiscal Quarters most              recently ended (determined prior to giving effect to such add-backs) and (viii) other cash              charges  acceptable  to  the  Lender minus (c)  to  the  extent  included  in  calculating              Consolidated Net Income, any non-cash gains.                                        “Consolidated Interest Expense” shall mean, for the Parent and its Subsidiaries              (other than the Insurance Subsidiary) for any period determined on a consolidated basis,              the sum of (a) total interest expense, including without limitation the interest component              of any payments in respect of Capital Lease Obligations capitalized or expensed during              such  period (whether  or  not  actually  paid  during  such  period) plus (b)  the  net  amount              payable  (or minus  the  net  amount  receivable)  with  respect  to  Hedging  Transactions              during such period (whether or not actually paid or received during such period).                                        “Consolidated Net Income” shall mean, for the Parent and its Subsidiaries (other              than the Insurance Subsidiary) for any period determined on a consolidated basis, the net              income (or loss) of the Parent and its Subsidiaries (other than the Insurance Subsidiary)              for such period but excluding therefrom (to the extent otherwise included therein) (a) any              extraordinary gains or losses, (b) any gains attributable to write-ups of assets and (c) any              equity interest of the Parent or any Subsidiary of the Parent in the unremitted earnings of              any Person that is not a Subsidiary.                                        “Consolidated  Total  Debt”  shall  mean,  as  of  any  date,  all  Indebtedness  of  the              Parent  and  its  Subsidiaries  (other  than  the  Insurance  Subsidiary)  measured  on  a              consolidated basis as of such date, but excluding Indebtedness of the type described in              subsection (i) of the definition thereto.                      “Excluded Property” shall mean, with respect to any Loan Party, (a) any owned              or  leased  real  property,  (b)  unless  requested by  the  Lender,  any  IP  Rights  for which  a              perfected  Lien  thereon  is  not  effected  either  by  filing  of  a  Uniform  Commercial  Code              financing  statement  or  by  appropriate  evidence  of  such  Lien  being  filed  in  either  the              United  States  Copyright  Office  or  the  United  States  Patent  and  Trademark  Office,  (c)              unless  requested  by  the  Lender,  any  personal  property  (other  than  personal  property              described in clause (b) above) for which the attachment or perfection of a Lien thereon is              not  governed  by  the  Uniform  Commercial  Code,  (d)  the  Capital  Stock  of  any  Foreign              Subsidiary or the Insurance Subsidiary to the extent not required to be pledged to secure              the Obligations pursuant to Section 5.11(a), (e) any property which, subject to the terms              of  Section  7.8, is subject  to  a  Lien  of  the  type  described in  Section  7.2(d)  pursuant to              documents  which  prohibit  such  Loan  Party  from  granting  any  other  Liens  in  such              property, (f) Excluded Accounts and (g) any lease, license or other similar agreement or              any property subject to a purchase money security interest or similar arrangement to the              extent that  a  grant  of  a security  interest  therein  would  violate  or invalidate  such  lease,              license or similar agreement or purchase money security interest or similar arrangement              or  create  a  right  of  termination  in  favor  of  any  other  party  thereto  (other  than  the              Borrower or a Guarantor) after giving effect to the applicable anti-assignment provisions              of  the  Uniform  Commercial  Code  and  other  applicable  Laws,  other  than  proceeds  and              receivables  thereof,  the  assignment  of  which  is  expressly  deemed  effective  under  the                                         3  CHAR1\1639159v5  

 

               Uniform Commercial Code and other applicable Laws notwithstanding such prohibition;              provided, however, that the security interests granted under the Collateral Documents in              favor of the Lender shall attach immediately to any asset that ceases to meet any of the              criteria for Excluded Property described in any of the foregoing clauses (a) through (g)              above, including, without limitation, if the terms of the agreement(s) relating thereto that              prohibit or limit the pledge or granting of security interest therein or that would give rise              to a violation or invalidation of the agreement(s) with respect thereto, (i) are no longer in              effect  or  (ii)  have  been  waived  by  the  other  party  to  any  such  lease,  license  or  other              agreement.                                        “Guarantors”  shall  mean,  collectively,  (a)  the  Parent,  (b)  each  Subsidiary              identified as a “Guarantor” on the signature pages hereto, (c) each Person that joins as a              Guarantor  pursuant  to  Section  5.10  or  otherwise,  (d)  with  respect  to  (i)  any  Hedging              Obligations between any Loan Party (other than the Borrower) and any Lender-Related              Hedge  Provider  that  are  permitted  to  be  incurred  under  this  Agreement  and  any  Bank              Products Obligations owing by any Loan Party (other than the Borrower), the Borrower              and  (ii)  the  payment  and  performance  by  each  Specified  Loan  Party  of  its  obligations              under  its  Guaranty  with  respect  to  all  Swap  Obligations,  the  Borrower,  and  (e)  the              successors  and  permitted  assigns  of  the  foregoing.   In  no  event  shall  the  Insurance              Subsidiary be or become required to be a Guarantor hereunder.                                        “LC  Commitment”  shall  mean  that  portion  of  the  Aggregate  Revolving              Commitments that may be used by the Borrower for the issuance of Letters of Credit in              an aggregate face amount not to exceed Ten Million Dollars ($10,000,000).                                        “Lien”  shall  mean  any  mortgage,  pledge,  security  interest,  lien  (statutory  or              otherwise),  charge,  encumbrance,  hypothecation,  assignment,  deposit  arrangement,  or              other arrangement having the practical effect of any of the foregoing or any preference,              priority  or  other  security  agreement  or  preferential  arrangement  of  any  kind  or  nature              whatsoever  (including  any  conditional  sale  or  other  title  retention  agreement  and  any              capital lease having the same economic effect as any of the foregoing), but not including              any approval of any Applicable Insurance Regulatory Authority required in connection              with a change in control of the Insurance Subsidiary.                      “Revolving  Commitment  Termination  Date”  shall  mean  the  earliest  of  (a)              February  28,  2022,  (b)  the  date  on  which  the  Revolving  Commitments  are  terminated              pursuant  to  Section  2.5  and  (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).                                  (d)   Clause (f) of the definition of Permitted Acquisition in Section 1.1 of the Credit        Agreement is hereby amended and restated in its entirety to read as follows:                                  (f)   the aggregate cash and non-cash consideration (including any assumption              of  Indebtedness,  deferred  purchase  price  and  any  earn-out  obligations  (in  the  case  of              earn-out  obligations,  included  only  to  the  extent  such  earn-out  obligations  should  be              recorded  as  a  liability  on  the  financial  statements  of  the  Parent  and  its  Subsidiaries  in              accordance  with  GAAP  in  connection  with  such  Acquisition)  and  any  equity              consideration) paid by the Parent and its Subsidiaries shall not exceed for all Acquisitions              occurring in any Fiscal Year, $30,000,000.                                                       4  CHAR1\1639159v5  

 

               (e)   A  new  sentence  is  hereby  added  to  the  end  of  Section  1.4  of  the  Credit        Agreement to read as follows:                                   Any  reference  herein  to  a  merger,  transfer,  consolidation,  amalgamation,              assignment, sale or disposition, or similar term, shall be deemed to apply to a division of              or by a limited liability company, or an allocation of assets to a series of a limited liability              company  (or  the  unwinding  of  such  a  division  or  allocation),  as  if  it  were  a  merger,              transfer, consolidation, amalgamation, assignment, sale or disposition, or similar term, as              applicable, to, of or with a separate Person.  Any division of a limited liability company              shall  constitute  a  separate  Person  hereunder  (and  each  division  of  any  limited  liability              company  that  is  a  Subsidiary, joint  venture  or  any  other  like  term  shall  also constitute              such a Person or entity).                                  (f)   A new Section 1.7 is hereby added to the Credit Agreement to read as follows:                                   Section 1.7 Rules of Interpretation with Respect to the Insurance Subsidiary.               Should  an  applicable  Governmental  Authority  notify  any  Loan  Party  of  a  potentially              actionable issue or concern related to control of the Insurance Subsidiary on the basis that              the  Lender  is  potentially  a  control  person  or  determine  that  the  Lender  is  acting  as  a              control person, in each case as defined or used under applicable Laws, of the Insurance              Subsidiary due to one or more provisions of this Agreement, the parties agree to promptly              further  negotiate  in  good  faith  to  modify  this  Agreement  such  that  the  Lender  is  not              considered  by  such  Governmental  Authority  to  be  a  control  person  of  the  Insurance              Subsidiary and to effect the original intent of the parties as closely as possible in order              that the transactions contemplated hereby be consummated as originally contemplated to              the fullest extent possible.                            (g)   Section  2.18  of  the  Credit  Agreement  is  hereby  amended  and  restated  in  its        entirety to read as follows:                                  Section 2.18  Increase of the Revolving Commitments and Incremental Term              Loans.  The Borrower shall have the right from time to time after the First Amendment              Effective Date, upon at least five (5) Business Days’ prior written notice to the Lender, to              request an increase in the Aggregate Revolving Commitments or establish one or more              additional  term  loans  (each  such  term  loan,  an  “Incremental  Term  Loan”)  by  up  to              $25,000,000, provided, that:                                        (a)   no  Default  or  Event  of  Default  shall  have  occurred  and  be                    continuing  on  the  date  on  which  such  increase  in  the  Aggregate  Revolving                    Commitments or such Incremental Term Loan is to become effective;                                        (b)   such increase in the Aggregate Revolving Commitments or such                    Incremental  Term  Loan  shall  be  in  a  minimum  amount  of  $5,000,000  and  in                    integral multiples of $1,000,000 in excess thereof (or such lesser amounts as the                    Lender may agree in its discretion);                                                    (c)   the  Lender  shall  have  received  all  documents  (including                    resolutions  of  the  board  of  directors  (or  similar  governing  body)  of  the  Loan                    Parties  and  opinions  of  counsel to  the  Loan  Parties) it  may  reasonably  request                    relating  to  the  corporate  or  other  necessary  authority  for  such  increase  in  the                    Aggregate Revolving Commitments or establishment of such Incremental Term                                         5  CHAR1\1639159v5  

 

                     Loan and the validity of such increase in the Aggregate Revolving Commitments                    or establishment of such Incremental Term Loan, and any other matters relevant                    thereto, all in form and substance reasonably satisfactory to the Lender;                                        (d)   the  Lender  shall  have  received  a  Pro  Forma  Compliance                    Certificate  in  form  and  substance  reasonably  satisfactory  to  the  Lender                    demonstrating  that,  after  giving  effect  to  such  increase  in  the  Aggregate                    Revolving Commitments (assuming, for purposes of such demonstration, that the                    Revolving Commitment, as increased, is fully drawn) or such Incremental Term                    Loan, on a Pro Forma Basis, the Parent shall be in compliance with the financial                    covenants set forth in Article VI for the period of four (4) Fiscal Quarters most                    recently ended prior to the date of determination for which financial statements                    were delivered under Section 5.1(a) or (b);                                        (e)   any  increase  in  the  Aggregate  Revolving  Commitments  under                    this  Section  2.18  shall  have  terms  identical  to  those  for  the  Revolving  Loans                    under this Agreement, except for fees payable to the Lender in connection with                    such increase in the Aggregate Revolving Commitments;                                        (f)   amortization,  the  Maturity  Date,  pricing  and  use  of  proceeds                    applicable to any Incremental Term Loan shall be as set forth in the definitive                    documentation  therefor;  provided  that  any  such  Incremental  Term  Loan  shall                    have  a  Maturity  Date  that  is  coterminous  with  or  later  than  the  Revolving                    Commitment Termination Date;                                         (g)   all  conditions  precedent  to  the  making  of  a  Loan  and/or  the                    issuance of a Letter of Credit set forth in Section 3.2 shall have been satisfied at                    the time of any increase in the Aggregate Revolving Commitments (even if there                    is no Borrowing thereunder on such date); and                                        (h)   the  Lender  (or  any  successor  thereto)  shall  not  have  any                    obligation  to  provide  any  increase  in  its  Revolving  Commitment  or  any                    Incremental Term Loan Commitment, and any decision by the Lender to provide                    any increase in its Revolving Commitment or any Incremental Term Loan shall                    be made in its sole discretion.                            (h)   A  new  sentence  is  hereby  added  to  the  end  of  Section  4.13  of  the  Credit        Agreement to read as follows:                                  As  of  the  First  Amendment  Effective  Date,  the  information  included  in  the              Beneficial Ownership Certification is true and correct in all respects.                                  (i)   Section  4.15  of  the  Credit  Agreement  is  hereby  amended  and  restated  in  its        entirety to read as follows:                                  Section 4.15  Subsidiaries.   Schedule  4.15  sets  forth  (a)  the  name  of,  the              ownership interest of each Loan Party in, the jurisdiction of incorporation or organization              of, and the type of, each Subsidiary and identifies each Subsidiary that is a Loan Party, in              each case as of the First Amendment Effective Date and (b) the authorized Capital Stock              of the Parent and each of its Subsidiaries as of the First Amendment Effective Date.  All              issued and outstanding Capital Stock of the Parent and each of its Subsidiaries  is duly                                         6  CHAR1\1639159v5  

 

               authorized and validly issued, fully paid, non-assessable, as applicable, and, solely with              respect  to  the  Subsidiaries,  free  and  clear  of  all  Liens  other  than  those  in  favor  of  the              Lender, for the benefit of the holders of the Obligations.  All such securities were issued              in  compliance  in  all  material  respects  with  all  applicable  state  and  federal  Laws              concerning the issuance of securities.  As of the First Amendment Effective Date, all of              the issued and outstanding Capital Stock of the Subsidiaries is owned by the Persons and              in the amounts set forth on Schedule 4.15.  Except as set forth on Schedule 4.15, there are              no pre-emptive or other outstanding rights, options, warrants, conversion rights or other              similar agreements or understandings for the purchase or acquisition of any Capital Stock              of any of the Subsidiaries of the Parent.                (j)   The second, third and fourth sentences of Section 4.17 of the Credit Agreement        are hereby amended and restated in their entireties to read as follows:                                  Set  forth  on  Schedule  4.17-2  is  the  chief  executive  office,  U.S.  tax  payer              identification number and organizational identification number of each Loan Party as of              the First Amendment Effective Date.  The exact legal name and state of organization of              each Loan Party as of the First Amendment Effective Date is as set forth on the signature              pages hereto.  Except as set forth on Schedule 4.17-3, no Loan Party has during the five              years  preceding  the  First  Amendment  Effective  Date  (i)  changed  its  legal  name,  (ii)              changed  its  state  of  formation,  or  (iii)  been  party  to  a  merger,  consolidation  or  other              change in structure.                            (k)   Clauses  (c),  (d)  and  (e)  of  Section  5.1  of  the  Credit  Agreement  are  hereby,        respectively, amended and restated in their entireties to read as follows:                                   (c)   concurrently with the delivery of the financial statements referred to in              clauses  (a)  and  (b)  above,  a  Compliance  Certificate  signed  by  the  principal  executive              officer  or the principal  financial officer  of  the  Parent  (i)  certifying  as  to  whether there              exists a Default or Event of Default on the date of such certificate, and if a Default or an              Event of Default then exists, specifying the details thereof and the action that the Loan              Parties have taken or propose to take with respect to such Default or Event of Default, (ii)              setting forth in reasonable detail calculations demonstrating compliance with the financial              covenants  set  forth  in  Article  VI,  (iii)  certifying  that  as  of  the  date  thereof,  all              representations and warranties of each Loan Party set forth in the Loan Documents are              true and correct in all material respects (other than those representations and warranties              that are expressly qualified by concepts of materiality or a Material Adverse Effect, in              which  case  such  representations  and  warranties  are  true  and  correct  in  all  respects),              except  to  the  extent  that  such  representations  and  warranties  specifically  refer  to  an              earlier  date, in  which case  they  are  true  and  correct in  all  material  respects  as of  such              earlier date (other than those representations and warranties that are expressly qualified              by  concepts  of  materiality  or  a  Material  Adverse  Effect,  in  which  case  such              representations and warranties shall be true and correct in all respects as of such earlier              date), (iv) stating whether any change in GAAP has occurred since December 31, 2016,              and  if  any  change  has  occurred,  specifying  the  effect  of  such  change  on  the  financial              statements accompanying such Compliance Certificate (provided, that any such statement              contained in the Annual Report on Form 10-K of the Parent or the Quarterly Report on              Form 10-Q of the Parent filed with the SEC shall be deemed to satisfy the requirements              of this clause (iv)), (v) specifying any change in the identity of the Subsidiaries as of the              end of such Fiscal Year or Fiscal Quarter from the Subsidiaries identified to the Lender              on the Closing Date or as of the most recent Fiscal Year or Fiscal Quarter, as the case                                         7  CHAR1\1639159v5  

 

               may be and (vi) setting forth Investments made by any Loan Party or Subsidiary (other              than  the  Insurance  Subsidiary)  in  the  Insurance  Subsidiary  that  is  eliminated  upon              consolidation in accordance with GAAP;                                        (d)   (i) as soon as available and in any event within 90 days after the end of              the  Fiscal  Year,  a  preliminary  pro  forma  budget  for  the  succeeding  Fiscal  Year,              containing an income statement, balance sheet and statement of cash flow of the Parent              and  its  Subsidiaries  on  a  quarterly  basis  for  such  succeeding  Fiscal  Year  (“Pro  Forma              Budget”),  as  well  as  a  preliminary  pro  forma  budget  for  the  succeeding  Fiscal  Year,              containing combined income statements, balance sheets and statements of cash flow of              the Parent and its Subsidiaries but excluding the Insurance Subsidiary on a quarterly basis              for  such  succeeding  Fiscal  Year,  and  (ii)  promptly  after  it  has  been  approved  by  the              Parent’s board of directors, the final (as approved by the Parent’s board of directors) Pro              Forma Budget;                                        (e)   (i)  promptly  after  the  same  become  publicly  available,  copies  of  all              periodic and other reports, proxy statements and other materials filed with the SEC, or              with  any  national  securities  exchange,  or  distributed  by  the  Parent  to  its  shareholders              generally, as the case may be, and (ii) promptly after the same are filed with the Arkansas              Department,  copies  of  the  Insurance  Subsidiary’s  Quarterly  Statutory  Statements  and              Annual Statutory Statement; and                            (l)   Section 5.2 of the Credit Agreement is hereby amended by (i) deleting the “and”        at the end of clause (g), (ii) replacing the “.” at the end of clause (h) with “; and” and (iii) adding        a new clause (i) to read as follows:                      (i)   any  change  in  the  information  provided  in  the  Beneficial  Ownership              Certification that would result in a change to the list of beneficial owners identified in              such certification.                (m)   Section  5.10  of  the  Credit  Agreement  is  hereby  amended  and  restated  in  its        entirety to read as follows:                                  If any Subsidiary is acquired or formed after the Closing Date, promptly notify              the  Lender  thereof  and,  within  ten  (10)  Business  Days  after  any  such  Subsidiary  is              acquired or formed, if such Subsidiary is a Domestic Subsidiary (other than the Insurance              Subsidiary),  cause  such  Domestic  Subsidiary  (other  than  the  Insurance  Subsidiary)  to              become a Guarantor.  A Subsidiary (other than the Insurance Subsidiary) shall become an              additional  Guarantor  by  executing  and  delivering  to  the  Lender  a  Guarantor  Joinder              Agreement in form and substance reasonably satisfactory to the Lender, accompanied by              (a) all  other  Loan  Documents  related  thereto,  (b) certified  copies  of  Organization              Documents,  appropriate  authorizing  resolutions  of  the  board  of  directors  of  such              Subsidiaries, and opinions of counsel comparable to those delivered pursuant to Section              3.1(c), and (c) such other documents as the Lender may reasonably request.                            (n)   Section 5.11(a)(i) of the Credit Agreement is hereby amended and restated in its        entirety to read as follows:                                   (i)  100%  of  the  issued  and  outstanding  Capital  Stock  of  each  Domestic              Subsidiary (other than the Insurance Subsidiary) of any Loan Party and                                                       8  CHAR1\1639159v5  

 

               (o)   Section 7.4 of the Credit Agreement is hereby amended by (i) deleting the “and”        at the end of clause (g), (ii) renumbering clause (h) to be clause (j) and (iii) inserting new clauses        (h) and (i), respectively, to read as follows:                                   (h)   portfolio Investments made by the Insurance Subsidiary in the ordinary              course of business that are consistent with its investment policy, as such policy may be              established, amended or modified from time to time by the Insurance Subsidiary;                                        (i)   Investments  in  the  Insurance  Subsidiary  which  in  the  aggregate  do  not              exceed $2,500,000 at any time outstanding, calculating the amount of such Investment as              the amount actually invested less any readily identifiable returns in the form of cash or              Cash Equivalents on such Investment; and                            (p)   The  phrase  “Make  any  Asset  Sale”  in  Section  7.6  of  the  Credit  Agreement  is        amended  to  read  “Make  any  Asset  Sale  (other  than  any  Asset  Sale  made  by  the  Insurance        Subsidiary in the ordinary course of business)”.                             (q)   Section  7.12(b)  of the  Credit  Agreement  is  hereby  amended  and restated in its        entirety to read as follows:                                   (b)  any  Material  Agreements,  except  in  any  manner  that  would  not  have  an              adverse effect on the Lender, the Parent or any of its Subsidiaries; provided, however,              that the Loan Parties and their Subsidiaries shall be permitted to amend, modify or waive              any provision of a Material Agreement to the extent expressly required to do so  under              applicable Law or in writing by any Applicable Insurance Regulatory Authority, in each              case,  with  prompt  written  notice  of  such  amendment,  termination  or  waiver  to  be              provided to the Lender.                            (r)   Section  7.19(i)  of  the  Credit  Agreement  is  hereby  amended  and  restated  in  its        entirety to read as follows:                    (i) accepting risk for healthcare services, other than by and through the Insurance              Subsidiary;                            (s)   The first sentence of Section 8.1 is hereby amended and restated in its entirety to        read as follows:                                  If  any  of  the  following  events  (each  an  “Event  of  Default”)  shall  occur,  other              than with respect to the Insurance Subsidiary:                            (t)   Section  10.14  of  the  Credit  Agreement  is  hereby  amended  and  restated  in  its        entirety to read as follows:                      Section 10.14  Patriot Act.  The Lender hereby notifies the Loan Parties that, (a)              pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record              information  that  identifies  each  Loan  Party,  which  information  includes  the  name  and              address of such Loan Party and other information that will allow the Lender to identify              such  Loan  Party  in  accordance  with  the  Patriot  Act  and  (b)  pursuant  to  the  Beneficial              Ownership Regulation, it is required to obtain a Beneficial Ownership Certificate.                                                              9  CHAR1\1639159v5  

 

               (u)   Schedules 4.15, 4.17-2 and 4.17-3 to the Credit Agreement are hereby amended        and restated in their entirety to read as set forth on Schedules 4.15, 4.17-2 and 4.17-3 attached        hereto.                      2.    Amendments to Security Agreement.                (a)   Clause  (i)  of  the  definition  of  “Pledged  Equity”  in  Section  1  of  the  Security        Agreement is hereby amended and restated in its entirety to read as follows:                      (i) one hundred percent (100%) of the issued and outstanding Capital Stock of              each Domestic Subsidiary (other than the Insurance Subsidiary) and               (b)   The second paragraph of Section 2 of the Security Agreement is hereby amended        and restated in its entirety to read as follows:                      Notwithstanding  anything  to  the  contrary  contained  herein,  (A)  the  security              interests granted under this Agreement shall not extend to any Excluded Property and (B)              the Lender acknowledges and agrees that, solely to the extent required by any applicable              Law or one or more Governmental Authorities or any Applicable Insurance Regulatory              Authority, the ownership of the Capital Stock of the Insurance Subsidiary (the “Specified              Shares”) and voting rights in such Specified Shares, shall remain with the Parent even if              an  Event  of  Default  has  occurred  and  is  continuing,  unless  (i)  the  applicable              Governmental Authority or Applicable Insurance Regulatory Authority shall have given              its prior consent (solely to the extent such consent is required by applicable Law) to the              change  in  ownership  of  such  Specified  Shares  by  transfer  to  an  acquirer  whether  by              purchase  at  a  public  or  private  sale  of  such  Specified  Shares  or  by  merger  or  other              transfer effecting a change in ownership in such Specified Shares, or to the exercise of              such  rights  to effect  a  change  in  ownership  of such Specified  Shares  by  the  Lender,  a              receiver,  trustee,  conservator  or  other  agent  or  designee  duly  appointed  in  accordance              with applicable Law or (ii) the transferee of such Specified Shares is approved (solely to              the extent such approval is required by applicable Law) as the owner of such Specified              Shares  pursuant  to  applicable  rules  and  regulations  of  the  applicable  Governmental              Authority  or  Applicable  Insurance  Regulatory  Authority.  To  enforce  the  provisions  of              this subsection, the Loan Parties acknowledge and agree that the Lender may request, and              the Loan Parties hereby authorize and consent to the Lender requesting, the appointment              of  a  receiver  from  any  court  of  competent  jurisdiction.  To  the  extent  permitted  by              applicable Law, the Loan Parties acknowledge and agree that the Lender may instruct,              and the Loan Parties authorize and consent to the Lender providing such instruction to,              such  receiver  to  seek  from  the  applicable  Governmental  Authority  or  Applicable              Insurance Regulatory Authority a transfer of any such Specified Shares for the purpose of              seeking a purchaser or other transferee to whom it will ultimately be transferred. Upon              the  occurrence  and  during  the  continuance  of  an  Event  of  Default,  at  the  Lender’s              request, the Parent shall promptly use its commercially reasonable efforts to cooperate in              obtaining  the  consent  or  approval  of  any  applicable  Governmental  Authority  or              Applicable  Insurance  Regulatory  Authority,  if  required,  for  any  action  or  transactions              contemplated hereby, including, without limitation, the preparation, execution and filing              with such Governmental Authority or Applicable Insurance Regulatory Authority of the              assignor’s or transferor’s portion of any application for consent or approval to the transfer              of  the  Specified  Shares  necessary  or  appropriate  under  the  applicable  Governmental              Authority  or  Applicable  Insurance  Regulatory  Authority’s  rules  and  regulations  for              approval of the transfer or assignment of any portion of the Specified Shares.                                         10  CHAR1\1639159v5  

 

               (c)   Section  3(f)  of  the  Security  Agreement  is  hereby  amended  and  restated  in  its        entirety to read as follows:                     (f)   No Other Capital Stock, Instruments, Etc.  As of the First Amendment              Effective Date, such Obligor owns all certificated Capital Stock in any Subsidiary, if any,              that  is  required  to  be  pledged  and  delivered  to  the  Lender  hereunder  other  than  as  set              forth on Schedule 1 hereto, and all such certificated Capital Stock, if any, shall have been              delivered to the Lender.               (d)   Section  3(j)  of  the  Security  Agreement  is  hereby  amended  and  restated  in  its        entirety to read as follows:                     (j)   Commercial Tort Claims.  As of the First Amendment Effective Date, such              Obligor  has  no  Commercial  Tort  Claims  seeking  damages  in  excess  of  $10,000  in  any              individual instance or $20,000 in the aggregate when taken together with all Commercial              Tort Claims of all of the other Obligors, other than as set forth on Schedule 2 hereto.               (e)   Section  3(k)  of  the  Security  Agreement  is  hereby  amended  and  restated  in  its        entirety to read as follows:                     (k)   Copyrights, Patents and Trademarks.                           (i)   Schedule  3  hereto  includes  all  registrations  or  applications  for                    Copyrights,  Patents  and  Trademarks  and  all  material  Copyright  Licenses,  Patent                    Licenses and Trademark Licenses owned by such Obligor in its own name, or to                    which any Obligor is a party, as of the First Amendment Effective Date.                           (ii)  All  registrations  or  letters  pertaining  to  Copyrights,  Patents  and                    Trademarks  have  been  duly  and  properly  filed,  and  to  any  Obligor’s  knowledge,                    each  Copyright,  Patent  and  Trademark  of  such  Obligor  is  valid,  subsisting,                    unexpired, enforceable and has not been abandoned.                           (iii)  Except as set forth on Schedule 3 hereto, none of such Copyrights,                    Patents and Trademarks is the subject of any licensing or franchise agreement as of                    the First Amendment Effective Date.                           (iv)  Except  as  would  not  reasonably  be  expected  to  have  a  Material                    Adverse Effect, to such Obligor’s knowledge, no holding, decision or judgment has                    been rendered by any Governmental Authority that would limit, cancel or question                    the validity of such Copyright, Patent or Trademark.                           (v)   No  action  or  proceeding  is  pending,  seeking  to  limit,  cancel  or                    question the validity of any Copyright, Patent or Trademark that would reasonably                    be expected to have a Material Adverse Effect.               (f)   Schedules 1, 2 and 3 to the Security Agreement are hereby amended and restated        in their entirety to read as set forth on Schedules 1, 2 and 3 attached hereto.                      3.    Effectiveness;  Conditions  Precedent.   This  Amendment  shall  be  effective  upon  satisfaction  (or  waiver  in  accordance  with  Section  10.2  of  the  Credit  Agreement)  of  the  following  conditions precedent in each case in form and substance satisfactory to the Lender:                                         11  CHAR1\1639159v5  

 

                       (a)   Amendment.  Receipt by the Lender of a counterpart of this Amendment and the        other  Loan  Documents  signed  by  or  on  behalf  of  each  party  hereto  or  written  evidence        satisfactory to the Lender (which may include facsimile transmission, or a .pdf copy sent by e-       mail, of such signed signature page) that such party has signed a counterpart of this Amendment.                (b)   Organization  Documents;  Resolutions  and  Certificates.   Receipt  by  the  Lender        of:                     (i)   a certificate of the Secretary or Assistant Secretary of each Loan Party,              (x) (A) attaching and certifying copies of such Loan Party’s Organization Documents or              (B)  certifying  that  no  changes,  amendments  or  other  modifications  have  been  made  to              such Loan Party’s Organization Documents since the Closing Date and (y) attaching and              certifying  copies  of  resolutions  of  such  Loan  Party’s  board  of  directors  (or  equivalent              governing  body),  authorizing  the  execution,  delivery  and  performance  of  the  Loan              Documents to which it is a party and certifying the name, title and true signature of each              officer of such Loan Party executing the Loan Documents to which it is a party; and                     (ii)  certificates of good standing or existence, as may be available from the              Secretary of State of the jurisdiction of organization of such Loan Party.               (c)   Opinions  of  Counsel.   Receipt  by  the  Lender  of  favorable  written  opinions  of        counsel to  the  Loan  Parties  addressed  to the  Lender,  and  covering  such  matters  relating  to  the        Loan Parties, this Amendment and the transactions contemplated herein in form and substance        satisfactory to the Lender.               (d)   Officer’s  Closing  Certificate.   Receipt by  the  Lender  of  a certificate,  dated  the        First Amendment Effective Date and signed by the chief financial officer or other Responsible        Officer of the Parent, certifying that after giving effect to the funding of Revolving Loans (if any)        on  the  First  Amendment  Effective  Date  and  the  consummation  of  the  other  transactions        contemplated herein, (i) the Loan Parties are Solvent on a consolidated basis, (ii) the conditions        specified  in  Section  2(e)  are  satisfied  as  of  the  First  Amendment  Effective  Date,  (iii)  all        representations and warranties of each Loan Party set forth in the Loan Documents are true and        correct in all material respects (other than those representations and warranties that are expressly        qualified  by  concepts  of  materiality  or  a  Material  Adverse  Effect,  in  which  case  such        representations and warranties are true and correct in all respects), except to the extent that such        representations and warranties specifically refer to an earlier date, in which case they are true and        correct  in  all  material  respects  as  of  such  earlier  date  (other  than  those  representations  and        warranties that are expressly qualified by concepts of materiality or a Material Adverse Effect, in        which  case  such  representations  and  warranties  are  true  and  correct  in  all  respects  as  of  such        earlier date) and (iv) no Default or Event of Default exists.               (e)   Required  Consents  and  Approvals.   The  Loan  Parties  shall  have  received  all        consents  (including  any  necessary  governmental  consents),  approvals,  authorizations,        registrations  and  filings  and  orders  required  or  advisable  to  be  made  or  obtained  under  any        applicable Law, the Organization Documents of any Loan Party or by any Contractual Obligation        of  any  Loan  Party,  in  connection  with  the  execution,  delivery,  performance,  validity  and        enforceability  of  this  Amendment  or  any  of  the  transactions  contemplated  hereby,  and  such        consents,  approvals,  authorizations,  registrations,  filings  and  orders  shall  be  in  full  force  and        effect and all applicable waiting periods shall have expired, and no investigation or inquiry by                                          12  CHAR1\1639159v5  

 

         any Governmental Authority regarding this Amendment or any other transaction being financed        with the proceeds of the Loan Documents shall be ongoing.               (f)   Insurance.  Receipt by the Lender of certificates of insurance issued on behalf of        insurers of the Loan Parties, describing in reasonable detail the types and amounts of insurance        (property and liability) maintained by the Loan Parties, and endorsements naming the Lender as        additional insured on liability policies and lender’s loss payee on property and casualty policies.               (g)   Personal  Property  Collateral.   Receipt  by  the  Lender,  in  form  and  substance        satisfactory to the Lender of:                     (i)   searches  of  Uniform  Commercial  Code  filings  in  the  jurisdiction  of              formation of each Loan Party;                     (ii)  Uniform  Commercial  Code  financing  statements  for  each  appropriate              jurisdiction as is necessary, in the Lender’s reasonable discretion, to perfect the Lender’s              security interest in the Collateral;                      (iii) all  certificates  evidencing any  certificated  Capital  Stock  pledged  to  the              Lender pursuant to the Security Agreement or any other pledge agreement, together with              duly executed in blank, undated stock powers attached thereto (unless, with respect to the              pledged  Capital  Stock  of  any  Foreign  Subsidiary,  such  stock  powers  are  deemed              unnecessary by the Lender in its reasonable discretion under the applicable Law of the              jurisdiction of organization of such Person);                     (iv)  searches  of  ownership  of,  and  Liens  on,  United  States  registered              intellectual property owned by each Loan Party in the appropriate governmental offices;              and                     (v)   duly executed notices of grant of security interest in the form required by              any security agreement as are necessary, in the Lender’s reasonable discretion, to perfect              the Lender’s security interest in the United States registered intellectual property owned              by the Loan Parties (if and to the extent perfection may be achieved in the United States              Patent and Trademark Office or the United States Copyright Office by such filings).               (h)   KYC Information.                       (i)   The  provision  by  the  Loan  Parties  of  all  documentation  and  other              information  that  the  Lender  requests  in  order  to  comply  with  its  ongoing  obligations              under applicable “know your customer” and anti-money laundering rules and regulations,              including the Patriot Act; and                      (ii)  if  the  Borrower  qualifies  as  a  “legal  entity  customer”  under  the              Beneficial Ownership Regulation, the Loan Parties shall provide a Beneficial Ownership              Certification in relation to the Borrower.               (i)   Execution  Affidavits.   Receipt  by  the  Lender  of  execution  affidavits  or  other        evidence  as  the  Lender  may  reasonably  request  in  order  to  establish  that  either  (i)  this        Amendment has been executed by the Loan Parties outside of the State of Florida and delivered        to the Lender (or its agent) outside of the State of Florida or (ii) all applicable documentary taxes        have been paid.                                         13  CHAR1\1639159v5  

 

               (j)   Fees  and  Expenses.   Receipt  by  the  Lender  of  all  fees,  expenses  and  other        amounts due and payable on or prior to the First Amendment Effective Date, including without        limitation  reimbursement  or  payment  of  all  out-of-pocket  expenses  of  the  Lender  (including        reasonable fees, charges and disbursements of counsel to the Lender) required to be reimbursed        or paid by the Borrower hereunder, under any other Loan Document and under any agreement        with the Lender.         4.    Amendment is a “Loan Document”.  This Amendment shall be deemed to be, and is, a  Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan  Documents (including, without limitation, all such references in the representations and warranties in the  Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment.          5.    Representations  and  Warranties;  No  Default.   The  Borrower  hereby  represents  and  warrants to the Lender that, immediately after giving effect to this Amendment, (a) all representations and  warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects  (other than those representations and warranties that are expressly qualified by concepts of materiality or  a Material Adverse Effect, in which case such representations and warranties are true and correct in all  respects), except to the extent that such representations and warranties specifically refer to an earlier date,  in which case they are true and correct in all material respects as of such earlier date (other than those  representations  and  warranties  that  are  expressly  qualified  by  concepts  of  materiality  or  a  Material  Adverse Effect, in which case such representations and warranties are true and correct in all respects as of  such earlier date) and (b) no Default or Event of Default exists.          6.    Reaffirmation of Obligations.  Each Loan Party (a) acknowledges and consents to all of the  terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents (as  amended  by  this  Amendment)  and  (c)  agrees  that  this  Amendment  and  all  documents,  agreements  and  instruments executed in connection with this Amendment do not operate to reduce or discharge such Loan  Party’s obligations under the Loan Documents (except to the extent such obligations are modified pursuant to  this Amendment).          7.    Reaffirmation of Security Interests.  Each Loan Party (a) affirms that each of the Liens  granted in or pursuant to the Loan Documents is valid and subsisting and (b) agrees that this Amendment  and all documents, agreements and instruments executed in connection with this Amendment do not in  any  manner  impair  or  otherwise  adversely  affect  any  of  the  Liens  granted  in  or  pursuant  to  the  Loan  Documents.          8.    No  Other  Changes.   Except  as  modified  hereby,  all of  the terms  and  provisions  of  the  Loan Documents shall remain in full force and effect.           9.    Counterparts; Delivery.  This Amendment may be executed by one or more of the parties  to  this  Amendment  on  any  number  of  separate  counterparts  (including  by  facsimile),  and  all  of  said  counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an  executed counterpart of a signature page of this Amendment by facsimile transmission or by any other  electronic  imaging  means  (including  .pdf),  shall  be  effective  as  delivery  of  a  manually  executed  counterpart of this Amendment.          10.   Fees and Expenses.  The Borrower  agrees to pay all reasonable out-of-pocket fees and  expenses of the Lender in connection with the preparation, execution and delivery of this Amendment,  including without limitation the reasonable fees and expenses of Moore & Van Allen PLLC, counsel to  the Lender.                                           14  CHAR1\1639159v5  

 

         11.   Governing  Law.   THIS  AMENDMENT  AND  ANY  CLAIMS,  CONTROVERSY,  DISPUTE  OR  CAUSE  OF  ACTION  (WHETHER  IN  CONTRACT  OR  TORT  OR  OTHERWISE)  BASED  UPON,  ARISING  OUT  OF  OR  RELATING  TO  THIS  AMENDMENT  AND  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  SHALL  BE  CONSTRUED  IN  ACCORDANCE  WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.                12.   Subsidiary Guarantor Joinder.  The Loan Parties are required by Sections 5.10 and 5.11 of  the Credit Agreement to (i) cause each of BIMSYM-HPIP, LLC, a Delaware limited liability company, and  Health  Insurance  Innovations  Holdings,  Inc.,  a  Delaware  corporation  (each,  a  “New  Subsidiary”  and,  collectively, the “New Subsidiaries”), to become a “Guarantor” under the Credit Agreement and (ii) pledge  the Capital Stock of each New Subsidiary directly owned by any Loan Party to the Lender to secure the  Obligations.   Accordingly,  each  New  Subsidiary  and  the  Loan  Parties  hereby  agree  as  follows  with  the  Lender:                (a)   Each  New  Subsidiary  hereby  acknowledges,  agrees  and  confirms  that,  by  its        execution  of  this  Agreement,  such  New  Subsidiary  will  be  deemed  to  be  a  party  to the  Credit        Agreement and a “Guarantor” for all purposes of the Credit Agreement and shall have all of the        obligations  of  a  Guarantor  thereunder  as  if  it  had  executed  the  Credit  Agreement.   Each  New        Subsidiary  hereby  ratifies,  as  of  the  date  hereof,  and  agrees  to  be  bound  by,  all  of  the  terms,        provisions  and  conditions  applicable  to  the  Guarantors  contained  in  the  Credit  Agreement.         Without limiting the generality of the foregoing terms of this Section 12(a), each New Subsidiary        hereby, jointly and severally together with the other Guarantors, guarantees to the Lender, each        Affiliate of the Lender that enters into Bank Products or Hedging Transactions with the Borrower        or  any  Subsidiary,  and  each  other  holder  of  the  Obligations,  as  provided  in  Article  IX  of  the        Credit Agreement, as primary obligor and not as surety, the prompt payment of the Obligations in        full  when  due  (whether  at  stated  maturity,  as  a  mandatory  prepayment,  by  acceleration  or        otherwise) strictly in accordance with the terms thereof.                            (b)   Each  New  Subsidiary  hereby  acknowledges,  agrees  and  confirms  that,  by  its        execution of this Agreement, such New Subsidiary will be deemed to be a party to the Security        Agreement and an “Obligor” for all purposes of the Security Agreement, and shall have all the        obligations of an Obligor thereunder as if it  had executed the Security Agreement.  Each  New        Subsidiary  hereby  ratifies,  as  of  the  date  hereof,  and  agrees  to  be  bound  by,  all  of  the  terms,        provisions and conditions contained in the Security Agreement.  Without limiting the generality        of the foregoing terms of this Section 12(b), to secure the prompt payment and performance in        full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the        Secured  Obligations  (here  and  hereinafter  as  defined  in  the  Security  Agreement),  each  New        Subsidiary hereby grants to the Lender, for the benefit of the holders of the Secured Obligations,        a continuing security interest in, and a right of set off against any and all right, title and interest of        such New Subsidiary in and to the Collateral (as such term is defined in the Security Agreement)        of such New Subsidiary.                              (c)   Each New Subsidiary hereby represents and warrants to the Lender that:                      (i)   As  of  the  date  hereof,  no  New  Subsidiary  owns  or  leases  any  real              property located in the United States.                      (ii)  Set forth on Schedule 4-17-2 is the chief executive office, U.S. tax payer              identification number and organizational identification number of each New Subsidiary as of              the date hereof.                                                             15  CHAR1\1639159v5  

 

                     (iii)  The exact legal name and state of organization of each New Subsidiary is as              set forth on the signature pages hereto.                                        (iv)  Set  forth  on  Schedule  4  is  each  location  where  assets  of  any  New              Subsidiary are located as of the date hereof.                                        (v)   Except as set forth on Schedule 4-17-3, no New Subsidiary has during the              five  years preceding  the date  hereof  (A) changed its  legal  name, (B)  changed  its  state of              formation, or (C) been party to a merger, consolidation or other change in structure.                                        (vi)  Set  forth  on  Schedule  3  is  a  list  of  all  IP  Rights  owned  by  any  New              Subsidiary as of the date hereof.                            (vii)  As  of  the  date  hereof,  no  New  Subsidiary  has  commercial  tort  claims              involving a claim for damages in excess of $10,000 in any individual instance or $50,000              in the aggregate when taken together with all commercial tort claims of any of the Loan              Parties not subject to a Lien in favor of the Lender, other than as set forth on Schedule 2.                            (viii)  Set forth on  Schedule 4.15 is  each  Subsidiary  of  each  New  Subsidiary,              together with (A) jurisdiction of formation, (B) number of shares of each class of Capital              Stock outstanding, (C) if any, the certificate number(s) of the certificates evidencing such              Capital Stock and number and percentage of outstanding shares of each class owned by              such New Subsidiary (directly or indirectly) of such Capital Stock and (D) number and              effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase              and all other similar rights with respect thereto.                            (d)   The  address  of  each  New  Subsidiary  for  purposes  of  all  notices  and  other        communications  is  the  address  set  forth  for  any  Loan  Party  in  Section  10.1  of  the  Credit        Agreement.              (e)   Each New Subsidiary hereby waives acceptance by the Lender of the guaranty by        the New Subsidiaries under Article IX of the Credit Agreement.              (f)   All  of  the  parties  hereto,  including  the  Lender,  hereby  acknowledge  and  agree        that,  notwithstanding  Section  5.10  of  the  Credit  Agreement  and  the  definition  of  the  term        “Guarantor Joinder Agreement” set forth in the Credit Agreement, (i) the provisions of this Section        12 shall be deemed a “Guarantor Joinder Agreement” for all purposes of the Credit Agreement and        the  other  Loan  Documents  and  (ii)  the  execution  and  delivery  of  this  Amendment  by  the  New        Subsidiaries shall fulfill the obligations of the Loan Parties under the Credit Agreement and the other        Loan Documents to deliver a Guarantor Joinder Agreement in respect of the New Subsidiaries.        13.   Consent to Dissolutions.  The Borrower has informed the Lender that it intends to dissolve  (the “Guarantor Dissolutions”) each of Secured Software Solutions LLC, a Florida limited liability company,  Sunrise Health Plans, LLC, a Florida limited liability company, and Sunrise Group Marketing LLC, a Florida  limited liability company (each, a “Disposed Guarantor” and, collectively, the “Disposed Guarantors”).  The  Borrower  has  requested  that  the  Lender  consent  to  the  Guarantor  Dissolutions,  notwithstanding  the  restrictions in Section 7.3 of the Credit Agreement which prohibits a Guarantor from liquating or dissolving.   So long as (i) the Loan Parties shall have caused each Disposed Guarantor to transfer all or substantially all of  its assets to another Loan Party prior to such dissolution and (ii) such dissolution shall have occurred within  one hundred twenty (120) days of the First Amendment Effective Date, the Lender hereby (a) agrees and                                         16  CHAR1\1639159v5  

 

   consents  to  the  Guarantor  Dissolutions,  (b)  agrees  that  immediately  prior  to  the  effectiveness  of  each  Guarantor Dissolution, the applicable Disposed Guarantor shall, promptly upon written request by the Loan  Parties to the Lender be released from all of its obligations under the Credit Agreement and the other Loan  Documents as a Guarantor, all Liens granted by the applicable Disposed Guarantor shall be terminated and  the applicable Disposed Guarantor shall cease to be a Loan Party under the Loan Documents, and (c) agrees  to deliver promptly such releases and other instruments, documents and agreements as may be reasonably  requested by the Borrower to evidence or give effect to release of the applicable Disposed Guarantor as a  Loan Party.  The consent is limited solely to the Guarantor Dissolutions and the matters contained in this  Section 13.                              [SIGNATURE PAGES FOLLOW]                                          17  CHAR1\1639159v5  

 

 

 

 

 

 

 

 

 

 

 

                                           SCHEDULE 4.15                                      SUBSIDIARIES  Legal Entity*     Tax ID   Form       State of     Ownership       Authorized Capital                                        Incorporation                Stock  Health Plan       46-      Limited    DE           As of December  Unlimited Series A  Intermediaries    0580972  Liability               31, 2018:       Membership Interests;  Holdings, LLC              Company                 14,425,824 Series 20,000,000 Series B                                                     A Membership    Membership Interests                                                     Interests: Parent;                                                     26,216 Series B                                                     Membership                                                     Interests: Health                                                     Plan Intermediaries                                                     Sub, Inc.;                                                                   2,515,451 Series B                                                     Membership                                                     Interests: Health                                                     Plan                                                     Intermediaries, Inc.   American Service  27-      Limited    TX           Sole Member:           N/A  Insurance Agency  4829115  Liability               Borrower  LLC                        Company  Insurance Center for 45-   Limited    DE           Sole Member:           N/A  Excellence, LLC   5404618  Liability               Borrower                             Company  Sunrise Group     27-      Limited    FL           Sole Member:           N/A  Marketing LLC     2697713  Liability               Borrower                             Company  Sunrise Health    26-      Limited    FL           Sole Member:           N/A  Plans, LLC        4123872  Liability               Borrower                             Company  Secured Software  27-      Limited    FL           Sole Member:           N/A  Solutions LLC     4452961  Liability               Borrower                             Company  BimSym-HPIH,      83-      Limited    DE           Sole Member:           N/A  LLC               3334626  Liability               Borrower                             Company  Health Insurance  83-      Corporation DE          100 shares      500 shares common  Innovations       3351994                          common stock:   stock  Holdings, Inc.                                     Borrower  HealthPocket, Inc.  45-    Corporation DE          1,000 shares    1,000 shares common                    5293710                          common stock:   stock                                                     Health Insurance                                                     Innovations                                                     Holdings, Inc.  Benefytt, LLC     **       Limited    AR           Sole Member:           N/A                             Liability               Health Insurance                             Company                 Innovations                                                     Holdings, Inc.         CHAR1\1639159v5  

 

                 * Other than Benefytt, LLC, all listed entities are Loan Parties.        ** Will be obtained following approval of plan of operation by the Arkansas Insurance        Department.        *** Health Insurance Innovations, Inc., a Delaware corporation, is the ultimate corporate parent        of the above listed legal entities.  As of December 31, 2018, the authorized capital stock of Parent        is 100,000,000 shares Class A common stock; 20,000,000 shares Class B common stock;        5,000,000 shares preferred stock; and issued and outstanding capital stock is 14,425,824 shares        Class A common stock and 2,541,667 shares Class B common stock issued and outstanding.    CHAR1\1639159v5  

 

                                  SCHEDULE 4.17-2   LOCATIONS OF CHIEF EXECUTIVE OFFICE, TAXPAYER IDENTIFICATION NUMBER,                                      ETC.        Chief Executive Office Address                      Tax ID  Health Insurance    15438 N. Florida Avenue, Suite 201 46-1282634  Innovations, Inc.   Tampa, FL 33613  Health Plan         15438 N. Florida Avenue, Suite 201 46-0580972  Intermediaries Holdings, Tampa, FL 33613  LLC  American Service    15438 N. Florida Avenue, Suite 201 27-4829115  Insurance Agency LLC Tampa, FL 33613  Insurance Center for 15438 N. Florida Avenue, Suite 201 45-5404618  Excellence, LLC     Tampa, FL 33613  Sunrise Group Marketing 15438 N. Florida Avenue, Suite 201 27-2697713  LLC                 Tampa, FL 33613  Sunrise Health Plans, 15438 N. Florida Avenue, Suite 201 26-4123872  LLC                 Tampa, FL 33613  Secured Software    15438 N. Florida Avenue, Suite 201 27-4452961  Solutions LLC       Tampa, FL 33613  BimSym-HPIH, LLC    15438 N. Florida Avenue, Suite 201 83-3334626                      Tampa, FL 33613  Health Insurance    15438 N. Florida Avenue, Suite 201 83-3351994  Innovations Holdings, Tampa, FL 33613  Inc.  HealthPocket, Inc.  444 Castro Street, Suite 912 Mountain 45-5293710                      View, CA 94041              CHAR1\1639159v5  

 

                                  SCHEDULE 4.17-3         CHANGES IN LEGAL NAME, STATE OF FORMATION AND STRUCTURE       Current Name        Prior name                      Notes  Sunrise Group Marketing Sunrise Group Marketing, Inc. Converted from corporation to limited  LLC                                                 liability company on July 19, 2013  Sunrise Health Plans, Sunrise Health Plans, Inc.    Converted from corporation to limited  LLC                                                 liability company on July 19, 2013  Secured Software    Secured Software Solutions, Inc Converted from corporation to limited  Solutions LLC                                       liability company on July 19, 2013  BimSym-HPIH, LLC                                    Formed on January 24, 2019  Health Insurance                                    Incorporated on December 17, 2018  Innovations Holdings,  Inc.  HealthPocket, Inc.                                  •  SV Merger Sub, Inc. merged with                                                         and into HealthPocket, Inc.                                                         effective July 14, 2014 with                                                         HealthPocket, Inc. continuing as                                                         the surviving entity.                                                       •  On January 1, 2019, Health Plan                                                         Intermediaries Holdings, LLC                                                         contributed 1,000 shares of                                                         common stock of HealthPocket,                                                         Inc. to Health Insurance                                                         Innovations Holdings, Inc.   Benefytt, LLC*                                      Organized on January 7, 2019  * Benefytt, LLC is a Subsidiary of Health Insurance Innovations Holdings, Inc., but is not a Loan Party.   Please also see “THE REOGRANIZATION OF OUR CORPORATE STRUCTURE” in the Parent’s  Final IPO Prospectus filed with the SEC on Form 424B4    CHAR1\1639159v5  

 

                                                                                                                                                                                                 SCHEDULE 1                                                                         PLEDGED EQUITY                                                                                      SUBSIDIARY           OWNER        PERCENT    SHARES/INTEREST    CERTIFICATED                                      PLEDGED         OWNED   Health Plan                    Health Insurance              14,425,824 Series A  Intermediaries                        100%                              No                    Innovations, Inc.            Membership Interests  Holdings, LLC  American Service  Health Plan  Insurance Agency  Intermediaries      100%        Sole Member           No  LLC               Holdings, LLC  Insurance Center for Health Plan  Excellence, LLC   Intermediaries      100%         Sole Member          No                    Holdings, LLC  Sunrise Group     Health Plan  Marketing LLC     Intermediaries      100%         Sole Member          No                    Holdings, LLC  Sunrise Health Plans, Health Plan  LLC               Intermediaries      100%        Sole Member           No                    Holdings, LLC  Secured Software  Health Plan  Solutions LLC     Intermediaries      100%        Sole Member           No                    Holdings, LLC  BimSym-HPIH, LLC  Health Plan                    Intermediaries      100%        Sole Member           No                    Holdings, LLC  Health Insurance  Health Plan                                                 100 Shares Common  Innovations Holdings, Intermediaries  100%                             Yes                                                       Stock  Inc.              Holdings, LLC  HealthPocket, Inc. Health Insurance                                                 1,000 Shares Common                    Innovations         100%                             Yes                                                       Stock                    Holdings, Inc.        CHAR1\1639159v5  

 

                                                                                                                                                                                                 SCHEDULE 2                            COMMERCIAL TORT CLAIMS   Health Insurance Innovations, Inc., et al. v. HCC Medical Insurance Services, LLC, et al., Case No. 17- CA-6679, Circuit Court, Hillsborough County, FL (claim for declaratory relief).    CHAR1\1639159v5  

 

                                                                                                                                                                                                                                                                                             SCHEDULE 3                                                                                              COPYRIGHTS, PATENTS, AND TRADEMARKS                                                                                                                                                                                            OWNER                  MARK              COUNTRY        FILE       APP /      REG         REG NO          STATUS                                               / STATE      DATE       SERIAL     DATE                                                                         NO                                                                            Health Plan     AGILE HEALTHPLANS           UNITED       2/18/2014  86196564   6/16/2015 4754245          REGISTERED  Intermediaries                              STATES  Holdings, LLC   Health Plan     H HEALTH INSURANCE          UNITED       7/8/2014   86331496   8/25/2015 4798077          REGISTERED  Intermediaries  INNOVATIONS and Design      STATES  Holdings, LLC   Health Plan     MYBENEFITSKEEPER and        UNITED       1/30/2018  87775781   N/A       N/A              PUBLISHED   Intermediaries  Design                      STATES  Holdings, LLC   Health Plan     HIIQ                        UNITED       3/20/2017  87377271   10/16/18  5587124          REGISTERED  Intermediaries                              STATES  Holdings, LLC   HealthPocket,   AGILEHEALTHINSURANCE        UNITED       2/17/2015  86537483   10/6/2015 4826442          REGISTERED  Inc.                                        STATES   HealthPocket,   H and Design                UNITED       9/6/2012   85722156   6/17/2014 4552395          REGISTERED  Inc.                                        STATES   HealthPocket,   H and Design                UNITED       9/6/2012   85980281   2/11/2014 4482673          REGISTERED  Inc.                                        STATES   HealthPocket,   MILLIONS OF PEOPLE          UNITED       9/11/2012  85980188   11/5/2013 4430109          REGISTERED  Inc.            SAVING BILLIONS OF          STATES                  DOLLARS                                                                                                                                        CHAR1\1639159v5  

 

                                                                                                                                                                                                 SCHEDULE 4                                                                       LOCATION OF ASSETS                                            15438 N. Florida Avenue, Suite 201 Tampa, FL 33613    CHAR1\1639159v5

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