Document:

Exhibit 10.54

 

GEO HOLDINGS CORP.

AMENDED AND RESTATED 2004 STOCK OPTION PLAN

 

ARTICLE I

 

Purpose of Plan

 

The 2004 Stock Option Plan (the “Plan”) of GEO Holdings Corp., was  adopted by the Board of Directors of the Company (defined below) and the stockholders of the Company on May 18, 2004 (the “Approval Date”) as amended and restated on December 28, 2008, for executive and other key employees and directors of the Company, is intended to advance the best interests of the Company and its Subsidiaries by providing those persons who have a substantial responsibility for its management and growth with additional incentives by allowing them to acquire an ownership interest in the Company and thereby encouraging them to contribute to the success of the Company and to remain in its employ.  The availability and offering of stock options under the Plan also increases the Company’s ability to attract and retain individuals of exceptional managerial talent upon whom, in large measure, the sustained progress, growth and profitability of the Company depends.

 

All options granted under the Plan are intended to qualify for an exemption (the “Exemption”) from the registration requirements under the Securities Act of 1933, as amended (the “Act”), pursuant to Rule 701 of the Act.  In the event that any provision of the Plan would cause any option granted under the Plan to not qualify for the Exemptions, the Plan shall be deemed automatically amended to the extent necessary to cause all Options (as defined in Article IV below) granted under the Plan to qualify for the Exemptions.  This Plan shall terminate on the tenth anniversary of the Approval Date.

 

ARTICLE II

 

Definitions

 

For purposes of the Plan, except where the context clearly indicates otherwise, the following terms shall have the meanings set forth below:

 

“Affiliate” shall mean, as to any specified Person, any other Person which, directly or indirectly or indirectly, controls, is controlled by, employed by or is under common control with, any of the foregoing.  For the purposes of this definition, “control” means the possession of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Board” shall mean the Board of Directors of the Company.

 

“Cause” shall mean (i) a Participant’s theft or embezzlement, or attempted theft or embezzlement, of money or property of the Company, a Participant’s perpetration or attempted perpetration of fraud, or a Participant’s participation in a fraud or attempted fraud, on the 

 

 

Company or a Participant’s unauthorized appropriation of, or a Participant’s attempt to misappropriate, any tangible or intangible assets or property of the Company, (ii) any act or acts of disloyalty, misconduct or moral turpitude by a Participant injurious to the interest, property, operations, business or reputation of the Company or a Participant’s conviction of a crime the commission of which results in injury to the Company or (iii) a Participant’s failure or inability (other than by reason of Disability) to carry out effectively his duties and obligations to the Company or to participate effectively and actively in the management of the Company, as determined in the reasonable judgment of the Board; provided, that with respect to any Participant, the Committee may, in its discretion, apply a definition of “Cause” that is the same as in such Participant’s employment agreement with the Company or its Subsidiaries, if any.

 

“CHS” shall mean Code Hennessy & Simmons IV LP, a Delaware limited partnership.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended, and any successor statute.

 

“Committee” shall mean the Compensation Committee, or such other committee of the Board which may be designated by the Board to administer the Plan.  The Committee shall be composed of two or more directors as appointed from time to time to serve by the Board.

 

“Common Stock” shall mean the Company’s Common Stock, par value $.01 per share, or, in the event that the outstanding Common Stock is hereafter changed into or exchanged for different stock or securities of the Company, such other stock or securities.

 

“Company” shall mean GEO Holdings Corp., a Delaware corporation, and (except to the extent the context requires otherwise) any subsidiary corporation of GEO Holdings Corp. as such term is defined in Section 425(f) of the Code.

 

“Date of Termination” shall mean, with respect to any Participant, (i) if such Participant’s employment is terminated by the Company, the effective date of termination as specified in the written notice from the Company to such Participant terminating such Participant’s employment, (ii) if such Participant terminates his or her employment, the date the Company receives notice from such Participant terminating his or her employment or (iii) if such Participant’s employment is terminated other than pursuant to (i) or (ii), then the date determined in good faith by the Board.

 

“Disability” shall mean the inability, due to illness, accident, injury, physical or mental incapacity or other disability, of any Participant to carry out effectively his duties and obligations to the Company or to participate effectively and actively in the management of the Company for a period of at least 90 consecutive days or for shorter periods aggregating at least 120 days (whether or not consecutive) during any twelve-month period, as determined in the reasonable judgment of the Board; provided, that with respect to any Participant, the Committee may, in its discretion, apply a definition of “Disability” that is the same as in such Participant’s employment agreement with the Company or its Subsidiaries, if any; provided further that, for purposes of a Limited Exercisability Option under Section 5.5, the Participant’s condition shall only be treated as a “Disability” if such condition also constitutes a “disability” with the meaning 

 

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of Section 409(a)(2)(C) of the Code (and under Treasury Regulations or other IRS guidance issued under Section 409A of the Code from time to time).

 

“Executive Securities Agreements” shall mean those certain Executive Securities Agreements, dated as of May 18, 2004, between the Company and each of Samir T. Badawi, Ernest C. English, Gerald E. Hersh, James Steinke, Paul A. Firrell and Mohamed Ayoub.

 

“Fair Market Value” of each Option Share shall mean the average of the closing prices of the sales of the Company’s Common Stock on all securities exchanges on which the Company Common Stock may at the time be listed, or, if there have been no sales on any such exchange on any day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or, if on any day the Company Common Stock is not so listed, the average of the representative bid and asked prices quoted in the NASDAQ System as of 4:00 P.M., New York time, or, if on any day the Company Common Stock is not quoted in the NASDAQ System, the average of the highest bid and lowest asked prices on such day in the domestic over-the-counter market as reported by the National Quotation Bureau Incorporated, or any similar successor organization, in each such case averaged over a period of 21 days consisting of the day as of which the Fair Market Value is being determined and the 20 consecutive business days prior to such day.  If at any time the Company Common Stock is not listed on any securities exchange or quoted in the NASDAQ System or the over-the-counter market, the Fair Market Value shall be determined in good faith by the Board.

 

“Family Group” shall mean a Participant’s spouse and descendants (whether natural or adopted), any trust, family limited partnership or other entity solely for the benefit of such Participant and/or such Participant’s spouse and/or descendants.

 

“Incentive Stock Option” shall have the meaning set forth in Section 5.2 below.

 

“Nonqualified Stock Option” shall have the meaning set forth in Section 5.2 below.

 

“Options” shall have the meaning set forth in Article IV.

 

“Option Agreement” shall have the meaning set forth in Section 6.3 below and shall include the Executive Securities Agreements.

 

“Option Shares” shall mean (i) all shares of Common Stock issued or issuable upon the exercise of an Option and (ii) all shares of Common Stock issued with respect to the Common Stock referred to in clause (i) above by way of stock dividend or stock split or in connection with any conversion, merger, consolidation or recapitalization or other reorganization affecting the Common Stock.

 

“Participant” shall mean any executive or other key employee or director of the Company who has been selected to participate in the Plan by the Committee or the Board.

 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust (including any beneficiary thereof), a

 

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joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

“Sale of the Company” shall mean (i) any sale, transfer or issuance or series of sales, transfers and/or issuances of capital stock of the Company by the Company or any holders thereof (including without limitation, any merger, consolidation or other transaction or series of related transactions having the same effect) which results in any Person or group of Persons (as the term “group” is used under the Act), other than CHS or its Affiliates, owning capital stock of the Company possessing the voting power (under ordinary circumstances) to elect a majority of the Board, and (ii) any sale or transfer of all or substantially all of the assets of the Company and its subsidiaries in any transaction or series of transactions (other than sales in the ordinary course of business) to any Person or group of Persons (as the term “group” is used under the Act), other than CHS or its Affiliates; provided that, for purposes of a Limited Exercisability Option under Section 5.5, a transaction shall not constitute a Sale of the Company unless it also is a “change in the ownership or effective control of” the Company, or a “change in the ownership of a substantial portion of the assets” of the Company (in each case as determined under Section 409(a)(2)(A)(v) of the Code (and under Treasury Regulations or other IRS guidance issued under Section 409A of the Code from time to time).

 

ARTICLE III

 

Administration

 

The Plan shall be administered by the Committee; provided that if for any reason the Committee shall not have been appointed by the Board, all authority and duties of the Committee under the Plan shall be vested in and exercised by the Board.  Subject to the limitations of the Plan, the Committee shall have the sole and complete authority to: (i) select Participants, (ii) grant Options (as defined in Article IV below) to Participants in such forms and amounts as it shall determine, (iii) impose such limitations, restrictions and conditions upon such Options as it shall deem appropriate, (iv) interpret the Plan and adopt, amend and rescind administrative guidelines and other rules and regulations relating to the Plan, (v) correct any defect or omission or reconcile any inconsistency in the Plan or in any Option granted hereunder and (vi) make all other determinations and take all other actions necessary or advisable for the implementation and administration of the Plan.  The Committee’s determinations on matters within its authority shall be conclusive and binding upon the Participants, the Company and all other Persons.  All expenses associated with the administration of the Plan shall be borne by the Company.  The Committee may, as approved by the Board and to the extent permissible by law, delegate any of its authority hereunder to such persons as it deems appropriate.

 

It is the Company’s intent that (1) the Options (other than any Limited Exercisability Options) not be treated as deferred compensation subject to the requirements of Section 409A of the Code and (2) the Limited Exercisability Options not be treated as a deferred compensation plan that fails to comply with the requirements of Section 409A of the Code and, in each case, that any ambiguities in construction be interpreted in order to effectuate such intent.  Options (other than Limited Exercisability Options) issued under the Plan shall contain such terms as the Committee determines are appropriate to avoid the application of Section 409A of the Code, and Limited Exercisability Options issued under the Plan shall contain such terms as

 

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the Committee determines are appropriate to comply with the requirements Section 409A of the Code.  In the event that, after the issuance of an Option under the Plan, Section 409A of the Code or regulations thereunder are issued or amended, or the Internal Revenue Service or Treasury Department issues additional guidance interpreting Section 409A of the Code, the Committee may (but shall have no obligation to do so) amend or modify the terms of any such previously issued Option to the extent the Committee determines that such amendment or modification is necessary to (A) avoid the application of, in the case of the Options (other than any Limited Exercisability Option) and (B) comply with, in the case of the Limited Exercisability Option,  the requirements of Section 409A of the Code.

 

ARTICLE IV

 

Limitation on Aggregate Shares

 

The number of shares of Common Stock with respect to which options may be granted under the Plan (the “Options”) and which may be issued upon the exercise thereof shall not exceed, in the aggregate, 628,750  shares, any and all of which may be issued upon the exercise of Nonqualified Stock Options, Incentive Stock Options and/or such other awards as are permitted under the Plan; provided that the type and the aggregate number of shares which may be subject to Options shall be subject to adjustment in accordance with the provisions of Section 6.8 below, and further provided that to the extent any Options expire unexercised or are canceled, terminated or forfeited in any manner without the issuance of Common Stock thereunder, or if any Options are exercised and the shares of Common Stock issued thereunder are repurchased by the Company, such shares shall again be available under the Plan.  The 628,750 shares of Common Stock available under the Plan may be either authorized and unissued shares, treasury shares or a combination thereof, as the Committee shall determine.

 

ARTICLE V

 

Awards

 

5.1                                 Options.  The Committee may grant Options to Participants in accordance with this Article V.

 

5.2                                 Form of Option.  Options granted under this Plan shall be presumed to be nonqualified stock options (the “Nonqualified Stock Options”) and are not intended to be incentive stock options within the meaning of Section 422 of the Code or any successor provision  (“Incentive Stock Options”) unless clearly indicated by the Committee in the respective Option Agreement (as defined below).  The Committee may grant Incentive Stock Options only to eligible employees of the Company or its subsidiaries (as defined in Section 424(f) of the Code).  It is the Company’s intent that Nonqualified Stock Options granted under the Plan not be classified as Incentive Stock Options, that Incentive Stock Options be consistent with and contain or be deemed to contain all provisions required under Section 422 of the Code and any successor thereto, and that any ambiguities in construction be interpreted in order to effectuate such intent.  If an Incentive Stock Option granted under the Plan does not qualify as such for any reason, then to the extent of such nonqualification, the stock option represented thereby shall be regarded as a Nonqualified Stock

 

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Option duly granted under the Plan, provided that such stock option otherwise meets the Plan’s requirements for Nonqualified Stock Options.

 

5.3                                 Exercise Price.  The option exercise price per share of Common Stock shall be fixed by the Committee on the date of grant (except that with respect to Incentive Stock Options the exercise price shall be 100% of the Fair Market Value on the date of the grant and provided further that the exercise price shall be 110% of the Fair Market Value in the case of any person who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company determined with regard to the attribution rules of Section 424(d) of the Code).

 

5.4                                 Limitations on Grants.  If required by the Code, the aggregate Fair Market Value (determined as of the grant date) of shares for which an Incentive Stock Option is exercisable for the first time during any calendar year under all equity incentive plans of the Company and its Subsidiaries (as defined in Section 422 of the Code or any successor thereto) may not exceed $100,000.

 

5.5                                 Exercisability.  Options shall be exercisable at such time or times as the Committee shall determine at or subsequent to grant; provided that, at the discretion of the Committee, as provided in the Option Agreement, an Option may be exercisable only upon the earlier of one or more of the following events (any such Option, a “Limited Exercisability Option”): (i) a separation from service within the meaning of Section 409A(a)(2)(A)(i) of the Participant, (ii) death of the Participant, and (iii) Disability of the Participant, (iv) the Expiration Date, or (v) a Sale of the Company; provided further that, with respect to Options that become exercisable pursuant to clause (i) of this Section 5.5, if the Option was granted to a Participant who is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code, then the Option shall become exercisable six months after the separation from service.

 

5.6                                 Payment of Exercise Price.  Options shall be exercised in whole or in part by written notice to the Company (to the attention of the Company’s Secretary) accompanied by payment in full of the option exercise price.  Payment of the option exercise price shall be made in cash (including check, bank draft or money order) or, in the discretion of the Committee, by delivery of a promissory note (if in accordance with policies approved by the Board).

 

5.7                                 Terms of Options.  The term during which each Option may be exercised shall be determined by the Committee, but, except as otherwise provided herein, in no event shall an option be exercisable in whole or in part, in the case of a Nonqualified Stock Option or an Incentive Stock Option (other than as described below), more than ten years from the date it is granted or, in the case of an Incentive Stock Option granted to an employee who at the time of the grant owns more than 10% of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, if required by the Code, more than five years from the date it is granted.

 

ARTICLE VI

 

General Provisions

 

6.1                                 Conditions and Limitations on Exercise.  Options may be made exercisable in one or more installments, upon the happening of certain events, upon the passage of a specified period of time, upon the fulfillment of certain conditions or upon the achievement by the Company of

 

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certain performance goals, as the Committee shall decide in each case when the Options are granted.

 

6.2                                 Sale of the Company.  In the event of a Sale of the Company, the Committee or the Board may provide, in its discretion, that the Options shall become immediately exercisable by any Participants who are employed by the Company at the time of the Sale of the Company and/or that all Options shall terminate if not exercised as of the date of the Sale of the Company or other prescribed period of time.

 

6.3                                 Written Agreement.  Each Option granted hereunder to a Participant shall be embodied in a written agreement (an “Option Agreement”) which shall be signed by the Participant and by the Chief Executive Officer or the President of the Company for and in the name and on behalf of the Company and shall be subject to the terms and conditions of the Plan prescribed in the Agreement (including, but not limited to, (i) the right of the Company and such other Persons as the Committee shall designate (“Designees”) to repurchase from each Participant, and such Participant’s transferees, all shares of Common Stock issued or issuable to such Participant on the exercise of an Option in the event of such Participant’s termination of employment, (ii) rights of first refusal granted to the Company and Designees, (iii) holdback and other registration right restrictions in the event of a public registration of any equity securities of the Company and (iv) any other terms and conditions which the Committee shall deem necessary and desirable).

 

6.4                                 Listing, Registration and Compliance with Laws and Regulations.  Options shall be subject to the requirement that if at any time the Committee shall determine, in its discretion, that the listing, registration or qualification of the shares subject to the Options upon any securities exchange or under any state or federal securities or other law or regulation, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to or in connection with the granting of the Options or the issuance or purchase of shares thereunder, no Options may be granted or exercised, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.  The holders of such Options shall supply the Company with such certificates, representations and information as the Company shall request and shall otherwise cooperate with the Company in obtaining such listing, registration, qualification, consent or approval.  In the case of officers and other Persons subject to Section 16(b) of the Securities Exchange Act of 1934, as amended, the Committee may at any time impose any limitations upon the exercise of an Option that, in the Committee’s discretion, are necessary or desirable in order to comply with such Section 16(b) and the rules and regulations thereunder.  If the Company, as part of an offering of securities or otherwise, finds it desirable because of federal or state regulatory requirements to reduce the period during which any Options may be exercised, the Committee, may, in its discretion and without the Participant’s consent, so reduce such period on not less than 15 days written notice to the holders thereof.

 

6.5                                 Nontransferability.  Options may not be transferred other than by will or the laws of descent and distribution or, as the Committee may determine in its discretion,  to or among a Participant’s Family Group and, during the lifetime of the Participant, may be exercised only by such Participant (or his Family Group (if applicable), legal guardian or legal representative).  In the event of the death of a Participant, exercise of Options granted hereunder shall be made only (a) by the executor or administrator of the estate of the deceased Participant or the Person or Persons to

 

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whom the deceased Participant’s rights under the Option shall pass by will or the laws of descent and distribution; and (b) to the extent that the deceased Participant was entitled thereto at the date of his death, unless otherwise provided by the Committee in such Participant’s Option Agreement.

 

6.6                                 Expiration of Options.

 

(a)                                  Normal Expiration.  In no event shall any part of any Option be exercisable after the date of expiration thereof (the “Expiration Date”), as determined by the Committee pursuant to Section 5.7 above; provided that, a Limited Exercisability Option shall be exercisable only upon one or more of the events described in Section 5.5 above and to the extent not exercised upon the occurrence of such event described in Section 5.5 and under the Option Agreement, the Option shall immediately terminate and cease to be exercisable.

 

(b)                                 Early Expiration Upon Termination of Employment.  Except as otherwise provided by the Committee in the Option Agreement, any portion of a Participant’s Option (whether or not vested and exercisable on the Date of Termination) shall expire and be forfeited as of the date of such termination; provided that

 

(i)                                     if any Participant dies or becomes subject to any Disability, the portion of such Participant’s Option that is vested and exercisable shall expire upon the earlier of (A) the Expiration Date and (B) the later of the last day of the calendar year in which the event permitting exercise occurs and the 15th day of the third month following the date on which the event permitting exercise occurs,

 

(ii)                                  if any Participant retires (with the approval of the Board), such Participant’s Option that is vested and exercisable shall expire upon the earlier of (A) the Expiration Date and (B) the later of the last day of the calendar year in which the event permitting exercise occurs and the 15th day of the third month following the date on which the event permitting exercise occurs, and

 

(iii)                               if any Participant is discharged other than for Cause, such Participant’s Option that is vested and exercisable shall expire upon the earlier of (A) the Expiration Date and (B) the later of the last day of the calendar year in which the event permitting exercise occurs and the 15th day of the third month following the date on which the event permitting exercise occurs.

 

6.7                                 Withholding of Taxes.  The Company shall be entitled, if necessary or desirable and to the extent required by law, to withhold from any Participant from any amounts due and payable by the Company to such Participant (or secure payment from such Participant in lieu of withholding) the amount of any withholding or other tax due from the Company with respect to any shares issuable under the Options, and the Company may defer such issuance unless indemnified to its satisfaction.

 

6.8                                 Adjustments.  In the event of a reorganization, recapitalization, stock dividend or stock split, or combination or other change in the shares of the Common Stock (an “Adjustment Transaction”), the Board or the Committee may, in order to prevent the dilution or enlargement of rights under the Options, make proportional adjustments in the number and type of shares covered by the Options and the exercise price specified herein, so (i) that the Options (or any replacements

 

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thereof) represent the right to purchase the shares of stock, securities or other property (including cash) as may be issuable or payable as a result of such Adjustment Transaction with respect to or in exchange for the number of shares of Common Stock purchasable and receivable upon exercise of the Options had such exercise occurred in full immediately prior to such Adjustment Transaction, and (ii) the aggregate exercise price for the Options remains unchanged.  The issuance by the Company of shares of stock of any class, or options or securities exercisable or convertible into shares of stock of any class, for cash or property, or for labor or services either upon direct sale, or upon the exercise of rights or warrants to subscribe therefor, or upon exercise or conversion of other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock then subject to any Options.

 

6.9                                 Rights of Participants.  Nothing in this Plan or in any Option Agreement shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment at any time (with or without Cause), nor confer upon any Participant any right to continue in the employ of the Company for any period of time or to continue his present (or any other) rate of compensation, and except as otherwise provided under this Plan or by the Committee in the Option Agreement, in the event of any Participant’s termination of employment (including, but not limited to, the termination of a Participant’s employment by the Company without  Cause) any portion of such Participant’s Option that was not previously vested and exercisable shall expire and be forfeited as of the date of such termination.  No employee shall have a right to be selected as a Participant or, having been so selected, to be selected again as a Participant.

 

6.10                           Amendment, Suspension and Termination of Plan.  The Board or the Committee may suspend or terminate the Plan or any portion thereof at any time and may amend it from time to time in such respects as the Board or the Committee may deem advisable; provided that no such amendment shall be made without stockholder approval to the extent such approval is required by law, agreement or the rules of any exchange upon which the Common Stock is listed, and no such amendment, suspension or termination shall impair the rights of Participants under outstanding Options without the consent of the Participants affected thereby.  No Options shall be granted hereunder after the tenth anniversary of the adoption of the Plan.

 

6.11                           Amendment, Modification and Cancellation of Outstanding Options.  The Committee may amend or modify any Option in any manner to the extent that the Committee would have had the authority under the Plan initially to grant such Option; provided that no such amendment or modification shall impair the rights of any Participant under any Option without the consent of such Participant.  With the Participant’s consent, the Committee may cancel any Option and issue a new Option to such Participant.

 

6.12                           Stockholder Approval.  This Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after this Plan is adopted by the Board.  Any Option exercised before stockholder approval is obtained must be rescinded if stockholder approval is not obtained within twelve (12) months before or after the Plan is adopted.  Shares issued upon the exercise of any such Option shall not be counted in determining whether such approval is obtained.

 

6.13                           Indemnification.  In addition to such other rights of indemnification as they may have as members of the Board or the Committee, the members of the Committee shall be

 

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indemnified by the Company against all costs and expenses reasonably incurred by them in connection with any action, suit or proceeding to which they or any of them may be party by reason of any action taken or failure to act under or in connection with the Plan or any Option granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding; provided that any such Committee member shall be entitled to the indemnification rights set forth in this Section 6.12 only if such member has acted in good faith and in a manner that such member reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe that such conduct was unlawful, and further provided that upon the institution of any such action, suit or proceeding a Committee member shall give the Company written notice thereof and an opportunity, at its own expense, to handle and defend the same before such Committee member undertakes to handle and defend it on his own behalf.

 

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10Exhibit 10.28

FIRST AMENDMENT TO SUBLEASE

(This “Amendment”) is made and entered into as of September 30, 2011, by and between PDI, INC., a Delaware corporation with offices at 300 Interpace Parkway, Parsippany, New Jersey 07054 (“Sublandlord”); and MEDASSETS NET REVENUE SYSTEMS, LLC, a Delaware limited liability company with offices at 100 North Point Center East, Suite 200, Alpharetta, Georgia 30022 (“Subtenant”).

WHEREAS, Sublandlord and MD-X Solutions, Inc. (“MD-X”) entered into a Sublease dated June 18, 2007 (the “Original Sublease”), whereby Sublandlord subleased to MD-X certain premises containing approximately 19,361 rentable square feet of space (the “Original Subleased Premises”) located on the second (2nd) floor of the building located at One Route 17 South in Saddle River, New Jersey (the “Building”) and permitted MD-X to occupy and utilize a portion of Sublandlord's existing data center space located on the second (2nd) floor of the Building without obligation to pay Base Rent for same for a period of time; and

WHEREAS, at sometime or times subsequent to June 18, 2007, Sublandlord permitted Subtenant, pursuant to Section 45 of the Original Sublease, to occupy and utilize portions of Sublandlord's data center space on the second (2nd) floor of the Building  consisting of (a) 488 rentable square feet and (b) 1,341 rentable square feet (the “Data Center Space”); and

WHEREAS, the Original Subleased Premises, the Data Center Space and the Third Floor Space (as hereinafter identified) comprise a portion of the premises leased by Sublandlord from VRS Saddle River LLC (“Prime Landlord”) under a certain Standard Office Lease dated November 20, 2003 (the “Prime Lease”); and    

WHEREAS, Subtenant is the successor-in-interest to MD-X and desires to sublease additional space from Sublandlord consisting of the entire third (3rd) floor of the Building; and 

WHEREAS, Sublandlord and Subtenant have also agreed to amend and modify certain provisions of the Original Sublease in connection therewith as hereinafter provided.

NOW, THEREFORE, Sublandlord and Subtenant hereby agree with one another as follows:

1.Defined Terms.  Capitalized terms used herein shall have the meanings ascribed to them in the Original Sublease except as otherwise defined herein.  The Original Sublease as amended by this Amendment is herein called the “Sublease.”

2.Third Floor Space.  Commencing on the Third Floor Space Commencement Date (as defined in Section 3 herein), Sublandlord hereby demises to Subtenant and Subtenant hereby lets from Sublandlord the entire third (3rd) floor of the Building comprising approximately 46,912 rentable square feet of space (the “Third Floor Space”) 

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as shown on Schedule A attached hereto.  Hereafter, the Original Subleased Premises, the Data Center Space and the Third Floor Space combined shall be collectively referred to as the “Subleased Premises” and shall consist of approximately 68,102 rentable square feet of space in the Building.

3.Term.  The term of the lease of the Third Floor Space (the “Sublease Term”) shall commence upon the earliest date (the “Third Floor Space Commencement Date”) upon which all three (3) of the following events have occurred: (i) execution of this Amendment by Sublandlord and Subtenant; (ii) delivery of possession of the Third Floor Space by Sublandlord to Subtenant; and (iii) receipt of Prime Landlord's written consent to this Amendment in accordance with Section 22 hereof.  The Sublease Term shall end at 11:59:59 p.m. on January 30, 2016 (which is the Expiration Date set forth in Section 2 of the Sublease).  Exclusive possession of the Third Floor Space shall be delivered to Subtenant on or before the Third Floor Space Commencement Date.

4.Condition of Third Floor Space.  Subtenant hereby acknowledges to Sublandlord that as of the Third Floor Space Commencement Date, Subtenant is leasing the Third Floor Space in “AS IS,WHERE IS” condition on that date; provided, however, that possession of the Subleased Premises shall be delivered to Subtenant in “broom clean” condition and free of all personal property other than Third Floor Existing Furniture described on Schedule C attached hereto.

5.Permitted Use.  The Third Floor Space shall be used for only for general administrative, sales, service and training offices and uses ancillary thereto, and no other uses shall be permitted.

6.Base Rent Payable for Third Floor Space.  From and after the Third Floor Space Commencement Date and continuing throughout the remainder of the Term of the Sublease as amended by this Amendment, Subtenant shall pay to Sublandlord Base Rent for the Third Floor Space alone as set forth below:

	
			
	Period
	Annual Base Rent
	Monthly Base Rent

	Third Floor Space Commencement Date - 5/31/2013
	$—
	$—

	6/1/13-12/31/13
	$780,000.00
	$65,000.00

	1/1/14-12/31/14
	$792,000.00
	$66,000.00

	1/1/15-1/31/16
	$840,000.00
	$70,000.00

Annual Base Rent shall be payable in equal monthly installments, in advance, on the first day of each calendar month to Sublandlord at its address stated in the first paragraph of this Amendment.

7.Base Rent Payable for entire Subleased Premises.  From and after the Third Floor Space Commencement Date and continuing throughout the remainder of the Term of the Sublease as amended by this Amendment, Subtenant shall pay to Sublandlord Base Rent for the entire Subleased Premises (to include the amounts set 

2

forth in Section 6 of this Amendment) as set forth below, and Section 3 of the Sublease shall be hereby amended hereby accordingly:

	
			
	Period
	Annual Base Rent
	Monthly Base Rent

	Third Floor Space Commencement Date - 12/31/2013
	$572,130.00
	$47,677.50

	6/1/13-12/31/13
	$1,352,130
	$112,677.50

	1/1/14-12/31/14
	$1,364,130
	$113,677.50

	1/1/15-1/31/16
	$1,412,130
	$117,677.50

Annual Base Rent shall be payable in equal monthly installments, in advance, on the first day of each calendar month.

8.Rent Concession.  As indicated in Sections 6 and 7 above, so long as Subtenant shall not then be in default under any of the terms, covenants and conditions contained in this Amendment beyond the expiration of any applicable notice and/or cure period allowed by the Sublease, Subtenant shall not be required to pay any Base Rent (the “Abatement”) for Third Floor Space during the period from the Third Floor Space Commencement Date and May 31, 2013 (the “Abatement Period”); provided, however, that during and for such Abatement Period, Subtenant shall be required to pay electricity charges pursuant to Section 12 of this Amendment hereof with respect to the Third Floor Space plus any other Operating Expenses, any real property taxes and any  other Additional Rents with respect to the Third Floor Space.  Subtenant acknowledges that the consideration for the Abatement is Subtenant's performance of all of the covenants and conditions in this Amendment on its part to be performed during the Sublease Term with respect to the Third Floor Space.  Therefore, if the Sublease, as amended by this Amendment, shall be terminated on or before the Expiration Date by reason of Subtenant's default beyond the expiration of any applicable notice and grace period allowed by the Sublease in Subtenant's performance of all of the covenants and conditions in this Amendment on its part to be performed during the Sublease Term with respect to the Third Floor Space, the unamortized portion attributable to the remainder of the Sublease Term as of the date of any such default of the aggregate amount of all Base Rent at the rate of Sixty-Five Thousand ($65,000) Dollars per month that would have been due and payable by Subtenant during and for the Abatement Period but for the provisional Abatement described above shall immediately thereafter be and become due and payable by Subtenant to Sublandlord.  In the event of Subtenant's failure to pay such aggregate amount to Sublandlord, Sublandlord shall be entitled to the same rights and remedies as are provided for in the Sublease with respect to the non-payment of Base Rent.  For avoidance of doubt, the aggregate amount of all Base Rent at the rate of Sixty-Five Thousand ($65,000) Dollars per month that would have been due and payable by Subtenant during and for the Abatement Period but for the Abatement shall be amortized in equal monthly installments over the period from the Third Floor Space Commencement Date through Expiration Date of the Sublease Term.

9.Base Year for Third Floor Space.  From and after the Third Floor Space Commencement Date, the Base Year for the calculation of Subtenant's Proportionate 

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Share of increases in Operating Expenses and real property taxes for the Third Floor Space only shall be 2011.

10.Base Year for Original Subleased Premises and Data Center Space.  From and after the Third Floor Space Commencement Date, the Base Year for the calculation of Subtenant's Proportionate Share of increases in Operating Expenses and real property taxes for the Original Subleased Premises and the Data Center Space shall continue to be 2007.

11.Subtenant's Proportionate Shares.  From and after the Third Floor Space Commencement Date (to include but not limited to during the Abatement Period),

a.Subtenant's Proportionate Share for the Third Floor Space alone shall be 55.77%;

b.Subtenant's Proportionate Share of increases in Operating Expenses and real property taxes for the Original Subleased Premises and the Data Center Space shall remain 25.19%; and

c.Subtenant's Proportionate Share for the Original Subleased Premises, the Data Center Space and the Third Floor Space combined shall be 80.96%, and Section 5 of the Sublease shall be amended hereby accordingly.

12.Tenant Electric.  From and after the Third Floor Space Commencement Date (to include but not limited to during the Abatement Period):

a.Subtenant's electric charge for the Third Floor Space shall be payable at the rate currently being charged Subtenant pursuant to Section 6 of the Sublease.

b.Subtenant's electric charge for the Original Subleased Premises and the Data Center Space shall continue to be payable at the rate currently being charged Subtenant pursuant to Section 6 of the Sublease.

13.Parking.  From and after the Third Floor Space Commencement Date, Subtenant, at no additional charge, shall be allowed to use, in accordance with the Parking Rules on Exhibit C to the Prime Lease, no fewer than two hundred and fifty seven (257) parking spaces, thirty (30) of which shall be covered/reserved spaces, and the rest of which shall be unreserved/uncovered parking spaces.

14.Existing Furniture.  For the period from and after the Third Floor Space Commencement Date, through the Third Floor Space Expiration Date, Subtenant shall be permitted to use Sublandlord's existing furniture in the Third Floor Space (the “Third Floor Existing Furniture”) which is more particularly described on Schedule C attached hereto.  Such Third Floor Existing Furniture shall become the property of Subtenant without further action by the parties hereto, and Subtenant shall remove all such Third Floor Existing Furniture from the Subleased Premises at the expiration or sooner termination of the Sublease, as amended by this Amendment.  Further, during the 

4

Sublease Term, Subtenant shall have the right to reconfigure, discard and/or modify the Third Floor Existing Furniture without liability to Sublandlord or any obligation to restore, replace or surrender the same back to Sublandlord at the end of the Sublease Term.

15.24-Hour Access.  Subtenant shall be entitled to 24-hour, seven (7) day a week access to the Building and the Subleased Premises, but this shall not be construed as authorization to make use of any Building services beyond Building Hours (as defined in Section 11.8 of the Prime Lease) without reimbursing Prime Landlord for the cost thereof, and shall be subject to any governmental or municipal laws and regulations with respect to said 24-hour, seven (7) day a week access.  Subtenant shall obtain said access by means of a card, key or other similar means to be provided by Prime Landlord to afford access to the Building.  Subtenant may use a card or key system for access to its Subleased Premises which is not compatible with the card or key system for access to the Building provided it makes pass cards or keys available to Prime Landlord for use in cases of emergency, 

16.Security Deposit.  Sublandlord and Subtenant acknowledge that Sublandlord currently holds a letter of credit in the sum of $121,006.25 as a security deposit for the Subleased Premises pursuant to Section 31 of the Sublease.  Upon execution and delivery of this Amendment by and to the parties, Subtenant shall provide either a cash deposit or an additional letter of credit in the sum of $75,000 in accordance with the terms of Section 31, so that Sublandlord will hold the aggregate sum of $196,006.25 as a security deposit for the duration of the Sublease Term, and Section 31 of the Sublease shall be amended hereby accordingly.

17.Sublease Sections No Longer Applicable.    From and after the Third Floor Space Commencement Date (to include but not limited to during the Abatement Period),

a.Subject to compliance with Section 10(a) of the Sublease, Subtenant will, at its sole cost and expense, independently manage any alterations, additions or improvements to the Subleased Premises (“Subtenant's Improvements”).  Accordingly, Section 15(b) of the Sublease shall not be applicable to the Third Floor Space being leased pursuant to this Amendment.  Sublandlord or Prime Landlord will contract to perform Subtenant's Improvements and to obtain bids for all categories of work costing more than Twenty-five Thousand ($25,000) from three contractors mutually acceptable to Prime Landlord, Sublandlord and Subtenant, who shall select the contactor to do the category of work.

b.In connection with any consent required from Sublandlord pursuant to Section 35(a) of the Sublease, such consent will be needed only to confirm the compatibility of any proposed subsubtenant with other occupants of the Building. 

c.The net worth test specified in Section 35(b) of the Sublease will no longer apply to any assignment of the Sublease or subletting of the Subleased Premises  by Subtenant covered by Section 35(b), and Subtenant will have the right to retain all the profit, if any, therefrom.

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18.Signage.  Sublandlord, at Sublandlord's sole cost and expense, shall provide Subtenant with lobby directory signage and suite entry signage, in accordance with the terms and conditions of Article 46 of the Prime Lease.

19.Notices.  The text of the first paragraph of Section 28 of the Sublease is hereby amended and restated in its entirety as follows:

“Except where otherwise required by statute, all notices given pursuant to the provisions of this Sublease shall be in writing, addressed to the party to whom notice is given and sent by one of the following methods: (i) hand delivery; (ii) overnight commercial courier; or (iii) registered or certified mail, return receipt requested, in a postpaid envelope as follows:”

Further, Sublandlord's and Subtenant's address for notices under the Sublease is hereby updated as follows:

To Sublandlord:        PDI, INC.
Morris Corporate Center I, Building A
300 Interpace Parkway
Parsippany, New Jersey 07054
Attn: Patrick Kane

To Subtenant:        MedAssets Net Revenue Systems LLC
At the Subleased Premises
Attn: Jimmy Lynch

With a copy to:         MedAssets, Inc.
100 North Point Center East, Suite 200
Alpharetta, Georgia 30022
Attn: General Counsel   

20.Brokers.  Subtenant and Sublandlord represent and warrant to one another that no broker except CresaPartners/New Jersey, L.L.C. and Square Foot L.L.C. (collectively, “Broker”) was instrumental in consummating this Amendment and that it had no conversations or prior negotiations with any broker other than Broker concerning this Amendment.  Subtenant and Sublandlord agree to indemnify and hold each other harmless from any and all claims of other brokers and expenses in connection therewith arising out of or in connection with the negotiation of or the entering into this Amendment.  Sublandlord agrees to pay Broker a commission on account of this Amendment pursuant to a separate agreement.

21.No Defaults.  Subtenant represents and warrants to Sublandlord that Sublandlord is not in default under any of its obligations under the Sublease, and that, to the best of Subtenant's knowledge, Subtenant is not in default in the performance of any of its obligations under the Sublease, and no event has occurred which, with the passage of time or the giving of notice or both, would constitute a default by either Sublandlord or Subtenant under the Sublease.  Sublandlord represents and warrants to Subtenant that

6

Subtenant is not in default under any of its obligations under the Sublease, and that, to the best of Sublandlord's knowledge, Sublandlord is not in default in the performance of any of its obligations under the Sublease,  and no event has occurred which, with the passage of time or the giving of notice or both, would constitute a default by either Sublandlord or Subtenant thereunder.

22.Ratification.  As amended by this Amendment, the Original Sublease and all the covenants, agreements, terms, provisions and conditions thereof shall remain in full force and effect and are hereby ratified and affirmed.  The covenants, agreements, terms, provisions and conditions contained in this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.  In the event of any conflict between the terms contained in this Amendment and the Original Sublease, the terms herein contained shall supersede and control the obligations and liabilities of the parties.

23.Effectiveness.  The submission of this Amendment by Sublandlord to Subtenant for examination and/or execution does not constitute a reservation of, or option for, the Third Floor Space, and this Amendment becomes effective only upon execution and delivery thereof by Sublandlord and Subtenant.

24.Sublease Consent.  This Amendment shall become effective only if and when the written consent hereto of the Prime Landlord is obtained, in substantially the form attached as Schedule B hereto.  Sublandlord will submit this Amendment to Prime Landlord for its consent within two (2) business days of Sublandlord's receipt of all of the following: (a) this Amendment, executed by Subtenant; and (b) a revised certificate of insurance, as required under Section 20 of the Sublease.  In the event Prime Landlord's consent is not obtained within twenty-five (25) days after the date of Sublandlord's request, then either Sublandlord or Subtenant shall have the right to send written notice to the other stating that this Amendment shall be null and void and of no force or effect, and thereafter neither party shall have any further obligation to the other hereunder.  Sublandlord agrees to notify Subtenant within one (1) business day of its receipt of Prime Landlord's consent or non-consent.  Subtenant agrees to provide such information in connection with such request as the Prime Landlord shall reasonably request.

25.Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute but one and the same instrument.

26.Contingency.  This Amendment is contingent upon Subtenant terminating its existing lease with AMB Properties (the “AMB Lease”) for its Mahwah, NJ office on or before ________________, 2011 (the “Contingency Expiration Date”).  In the event Subtenant is unsuccessful in terminating the AMB Lease on or before the Contingency Expiration Date, then Subtenant shall have the right to terminate this Sublease, by sending written notice to Sublandlord, which notice must be given, if at all, not later than July 8, 2011, and Sublandlord shall return to Subtenant the first month's Rent and Additional Security Deposit and thereupon neither party shall have any further 

7

obligations to the other.  Notwithstanding the foregoing, Sublandlord shall have the right to continue to market the Third Floor Space to other prospects through and including  the Contingency Expiration Date.

[TEXT AND SIGNATURES CONTINUE ON NEXT PAGE]

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IN WITNESS WHEREOF, Sublandlord and Subtenant have hereunto executed this Amendment as of the date and year first above written, and acknowledge the one to the other that they possess the requisite authority to enter into this transaction and to sign this Amendment.

PDI, INC., Sublandlord

BY:    /s/ Jeffrey Smith                    
NAME:  Jeffrey Smith                             
TITLE:    CFO                            

MEDASSETS NET REVENUE SYSTEMS, LLC,
 Subtenant

BY:    /s/ Jonathan H. Glenn                
NAME: Jonathan H. Glenn                    
TITLE: Vice President and Secretary            

9

SCHEDULE A

THIRD FLOOR SPACE

1

SCHEDULE B

PRIME LANDLORD'S
CONSENT TO FIRST AMENDMENT TO SUBLEASE
THIS CONSENT TO FIRST AMENDMENT TO SUBLEASE (this “Consent”) dated as of September 30, 2011, is made with reference to that certain First Amendment to Sublease (the “Amendment”) dated as of August 22 , 2011 between PDI, INC., a Delaware corporation (“Tenant”), and MEDASSETS NET REVENUE SYSTEMS, LLC, a Delaware limited liability company (“Subtenant”), and is entered into by and among the foregoing parties and MIREF SADDLE RIVER, LLC, a Delaware limited liability company (“Landlord”), to witness the following:
WITNESS:
A.    Landlord and Tenant are parties to that certain Standard Office Lease and Addendum thereto dated November 20, 2003 (hereinafter referred to collectively as the “Prime Lease”) by and between VRS Saddle River LLC (predecessor-in-interest to Landlord and herein referred to as “Original Landlord”), as landlord, and Tenant, as tenant, respecting certain premises (the “Demised Premises”) consisting of a portion of the building located at One Route 17 South, Saddle River, Bergen County, New Jersey (the “Building”).

B.    Tenant and Subtenant's predecessor-in-interest, MD-X Solutions, Inc., entered into that certain Sublease dated as of June 18, 2007 (the “Original Sublease”) whereby Tenant subleased to Subtenant a portion of the Demised Premises consisting of 19,361 rentable square feet located on the second floor of the Building (the “Original Subleased Premises”) together with the right to use in common with other tenants in the Building, their invitees, customers and employees, the stairways, and all other general common facilities contained in the Building.

C.    In connection with the Original Sublease, Original Landlord delivered to Tenant and Subtenant that certain Consent to Sublease dated as of July 17, 2007 (the “Original Consent”), which Original Consent was agreed to and countersigned by Tenant and Subtenant.

D.    Tenant and Subtenant are parties to the Amendment for the subleasing of an additional portion of the Demised Premises (the “Additional Subleased Premises”), (which, together with the Original Subleased Premises, are referred to herein collectively as the “Subleased Premises”), (which Amendment, together with the Original Sublease, are herein referred to collectively as, the “Sublease”).  As provided in Section 24 of the Amendment, it will not become effective until the written consent of Landlord is received.

E.    Tenant and Subtenant have herewith presented the fully-executed Amendment to Landlord for Landlord's approval.

NOW THEREFORE, for good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.    The Recitals set forth above hereby are incorporated by reference herein as though fully set forth at length.

2.    Unless otherwise defined, all terms contained in this Consent shall, for the 

1

purposes hereof, have the same meaning ascribed to them in the Prime Lease.

3.    Landlord consents to the amendment of the Original Sublease as set forth in the Amendment, upon and expressly subject to the terms and conditions hereinafter set forth, to each of which Tenant and Subtenant expressly agree.

4.    (a)    Neither the Prime Lease, the Original Sublease, the Amendment, the Original Consent nor this Consent shall be deemed to grant Subtenant any right whatsoever against Landlord. Subtenant hereby acknowledges and agrees that its sole remedy for any alleged or actual breach of its rights in connection with the Subleased Premises shall be solely against Tenant. Nothing contained herein shall be deemed to enlarge or increase Landlord's obligations or decrease Landlord's rights under the Prime Lease or the Original Consent, and all covenants, agreements, terms, provisions and conditions of the Prime Lease and the Original Consent are hereby mutually declared to be in full force and effect, subject to the terms and conditions of this Consent.

(b)    The Sublease shall be subject and subordinate at all times to the Prime Lease and to all of the covenants, agreements, terms, provisions and conditions of the Prime Lease, the Original Consent and this Consent, and neither Tenant nor Subtenant shall do or permit anything to be done in connection with the Subtenant's occupancy of the Subleased Premises which would violate any of said covenants, agreements, terms, provisions or conditions.

5.    This Consent shall not release Tenant or Subtenant from any existing or future duty, obligation or liability to Landlord pursuant to the Prime Lease, the Sublease or the Original Consent nor shall this Consent change, modify or amend the Prime Lease or the Original Consent in any manner, except as otherwise provided herein. Tenant is and shall remain primarily liable and obligated for the payment of all rent and other amounts due and payable under, and the full and prompt performance of all terms, provisions, agreements and covenants contained in the Prime Lease, including the payment of all bills rendered by Landlord for charges incurred by Subtenant for services and/or materials supplied to the Subleased Premises. This Consent shall not be deemed as a consent to any further subleases, additional subletting or additional amendment to the Sublease, or to any assignment of either the Prime Lease or the Sublease, each of which requires the consent of Landlord pursuant to the Prime Lease.

6.    (a)    In the event of a Lease Termination (as hereinafter defined) prior to the expiration or earlier termination of the Sublease, Subtenant shall, solely upon the request of Landlord, attorn to Landlord and recognize Landlord as the Sublandlord under the Sublease upon the terms and conditions specified in the Sublease for the then remaining term of the Sublease, and be bound to perform all of the obligations imposed by the Sublease including, without limitation, the obligation to pay all base rent and additional rent due under the Sublease. In the event of such attornment, notwithstanding anything contained in the Sublease to the contrary, the Prime Lease shall remain in full force and effect with regard to the Sublease and the Subleased Premises, Landlord shall furnish to Subtenant all of the facilities, services, or utilities, and make repairs to the Subleased Premises in accordance with the Prime Lease as if Subtenant were the named tenant therein and Subtenant shall pay Landlord for the remainder of the term of the Sublease base rent and additional rent at the rates set forth in the Sublease.  Subtenant agrees to execute and deliver at any time and from time to time, upon written request of Landlord, any instruments which may be necessary or appropriate to evidence such attornment. Landlord shall not: (i) be liable to Subtenant for any act, omission or breach of the 

2

Prime Lease or the Sublease by Landlord or Tenant prior to the date of attornment; (ii) be subject to any offsets, claims or defenses which Subtenant might have against Tenant; (iii) be bound by any rent or additional rent which Subtenant might have paid in advance to Tenant (unless such sums have been received by Landlord); (iv) be bound to honor any rights of Subtenant with respect to any security deposited under the Sublease, unless such security deposit has been received by Landlord; (v) be bound by any change or modification to the Sublease to which Landlord has not consented; (vi) be bound by the provisions of Sections 8 or 9 of the Amendment prior to attornment; or (vii) be bound by the provisions of Section 16 of the Amendment except to the extent of any security deposit of Subtenant actually received by Landlord.  Tenant hereby agrees that in the event of a Lease Termination, Tenant shall immediately pay or transfer to Landlord any security deposit, rent, or other sums then held by Tenant in connection with the Sublease.  This provision shall survive the termination of the Sublease, the termination of the Original Consent, the termination of this Consent and the termination of any such direct lease.

(b)    “Lease Termination” means any event, which by voluntary or involuntary act or by operation of law, might cause or permit the Prime Lease to: be terminated, expire, be cancelled, be surrendered, be foreclosed against, be rejected or otherwise come to an end, for any cause, other than by reason of condemnation or destruction including, but not limited to: (i) a default by Tenant or Subtenant under the Prime Lease of any of the terms or provisions thereof; (ii) foreclosure proceedings brought by the holder of any mortgage or trust deed to which the Prime Lease is subject; or (iii) the termination of Tenant's leasehold estate by dispossession proceeding or otherwise.

(c)    Unless Landlord otherwise expressly requests Subtenant's attornment as described above, upon a Lease Termination, the Sublease and the term and estate thereby granted shall expire and come to an end as of the effective date of Lease Termination, and Subtenant shall vacate the Subleased Premises on or before such date. In case of the failure of Subtenant to so vacate, Landlord shall be entitled to all the rights and remedies which are available to a landlord against a tenant holding over after the expiration of a term, including without limitation, Landlord's rights and remedies pursuant to the Prime Lease, and Tenant and Subtenant shall remain primarily, jointly and severally liable for any damages suffered by Landlord.

(d)    Subtenant waives the provisions of the Sublease, the Original Consent, this Consent or any law now or hereafter in effect which may give Subtenant any right of election to terminate the Sublease or to surrender possession of the Subleased Premises in the event any proceeding is brought by Landlord to terminate the Prime Lease.

7.    (a)    In addition to Landlord's rights under Section 6 hereof, in the event Tenant is in default under any of the terms and provisions of the Prime Lease, Landlord may elect to receive directly from Subtenant all sums due or payable to Tenant by Subtenant pursuant to the Sublease, and upon receipt of Landlord's written notice, Subtenant shall thereafter pay to Landlord any and all sums becoming due or payable under the Sublease and Tenant shall receive from Landlord a corresponding credit for such sums against any payments then due or thereafter becoming due from Tenant.  Landlord will apply any and all such sums received from Subtenant first to the costs necessary to exercise its rights pursuant to the Prime Lease, including cure of Tenant's default and then to Tenant's outstanding rental and all other payment obligations under the Prime Lease, in such order as Landlord, in its sole discretion, may determine. Tenant hereby authorizes Subtenant to comply, without inquiry, with any such directive received from Landlord, Neither the service of such notice nor the receipt of such direct 

3

payments shall cause Landlord to assume any of the Tenant's duties, obligations and/or liabilities under the Sublease, nor shall such event impose upon Landlord the duty or obligation to honor the Sublease, nor subsequently to accept Subtenant's attornment pursuant to Section 6(a) hereof.

(b)    In case of the violation by Tenant or Subtenant of any of the covenants, agreements, terms, provisions or conditions hereof or of the Original Consent, Landlord shall give written notice of such violation to Tenant and Subtenant, and if such violation shall not be discontinued or corrected within a reasonable time as specified in such notice, Landlord may, in addition to Landlord's other remedies, revoke this Consent and the Original Consent. Reference in this Consent to any particular remedy shall not preclude Landlord from any other remedy at law or in equity or pursuant to the Prime Lease.

(c)    Tenant and Subtenant agree that if Subtenant breaches any term of the Sublease, Landlord may, at its option and for its own sole benefit, exercise against Subtenant all or any of the rights and remedies that Tenant has against Subtenant at law, in equity or under the Sublease after written notice and expiration of any cure period provided under the Sublease. Tenant acknowledges that the exercise by Landlord of all or any of the foregoing rights and remedies against Subtenant shall not preclude Landlord from pursuing any right or remedy against Tenant. The exercise by Landlord against Subtenant of any or all of Tenant's rights and remedies shall neither cause Landlord to assume any of Tenant's duties, obligations and/or liabilities under the Sublease nor impose upon Landlord the duty or obligation to honor the Sublease nor subsequently to accept Subtenant's attornment pursuant to Section 6(a) hereof.

8.    Subtenant hereby acknowledges that it has read and has knowledge of all of the terms, provisions, rules and regulations of the Prime Lease and agrees not to do or omit to do anything which would cause Tenant to be in breach of the Prime Lease to the extent applicable to the Subleased Premises. Any such act or omission shall also constitute a breach of the Original Consent and this Consent and shall entitle Landlord to recover any damage, loss, cost or expense which it thereby suffers from Subtenant, whether or not Landlord proceeds against Tenant.

9.    In the event of any litigation between or among the parties hereto with respect to the subject matter hereof, the unsuccessful party agrees to pay the successful party all costs, expenses and reasonable attorneys' fees incurred therein by the successful party, which shall be included as a part of the judgment therein rendered.

10.    Tenant and Subtenant each hereby represents and warrants to Landlord that the Original Sublease as amended by the Amendment contain the entire agreement and understanding of Tenant and Subtenant with respect to the subject matter thereof, specifically including, without limitation, all agreements concerning rent and other consideration payable by Subtenant to Tenant for the Subleased Premises. Tenant and Subtenant acknowledge and agree that Landlord is not a party to the Sublease and is not bound by the provisions thereof, and, notwithstanding the foregoing, the Sublease shall not be altered or amended in any way without Landlord's prior written consent. Tenant and Subtenant further jointly and severally represent and agree that Subtenant is financially responsible, of good reputation, and engaged in a business which is in keeping with the standards of Landlord in those respects for the Building and its occupancy.

11.    Notices, requests, consents, approvals or other communications required or desired to be given hereunder (including, but not limited to, a copy of any notice of default by 

4

Tenant or Subtenant under the Sublease, notice of which default shall be given to Landlord simultaneously by the non-defaulting party) shall be in writing and may be sent by prepaid certified mail, return receipt requested or by personal service (via a recognized overnight courier), and shall be effective upon receipt or rejection of receipt by the addressee, addressed as follows:
	
		
	To Landlord:
	MIREF SADDLE RIVER, LLC
c/o Kwartler Associates, Inc.
2 North Street
Waldwick, New Jersey 07463

	With a copy to:
	McMORGAN & COMPANY
425 Market Street, Suite 1600
San Francisco, California 94105
Attn: Real Estate Department

	To Tenant:
	PDI, INC.
Morris Corporate Campus I, Bldg. A
300 Interpace Parkway
Parsippany, New Jersey 07054
Attn: Patrick Kane

	 
	and

	 
	PDI, INC.
Morris Corporate Campus I, Bldg. A
300 lnterpace Parkway
Parsippany, New Jersey 07054
Attn: General Counsel

	With a copy to:
	GREENBAUM, ROWE, SMITH & DAVIS llp
Metro Corporate Campus One
99 Wood Avenue South
Woodbridge, New Jersey 07095
Attn: Steven C. Delinko, Esq.

	To Subtenant:
	At the Premises

	With a copy to:
	MEDASSETS, INC.
100 North Point Center East, Suite 200
Alpharetta, Georgia 30022
Attn: General Counsel

Any party may change its address or add a party for notice by first giving notice to all the other parties hereto in the manner hereinabove provided.
12.    Subtenant shall maintain, and shall cause its contractors and subcontractors, as applicable, to maintain, during the term of the Sublease, all those policies of insurance required to be maintained by Tenant under the Prime Lease, and shall name Landlord, Tenant, Landlord's mortgagee, agents, officers, directors, partners, members, affiliates, successors, assigns, principals, beneficiaries, and Landlord's property manager as additional insureds.  Simultaneously with delivery by Subtenant to Landlord of Subtenant's countersignature to this Consent, Subtenant shall deliver to Landlord copies of insurance policies or original certificates of the insurers evidencing such insurance, together with evidence of the payment of all current premiums due therefor for a period of not less than twelve (12) months with regard to the 

5

insurance to be maintained by Tenant and Subtenant and for a period equal to the reasonably estimated period of time in which work shall be performed with regard to the contractors and subcontractors performing work in, on or at the Subleased Premises, which insurance policies or certificates of insurance shall state that such insurance coverage may not be amended, changed or canceled without at least thirty (30) days' prior written notice to Landlord.  Tenant and Subtenant acknowledge that delivery of such copies of insurance policies or original certificates is a condition precedent to Landlord's obligations and to the granting of this Consent by Landlord and to Subtenant's rights herein.

13.    Landlord shall not be liable for any brokerage commission, finder's fee or any other payment in connection with the Sublease.  Tenant and Subtenant agree to indemnify and hold Landlord harmless from and against any loss, cost, expense, damage or liability, including reasonable attorneys' fees, incurred as a result of a claim by any person or entity (i) that it is entitled to a commission, finder's fee or like payment in connection with the Original Sublease or the Amendment, or (ii) relating to or arising out of the Original Sublease or the Amendment or any related agreements or dealings. Tenant and Subtenant agree that Landlord is not responsible for the payment of any commissions or fees in connection with this transaction.

14.    Tenant agrees to hold any and all payments due under the Sublease as a trust fund to be applied first to the satisfaction of all of Tenant's obligations under the Prime Lease and hereunder before using any part thereof for any other purpose.

15.    Tenant agrees that Tenant shall, on the date hereof, reimburse Landlord for the reasonable out-of-pocket costs paid or incurred by Landlord in connection with the review of the Sublease and Amendment, and the documentation of this Consent, including, without limitation, reasonable legal fees. Tenant and Subtenant acknowledge that such reimbursement is a condition precedent to Landlord's obligations and to the granting of this Consent by Landlord and to Subtenant's rights herein.

16.    (a)    No alterations, additions (electrical or otherwise), or physical changes shall be made in the Subleased Premises, except pursuant to the covenants, agreements, provisions, terms and conditions of the Prime Lease and this Consent. Tenant agrees that Tenant and Subtenant are solely responsible for obtaining all permits and approvals required by any governmental or quasi-governmental agency for any work or otherwise required in connection with the Sublease or the Amendment or which Tenant or Subtenant elects to perform in the Subleased Premises.

(b)    Notwithstanding Section 17(a) of the Amendment, Landlord does not consent to perform, construct or install any of Subtenant's Improvements.  Any alterations, improvements and/or additions in or to the Subleased Premises, including without limitation, Subtenant's Improvements, shall be subject to the provisions of Article 8.3 of the Prime Lease.  In addition, all work performed by or for the benefit of Subtenant shall be subject to the Construction Requirements set forth in Exhibit 1 attached hereto and made a part hereof.

17.    Tenant hereby represents and warrants to Landlord that:  (i) Landlord has complied with all of its obligations contained in the Prime Lease; and (ii) no event has occurred and no condition exists which, with the passage of time or the giving of notice or both, would constitute a default by Landlord or Tenant under the Prime Lease.

18.    Tenant and Subtenant represent and warrant to Landlord that neither Tenant, Subtenant nor any of their respective partners, members or shareholders:  (i) is listed on the 

6

Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Asset Control, Department of the Treasury (“OFAC”) pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (“Order”) and all applicable provisions of Title III of the USA PATRIOT ACT (Public Law No. 107-56 (October 26, 2001)); (ii) is listed on the Denied Persons List and Entity List maintained by the United States Department of Commerce; (iii) is listed on the List of Terrorists and List of Disbarred Parties maintained by the United States Department of State; (iv) is listed on any list or qualification of “Designated Nationals” as defined in the Cuban Assets Control Regulations 31 C.F.R. Part 515; (v) is listed on any other publicly available list of terrorists, terrorist organizations or narcotics traffickers maintained by the United States Department of State, the United States Department of Commerce or any other governmental authority or pursuant to the Order, the rules and regulations of OFAC (including, without limitation, the Trading with the Enemy Act, 50 U.S.C. App. 1-44; the International Emergency Economic Powers Act, 50 U.S.C. § 1701-06; the unrepealed provision of the Iraqi Sanctions Act, Publ.L. No. 101-513; the United Nations Participation Act, 22 U.S.C. § 2349 aa-9; The Cuban Democracy Act, 22 U.S.C. § 60-01-10; The Cuban Liberty and Democratic Solidarity Act, 18.U.S.C. § 2332d and 233; and The Foreign Narcotic Kingpin Designation Act, Publ. L. No. 106-201, all as may be amended from time to time); or any other applicable requirements contained in any enabling legislation or other Executive Orders in respect of the Order (the Order and such other rules, regulations, legislation or orders are collectively called the “Orders”); (vi) is engaged in activities prohibited in the Orders; or (vii) has been convicted, pleaded nolo contendere, indicted, arraigned or custodially detained on charges involving money laundering or predicate crimes to money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes or violation of the Bank Secrecy Act (31 U.S.C. § 5311 et. seq.).

19.    (a)    Notwithstanding anything contained in the Sublease or the Original Consent to the contrary, Tenant and Subtenant acknowledge and agree that Article 12 of the Prime Lease does not permit further assignment or subletting by the Tenant or the Subtenant without Landlord's prior written consent, and that Article 12 remains in full force and effect upon Tenant and Subtenant.

(b)    Landlord may consent to subsequent subsubleases or assignments of the Sublease or any modifications or amendments to the Sublease without notice to or obtaining the consent of Tenant.

20.    Nothing herein shall limit or prejudice Landlord's right to require in the future full, strict and timely enforcement of all of Landlord's rights and remedies contained in the Prime Lease, including, but not limited to, in Article 13 of the Prime Lease.

21.    (a)    Tenant and the person executing and delivering this Consent on Tenant's behalf each represents and warrants that such person is duly authorized to so act; that Tenant is duly organized, is qualified to do business in the jurisdiction in which the Building is located, is in good standing under the laws of the state of its organization and the laws of the jurisdiction in which the Building is located, and has the power and authority to enter into this Consent; and that all action required to authorize Tenant and such person to enter into this Consent has been duly taken.

(b)    Subtenant and the person executing and delivering this Consent on Subtenant's behalf each represents and warrants that such person is duly authorized to so act; that Subtenant is duly organized, is qualified to do business in the jurisdiction in which the Building is located, is in good standing under the laws of the state of its organization and the 

7

laws of the jurisdiction in which the Building is located, and has the power and authority to enter into this Consent; and that all action required to authorize Subtenant and such person to enter into this Consent has been duly taken.

22.    In the event of a conflict between any of the terms of this Consent and the terms of the Original Consent or the Sublease, the terms of this Consent shall control.

23.    This Consent and any disputes arising hereunder shall be governed by the laws of the State of New Jersey (without giving effect to such State's principles of conflicts of laws) and shall be binding upon and inure to the benefit of the parties, and their respective permitted successors and assigns, subject to all agreements and restrictions contained in the Prime Lease, the Sublease, the Original Consent and herein.  The agreements contained herein constitute the entire understanding between the parties with respect to the subject matter hereof, and supersede all prior agreements, written or oral, inconsistent herewith. No amendment, modification or change to the Sublease, the Original Consent or this Consent will be effective unless Landlord shall have given its prior written consent thereto. This Consent may be amended only in writing, signed by all parties hereto.

24.    The parties hereto hereby waive trial by jury in any action, proceeding, claim or counterclaim brought by any party hereto against the other party(ies) on any matter whatsoever arising out of or in any way connected to the Prime Lease, the Sublease, the Original Consent, this Consent, the Subleased Premises, the relationship of the parties, the use or occupancy of the Subleased Premises and/or any injury or damage.

25.    Tenant and Subtenant each represents to Landlord that no additional payments of rent or any other consideration has been paid or hereafter is payable by Subtenant to Tenant in connection with the Sublease, other than as set forth in the Sublease.

26.    Tenant and Subtenant jointly and severally represent to Landlord that all documents and writings submitted to Landlord in connection with the Original Consent and this Consent, including without limitation, the Sublease and all financial information, are true, complete and accurate in all material respects, it being acknowledged that Landlord has relied on and is relying thereon in the granting of this Consent and the Initial Consent.  If Landlord reasonably determines that such representation is false in any material aspect, Landlord shall have the right to withhold or withdraw such Consent on notice to Tenant and Subtenant.

27.    Notwithstanding anything stated to the contrary in the Sublease, Landlord does not represent, approve of or consent to the specific number of reserved and unreserved parking spaces to which Tenant is entitled or which have been assigned or transferred to Subtenant; it being acknowledged that Tenant has assigned or transferred to Subtenant the right to use not more than the maximum number of parking spaces to which Tenant is entitled, to which Landlord consents.

28.    Subtenant's right of access pursuant to Section 15 of the Amendment is subject to Sections 11.5, 11.7, 11.8, 11.9 and 11.10 of the Prime Lease.

29.    Landlord does not consent to Section 24 of the Amendment.

[Signature page follows.]

8

IN WITNESS WHEREOF, the following parties have executed this Consent to Amendment to Sublease as of the date first above written.
	
		
	 
	Tenant:

	 
	PDI, INC., a Delaware corporation

	 
	By:  /s/ Jeffrey Smith                           
Name:  Jeffrey Smith                           
Title:        CFO                                              

	 
	Subtenant:

	 
	MEDASSETS NET REVENUE SYSTEMS, LLC, a Delaware limited liability company

	 
	By:  /s/ Jonathan H. Glenn                      
Name:  Jonathan H. Glenn                     
Title: Vice President and Secretary        

	 
	Landlord:

	 
	MIREF SADDLE RIVER, LLC, a Delaware limited liability company
By:  McMORGAN & COMPANY LLC, its manager, a Delaware limited liability company

	 
	By:  /s/ Brian Seaman                    
Name:  Brian Seaman                   
Title:  Director                                

9

EXHIBIT 1
Construction Requirements
Notwithstanding anything to the contrary set forth in this Consent or the Prime Lease, any work performed at the Building or on the Subleased Premises by Subtenant or its contractors in connection with any Subtenant's Improvements or other work shall be subject to the following additional requirements:

(a)    Such work shall not proceed until Landlord has approved (which approval shall not be unreasonably withheld or delayed):  (i) Subtenant's contractor; (ii) the amount and coverage of public liability and property damage insurance, with Landlord and the Additional Insureds named as additional insureds, carried by Subtenant's contractor; (iii) complete and detailed plans and specifications for such work; and (iv) a schedule for the work.

(b)    All work shall be done in conformity with a valid permit when required, a copy of which shall be furnished to Landlord before such work is commenced.  In any case, all such work shall be performed in accordance with all applicable laws.  Notwithstanding any failure by Landlord to object to any such work, Landlord shall have no responsibility for Subtenant's failure to comply with applicable laws or for Subtenant's failure to comply with the applicable provisions of the Prime Lease or this Consent.

(c)    All contractors and subcontractors retained at the Project by Subtenant to perform construction or Subtenant improvement work shall be signatory to a collective bargaining agreement.

(d)    Tenant and Subtenant, jointly and severally, shall indemnify, defend and hold Landlord and its partners harmless for all liabilities, claims and damages, including consequential damages, in connection with or resulting from any work performed by Subtenant at the Building or on the Subleased Premises.  

Exhibit 1-1

SCHEDULE C

THIRD FLOOR EXISTING FURNITURE

	
					
	 
	 
	 
	 

	 
	 
	 
	 

	 
	Saddle River Furniture Listing:
	 
	 

	 
	Description
	#
	 

	 
	Cubicles
	91
	 

	 
	Office Desk & Bookcase
	60
	 

	 
	Chairs
	189
	 

	 
	Office meeting tables
	18
	 

	 
	Storage Shelves
	14
	 

	 
	Conference tables
	13
	 

	 
	Conference chairs
	43
	 

	 
	Filing Cabinets
	134
	 

	 
	 
	 
	 

	 
	Boardroom
	 
	 

	 
	Boardroom Table
	1
	 

	 
	Leather chairs
	19
	 

	 
	 
	 
	 

	 
	Training Room
	 
	 

	 
	8 Training room tables
	8
	 

	 
	Chairs
	22
	 

	 
	 
	 
	 

	 
	Breakroom
	 
	 

	 
	Tables
	7
	 

	 
	Chairs
	17
	 

	 
	Counter Stools
	5
	 

	 
	Terrace Picnic Tables
	3
	 

	 
	Fridge
	1
	 

	 
	Microwave
	1
	 

	 
	 
	 
	 

	 
	Misc:
	 
	 

	 
	Avaya Phones
	100
	 

	 
	Fridge
	1
	 

	 
	Microwave
	1
	

	 

1

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