Document:

EXHIBIT 10.6

 

 

 

ASSET REPRESENTATIONS REVIEW AGREEMENT

 

among

 

FORD CREDIT AUTO OWNER TRUST 20  -  ,
 as Issuer

 

FORD MOTOR CREDIT COMPANY LLC,
 as Servicer

 

and

 

                                          ,
 as Asset Representations Reviewer

 

Dated as of       , 20

 

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I USAGE   AND DEFINITIONS
    	
1
    
	
Section 1.1.
    	
Usage and Definitions
    	
1
    
	
Section 1.2.
    	
Additional Definitions
    	
1
    
	
ARTICLE II   ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER
    	
2
    
	
Section 2.1.
    	
Engagement; Acceptance
    	
2
    
	
Section 2.2.
    	
Confirmation of Status
    	
2
    
	
ARTICLE III ASSET   REPRESENTATIONS REVIEW PROCESS
    	
2
    
	
Section 3.1.
    	
Review Notices
    	
2
    
	
Section 3.2.
    	
Identification of Review   Receivables
    	
2
    
	
Section 3.3.
    	
Review Materials
    	
3
    
	
Section 3.4.
    	
Performance of Reviews
    	
3
    
	
Section 3.5.
    	
Review Reports
    	
4
    
	
Section 3.6.
    	
Review Representatives
    	
4
    
	
Section 3.7.
    	
Dispute Resolution
    	
4
    
	
Section 3.8.
    	
Limitations on Review   Obligations
    	
5
    
	
ARTICLE IV ASSET   REPRESENTATIONS REVIEWER
    	
5
    
	
Section 4.1.
    	
Representations and   Warranties
    	
5
    
	
Section 4.2.
    	
Covenants
    	
6
    
	
Section 4.3.
    	
Fees and Expenses
    	
7
    
	
Section 4.4.
    	
Limitation on Liability
    	
7
    
	
Section 4.5.
    	
Indemnification by   Asset Representations Reviewer
    	
8
    
	
Section 4.6.
    	
Indemnification of   Asset Representations Reviewer
    	
8
    
	
Section 4.7.
    	
Inspections of Asset   Representations Reviewer
    	
9
    
	
Section 4.8.
    	
Delegation of   Obligations
    	
9
    
	
Section 4.9.
    	
Confidential   Information
    	
9
    
	
Section 4.10.
    	
Personally Identifiable   Information
    	
11
    
	
ARTICLE V   RESIGNATION AND REMOVAL; SUCCESSOR ASSET REPRSENTATIONS REVIWER
    	
12
    
	
Section 5.1.
    	
Eligibility   Requirements for Asset Representations Reviewer
    	
12
    
	
Section 5.2.
    	
Resignation and Removal   of Asset Representations Reviewer
    	
13
    
	
Section 5.3.
    	
Successor Asset   Representations Reviewer
    	
13
    
	
Section 5.4.
    	
Merger, Consolidation   or Succession
    	
14
    
	
ARTICLE VI OTHER   AGREEMENTS
    	
14
    
	
Section 6.1.
    	
Independence of Asset   Representations Reviewer
    	
14
    
	
Section 6.2.
    	
No Petition
    	
14
    
	
Section 6.3.
    	
Limitation of Liability   of Owner Trustee
    	
14
    
	
Section 6.4.
    	
Termination of   Agreement
    	
15
    
	
ARTICLE VII   MISCELLANEOUS PROVISIONS
    	
15
    
	
Section 7.1.
    	
Amendments
    	
15
    
	
Section 7.2.
    	
Assignment; Benefit of   Agreement; Third Party Beneficiaries
    	
15
    
	
Section 7.3.
    	
Notices
    	
16
    
	
Section 7.4.
    	
GOVERNING LAW
    	
16
    
	
Section 7.5.
    	
Submission to   Jurisdiction
    	
16
    
	
Section 7.6.
    	
WAIVER OF JURY TRIAL
    	
16
    
	
Section 7.7.
    	
No Waiver; Remedies
    	
16
    

 

i

 

	
Section 7.8.
    	
Severability
    	
16
    
	
Section 7.9.
    	
Headings
    	
17
    
	
Section 7.10.
    	
Counterparts
    	
17
    

 

Schedule A — Representations and Warranties, Review Materials and Tests

 

 

ASSET REPRESENTATIONS REVIEW AGREEMENT, dated as of       , 20   (this “Agreement”), among FORD CREDIT AUTO OWNER TRUST 20  -  , a Delaware statutory trust, as Issuer, FORD MOTOR CREDIT COMPANY LLC, a Delaware limited liability company, as Servicer, and                    , a                    , as Asset Representations Reviewer.

 

BACKGROUND

 

In the normal course of its business, Ford Credit purchases retail installment sale contracts secured by new and used cars, light trucks and utility vehicles from motor vehicle dealers.

 

In connection with a securitization transaction sponsored by Ford Credit, Ford Credit sold a pool of Receivables consisting of retail installment sale contracts to the Depositor, who sold them to the Issuer.

 

The Issuer has granted a security interest in the pool of Receivables to the Indenture Trustee, for the benefit of the Secured Parties, as security for the Notes issued by the Issuer under the Indenture.

 

The Issuer has determined to engage the Asset Representations Reviewer to perform reviews of certain Receivables for compliance with the representations and warranties made by Ford Credit and the Depositor about the Receivables in the pool.

 

The parties agree as follows.

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.           Usage and Definitions.  Capitalized terms used but not defined in this Agreement are defined in Appendix A to the Sale and Servicing Agreement, dated as of      , 20  , among Ford Credit Auto Owner Trust 20  -  , as Issuer, Ford Credit Auto Receivables Two LLC, as Depositor, and Ford Motor Credit Company LLC, as Servicer.  Appendix A also contains usage rules that apply to this Agreement.  Appendix A is incorporated by reference into this Agreement.

 

Section 1.2.           Additional Definitions.  The following terms have the meanings given below:

 

“Confidential Information” has the meaning stated in Section 4.9(b).

 

“Information Recipients” has the meaning stated in Section 4.9(a).

 

“Indemnified Parties” has the meaning stated in Section 4.6(a).

 

“Issuer PII” has the meaning stated in Section 4.10(a).

 

“Personally Identifiable Information” or “PII” has the meaning stated in Section 4.10(a).

 

 

“Review” means the performance by the Asset Representations Reviewer of the testing procedures for each Test and each Review Receivable according to Section 3.4.

 

“Review Fee” has the meaning stated in Section 4.3(b).

 

“Review Materials” means, for a Review and a Review Receivable, the documents and other materials for each Test listed under “Review Materials” in Schedule A.

 

“Review Report” means, for a Review, the report of the Asset Representations Reviewer prepared according to Section 3.5.

 

“Test” has the meaning stated in Section 3.4(a).

 

“Test Complete” has the meaning stated in Section 3.4(c).

 

“Test Fail” has the meaning stated in Section 3.4(a).

 

“Test Pass” has the meaning stated in Section 3.4(a).

 

ARTICLE II
 ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER

 

Section 2.1.           Engagement; Acceptance.  The Issuer engages            to act as the Asset Representations Reviewer for the Issuer.             accepts the engagement and agrees to perform the obligations of the Asset Representations Reviewer on the terms in this Agreement.

 

Section 2.2.           Confirmation of Status.  The parties confirm that the Asset Representations Reviewer is not responsible for (a) reviewing the Receivables for compliance with the representations and warranties under the Transaction Documents, except as described in this Agreement, or (b) determining whether noncompliance with the representations or warranties constitutes a breach of the Transaction Documents.

 

ARTICLE III
 ASSET REPRESENTATIONS REVIEW PROCESS

 

Section 3.1.           Review Notices.  On receipt of a Review Notice from the Indenture Trustee according to Section 7.2 of the Indenture, the Asset Representations Reviewer will start a Review.  The Asset Representation Reviewer will have no obligation to start a Review until a Review Notice is received.

 

Section 3.2.           Identification of Review Receivables.  Within ten Business Days after receipt of a Review Notice, the Servicer will deliver to the Asset Representations Reviewer and the Indenture Trustee a list of the Review Receivables.

 

2

 

Section 3.3.           Review Materials.

 

(a)           Access to Review Materials.  The Servicer will give the Asset Representations Reviewer access to the Review Materials for all of the Review Receivables within 60 days after receipt of the Review Notice in one or more of the following ways: (i) by providing access to the Servicer’s receivables systems, either remotely or at one of the properties of the Servicer, (ii) by electronic posting to a password-protected website to which the Asset Representations Reviewer has access, (iii) by providing originals or photocopies at one of the properties of the Servicer where the Receivable Files are located or (iv) in another manner agreed by the Servicer and the Asset Representations Reviewer.  The Servicer may redact or remove Personally Identifiable Information from the Review Materials without changing the meaning or usefulness of the Review Materials for the Review.

 

(b)           Missing or Insufficient Review Materials.  If any of the Review Materials are missing or insufficient for the Asset Representations Reviewer to perform any Test, the Asset Representations Reviewer will notify the Servicer promptly, and in any event no less than 20 days before completing the Review, and the Servicer will have 15 days to give the Asset Representations Reviewer access to such missing Review Materials or other documents or information to correct the insufficiency.  If the missing or insufficient Review Materials have not been provided by the Servicer within 15 days, the parties agree that the Review Receivable will have a Test Fail for the related Test(s) and the Test(s) will be considered completed and the Review Report will indicate the reason for the Test Fail.

 

Section 3.4.           Performance of Reviews.

 

(a)           Test Procedures.  For a Review, the Asset Representations Reviewer will perform for each Review Receivable the procedures listed under “Tests” in Schedule A for each representation and warranty (each, a “Test”), using the Review Materials listed for each such Test in Schedule A.  For each Test and Review Receivable, the Asset Representations Reviewer will determine if the Test has been satisfied (a “Test Pass”) or if the Test has not been satisfied (a “Test Fail”).

 

(b)           Review Period.  The Asset Representations Reviewer will complete the Review of all of the Review Receivables within 60 days after receiving access to the Review Materials under Section 3.3(a).  However, if additional Review Materials are provided to the Asset Representations Reviewer under Section 3.3(b), the Review period will be extended for an additional 30 days.

 

(c)           Completion of Review for Certain Review Receivables.  Following the delivery of the list of the Review Receivables and before the delivery of the Review Report by the Asset Representations Reviewer, the Servicer may notify the Asset Representations Reviewer if a Review Receivable is paid in full by the Obligor or purchased from the Issuer by the Sponsor, the Depositor or the Servicer according to the Transaction Documents.  On receipt of notice, the Asset Representations Reviewer will immediately terminate all Tests of such Receivables and the Review of such Receivables will be considered complete (a “Test Complete”).  In this case, the Review Report will indicate a Test Complete for the Receivables and the related reason.

 

3

 

(d)           Previously Reviewed Receivable.  If any Review Receivable was included in a prior Review, the Asset Representations Reviewer will not perform any Tests on it, but will include the results of the previous Tests in the Review Report for the current Review.

 

(e)           Termination of Review.  If a Review is in process and the Notes will be paid in full on the next Payment Date, the Servicer will notify the Asset Representations Reviewer and the Indenture Trustee no less than ten days before that Payment Date.  On receipt of notice, the Asset Representations Reviewer will terminate the Review immediately and will have no obligation to deliver a Review Report.

 

Section 3.5.           Review Reports.  Within five days after the end of the Review period under Section 3.4(b), the Asset Representations Reviewer will deliver to the Issuer, the Servicer and the Indenture Trustee a Review Report indicating for each Review Receivable whether there was a Test Pass or a Test Fail for each Test, or whether the Review Receivable was a Test Complete and the related reason.  The Review Report will contain a summary of the Review results to be included in the Issuer’s Form 10-D report for the Collection Period in which the Review Report is received.  The Asset Representations Reviewer will ensure that the Review Report does not contain any Issuer PII.

 

Section 3.6.           Review Representatives.

 

(a)           Servicer Representative.  The Servicer will designate one or more representatives who will be available to assist the Asset Representations Reviewer in performing the Review, including responding to requests and answering questions from the Asset Representations Reviewer about access to Review Materials on the Servicer’s receivables systems, obtaining missing or insufficient Review Materials and/or providing clarification of any Review Materials or Tests.

 

(b)           Asset Representations Reviewer Representative.  The Asset Representations Reviewer will designate one or more representatives who will be available to the Issuer and the Servicer during the performance of a Review.

 

(c)           Questions About Review.  The Asset Representations Reviewer will make appropriate personnel available to respond in writing to written questions or requests for clarification of any Review Report from the Indenture Trustee or the Servicer until the earlier of (i) the payment in full of the Notes and (ii) one year after the delivery of the Review Report.  The Asset Representations Reviewer will have no obligation to respond to questions or requests for clarification from Noteholders or any other Person and will direct such Persons to submit written questions or requests to the Indenture Trustee.

 

Section 3.7.           Dispute Resolution.  If a Receivable that was Reviewed by the Asset Representations Reviewer is the subject of a dispute resolution proceeding under Section 2.6 of the Sale and Servicing Agreement, the Asset Representations Reviewer will participate in the dispute resolution proceeding on request of a party to the proceeding.  The reasonable out-of-pocket expenses of the Asset Representations Reviewer for its participation in any dispute resolution proceeding will be considered expenses of the requesting party for the dispute resolution and will be paid by a party to the dispute resolution as determined by the mediator or

 

4

 

arbitrator for the dispute resolution according to Section 2.6 of the Sale and Servicing Agreement.  If not paid by a party to the dispute resolution, the expenses will be reimbursed by the Issuer according to Section 4.3(d).

 

Section 3.8.           Limitations on Review Obligations.

 

(a)           Review Process Limitations.  The Asset Representations Reviewer will have no obligation:

 

(i)            to determine whether a Delinquency Trigger has occurred or whether the required percentage of Noteholders has voted to direct a Review under the Indenture, and may rely on the information in any Review Notice delivered by the Indenture Trustee;

 

(ii)           to determine which Receivables are subject to a Review, and may rely on the lists of Review Receivables provided by the Servicer;

 

(iii)          to obtain or confirm the validity of the Review Materials and no liability for any errors in the Review Materials and may rely on the accuracy and completeness of the Review Materials;

 

(iv)          to obtain missing or insufficient Review Materials from any party or any other source; or

 

(v)           to take any action or cause any other party to take any action under any of the Transaction Documents or otherwise to enforce any remedies against any Person for breaches of representations or warranties about the Review Receivables.

 

(b)           Testing Procedure Limitations.  The Asset Representations Reviewer will only be required to perform the testing procedures listed under “Tests” in Schedule A, and will have no obligation to perform additional procedures on any Review Receivable or to provide any information other than a Review Report indicating for each Review Receivable whether there was a Test Pass or a Test Fail for each Test, or whether the Review Receivable was a Test Complete and the related reason.  However, the Asset Representations Reviewer may provide additional information about any Review Receivable that it determines in good faith to be material to the Review.

 

ARTICLE IV
 ASSET REPRESENTATIONS REVIEWER

 

Section 4.1.           Representations and Warranties .  The Asset Representations Reviewer represents and warrants to the Issuer as of the Closing Date:

 

(a)           Organization and Qualification.  The Asset Representations Reviewer is duly organized and validly existing as a                  in good standing under the laws of                .  The Asset Representations Reviewer is qualified as a foreign                in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its properties or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would

 

5

 

not reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.

 

(b)           Power, Authority and Enforceability.  The Asset Representations Reviewer has the power and authority to execute, deliver and perform its obligations under this Agreement.  The Asset Representations Reviewer has authorized the execution, delivery and performance of this Agreement.  This Agreement is the legal, valid and binding obligation of the Asset Representations Reviewer enforceable against the Asset Representations Reviewer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles.

 

(c)           No Conflicts and No Violation.  The completion of the transactions contemplated by this Agreement and the performance of the Asset Representations Reviewer’s obligations under this Agreement will not (A) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument under which the Asset Representations Reviewer is a debtor or guarantor, (B) result in the creation or imposition of any Lien on any of the properties or assets of the Asset Representations Reviewer under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument, (C) violate the organizational documents of the Asset Representations Reviewer or (D) violate any law or, to the Asset Representations Reviewer’s knowledge, any order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its properties that applies to the Asset Representations Reviewer, which, in each case, would reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.

 

(d)           No Proceedings.  To the Asset Representations Reviewer’s knowledge, there are no proceedings or investigations pending or threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its properties (A) asserting the invalidity of this Agreement, (B) seeking to prevent the completion of the transactions contemplated by this Agreement or (C) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under, or the validity or enforceability of, this Agreement.

 

(e)           Eligibility.  The Asset Representations Reviewer meets the eligibility requirements in Section 5.1.

 

Section 4.2.           Covenants.  The Asset Representations Reviewer covenants and agrees that:

 

(a)           Eligibility.  It will notify the Issuer and the Servicer promptly if it no longer meets the eligibility requirements in Section 5.1.

 

(b)           Review Systems; Personnel.  It will maintain business process management and/or other systems necessary to ensure that it can perform each Test and, on execution of this Agreement, will load each Test into these systems. The Asset Representations Reviewer will

 

6

 

ensure that these systems allow for each Review Receivable and the related Review Materials to be individually tracked and stored as contemplated by this Agreement.  The Asset Representations Reviewer will maintain adequate staff that is properly trained to conduct Reviews as required by this Agreement.

 

(c)           Maintenance of Review Materials.  It will maintain copies of any Review Materials, Review Reports and other documents relating to a Review, including internal correspondence and work papers, for a period of two years after the termination of this Agreement.

 

Section 4.3.           Fees and Expenses.

 

(a)           Annual Fee.  The Issuer will, or will cause the Administrator to, pay the Asset Representations Reviewer, as compensation for agreeing to act as the Asset Representations Reviewer under this Agreement, an annual fee separately agreed to by the Issuer and the Asset Representations Reviewer.  The annual fee will be paid as agreed by the Issuer and the Asset Representations Reviewer until this Agreement is terminated.

 

(b)           Review Fee.  Following the completion of a Review and the delivery to the Indenture Trustee of the Review Report, or the termination of a Review according to Section 3.4(e), and the delivery to the Servicer of a detailed invoice, the Asset Representations Reviewer will be entitled to a fee of $      for each Review Receivable for which the Review was started (the “Review Fee”).  However, no Review Fee will be charged for any Review Receivable which was included in a prior Review or for which no Tests were completed prior to the Asset Representations Reviewer being notified of a termination of the Review according to Section 3.4(e).  If the detailed invoice is submitted on or before the first day of a month, the Review Fee will be paid by the Issuer pursuant to the priority of payments in Section 8.2 of the Indenture starting on or before the Payment Date in that month.  However, if a Review is terminated according to Section 3.4(e), the Asset Representations Reviewer must submit its invoice for the Review Fee for the terminated Review no later than five Business Days before the final Payment Date in order to be reimbursed no later than the final Payment Date.

 

(c)           Reimbursement of Travel Expenses.  If the Servicer provides access to the Review Materials at one of its properties, the Issuer will reimburse the Asset Representations Reviewer for its reasonable travel expenses incurred in connection with the Review upon receipt of a detailed invoice.

 

(d)           Dispute Resolution Expenses.  If the Asset Representations Reviewer participates in a dispute resolution proceeding under Section 3.7 and its reasonable out-of-pocket expenses for participating in the proceeding are not paid by a party to the dispute resolution within [90] days after the end of the proceeding, the Issuer will reimburse the Asset Representations Reviewer for such expenses upon receipt of a detailed invoice.

 

Section 4.4.           Limitation on Liability.  The Asset Representations Reviewer will not be liable to any Person for any action taken, or not taken, in good faith under this Agreement or for errors in judgment.  However, the Asset Representations Reviewer will be liable for its willful misconduct, bad faith or negligence in performing its obligations under this Agreement.  In no

 

7

 

event will the Asset Representations Reviewer be liable for special, indirect or consequential losses or damages (including lost profit), even if the Asset Representations Reviewer has been advised of the likelihood of the loss or damage and regardless of the form of action.

 

Section 4.5.           Indemnification by Asset Representations Reviewer .  The Asset Representations Reviewer will indemnify each of the Issuer, the Depositor, the Servicer, the Owner Trustee and the Indenture Trustee and their respective directors, officers, employees and agents for all costs, expenses, losses, damages and liabilities resulting from (a) the willful misconduct, bad faith or negligence of the Asset Representations Reviewer in performing its obligations under this Agreement or (b) the Asset Representations Reviewer’s breach of any of its representations or warranties in this Agreement.  The Asset Representations Reviewer’s obligations under this Section 4.5 will survive the termination of this Agreement, the termination of the Issuer and the resignation or removal of the Asset Representations Reviewer.

 

Section 4.6.           Indemnification of Asset Representations Reviewer.

 

(a)           Indemnification.  The Issuer will, or will cause the Administrator to, indemnify the Asset Representations Reviewer and its officers, directors, employees and agents (each, an “Indemnified Person”), for all costs, expenses, losses, damages and liabilities resulting from the performance of its obligations under this Agreement (including the costs and expenses of defending itself against any loss, damage or liability), but excluding any cost, expense, loss, damage or liability resulting from (i) the Asset Representations Reviewer’s willful misconduct, bad faith or negligence or (ii) the Asset Representations Reviewer’s breach of any of its representations or warranties in this Agreement.

 

(b)           Proceedings.  Promptly on receipt by an Indemnified Person of notice of a Proceeding against it, the Indemnified Person will, if a claim is to be made under Section 4.6(a), notify the Issuer and the Administrator of the Proceeding.  The Issuer or the Administrator may participate in and assume the defense and settlement of a Proceeding at its expense.  If the Issuer or the Administrator notifies the Indemnified Person of its intention to assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long as the Issuer or the Administrator assumes the defense of the Proceeding in a manner reasonably satisfactory to the Indemnified Person, the Issuer and the Administrator will not be liable for legal expenses of counsel to the Indemnified Person unless there is a conflict between the interests of the Issuer or the Administrator, as applicable, and an Indemnified Person.  If there is a conflict, the Issuer or the Administrator will pay for the reasonable fees and expenses of separate counsel to the Indemnified Person.  No settlement of a Proceeding may be made without the approval of the Issuer and the Administrator and the Indemnified Person, which approval will not be unreasonably withheld.

 

(c)           Survival of Obligations.  The Issuer’s and the Administrator’s obligations under this Section 4.6 will survive the resignation or removal of the Asset Representations Reviewer and the termination of this Agreement.

 

(d)           Repayment.  If the Issuer or the Administrator makes any payment under this Section 4.6 and the Indemnified Person later collects any of the amounts for which the payments

 

8

 

were made to it from others, the Indemnified Person will promptly repay the amounts to the Issuer or the Administrator, as applicable.

 

Section 4.7.           Inspections of Asset Representations Reviewer.  The Asset Representations Reviewer agrees that, with reasonable prior notice not more than once during any year, it will permit authorized representatives of the Issuer, the Servicer or the Administrator, during the Asset Representations Reviewer’s normal business hours, to examine and review the books of account, records, reports and other documents and materials of the Asset Representations Reviewer relating to (a) the performance of the Asset Representations Reviewer’s obligations under this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for its performance and (c) a claim made by the Asset Representations Reviewer under this Agreement.  In addition, the Asset Representations Reviewer will permit the Issuer’s, the Servicer’s or the Administrator’s representatives to make copies and extracts of any of those documents and to discuss them with the Asset Representations Reviewer’s officers and employees.  Each of the Issuer, the Servicer and the Administrator will, and will cause its authorized representatives to, hold in confidence the information except if disclosure may be required by law or if the Issuer, the Servicer or the Administrator reasonably determines that it is required to make the disclosure under this Agreement or the other Transaction Documents.  The Asset Representations Reviewer will maintain all relevant books, records, reports and other documents and materials for a period of at least two years after the termination of its obligations under this Agreement.

 

Section 4.8.           Delegation of Obligations.  The Asset Representations Reviewer may not delegate or subcontract its obligations under this Agreement to any Person without the consent of the Issuer and the Servicer.

 

Section 4.9.           Confidential Information.

 

(a)           Treatment.  The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in confidence and under the terms and conditions of this Section 4.9, and will implement and maintain safeguards to further assure the confidentiality of the Confidential Information.  The Confidential Information will not, without the prior consent of the Issuer and the Servicer, be disclosed or used by the Asset Representations Reviewer, or its officers, directors, employees, agents, representatives or affiliates, including legal counsel (collectively, the “Information Recipients”) other than for the purposes of performing Reviews of Review Receivables or performing its obligations under this Agreement.  The Asset Representations Reviewer agrees that it will not, and will cause its Affiliates to not (i) purchase or sell securities issued by Ford Credit or its Affiliates or special purpose entities on the basis of Confidential Information or (ii) use the Confidential Information for the preparation of research reports, newsletters or other publications or similar communications.

 

(b)           Definition.  “Confidential Information” means oral, written and electronic materials (irrespective of its source or form of communication) furnished before, on or after the date of this Agreement to the Asset Representations Reviewer for the purposes contemplated by this Agreement, including:

 

9

 

(i)            lists of Review Receivables and any related Review Materials;

 

(ii)           origination and servicing guidelines, policies and procedures, and form contracts; and

 

(iii)          notes, analyses, compilations, studies or other documents or records prepared by the Servicer, which contain information supplied by or on behalf of the Servicer or its representatives.

 

However, Confidential Information will not include information that (A) is or becomes generally available to the public other than as a result of disclosure by the Information Recipients, (B) was available to, or becomes available to, the Information Recipients on a non-confidential basis from a Person or entity other than the Issuer or the Servicer before its disclosure to the Information Recipients who, to the knowledge of the Information Recipient is not bound by a confidentiality agreement with the Issuer or the Servicer and is not prohibited from transmitting the information to the Information Recipients, (C) is independently developed by the Information Recipients without the use of the Confidential Information, as shown by the Information Recipients’ files and records or other evidence in the Information Recipients’ possession or (D) the Issuer or the Servicer provides permission to the applicable Information Recipients to release.

 

(c)           Protection.  The Asset Representations Reviewer will take reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of Confidential Information, including those measures that it takes to protect its own confidential information and not less than a reasonable standard of care.  The Asset Representations Reviewer acknowledges that Personally Identifiable Information is also subject to the additional requirements in Section 4.10.

 

(d)           Disclosure.  If the Asset Representations Reviewer is required by applicable law, regulation, rule or order issued by an administrative, governmental, regulatory or judicial authority to disclose part of the Confidential Information, it may disclose the Confidential Information.  However, before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation, rule or order, will use its reasonable efforts to provide the Issuer and the Servicer with notice of the requirement and will cooperate, at the Servicer’s expense, in the Issuer’s and the Servicer’s pursuit of a proper protective order or other relief for the disclosure of the Confidential Information.  If the Issuer or the Servicer is unable to obtain a protective order or other proper remedy by the date that the information is required to be disclosed, the Asset Representations Reviewer will disclose only that part of the Confidential Information that it is advised by its legal counsel it is legally required to disclose.

 

(e)           Responsibility for Information Recipients.  The Asset Representations Reviewer will be responsible for a breach of this Section 4.9 by its Information Recipients.

 

(f)            Violation.  The Asset Representations Reviewer agrees that a violation of this Agreement may cause irreparable injury to the Issuer and the Servicer and the Issuer and the Servicer may seek injunctive relief in addition to legal remedies.  If an action is initiated by the Issuer or the Servicer to enforce this Section 4.9, the prevailing party will be entitled to reimbursement of costs and expenses, including reasonable attorney’s fees, incurred by it for the enforcement.

 

10

 

Section 4.10.         Personally Identifiable Information.

 

(a)           Definitions.  “Personally Identifiable Information” or “PII” means information in any format about an identifiable individual, including, name, address, phone number, e-mail address, account number(s), identification number(s), any other actual or assigned attribute associated with or identifiable to an individual and any information that when used separately or in combination with other information could identify an individual.  “Issuer PII” means PII furnished by the Issuer, the Servicer or their Affiliates to the Asset Representations Reviewer and PII developed or otherwise collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement.

 

(b)           Use of Issuer PII.  The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII except as provided in this Agreement.  The Asset Representations Reviewer will use Issuer PII only to perform its obligations under this Agreement or as specifically directed in writing by the Issuer and will only reproduce Issuer PII to the extent necessary for these purposes.  The Asset Representations Reviewer must comply with all laws applicable to PII, Issuer PII and the Asset Representations Reviewer’s business, including any legally required codes of conduct, including those relating to privacy, security and data protection.  The Asset Representations Reviewer will protect and secure Issuer PII.  The Asset Representations Reviewer will implement privacy or data protection policies and procedures that comply with applicable law and this Agreement.  The Asset Representations Reviewer will implement and maintain reasonable and appropriate practices, procedures and systems, including administrative, technical and physical safeguards to (i) protect the security, confidentiality and integrity of Issuer PII, (ii) ensure against anticipated threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized access to or use of Issuer PII and (iv) otherwise comply with its obligations under this Agreement.  These safeguards include a written data security plan, employee training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection, data storage protection and data transmission protection) and physical security measures.

 

(c)           Additional Limitations.  In addition to the use and protection requirements described in Section 4.10(b), the Asset Representations Reviewer’s disclosure of Issuer PII is also subject to the following requirements:

 

(i)            The Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer PII except (A) for the Asset Representations Reviewer personnel who require Issuer PII to perform a Review, (B) with the prior consent of the Issuer or (C) as required by applicable law.  When permitted, the disclosure of or access to Issuer PII will be limited to the specific information necessary for the individual to complete the assigned task.  The Asset Representations Reviewer will inform personnel with access to Issuer PII of the confidentiality requirements in this Agreement and train its personnel with access to Issuer PII on the proper use and protection of Issuer PII.

 

(ii)           The Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party without the prior consent of the Issuer.

 

11

 

(d)           Notice of Breach.  The Asset Representations Reviewer will notify the Issuer promptly in the event of an actual or reasonably suspected security breach, unauthorized access, misappropriation or other compromise of the security, confidentiality or integrity of Issuer PII and, where applicable, immediately take action to prevent any further breach.

 

(e)           Return or Disposal of Issuer PII.  Except where return or disposal is prohibited by applicable law, promptly on the earlier of the completion of the Review or the request of the Issuer, all Issuer PII in any medium in the Asset Representations Reviewer’s possession or under its control will be (i) destroyed in a manner that prevents its recovery or restoration or (ii) if so directed by the Issuer, returned to the Issuer without the Asset Representations Reviewer retaining any actual or recoverable copies, in both cases, without charge to the Issuer.  Where the Asset Representations Reviewer retains Issuer PII, the Asset Representations Reviewer will limit the Asset Representations Reviewer’s further use or disclosure of Issuer PII to that required by applicable law.

 

(f)            Compliance; Modification.  The Asset Representations Reviewer will cooperate with and provide information to the Issuer regarding the Asset Representations Reviewer’s compliance with this Section 4.10.  The Asset Representations Reviewer and the Issuer agree to modify this Section 4.10 as necessary from time to time for either party to comply with applicable law.

 

(g)           Audit of Asset Representations Reviewer.  The Asset Representations Reviewer will permit the Issuer and its authorized representatives to audit the Asset Representations Reviewer’s compliance with this Section 4.10 during the Asset Representations Reviewer’s normal business hours on reasonable advance notice to the Asset Representations Reviewer, and not more than once during any year unless circumstances necessitate additional audits.  The Issuer agrees to make reasonable efforts to schedule any audit described in this Section 4.10 with the inspections described in Section 4.7.  The Asset Representations Reviewer will also permit the Issuer during normal business hours on reasonable advance written notice to audit any service providers used by the Asset Representations Reviewer to fulfill the Asset Representations Reviewer’s obligations under this Agreement.

 

(h)           Affiliates and Third Parties.  If the Asset Representations Reviewer processes the PII of the Issuer’s Affiliates or a third party when performing a Review, and if such Affiliate or third party is identified to the Asset Representations Reviewer, such Affiliate or third party is an intended third-party beneficiary of this Section 4.10, and this Agreement is intended to benefit the Affiliate or third party.  The Affiliate or third party will be entitled to enforce the PII related terms of this Section 4.10 against the Asset Representations Reviewer as if each were a signatory to this Agreement.

 

ARTICLE V
 RESIGNATION AND REMOVAL;
 SUCCESSOR ASSET REPRSENTATIONS REVIWER

 

Section 5.1.           Eligibility Requirements for Asset Representations Reviewer.  The Asset Representations Reviewer must be a Person who (a) is not Affiliated with the Sponsor, the Depositor, the Servicer, the Indenture Trustee, the Owner Trustee or any of their Affiliates and

 

12

 

(b) was not, and is not Affiliated with a Person that was, engaged by the Sponsor or any Underwriter to perform any due diligence on the Receivables prior to the Closing Date.

 

Section 5.2.           Resignation and Removal of Asset Representations Reviewer.

 

(a)           No Resignation of Asset Representations Reviewer.  The Asset Representations Reviewer will not resign as Asset Representations Reviewer unless it determines it is legally unable to perform its obligations under this Agreement and there is no reasonable action that it could take to make the performance of its obligations under this Agreement permitted under applicable law.  The Asset Representations Reviewer will deliver a notice of its resignation to the Issuer and the Servicer, together with an Opinion of Counsel supporting its determination.

 

(b)           Removal of Asset Representations Reviewer.  If any of the following events occur, the Issuer, by notice to the Asset Representations Reviewer, may remove the Asset Representations Reviewer and terminate its rights and obligations under this Agreement:

 

(i)            the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1;

 

(ii)           the Asset Representations Reviewer breaches of any of its representations, warranties, covenants or obligations in this Agreement; or

 

(iii)          an Insolvency Event of the Asset Representations Reviewer occurs.

 

(c)           Notice of Resignation or Removal.  The Issuer will notify the Servicer, the Owner Trustee and the Indenture Trustee of any resignation or removal of the Asset Representations Reviewer.

 

(d)           Continue to Perform After Resignation or Removal.  No resignation or removal of the Asset Representations Reviewer will be effective, and the Asset Representations Reviewer will continue to perform its obligations under this Agreement, until a successor Asset Representations Reviewer has accepted its engagement according to Section 5.3(b).

 

Section 5.3.           Successor Asset Representations Reviewer .

 

(a)           Engagement of Successor Asset Representations Reviewer.  Following the resignation or removal of the Asset Representations Reviewer, the Issuer will engage a successor Asset Representations Reviewer who meets the eligibility requirements of Section 5.1.

 

(b)           Effectiveness of Resignation or Removal.  No resignation or removal of the Asset Representations Reviewer will be effective until the successor Asset Representations Reviewer has executed and delivered to the Issuer and the Servicer an agreement accepting its engagement and agreeing to perform the obligations of the Asset Representations Reviewer under this Agreement or entering into a new agreement with the Issuer on substantially the same terms as this Agreement.

 

(c)           Transition and Expenses.  If the Asset Representations Review resigns or is removed, the Asset Representations Reviewer will cooperate with the Issuer and take all actions

 

13

 

reasonably requested to assist the Issuer in making an orderly transition of the Asset Representations Reviewer’s rights and obligations under this Agreement to the successor Asset Representations Reviewer.  The Asset Representations Reviewer will pay the reasonable expenses of transitioning the Asset Representations Reviewer’s obligations under this Agreement and preparing the successor Asset Representations Reviewer to take on the obligations on receipt of an invoice with reasonable detail of the expenses from the Issuer or the successor Asset Representations Reviewer.

 

Section 5.4.           Merger, Consolidation or Succession.  Any Person (a) into which the Asset Representations Reviewer is merged or consolidated, (b) resulting from any merger or consolidation to which the Asset Representations Reviewer is a party or (c) succeeding to the business of the Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 5.1, will be the successor to the Asset Representations Reviewer under this Agreement.  Such Person will execute and deliver to the Issuer and the Servicer an agreement to assume the Asset Representations Reviewer’s obligations under this Agreement (unless the assumption happens by operation of law).

 

ARTICLE VI
 OTHER AGREEMENTS

 

Section 6.1.           Independence of Asset Representations Reviewer.  The Asset Representations Reviewer will be an independent contractor and will not be subject to the supervision of the Issuer or the Owner Trustee for the manner in which it accomplishes the performance of its obligations under this Agreement.  Unless authorized by the Issuer or the Owner Trustee, respectively, the Asset Representations Reviewer will have no authority to act for or represent the Issuer or the Owner Trustee and will not be considered an agent of the Issuer or the Owner Trustee.  Nothing in this Agreement will make the Asset Representations Reviewer and either of the Issuer or the Owner Trustee members of any partnership, joint venture or other separate entity or impose any liability as such on any of them.

 

Section 6.2.           No Petition.  Each of the parties, by entering into this Agreement, agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was a depositor or (b) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against (i) the Depositor or (ii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 6.2 will survive the termination of this Agreement.

 

Section 6.3.           Limitation of Liability of Owner Trustee .  This Agreement has been signed on behalf of the Issuer by                  not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer.  In no event will                   in its individual capacity or a beneficial owner of the Issuer be liable for the Issuer’s obligations under this Agreement.  For all purposes under this Agreement, the Owner Trustee will be subject to, and entitled to the benefits of, the Trust Agreement.

 

14

 

Section 6.4.           Termination of Agreement.  This Agreement will terminate, except for the obligations under Section 4.6, on the earlier of (a) the payment in full of all outstanding Notes and the satisfaction and discharge of the Indenture and (b) the date the Issuer is terminated under the Trust Agreement.

 

ARTICLE VII
 MISCELLANEOUS PROVISIONS

 

Section 7.1.           Amendments.

 

(a)           The parties may amend this Agreement:

 

(i)            to clarify an ambiguity, correct an error or correct or supplement any term of this Agreement that may be defective or inconsistent with the other terms of this Agreement or to provide for, or facilitate the acceptance of this Agreement by, a successor Asset Representations Reviewer, in each case without the consent of the Noteholders or any other Person;

 

(ii)           to add, change or eliminate terms of this Agreement, in each case without the consent of the Noteholders or any other Person, if the Administrator delivers an Officer’s Certificate to the Issuer, the Owner Trustee and the Indenture Trustee stating that the amendment will not have a material adverse effect on the Noteholders; or

 

(iii)          to add, change or eliminate terms of this Agreement for which an Officer’s Certificate is not or cannot be delivered under Section 7.1(a)(ii), with the consent of the Noteholders of a majority of the Note Balance of each Class of Notes Outstanding (with each affected Class voting separately, except that all Noteholders of Class A Notes will vote together as a single class).

 

(b)           Notice of Amendments.  The Administrator will notify the Rating Agencies in advance of any amendment.  Promptly after the execution of an amendment, the Administrator will deliver a copy of the amendment to the Rating Agencies.

 

Section 7.2.           Assignment; Benefit of Agreement; Third Party Beneficiaries.

 

(a)           Assignment.  Except as stated in Section 5.4, this Agreement may not be assigned by the Asset Representations Reviewer without the consent of the Issuer and the Servicer.

 

(b)           Benefit of Agreement; Third-Party Beneficiaries.  This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns.  The Owner Trustee and the Indenture Trustee, for the benefit of the Noteholders, will be third-party beneficiaries of this Agreement entitled to enforce this Agreement against the Asset Representations Reviewer and the Servicer.  No other Person will have any right or obligation under this Agreement.

 

15

 

Section 7.3.           Notices.

 

(a)           Delivery of Notices.  All notices, requests, demands, consents, waivers or other communications to or from the parties must be in writing and will be considered given:

 

(i)            on delivery or, for a letter mailed by registered first class mail, postage prepaid, three days after deposit in the mail;

 

(ii)           for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

 

(iii)          for an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iv)          for an electronic posting to a password-protected website to which the recipient has access, on delivery (without the requirement of confirmation of receipt) of an email to that recipient stating that the electronic posting has occurred.

 

(b)           Notice Addresses.  Any notice, request, demand, consent, waiver or other communication will be delivered or addressed as stated in Schedule B to the Sale and Servicing Agreement or at another address as a party may designate by notice to the other parties.

 

Section 7.4.           GOVERNING LAW.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

Section 7.5.           Submission to Jurisdiction.  Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this Agreement.  Each party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding has been brought in an inconvenient forum.

 

Section 7.6.           WAIVER OF JURY TRIAL.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN LEGAL PROCEEDING RELATING TO THIS AGREEMENT.

 

Section 7.7.           No Waiver; Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Agreement are in addition to any powers, rights and remedies under law.

 

Section 7.8.           Severability.  If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement.

 

16

 

Section 7.9.           Headings.  The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

 

Section 7.10.         Counterparts.  This Agreement may be executed in multiple counterparts. Each counterpart will be an original and all counterparts will together be one document.

 

[Remainder of Page Left Blank]

 

17

 

	
EXECUTED   BY:
    	
 
    
	
 
    	
 
    
	
 
    	
FORD   CREDIT AUTO OWNER TRUST 20  -  ,
    
	
 
    	
as Issuer
    
	
 
    	
 
    
	
 
    	
By:
    	
                             ,   not in its individual capacity, but solely as Owner Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FORD   MOTOR CREDIT COMPANY LLC,
    
	
 
    	
as Servicer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
,
    
	
 
    	
as Asset Representations Reviewer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

[Signature Page to Asset Representations Review Agreement]

 

 

Schedule A

 

Representations and Warranties, Review Materials and Tests

 

	
Representation and Warranty
    	
 
    	
Review Materials
    	
 
    	
TestsExhibit 10.1

 

	
BARCLAYS
    	
 
    	
GOLDMAN   SACHS BANK USA
    
	
745 Seventh Avenue

New York, New York   10019
    	
 
    	
200 West Street

New York, New York   10282
    

 

CONFIDENTIAL

 

July 30, 2015

 

Envision Healthcare Corporation

6200 South Syracuse Way

Greenwood Village, CO 80111

Attention:  Randel G. Owen, Chief Financial Officer

 

Project Ranch

Commitment Letter

 

Ladies and Gentlemen:

 

You have advised us that Envision Healthcare Corporation, a Delaware corporation (the “Company” or “you”), intends to acquire (the “Acquisition”), directly or indirectly, all of the equity interests of the entity previously identified by you to us as “Ranch” (the “Acquired Business”) pursuant to the Acquisition Agreement (as defined in Exhibit A hereto).  You have further advised each of Barclays Bank PLC (“Barclays”) and Goldman Sachs Bank USA (“GS Bank” and, collectively with Barclays and any Additional Committing Lenders, the “Committed Lenders,” “we” or “us”) that, in connection with the foregoing, you intend to consummate the other Transactions described in the Transaction Description attached hereto as Exhibit A (the “Transaction Description”).  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Transaction Description and in the Summary of Principal Terms and Conditions attached hereto as Exhibit B (the “Incremental Term Sheet”), the Summary of Principal Terms and Conditions attached hereto as Exhibit C (the “Backstop Term Sheet”, together with the Incremental Term Sheet, the “Term Loan Term Sheets” and each a “Term Loan Term Sheet”, as applicable) and the Summary of Additional Conditions attached hereto as Exhibit D (the “Summary of Additional Conditions”; together with this commitment letter, the Transaction Description and the Term Loan Term Sheets, collectively, the “Commitment Letter”).

 

You have further advised each of the Committed Lenders that, in connection therewith, it is intended that the financing for the Transactions will include the term loan credit facility (the “Incremental Facility”) described in the Incremental Term Sheet, in an aggregate principal amount of up to $635 million (plus at the Company’s option pursuant to the terms of the Fee Letter described below, the amount of any Term Loan Flex Increase); provided, that if the Company has made a Backstop Election, at least 15 calendar days prior to the Closing Date, the financing for the Transactions will take the form of the term loan credit facility (the “Backstop Facility” and, together with the

 

 

Incremental Facility, the “Term Loan Facilities”) described in the Backstop Term Sheet, in an aggregate principal amount of up to $635 million (plus at the Company’s option pursuant to the terms of the Fee Letter described below the amount of any Term Loan Flex Increase).

 

In connection with the foregoing, each of Barclays and GS Bank are pleased to advise you of its several, but not joint, commitment to provide 66.7% and 33.3%, respectively, of the Incremental Facility (including without limitation, any Term Loan Flex Increase), subject only to the conditions set forth in the Funding Conditions Provision (as defined below), in the Summary of Additional Conditions and, under the heading “Conditions Precedent to Initial Extensions of Credit” in the Incremental Term Sheet.  In addition, each of Barclays and GS Bank are pleased to advise you of its commitment to provide 66.7% and 33.3%, respectively, of the Backstop Facility (including without limitation, any Term Loan Flex Increase), subject only to the conditions set forth in the Funding Conditions Provision (as defined below), in the Summary of Additional Conditions and, under the heading “Conditions Precedent to Initial Extensions of Credit” in the Backstop Term Sheet.

 

It is agreed that each of Barclays and GS Bank will act as joint lead arranger and joint bookrunner for the Term Loan Facilities (in such capacity, each a “Lead Arranger” and, collectively with any other arrangers and bookrunners appointed pursuant to the following paragraph, the “Lead Arrangers”); provided, however, that Barclays shall have “left” placement in any and all marketing materials or other documentation used in connection with the Facilities and shall hold the leading role, rights and responsibilities conventionally associated with such “left” placement in respect of the Facilities.

 

You may, on or prior to the date that is 15 calendar days after the date of this Commitment Letter, appoint additional agents, co-agents, lead arrangers, managers or arrangers and up to 2 additional bookrunners (any such agent, co-agent, lead arranger, bookrunner, manager or arranger, an “Additional Committing Lender”) or confer other titles in respect of the Term Loan Facilities in a manner and with economics determined by you in consultation with the Lead Arrangers (it being understood that, to the extent you appoint Additional Committing Lenders or confer other titles in respect of the Term Loan Facilities, (x) you shall be entitled to allocate up to 45% of the economics of the Term Loan Facilities in the aggregate to Additional Committing Lenders, (y) each such Additional Committing Lender will assume a portion of the commitments of the Term Loan Facilities on a pro rata basis (and the commitments of the Committed Lenders as of the date hereof with respect to such portion will be reduced ratably or as otherwise agreed by Barclays and GS Bank) and (z) the economics allocated to the Committed Lenders as of the date hereof in respect of the Term Loan Facilities will be reduced ratably or as otherwise agreed by Barclays and GS Bank by the amount of the economics allocated to such appointed entities upon the execution by such financial institution of customary joinder documentation and, thereafter, each such financial institution shall constitute a “Committed Lender” hereunder and under the Fee Letter (as defined below)); provided that (i) fees will be allocated to each such appointed entity on a pro rata basis in respect of the commitments it is assuming or on such other basis as you and the Lead

 

2

 

Arrangers may agree, (ii) no Additional Committing Lender will be entitled to greater economics than Barclays or GS Bank and (iii) in no event shall Barclays and GS Bank be entitled to less than 32.5% and 22.5% of the economics of the Term Loan Facilities, respectively, as a result of the appointments of Additional Committing Lenders pursuant to this sentence. No compensation (other than that expressly contemplated by this Commitment Letter and the Fee Letter referred to below and other than in connection with any additional appointment referred to above) will be paid to any Lender in connection with the Term Loan Facilities unless you and we so agree.

 

The Committed Lenders reserve the right, prior to or after the execution of definitive documentation for the Term Loan Facilities (which we agree will be initially drafted by your counsel), to syndicate all or a portion of the Committed Lenders’ commitments hereunder to a group of financial institutions (together with the Committed Lenders, the “Lenders”) identified by the Committed Lenders in consultation with you and reasonably acceptable to them and you with respect to the identity of such Lender (in each case, such consent not to be unreasonably withheld), it being understood that we will not syndicate to (a) those persons identified by you in writing to the Committed Lenders (or to their affiliates so designated in writing) prior to the date hereof or (b) any competitors of the Company or the Acquired Business identified from time to time by the Borrower in writing to the Administrative Agent or to any affiliates of such competitors, to the extent reasonably identifiable on the basis of the name thereof, with respect to this clause (b), other than any affiliate that is a bona fide debt fund (such persons collectively, the “Disqualified Institutions”); provided that, notwithstanding each Committed Lender’s right to syndicate the Term Loan Facilities and receive commitments with respect thereto, it is agreed that any syndication, assignment, or receipt of commitments in respect of all or any portion of a Committed Lender’s commitments hereunder prior to the initial funding under the Term Loan Facilities shall not be a condition to such Committed Lender’s commitments nor reduce such Committed Lender’s commitments hereunder with respect to the Term Loan Facilities (provided, however, that, notwithstanding the foregoing, assignments of a Committed Lender’s commitments, which are effective simultaneously with the funding of such commitments by the assignee, shall be permitted) (the date of such initial funding under the Term Loan Facilities, the “Closing Date”) and, unless you otherwise agree in writing, each Committed Lender shall retain exclusive control over all rights and obligations with respect to its commitments, including all rights with respect to consents, modifications, waivers and amendments, until the initial funding on the Closing Date has occurred.  Without limiting your obligations to assist with syndication efforts as set forth below, it is understood that the Committed Lenders’ commitments hereunder are not subject to or conditioned on the syndication of the Term Loan Facilities.  The Committed Lenders intend to commence syndication efforts promptly upon the execution of this Commitment Letter and as part of their syndication efforts, it is their intent to have Lenders commit to the Term Loan Facilities prior to the Closing Date (subject to the limitations set forth in the second preceding sentence).  You agree to actively assist the Committed Lenders in completing a timely syndication that is reasonably satisfactory to them and you.  Such assistance shall include, without limitation, until the earlier to occur of (i) a Successful Syndication (as defined in the Fee Letter) and (ii) 30 days after the Closing Date, (a) your using

 

3

 

commercially reasonable efforts to ensure that any syndication efforts benefit materially from the existing lending and investment banking relationships of you, (b) direct contact between senior management, representatives and advisors of you, on the one hand, and the proposed Lenders, on the other hand, in all such cases at times mutually agreed upon, (c) your assistance in the preparation of a customary confidential information memorandum for the Term Loan Facilities and other marketing materials to be used in connection with the syndication (the “Confidential Information Memorandum”) and your using commercially reasonable efforts to provide such Confidential Information Memorandum (other than the portions thereof customarily provided by financing arrangers and which shall include information customary for financings similar to the Term Loan Facilities for any other consummated or probable acquisitions or dispositions, to the extent such information would be required in connection with a registered securities offering by Section 3-05 of Regulation S-X of the Securities Act of 1933, as amended, or would be customarily included in private placements under Rule 144A of the Securities Act of 1933, as amended, in each case in connection with any such acquisition or disposition, and limited, in the case of information relating to the Acquired Business and its subsidiaries, to Required Information (as defined in the Acquisition Agreement)) to us no less than 20 consecutive calendar days prior to the Closing Date (provided that (x) if such period has not ended on or prior to August 21, 2015, such period shall not be deemed to have commenced until September 8, 2015, (y) if such period has not ended on or prior to December 22, 2015, such period shall not be deemed to have commenced until January 4, 2016 and (z) the days from November 26, 2015 to November 29, 2015 (collectively, the “Blackout Dates”) shall not be considered calendar days for purposes of such period), (d) prior to the launch of syndication, using your commercially reasonable efforts to procure or confirm a corporate credit rating and a corporate family rating (but in each case, no specific rating) in respect of the Borrower from Standard & Poor’s Ratings Services (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”), respectively, and ratings (but no specific ratings) for each of the Term Loan Facilities from each of S&P and Moody’s, (e) the hosting, with the Committed Lenders, of no more than one lender meeting to be mutually agreed upon with prospective Lenders at a time and location to be mutually agreed upon and (f) your ensuring that there shall be no competing issues of debt securities or commercial bank or other credit facilities of the Company, the Acquired Business or any of their respective subsidiaries being offered, placed or arranged (other than the Term Loan Facilities, any loans, commitments or other credit extensions under the ABL Facility or a Permitted Financing (as defined in the Fee Letter), replacements, extensions and renewals of existing indebtedness that matures prior to the date that is 60 days following the Expiration Date, and any other indebtedness of the Acquired Business and its subsidiaries permitted to be incurred pursuant to the Acquisition Agreement) if the offering, placement or arrangement of such debt securities or commercial bank or other credit facilities would have, in the reasonable judgment of the Lead Arrangers, a detrimental effect upon the primary syndication of the Term Loan Facilities.  Notwithstanding anything to the contrary contained in this Commitment Letter or the Fee Letter, but without limiting your obligations to assist with syndication efforts as set forth herein, it is understood that neither the commencement nor completion of the syndication of the Term Loan Facilities shall constitute a condition to the availability of the Term Loan Facilities on the Closing Date or at any time thereafter.

 

4

 

The Lead Arrangers will, in consultation with you, manage all aspects of any syndication of the Term Loan Facilities, including decisions as to the selection of institutions to be approached and when they will be approached, when their commitments will be accepted, which institutions will participate (which institutions shall be reasonably acceptable to you), the allocation of the commitments among the Lenders and the amount and distribution of fees among the Lenders.  To assist the Lead Arrangers in their syndication efforts, you agree promptly to prepare and provide (and to use commercially reasonable efforts to cause the Acquired Business to provide) to the Committed Lenders all customary information with respect to you, the Acquired Business and each of your and their respective subsidiaries and the Transactions, including all financial information and projections (including financial estimates, budgets, forecasts and other forward-looking information, the “Projections”), as the Committed Lenders may reasonably request in connection with the structuring, arrangement and syndication of the Term Loan Facilities.  You hereby represent and warrant that (with respect to information relating to the Acquired Business and its subsidiaries to your knowledge), (a) all written information and written data other than the Projections and information of a general economic or general industry nature (the “Information”) that has been or will be made available to the Committed Lenders by or on behalf of you or any of your representatives, taken as a whole, is or will be, when furnished, correct in all material respects and does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (after giving effect to all supplements thereto) and (b) the Projections that have been or will be made available to the Committed Lenders by or on behalf of you or any of your representatives have been or will be prepared in good faith based upon assumptions that you believe to be reasonable at the time made and at the time the related Projections are made available to the Committed Lenders; it being understood that the Projections are as to future events and are not to be viewed as facts, and that actual results during the period or periods covered by any such Projections may differ significantly from the projected results and such differences may be material.  You agree that if, at any time prior to the Closing Date and, thereafter, until the earlier to occur of (i) a Successful Syndication and (ii) 30 days after the Closing Date, you become aware that any of the representations in the preceding sentence would be incorrect (to your knowledge with respect to information relating to the Acquired Business and its subsidiaries) in any material respect if the Information and Projections were being furnished, and such representations were being made, at such time, then you will use commercially reasonable efforts to promptly supplement the Information and the Projections so that such representations will be correct (to your knowledge with respect to information relating to the Acquired Business and its subsidiaries) in all material respects under those circumstances.  In arranging and syndicating the Term Loan Facilities, the Committed Lenders will be entitled to use and rely primarily on the Information and the Projections without responsibility for independent verification thereof.

 

Notwithstanding anything herein to the contrary, the only financial statements that shall be required to be provided to the Committed Lenders or the Lead Arrangers in

 

5

 

connection with the syndication of the Term Loan Facilities shall be those required to be delivered pursuant to paragraphs 5 and 6 of the Summary of Additional Conditions.

 

You hereby acknowledge that (a) the Committed Lenders will make available Information and Projections to the proposed syndicate of Lenders by posting such Information and Projections on IntraLinks, SyndTrak Online or similar electronic means and (b) certain of the Lenders (each, a “Public Lender”) may wish to receive only information that (i) is publicly available, (ii) is not material with respect to you, the Acquired Business or your or its respective securities for purposes of United States federal and state securities laws or (iii) constitutes information of a type that would be publicly available if the Acquired Business were a public reporting company (as reasonably determined by you) (collectively, the “Public Side Information”).  If reasonably requested by the Committed Lenders, you will use commercially reasonable efforts to assist us in preparing a customary additional version of the Confidential Information Memorandum to be used by Public Lenders.  The information to be included in the additional version of the Confidential Information Memorandum will contain only Public Side Information.  It is understood that in connection with your assistance described above, an authorization letter, in form substantially similar to authorization letters previously delivered by the Company, will be included in any Confidential Information Memorandum , which letter authorizes the distribution of the Confidential Information Memorandum to prospective Lenders, containing a representation to the Lead Arrangers that the public-side version contains only Public Side Information (and, in each case, a “10b-5” representation to the Lead Arrangers substantially similar to the representations included in authorization letters previously delivered by the Company and incorporating by reference relevant filings of the Company made pursuant to the Securities and Exchange Act of 1934), which Confidential Information Memorandum shall exculpate you, the Acquired Business, and your and their respective affiliates and us and our affiliates with respect to any liability related to the use of the Confidential Information Memorandum or any related marketing material by the recipients thereof.  You agree to use commercially reasonable efforts to identify that portion of the Information that may be distributed to the Public Lenders as “PUBLIC,” which, at the minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof.  You agree that by your marking such materials “PUBLIC,” you shall be deemed to have authorized the Lead Arrangers (subject to the confidentiality and other provisions of this Commitment Letter) to treat such materials as information that is Public Side Information (it being understood that you shall not be under any obligation to mark any particular portion of the Information as “PUBLIC”).  You agree that, subject to the confidentiality and other provisions of this Commitment Letter, the Lead Arrangers on your behalf may distribute the following documents to all prospective lenders in the form provided to you and to your counsel a reasonable time prior to their distribution, unless you or your counsel advise the Lead Arrangers in writing (including by email) within a reasonable time prior to their intended distribution that such material should only be distributed to prospective lenders that are not Public Lenders (each, a “Private Lender”):  (a) the Term Loan Term Sheets; (b) drafts and final definitive documentation with respect to the Term Loan Facilities; (c) administrative materials prepared by the Committed Lenders for prospective Lenders (such as a lender meeting invitation, allocations and

 

6

 

funding and closing memoranda); and (d) notification of changes in the terms of the Term Loan Facilities.  If you advise us that any of the foregoing items should be distributed only to Private Lenders, then none of the Lead Arrangers and the Committed Lenders will distribute such materials to Public Lenders without your consent.

 

As consideration for the commitments of the Committed Lenders hereunder and their agreement to perform the services described herein, you agree to pay (or cause to be paid) the fees set forth in the Term Loan Term Sheets and in the Fee Letter dated the date hereof and delivered herewith with respect to the Term Loan Facilities (the “Fee Letter”).  Once paid, such fees shall not be refundable under any circumstances.

 

The commitments of the Committed Lenders hereunder and their agreement to perform the services described herein are subject solely to the conditions set forth in the next sentence of this paragraph, in the Summary of Additional Conditions and (i) solely with respect to the Incremental Facility, under the heading “Conditions Precedent to Initial Extension of Credit” in the Incremental Term Sheet or (ii) solely with respect to the Backstop Facility, under the heading “Conditions Precedent to Initial Extension of Credit” in the Backstop Term Sheet.  In addition, the commitments of the Committed Lenders hereunder are subject to the execution (as applicable) and delivery by the Borrower, the Guarantors and the officers and advisors thereof, as the case may be, of definitive documentation, customary closing certificates (including evidences of authority, charter documents, and officers’ incumbency certificates), customary lien and judgments searches requested by the applicable Bank Administrative Agent at least 30 days prior to the Closing Date and customary legal opinions with respect to the Term Loan Facilities (the “Term Loan Facilities Documentation”), in each case consistent with this Commitment Letter and the Fee Letter; provided that, notwithstanding anything in this Commitment Letter, the Fee Letter, the Term Loan Facilities Documentation or any other letter agreement or other undertaking concerning the financing of the Transactions to the contrary, (i) the only representations and warranties the making of which shall be a condition to the availability of the Term Loan Facilities on the Closing Date shall be (A) the Specified Representations (as defined below) and (B) the representations and warranties relating to the Acquired Business and its subsidiaries made by the Acquired Business in the Acquisition Agreement as are material to the interests of the Lenders, but only to the extent that the Buyer (as defined in the Transaction Description) has the right to terminate its obligations (or otherwise decline to consummate the Acquisition without liability) under the Acquisition Agreement as a result of a breach of such representations and warranties in such agreement (the “Acquired Business Representations”) and (ii) the terms of the Term Loan Facilities Documentation shall be in a form such that (x) (1) solely with respect to the Incremental Facility, they do not impair availability of the Incremental Facility on the Closing Date if the conditions set forth in this paragraph, in the Summary of Additional Conditions and under the heading “Conditions Precedent to Initial Extension of Credit” in the Incremental Term Sheet are satisfied or (2) solely with respect to the Backstop Facility, they do not impair availability of the Backstop Facility on the Closing Date if the conditions set forth in this paragraph, in the Summary of Additional Conditions and under the heading “Conditions Precedent to Initial Extension of Credit” in the Incremental Term Sheet are satisfied (it being understood that, to the

 

7

 

extent any Collateral (as defined in Exhibit B hereto) or any security interest therein (other than (x) the pledge and perfection of security interests in the pledged certificated stock of U.S.-organized entities (including the delivery of such share certificates) (to the extent required under the Term Loan Term Sheets; provided that stock certificates of the Acquired Business and its subsidiaries will only be required to be delivered on the Closing Date to the extent received by you from the Acquired Business, so long as you have used commercially reasonable efforts to obtain them on the Closing Date; provided, further that the stock certificates of the Acquired Business and its subsidiaries shall be required to be delivered and perfected within 30 days after the Closing Date plus any extensions granted by the applicable Bank Administrative Agent in its sole discretion) and (y) other assets pursuant to which a lien may be perfected by the filing of a financing statement under the Uniform Commercial Code) is not provided on the Closing Date after your use of commercially reasonable efforts to do so, the delivery of such Collateral (and perfection of security interests therein) shall not constitute a condition precedent to the availability of the Term Loan Facilities on the Closing Date but shall be required to be delivered and perfected after the Closing Date (and in any event, in the case of the pledge and perfection of Collateral not otherwise required on the Closing Date, within 90 days after the Closing Date plus any extensions granted by the applicable Bank Administrative Agent in its sole discretion) pursuant to arrangements to be mutually agreed and (z) they do not conflict with, violate or result in a breach of or default under the Existing Indenture, the ABL Facility (as defined in the Summary of Additional Conditions) or the Existing Term Loan Credit Agreement (as defined in Exhibit B). For purposes hereof, “Specified Representations” means (i) solely with respect to the Incremental Facility, the representations and warranties required to be made upon the initial funding of the Incremental Facility under the terms of the Existing Term Loan Credit Agreement or (ii) solely with respect to the Backstop Facility, the representations and warranties made by the Borrower in the Term Loan Facilities Documentation and set forth in the Backstop Term Sheet relating to corporate or other organizational existence, power and authority related to entry into and performance of the Term Loan Facilities Documentation, the execution, delivery and enforceability of the Term Loan Facilities Documentation, the incurrence of the loans and the provision of guarantees contemplated herein not violating the constitutional documents of the Borrower and the Guarantors, no conflicts with the Existing Indenture, the ABL Facility or the Existing Term Loan Credit Agreement, solvency of the Borrower and its subsidiaries on a consolidated basis on the Closing Date after giving effect to the Transactions (solvency to be defined in a manner consistent with the solvency definition set forth in Annex I to Exhibit C, creation, validity and perfection of security interest in the collateral to be perfected on the Closing Date (subject to the foregoing provisions of this paragraph relating to Collateral), U.S. Federal Reserve margin regulations, the PATRIOT Act, the U.S. Investment Company Act and the use of loan proceeds not violating OFAC or the FCPA.  There shall be no conditions (implied or otherwise) to the commitments hereunder, including compliance with the terms of this Commitment Letter, the Fee Letter or the Term Loan Facilities Documentation, other than those expressly stated in the second sentence of this paragraph, in the Summary of Additional Conditions and (x) solely with respect to the Incremental Facility, in the section under the heading “Conditions Precedent to Initial Extension of Credit” in the Incremental Term Sheet or (y) solely with respect to the Backstop Facility, in the section

 

8

 

under the heading “Conditions Precedent to Initial Extension of Credit” in the Backstop Term Sheet, to the initial funding under the Term Loan Facilities on the Closing Date.  Without limiting the conditions precedent provided herein to funding the consummation of the Acquisition with the proceeds of the Term Loan Facilities, the Lead Arrangers will cooperate with you as reasonably requested in coordinating the timing and procedures for the funding of the Term Loan Facilities in a manner consistent with the Acquisition Agreement.  This paragraph is referred to as the “Funding Conditions Provision.”

 

You agree (a) to indemnify and hold harmless the applicable Bank Administrative Agent, the Lead Arrangers, each of the Committed Lenders and their respective affiliates and controlling persons and the respective officers, directors, employees, agents, members and successors of each of the foregoing, but excluding any of the foregoing in its capacity, if applicable, as financial advisor to the Acquired Business or any of its direct or indirect equity holders or affiliates in connection with the Acquisition (each, a “Sell-Side Advisor”) and any Related Person (as defined below) of such Sell-Side Advisor in such capacity (each, other than such excluded parties, an “Indemnified Person”) from and against any and all losses, claims, damages, liabilities and expenses, joint or several, of any kind or nature whatsoever to which such Indemnified Person may become subject arising out of or in connection with this Commitment Letter, the Fee Letter, the Transactions, the Term Loan Facilities or any related transaction or any claim, litigation, investigation or proceeding, actual or threatened, relating to any of the foregoing (any of the foregoing, a “Proceeding”), regardless of whether such Indemnified Person is a party thereto and whether or not such Proceedings are brought by you, your equity holders, affiliates, creditors or any other person, and to reimburse such Indemnified Person upon demand for any reasonable and documented out-of-pocket legal expenses of one firm of counsel for all Indemnified Persons and, if necessary, one firm of local counsel in each appropriate jurisdiction, in each case for all Indemnified Persons (and, in the case of an actual or perceived conflict of interest where the Indemnified Person affected by such conflict informs you of such conflict and thereafter, after receipt of your consent (which shall not be unreasonably withheld), retains its own counsel, of another firm of counsel for such affected Indemnified Person) and other reasonable and documented out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing; provided that the foregoing indemnity will not, as to any Indemnified Person, apply to losses, claims, damages, liabilities or expenses (i) to the extent they have resulted from the willful misconduct, bad faith or gross negligence of such Indemnified Person or any Related Person of such Indemnified Person (as determined by a court of competent jurisdiction in a final and non-appealable decision), (ii) to the extent arising from a material breach of the obligations of such Indemnified Person or any Related Person of such Indemnified Person under this Commitment Letter or the Term Loan Facilities Documentation (as determined by a court of competent jurisdiction in a final non-appealable decision) or (iii) arising out of, or in connection with, any Proceeding that does not involve an act or omission by you or any of your affiliates and that is brought by an Indemnified Person against any other Indemnified Person other than any Proceeding against the relevant Indemnified Person in its capacity or in fulfilling its role as an agent, arranger or similar role under the Term Loan Facilities and (b) to reimburse the Committed Lenders from time to time, upon presentation of a

 

9

 

summary statement, for all reasonable and documented out-of-pocket expenses (including, but not limited to, expenses of the Committed Lenders’ due diligence investigation (and with respect to third party diligence expenses, to the extent any such expenses have been previously approved by you, such approval not to be unreasonably withheld), syndication expenses, travel expenses and reasonable fees, disbursements and other charges of a single counsel to the Committed Lenders and the Lead Arrangers and of a single local counsel to the Committed Lenders and the Lead Arrangers in each relevant jurisdiction, except allocated costs of in-house counsel), in each case incurred by the Committed Lenders in connection with the Term Loan Facilities and the preparation of this Commitment Letter, the Fee Letter and the Term Loan Facilities Documentation (collectively, the “Expenses”); provided that you shall not be required to reimburse any of the Expenses in the event the Closing Date does not occur.  Notwithstanding any other provision of this Commitment Letter, (i) no Indemnified Person shall be liable for any damages arising from the use by others of information or other materials obtained through electronic, telecommunications or other information transmission systems (including IntraLinks or SyndTrak Online), except to the extent such damages have resulted from the willful misconduct, bad faith or gross negligence of such Indemnified Person or any Related Person of such Indemnified Person (as determined by a court of competent jurisdiction in a final and non-appealable decision) and (ii) none of you, the Acquired Business or any Indemnified Person shall be liable for any indirect, special, punitive or consequential damages in connection with your or their activities related to the Term Loan Facilities or this Commitment Letter; provided that nothing contained in this clause (ii) shall limit your indemnity or reimbursement obligations to the extent such indirect, special, punitive or consequential damages are included in any third party claim in connection with which such Indemnified Person is entitled to indemnification hereunder.  For purposes hereof, a “Related Person” of an Indemnified Person (or any Sell-Side Advisor) means, if such Indemnified Person (or Sell-Side Advisor) is the applicable Bank Administrative Agent, a Lead Arranger or a Committed Lender or any of its affiliates and controlling persons, or any of its or their respective officers, directors, employees, agents, members and successors, any of the applicable Bank Administrative Agent, Lead Arranger or Committed Lender and its affiliates and controlling persons, or any of its or their respective officers, directors, employees, agents, members and successors.

 

Your indemnity and reimbursement obligations hereunder will be in addition to any liability which you may otherwise have and will be binding upon and inure to the benefit of any of your successors and assigns and the Indemnified Persons.

 

You acknowledge that the Committed Lenders and their affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other persons in respect of which you may have conflicting interests regarding the transactions described herein and otherwise.  Neither the Committed Lenders nor any of their affiliates will use confidential information obtained from or on behalf of you by virtue of the transactions contemplated by this Commitment Letter or their other relationships with you in connection with the performance by them of services for other persons, and neither the Committed Lenders nor any of their affiliates will

 

10

 

furnish any such information to other persons.  You also acknowledge that neither the Committed Lenders nor any of their affiliates have any obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, confidential information obtained by them from other persons.

 

As you know, each Committed Lender, together with its affiliates, is a full service securities firm engaged, either directly or through its affiliates, in various activities, including securities trading, commodities trading, investment management, research, financing and brokerage activities and financial planning and benefits counseling for both companies and individuals.  In the ordinary course of these activities, the Committed Lenders and their respective affiliates may actively engage in commodities trading or trade the debt and equity securities (or related derivative securities) and financial instruments (including bank loans and other obligations) of you, the Acquired Business and other companies that may be the subject of the arrangements contemplated by this Commitment Letter for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities.  Each Committed Lender and its affiliates may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities of you, the Acquired Business or other companies that may be the subject of the arrangements contemplated by this Commitment Letter or engage in commodities trading with any thereof.

 

As you know, each of Barclays and GS Bank has been retained by the Company (or one of its affiliates) as financial advisor (in such capacity, each a “Financial Advisor”) in connection with the Acquisition.  You agree to such retention, and further agree not to assert any claim you might allege based on any actual or potential conflicts of interest that might be asserted to arise or result from, on the one hand, the engagement of each Financial Advisor and, on the other hand, our and our affiliates’ relationships with you as described and referred to herein.

 

The Committed Lenders and their respective affiliates may have economic interests that conflict with those of the Acquired Business and you, including arranging or providing or contemplating arranging or providing financing for a competing potential buyer of the Acquired Business.  You agree that the Committed Lenders will act under this Commitment Letter as independent contractors and that nothing in this Commitment Letter or the Fee Letter or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between the Committed Lenders or any of their respective affiliates and you, the Acquired Business, your and their respective stockholders or your and their respective affiliates with respect to the transactions contemplated by this Commitment Letter and the Fee Letter.  You acknowledge and agree that (i) the transactions contemplated by this Commitment Letter and the Fee Letter are arm’s-length commercial transactions between the Committed Lenders and their respective affiliates, on the one hand, and you, on the other, (ii) in connection therewith and with the process leading to such transactions, each Committed Lender and its applicable affiliates (as the case may be) is acting solely as a principal and

 

11

 

not as agents or fiduciaries of you, the Acquired Business, your and their respective management, stockholders, creditors or any other person, (iii) the Committed Lenders and their applicable affiliates (as the case may be) have not assumed an advisory or fiduciary responsibility or any other obligation in favor of you with respect to the transactions contemplated hereby or the process leading thereto (irrespective of whether the Committed Lenders or any of their respective affiliates have advised or are currently advising you or the Acquired Business on other matters), except the obligations expressly set forth in this Commitment Letter and the Fee Letter and (iv) you have consulted your own legal and financial advisors to the extent you deemed appropriate.  You further acknowledge and agree that you are responsible for making your own independent judgment with respect to such transactions and the process leading thereto.  Please note that the Committed Lenders and their affiliates do not provide tax, accounting or legal advice.  You hereby waive and release any claims that you may have against the Committed Lenders (in their capacity as such) and their applicable affiliates (as the case may be) with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transactions contemplated by this Commitment Letter.  It is understood that this paragraph shall not apply to or modify or otherwise affect any arrangement with any Sell-Side Advisor, or any financial advisor separately retained by you, the Acquired Business or any of your or its affiliates in connection with the Acquisition, in its capacity as such.

 

This Commitment Letter and the commitments hereunder shall not be assignable by you without the prior written consent of the Committed Lenders, not to be unreasonably withheld (and any attempted assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto (and the Indemnified Persons), is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto (and the Indemnified Persons) and is not intended to create a fiduciary relationship among the parties hereto.  Any and all obligations of, and services to be provided by, the Committed Lenders hereunder (including, without limitation, their commitments) may be performed and any and all rights of the Committed Lenders hereunder may be exercised by or through any of their affiliates or branches; provided that with respect to the commitments, any assignments thereof to an affiliate will not relieve the Committed Lenders from any of their obligations hereunder, unless and until such affiliate shall have funded the portion of the commitment so assigned.  This Commitment Letter may not be amended or any provision hereof waived or modified except by an instrument in writing signed by each of the Committed Lenders and you.  This Commitment Letter may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement.  Delivery of an executed counterpart of a signature page of this Commitment Letter by facsimile transmission or other electronic transmission (e.g., a “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart hereof.  This Commitment Letter and the Fee Letter (i) are the only agreements that have been entered into among the parties hereto with respect to the Term Loan Facilities and (ii) supersede all prior understandings, whether written or oral, among us with respect to the Term Loan Facilities and set forth the entire understanding of the parties hereto with respect thereto.

 

12

 

Each of the parties hereto agrees that (i) this Commitment Letter is a binding and enforceable agreement (subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar laws relating to or affecting creditors’ rights generally and general principles of equity (whether considered in a proceeding in equity or law)) with respect to the subject matter contained herein, including an agreement to negotiate in good faith the Term Loan Facilities Documentation by the parties hereto in a manner consistent with this Commitment Letter, it being acknowledged and agreed that the funding of the Term Loan Facilities is subject to conditions precedent provided herein, subject to the Funding Conditions Provision and (ii) the Fee Letter is a binding and enforceable agreement (subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar laws relating to or affecting creditors’ rights generally and general principles of equity (whether considered in a proceeding in equity or law)) of the parties thereto with respect to the subject matter set forth therein.

 

THIS COMMITMENT LETTER AND THE RIGHTS AND DUTIES OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS, TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION; PROVIDED THAT, NOTWITHSTANDING THE FOREGOING TO THE CONTRARY, IT IS UNDERSTOOD AND AGREED THAT ANY DETERMINATIONS AS TO (I) WHETHER ANY REPRESENTATIONS AND WARRANTIES MADE BY OR ON BEHALF OF, OR WITH RESPECT TO, THE ACQUIRED BUSINESS IN THE ACQUISITION AGREEMENT HAVE BEEN BREACHED, (II) WHETHER THE BUYER CAN TERMINATE ITS OBLIGATIONS UNDER THE ACQUISITION AGREEMENT (OR OTHERWISE DECLINE TO CONSUMMATE THE ACQUISITION WITHOUT LIABILITY), (III) WHETHER A MATERIAL ADVERSE EFFECT (AS DEFINED IN THE ACQUISITION AGREEMENT) HAS OCCURRED AND (IV) WHETHER THE ACQUISITION HAS BEEN CONSUMMATED IN ACCORDANCE WITH THE TERMS OF THE ACQUISITION AGREEMENT, SHALL, IN EACH CASE BE GOVERNED BY, SOLELY TO THE EXTENT THE LAWS OF THE STATE OF DELAWARE ARE MANDATORILY APPLICABLE TO ANY SUCH DETERMINATION, THE LAWS OF THE STATE OF DELAWARE.

 

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER.

 

Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York County, and any

 

13

 

appellate court from any thereof, in any action or proceeding arising out of or relating to this Commitment Letter and the Fee Letter, or the transactions contemplated hereby, and agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court, (b) waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter, or the transactions contemplated hereby, in any such New York State court or in any such Federal court, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and (d) agrees that a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Each of the parties hereto agrees to commence any such action, suit, proceeding or claim either in the United States District Court for the Southern District of New York or in the Supreme Court of the State of New York, New York County, located in the Borough of Manhattan.

 

This Commitment Letter is delivered to you on the understanding that none of the Fee Letter and its terms or substance, or this Commitment Letter and its terms or substance, shall be disclosed, directly or indirectly, to any other person or entity (including other lenders, underwriters, placement agents, advisors or any similar persons) except (a) to your officers, directors, employees, attorneys, accountants and advisors on a confidential and need-to-know basis, (b) if the Committed Lenders consent to such proposed disclosure (such consent not to be unreasonably withheld), (c) pursuant to the order of any court or administrative agency in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process or, to the extent requested or required by governmental and/or regulatory authorities, in each case based on the reasonable advice of your legal counsel (in which case, you agree, to the extent practicable and not prohibited by law, to notify us of the proposed disclosure in advance of such disclosure and if you are unable to notify us in advance of such disclosure, such notice shall be delivered to us promptly thereafter to the extent permitted by law) or (d) to the extent necessary in connection with the exercise of any remedy or enforcement of any rights hereunder; provided that (i) you may disclose this Commitment Letter and the contents hereof to the Acquired Business and its respective officers, directors, equity holders, employees, attorneys, accountants and advisors on a confidential and need-to-know basis, (ii) you may disclose this Commitment Letter and the contents hereof in any proxy or other public filing relating to the Acquisition, in the Confidential Information Memorandum and in any prospectus or other offering memorandum relating to the Term Loan Facilities, (iii) you may disclose this Commitment Letter, and the contents hereof, to potential Lenders (including any prospective Additional Committing Lender), and potential equity investors and their respective officers, directors, employees, attorneys, accountants, advisors and other representatives on a confidential and need-to-know basis and to rating agencies in connection with obtaining ratings for the Borrower and the Term Loan Facilities, (iv) you may disclose the fees contained in the Fee Letter as part of a generic disclosure of aggregate sources and uses related to fee amounts to the extent customary or required in

 

14

 

marketing materials, any proxy or other public filing, in the Confidential Information Memorandum and any prospectus or other offering memorandum relating to the Term Loan Facilities, (v) to the extent portions thereof have been redacted in a customary manner (including, without limitation, redaction of fee amounts), you may disclose the Fee Letter and the contents thereof to the Acquired Business and its respective officers, directors, equity holders, employees, attorneys, accountants and advisors on a confidential and need-to-know basis, (vi) you may disclose the Fee Letter and the contents thereof to any prospective Additional Committing Lender or prospective equity investor and their respective officers, directors, employees, attorneys, accountants, advisors and other representatives on a confidential and need-to-know basis and (vii) you may disclose the term sheets and the contents thereof to the lenders and agent under the ABL Facility and potential arrangers of a Permitted Financing and their respective officers, directors, employees, attorneys, accountants and advisors, on a confidential basis.  The obligations under this paragraph with respect to the Commitment Letter shall terminate automatically after the Term Loan Facilities Documentation shall have been executed and delivered by the parties thereto.  To the extent not earlier terminated, the provisions of this paragraph with respect to the Commitment Letter shall automatically terminate on the second anniversary hereof.

 

You agree that you will permit us to review and approve (such approval not to be unreasonably withheld) any reference to us or any of our affiliates in connection with the Term Loan Facilities or the transactions contemplated hereby contained in any press release or similar written public disclosure prior to public release.

 

The Committed Lenders and their affiliates will use all confidential information provided to them or such affiliates by or on behalf of you hereunder or in connection herewith solely for the purpose of providing the services that are the subject of this Commitment Letter and shall treat confidentially all such information; provided that nothing herein shall prevent any Committed Lender from disclosing any such information (a) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process (in which case such Committed Lender, to the extent not prohibited by applicable law, agrees (except with respect to any routine or ordinary course audit or examination conducted by bank examiners or any governmental bank regulatory authority exercising examination or regulatory authority) to inform you promptly thereof), (b) upon the request or demand of any regulatory authority having jurisdiction over such Committed Lender or any of its affiliates (in which case such Committed Lender, to the extent practicable and not prohibited by law, agrees (except with respect to any routine or ordinary course audit or examination conducted by bank examiners or any governmental bank regulatory authority exercising examination or regulatory authority) to inform you promptly thereof and if such Committed Lender is unable to notify you in advance of such disclosure, such notice shall be delivered to you promptly thereafter to the extent permitted by law), (c) to the extent that such information becomes publicly available other than by reason of disclosure by any of the Committed Lenders or any of their affiliates or any of the Committed Lenders’ and such affiliates’ respective officers, directors, employees, attorneys, accountants, advisors and other representatives in

 

15

 

violation of any confidentiality obligations owing to you, the Acquired Business or any of your or their respective subsidiaries (including those set forth in this paragraph), (d) to the extent that such information is received by such Committed Lender or its affiliates from a third party that is not, to such Committed Lender’s or its affiliates’ knowledge, subject to confidentiality obligations owing to you, the Acquired Business or any of your or their respective subsidiaries, (e) to the extent that such information was already in such Committed Lender’s or its affiliates’ possession or is independently developed by such Committed Lender or its affiliates, (f) to such Committed Lender’s affiliates and such Committed Lender’s and such affiliates’ respective trustees, officers, directors, employees, attorneys, accountants, service providers, advisors and other representatives who need to know such information in connection with the Transactions and are informed of the confidential nature of such information and who agree to be bound by the terms of this paragraph (or language substantially similar to this paragraph), (g) to potential or prospective Lenders, participants or assignees and any direct or indirect contractual counterparties to any swap or derivative transaction relating to the Borrower and its obligations under the Term Loan Facilities (in each case, other than a Disqualified Institution), in each case who agree to be bound by the terms of this paragraph (or language substantially similar to this paragraph), (h) subject to your prior approval of the information to be disclosed (such approval not to be unreasonably withheld, conditioned or delayed), to rating agencies in connection with obtaining or confirming ratings for the Company, the Term Loan Facilities, (i) for purposes of establishing a “due diligence defense,” (j) to the extent necessary in connection with the exercise of any remedy or enforcement of any rights hereunder or under the Fee Letter, (k) to any other party hereto or (l) to the extent you consent to such proposed disclosure.  The Committed Lenders’ obligations under this paragraph shall automatically terminate and be superseded by the confidentiality provisions in the definitive documentation relating to the Term Loan Facilities upon the initial funding thereunder, if and to the extent the Committed Lenders are party thereto, and shall in any event terminate upon the second anniversary of the date hereof.

 

The syndication, reimbursement and compensation provisions (if applicable in accordance with the terms hereof and the Fee Letter), indemnification, waiver of indirect, special, punitive or consequential damages, confidentiality (except to the extent set forth herein), jurisdiction, governing law, venue, absence of fiduciary relationship and waiver of jury trial provisions contained herein and in the Fee Letter shall remain in full force and effect regardless of whether Term Loan Facilities Documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the Committed Lenders’ commitments hereunder; provided that your obligations under this Commitment Letter, other than those relating to the confidentiality of the Fee Letter, syndication of the Term Loan Facilities and provision of information, shall automatically terminate and be superseded by the Term Loan Facilities Documentation upon the initial funding thereunder and the payment of all amounts owing at such time hereunder and under the Fee Letter, and you shall be automatically released from all liability in connection therewith at such time.

 

16

 

We hereby notify you that, pursuant to the requirements of the U.S. PATRIOT Improvement and Reauthorization Act, Title III of Pub. L.107-56 (signed into law October 26, 2001, as amended from time to time, the “PATRIOT Act”), each of the Committed Lenders and each other Lender is required to obtain, verify and record information that identifies the Borrower and each Guarantor, which information includes the name, address, tax identification number and other information regarding the Borrower and each Guarantor that will allow any of the Committed Lenders or such Lender to identify the Borrower and such Guarantor in accordance with the PATRIOT Act.  This notice is given in accordance with the requirements of the PATRIOT Act and is effective as to the Committed Lenders and each Lender.

 

If the foregoing correctly sets forth our agreement, please indicate your acceptance of the terms of this Commitment Letter and of the Fee Letter by returning to Barclays, on behalf of the Committed Lenders, executed counterparts hereof and of the Fee Letter not later than 11:59 p.m., New York City time, on July 30, 2015.  The Committed Lenders’ commitments hereunder and agreements contained herein will expire at such time in the event that Barclays has not received such executed counterparts in accordance with the immediately preceding sentence.  This Commitment Letter and the commitments and undertakings of each of the Committed Lenders hereunder shall automatically terminate upon the first to occur of (i) the termination of the Acquisition Agreement, (ii) the one year anniversary of the date hereof (the “Expiration Date”), unless each of the Committed Lenders shall, in their discretion, agree to an extension; provided, that if the Marketing Period (as defined in the Acquisition Agreement) shall have commenced but is not completed on or prior to the Expiration Date, the Expiration Date shall automatically be extended and instead occur on fourth Business Day (as defined in the Acquisition Agreement) following the twentieth calendar day after the initial Expiration Date prior to giving effect to any such extension and (iii) the consummation of the Transactions with or without the funding of the Term Loan Facilities.  You shall have the right to terminate this Commitment Letter and the commitments of the Committed Lenders hereunder with respect to the Term Loan Facilities in its entirety (or a portion thereof pro rata among the Committed Lenders) at any time upon written notice to the Committed Lenders from you, subject to your surviving obligations as set forth in the third to last paragraph of this Commitment Letter and in the Fee Letter.

 

[Remainder of this page intentionally left blank]

 

17

 

The Committed Lender is pleased to have been given the opportunity to assist you in connection with the financing for the Acquisition.

 

	
 
    	
 
    
	
 
    	
Very truly   yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[signature   pages follow]
    

 

 

	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeremy Hazan
    
	
 
    	
 
    	
Name: Jeremy Hazan
    
	
 
    	
 
    	
Title: Managing Director
    

 

[Signature Page to Ranch Commitment Letter]

 

 

	
 
    	
GOLDMAN SACHS BANK USA
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles D. Johnston
    
	
 
    	
 
    	
Name: Charles D. Johnston
    
	
 
    	
 
    	
Title: Authorized Signatory
    

 

[Signature Page to Ranch Commitment Letter]

 

 

Accepted and agreed to as of
 the date first above written:

 

ENVISION HEALTHCARE CORPORATION

 

 

	
By:
    	
/s/ Randel G. Owen
    	
 
    
	
 
    	
Name: Randel G. Owen
    
	
 
    	
Title: Chief Financial Officer
    

 

[Signature Page to Ranch Commitment Letter]

 

 

EXHIBIT A

 

Project Ranch
 Transaction Description

 

Capitalized terms used but not defined in this Exhibit A shall have the meanings set forth in the Commitment Letter to which this Exhibit A is attached (the “Commitment Letter”) or in the other Exhibits to the Commitment Letter.

 

Envision Healthcare Corporation, a Delaware corporation (the “Company” or “you”), intends to acquire (the “Acquisition”), directly or indirectly, all of the equity interests of the entity previously identified by you to us as “Ranch” (the “Acquired Business”).

 

In connection with the foregoing, it is intended that:

 

a)  Pursuant to the Agreement and Plan of Merger (together with the Acquired Business’s disclosure schedules delivered in connection therewith, collectively, the “Acquisition Agreement”) among AMR HoldCo, Inc. (the “Buyer”), Ranch Merger Sub, Inc., Fortis Advisors LLC, solely in its capacity as the equityholders’ representative, and the Acquired Business, the Company will, directly or indirectly, acquire (the “Acquisition”) the Acquired Business. Pursuant to the Acquisition, the equityholders of the Acquired Business shall have the right to receive the amount required to consummate the Acquisition (the “Acquisition Consideration”) in accordance with the terms of the Acquisition Agreement.

 

b)  The Borrower will obtain an Incremental Facility, or, if the Company makes a Backstop Election, a Backstop Facility, of up to $635 million (plus (x) at the Company’s option pursuant to the terms of the Fee Letter, any Term Loan Flex Increase) on the closing date of the Acquisition, which amount shall be used, together with (at your election) borrowings under the Company’s Credit Agreement, dated as of May 25, 2011, among the Company, certain of its subsidiaries, the lenders party thereto and Deutsche Bank AG New York Branch as administrative agent and collateral agent (as amended by Amendment No. 1 dated as of February 27, 2013, Amendment No. 2 dated as of February 6, 2015 and as may be further amended, waived, supplemented or otherwise modified from time to time, the “ABL Facility” and together with the Existing Term Loan Credit Agreement, the “Existing Senior Secured Facilities”) and/or cash on hand, inter alia to consummate the Acquisition, to redeem or repay the Repaid Indebtedness (as defined below) (the “Refinancing”) and to pay fees, premiums and expenses incurred in connection with the Transactions (such fees, premiums and expenses, the “Transaction Costs,” and together with the Acquisition Consideration (as defined above) and the Refinancing, the “Acquisition Costs”).

 

c)  All third-party indebtedness for borrowed money of the Acquired Business and its subsidiaries (other than indebtedness incurred or issued pursuant to the Transactions, and subject to the following sentence) that is outstanding on the Closing

 

A-1

 

Date will be repaid, redeemed, defeased or otherwise discharged (or irrevocable notice for the repayment or redemption thereof will be given) (collectively, the “Repaid Indebtedness”).  Any existing third party indebtedness for borrowed money of the Acquired Business and its subsidiaries (“Existing Indebtedness”) that the Company has requested to be permitted to remain outstanding with the approval of the Lead Arrangers (not to be unreasonably withheld), and, at the option of the Company, any Existing Indebtedness listed in Annex I to this Exhibit A and any capital leases existing on the date of the Commitment Letter or permitted to be incurred under the Acquisition Agreement, which shall remain outstanding after the Closing Date.

 

d)  In its sole discretion, the Company may elect in writing by notice to Barclays (the “Backstop Election”), on or prior to the date that is 15 calendar days prior to the Closing Date (provided that such 15 calendar day period shall be subject to the Blackout Dates), to replace the Incremental Facility with the Backstop Facility.

 

The transactions described above, together, to the extent mutually agreed between the Company and the Committed Lenders, with the prepayment of indebtedness under the Existing Term Loan Credit Agreement and/or the ABL Facility with the proceeds of the Term Loan Facilities and the payment of related fees, premiums and expenses are collectively referred to herein as the “Transactions.”

 

A-2

 

Annex I to
 Exhibit A

 

Existing Indebtedness

 

1.                                      Liens on motor vehicles shall remain outstanding at closing; such liens will be released post-closing within a commercially reasonable period of time.

 

2.                                      Premium Finance Agreement, effective June 1, 2015, between Rural/Metro Corporation and Premium Assignment Corporation.

 

A-I-1

 

CONFIDENTIAL

EXHIBIT B

 

Project Ranch
 Incremental Facility 
 Summary of Principal Terms and Conditions

 

All capitalized terms used but not defined herein shall have the meanings given to them in the Commitment Letter to which this term sheet is attached, including the other Exhibits thereto.

 

	
Borrower:
    	
 
    	
The Borrower   under the Existing Term Loan Credit Agreement (the “Borrower”).  
    
	
 
    	
 
    	
 
    
	
Transactions:
    	
 
    	
As set forth in   Exhibit A to the Commitment Letter.
    
	
 
    	
 
    	
 
    
	
Agents:
    	
 
    	
Deutsche Bank   AG, New York Branch will act as sole and exclusive administrative agent and   collateral agent (in such capacity, the “Bank Administrative Agent”)   in respect of the Incremental Facility pursuant to the Term Loan Credit   Agreement, dated as of May 25, 2011, among the Company, Deutsche Bank AG   New York Branch, as administrative agent and collateral agent and the lenders   party thereto (as amended by Amendment No. 1, dated as of February 7,   2013, the “Existing Term Loan Credit Agreement”), and a bank or banks   to be agreed will act as syndication agent(s) and/or documentation   agent(s) for the Incremental Facility, in each case, for a syndicate of   financial institutions reasonably acceptable to the Borrower (together with   the Committed Lenders, the “Incremental Lenders”), and will perform   the duties customarily associated with such roles.
    
	
 
    	
 
    	
 
    
	
Joint Bookrunner   and Lead Arranger:
    	
 
    	
Barclays and GS   Bank will each act as joint lead arrangers for the Incremental Facility   (each, a “Lead Arranger” and collectively with any other arrangers   appointed pursuant to the fifth paragraph of the Commitment Letter, the “Lead   Arrangers”) and each will perform the duties customarily associated with   such roles.
    
	
 
    	
 
    	
 
    
	
Incremental   Facility:
    	
 
    	
A secured term   loan facility (the “Incremental Facility”, the loans thereunder, the “Incremental   Term Loans”) in an aggregate principal amount of up to $635 million plus, at the Borrower’s option pursuant to   the terms of the Fee Letter, any Incremental Term Loan Flex 
    

 

 

	
 
    	
 
    	
Increase, to be   documented as an incremental term loan facility under the Existing Term Loan   Credit Agreement. 
    
	
 
    	
 
    	
 
    
	
Incremental   Facilities:
    	
 
    	
As per the   Existing Term Loan Credit Agreement; provided that the “most favored nation”   provisions set forth in the provisos to Section 2.6(d)(iv) of the   Existing Term Loan Credit Agreement shall be subject to a twelve-month sunset   when incorporated into the documentation governing the Incremental Facility. 
    
	
 
    	
 
    	
 
    
	
Refinancing   Facilities:
    	
 
    	
As per the   Existing Term Loan Credit Agreement. 
    
	
 
    	
 
    	
 
    
	
Purpose:
    	
 
    	
The proceeds of   the Incremental Term Loans will be used by the Borrower on the Closing Date,   together with the proceeds of borrowings under the ABL Facility and cash on   hand, to finance Acquisition Costs.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
The Incremental   Facility will be available in a single drawing on the Closing Date.  Amounts borrowed under the Incremental   Facility that are repaid or prepaid may not be reborrowed.
    
	
 
    	
 
    	
 
    
	
Interest Rates   and Fees:
    	
 
    	
As set forth in   Annex I hereto.
    
	
 
    	
 
    	
 
    
	
Default Rate:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Final Maturity   and
   Amortization:
    	
 
    	
The Incremental   Facility will mature on the date that is seven years after the Closing Date   (the “Incremental Maturity Date”) and will amortize in equal quarterly   installments in aggregate annual amounts equal to 1.00% of the original   principal amount of the Incremental Facility, with the balance payable on the   Incremental Maturity Date; provided that   individual Incremental Lenders shall have the right to agree to extend the   maturity of their Incremental Term Loans upon the request of the Borrower and   without the consent of any other Lender (as set forth in the Existing Term   Loan Credit Agreement).
    
	
 
    	
 
    	
 
    
	
Guarantees:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
As per the   Existing Term Loan Credit Agreement and ratably with the existing facilities   under the Existing 
    

 

B-2

 

	
 
    	
 
    	
Term Loan Credit   Agreement.
    
	
 
    	
 
    	
 
    
	
Unrestricted   Subsidiaries:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Mandatory   Prepayments:
    	
 
    	
As per the   Existing Term Loan Credit Agreement and ratably with the existing term loans   under the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Voluntary   Prepayments:
    	
 
    	
Subject to   “Prepayment Premium” below, as per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Prepayment   Premium:
    	
 
    	
If the   Incremental Term Loans are repaid or any Lender is replaced in connection   with any amendment to the Incremental Facility, in each case, in connection   with a Repricing Transaction (as defined below) prior to the six month   anniversary of the Closing Date, a 1.00% prepayment premium will apply on the   amount so prepaid or replaced.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For purposes of   the foregoing, a “Repricing Transaction” shall mean the prepayment,   refinancing, substitution or replacement of all or a portion of the   Incremental Term Loans (including, without limitation, as may be effected   through any amendment, waiver or modification of the Incremental Facility   Documentation relating to the interest rate for, or weighted average yield   of, such Incremental Term Loans), (a) if the primary purpose of such   prepayment, refinancing, substitution, replacement, amendment, waiver or   modification is (as reasonably determined by the Borrower in good faith) to   refinance the Incremental Term Loans at a lower “effective yield” (taking   into account, among other factors, margin, upfront or similar fees or   original issue discount shared with all providers of such financing, but   excluding the effect of any arrangement, commitment, underwriting,   structuring, syndication or other fees payable in connection therewith that   are not shared with all providers of such financing, and without taking into   account any fluctuations in the Adjusted LIBOR, but including any Adjusted   LIBOR floor or similar floor that is higher than the then applicable Adjusted   LIBOR rate), (b) if the prepayment, refinancing, substitution,   replacement, amendment, waiver or modification is 
    

 

B-3

 

	
 
    	
 
    	
effectuated by   the incurrence by the Borrower or any subsidiary of new indebtedness, such   new indebtedness is first lien secured bank financing, and (c) if such   prepayment, refinancing, substitution, replacement, amendment, waiver or   modification results in first lien secured bank financing having an   “effective yield” (as reasonably determined by the Bank Administrative Agent   in consultation with the Borrower, consistent with generally accepted   financial practices, after giving effect to, among other factors; margin,   upfront or similar fees or original issue discount shared with all providers   of such financing (calculated based on assumed four year average life and   without present value discount), but excluding the effect of any arrangement,   commitment, underwriting, structuring, syndication or other fees payable in   connection therewith that are not shared with all providers of such   financing, and without taking into account any fluctuations in the Adjusted   LIBOR, but including any Adjusted LIBOR floor or similar floor that is higher   than the then applicable Adjusted LIBOR rate) that is less than the   “effective yield” (as reasonably determined by the Bank Administrative Agent   in consultation with the Borrower, on the same basis) of such Incremental   Term Loans prior to being so prepaid, refinanced, substituted or replaced or   subject to such amendment, waiver or modification of the Incremental   Facility.
    
	
 
    	
 
    	
 
    
	
Documentation:
    	
 
    	
The definitive documentation for the   Incremental Facility will be negotiated in good faith and will be consistent   with this Term Sheet to reflect the terms set forth in the Commitment Letter   and Fee Letter, and in any event will contain only those conditions to   borrowing, representations and warranties, covenants and events of default   expressly set forth in this Term Sheet (the “Incremental Facility   Documentation”).

 

Notwithstanding the foregoing, the only   conditions to the availability of the Incremental Facility on the Closing Date shall be the   applicable conditions set forth in Section 2.6 of the Existing Term Loan Credit Agreement, the   Funding Conditions Provision and in Exhibit D to the 
    

 

B-4

 

	
 
    	
 
    	
Commitment Letter.
    
	
 
    	
 
    	
 
    
	
Representations   and Warranties:
    	
 
    	
As per the   Existing Term Loan Credit Agreement, it being understood that the failure of   any representation or warranty (other than the Specified Representations and   the Business Representations) to be true and correct on the Closing Date will   not constitute the failure of a condition precedent to funding or a default   under the Incremental Facility.
    
	
 
    	
 
    	
 
    
	
Conditions   Precedent to Initial Extension of Credit:
    	
 
    	
The   initial extension of credit under the Incremental   Facility will be subject   solely to (a) the applicable conditions set forth in the Funding   Conditions Provision and in Exhibit D to the Commitment Letter,   (b) the condition that the Specified Representations and, to the extent   required by the Funding Conditions Provision, the Acquired Business   Representations, shall be true and correct in all material respects on and as   of the Closing Date (although any Specified Representation or the Acquired   Business Representations which expressly relates to a given date or period   shall be required only to be true and correct in all material respects as of   the respective date or for the respective period, as the case may be) and   (c) the conditions set forth in   Section 2.6 of the Existing Term Loan Credit Agreement shall have been   satisfied.
    
	
 
    	
 
    	
 
    
	
Affirmative   Covenants:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Negative   Covenants:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Financial   Covenants:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Events of   Default:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Voting:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Cost and Yield Protection:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Assignments and   Participations:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Expenses and   Indemnification:
    	
 
    	
If the Closing   Date occurs, as per the Existing Term Loan Credit Agreement; provided that, for the avoidance 
    

 

B-5

 

	
 
    	
 
    	
of doubt, the   reimbursement of the reasonable fees, disbursements and other charges of   counsel in connection with the preparation, execution, delivery and   syndication of the Incremental Facility shall be limited to fees, disbursements   and charges of counsel identified herein (and, for the avoidance of doubt,   not of counsel to any Committed Lender, Lead Arranger or Bank Administrative   Agent individually).
    
	
 
    	
 
    	
 
    
	
Governing Law   and Forum:
    	
 
    	
As per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Counsel to the   Committing Lenders and to the Lead Arrangers:
    	
 
    	
Cahill   Gordon & Reindel LLP.
    

 

B-6

 

ANNEX I to

EXHIBIT B

 

	
Interest Rates:
    	
 
    	
The per annum interest rates under the Incremental   Facility will be as follows:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
At the option of the Borrower, Adjusted LIBOR plus   3.00% or ABR plus 2.00%.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrower may elect interest periods of 1, 2, 3   or 6 months (or, if agreed to by all relevant Lenders, 12 months or a   shorter period) for Adjusted LIBOR borrowings, as per the Existing Term Loan   Credit Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Calculation of interest shall be on the basis of the   actual days elapsed in a year of 360 days (or 365 or 366 days, as the case   may be, in the case of ABR loans based on the Prime Rate), and interest shall   be payable at the end of each interest period and, in any event, at least   every 3 months.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ABR shall mean the “Alternate Base Rate” as defined   in the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Adjusted LIBOR shall mean the “Adjusted LIBOR Rate”   as defined in the Existing Term Loan Credit Agreement (it being understood   and agreed, for the avoidance of doubt, that the “LIBOR Floor” shall be 1.00%   per annum).
    

 

B-I-1

 

EXHIBIT C

 

Project Ranch
 Backstop Facility 
 Summary of Principal Terms and Conditions

 

All capitalized terms used but not defined herein shall have the meanings given to them in the Commitment Letter to which this term sheet is attached, including the other Exhibits thereto.

 

	
Borrower:
    	
 
    	
The Borrower under the Existing Term Loan Credit   Agreement (the “Borrower”).
    
	
 
    	
 
    	
 
    
	
Transactions:
    	
 
    	
As set forth in Exhibit A to the Commitment   Letter.
    
	
 
    	
 
    	
 
    
	
Agents:
    	
 
    	
Barclays will act as sole and exclusive   administrative agent and collateral agent (in such capacity, the “Bank   Administrative Agent”) in respect of the Backstop Facility, a bank or   banks to be agreed will act as syndication agent(s) for the Backstop   Facility and a bank or banks to be agreed will act as documentation   agent(s) for the Backstop Facility, in each case for a syndicate of   financial institutions reasonably acceptable to the Borrower (together with   the Committed Lenders, the “Lenders”), and will perform the duties   customarily associated with such roles.
    
	
 
    	
 
    	
 
    
	
Joint Bookrunner and Lead Arranger:
    	
 
    	
Barclays and GS Bank will each act as joint lead   arrangers for the Backstop Facility (each, a “Lead Arranger” and   collectively with any other arrangers appointed pursuant to the fifth   paragraph of the Commitment Letter, the “Lead Arrangers”) and each   will perform the duties customarily associated with such roles.
    
	
 
    	
 
    	
 
    
	
Backstop Facility:
    	
 
    	
A senior secured term loan facility in an aggregate   principal amount of up to $635 million (plus, at Borrower’s option   pursuant to the terms of the Fee Letter, the Term Loan Flex Increase) (the “Backstop   Facility”; the loans thereunder, the “Backstop Term Loans”).
    
	
 
    	
 
    	
 
    
	
Refinancing Facilities:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Purpose:
    	
 
    	
The proceeds of the Backstop Term Loans will be used   by the Borrower on the Closing Date, together with the proceeds of borrowings   under the ABL Facility and cash
    

 

C-1

 

	
 
    	
 
    	
on hand, to finance Acquisition Costs.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
The Backstop Facility will be available in a single   drawing on the Closing Date. Amounts borrowed under the Backstop Facility   that are repaid or prepaid may not be reborrowed.
    
	
 
    	
 
    	
 
    
	
Interest Rates and Fees:
    	
 
    	
As set forth in Annex I hereto.
    
	
 
    	
 
    	
 
    
	
Default Rate:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Final Maturity and
   Amortization:
    	
 
    	
The Backstop Facility will mature on the date that   is seven years from the Closing Date (the “Backstop Maturity Date”)   and will amortize in equal quarterly installments in aggregate annual amounts   equal to 1.00% of the original principal amount of the Backstop Facility,   with the balance payable on the Incremental Maturity Date; provided that individual Incremental Lenders shall have   the right to agree to extend the maturity of their Backstop Term Loans upon the   request of the Borrower and without the consent of any other Lender (as set   forth in the Existing Term Loan Credit Agreement).
    
	
 
    	
 
    	
 
    
	
Guarantees:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
As per the Existing Term Loan Credit Agreement and   ratably with the existing facilities under the Existing Term Loan Credit   Agreement. The Backstop Facility shall be subject to the ABL/Term Loan   Intercreditor Agreement (as defined in the Existing Term Loan Credit   Agreement)
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
As per the Existing Term Loan Credit Agreement and   ratably with the term loans under the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Voluntary Prepayments:
    	
 
    	
Subject to “Prepayment Premium” below, as per the   Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Prepayment Premium:
    	
 
    	
If the Backstop Term Loans are repaid or any Lender   is replaced in connection with any amendment to the Incremental Facility, in   each case, in connection with a Repricing Transaction (as defined below)   prior to the six month anniversary of the Closing Date, a 1.00% 
    

 

C-2

 

	
 
    	
 
    	
prepayment premium will apply on the amount so   prepaid or replaced.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For purposes of the   foregoing, a “Repricing Transaction” shall mean the prepayment,   refinancing, substitution or replacement of all or a portion of the Backstop   Term Loans (including, without limitation, as may be effected through any   amendment, waiver or modification of the Backstop Facility Documentation relating   to the interest rate for, or weighted average yield of, such Backstop Term   Loans), (a) if the primary purpose of such prepayment, refinancing,   substitution, replacement, amendment, waiver or modification is (as   reasonably determined by the Borrower in good faith) to refinance the   Backstop Term Loans at a lower “effective yield” (taking into account, among   other factors, margin, upfront or similar fees or original issue discount   shared with all providers of such financing, but excluding the effect of any   arrangement, commitment, underwriting, structuring, syndication or other fees   payable in connection therewith that are not shared with all providers of   such financing, and without taking into account any fluctuations in the   Adjusted LIBOR, but including any Adjusted LIBOR floor or similar floor that   is higher than the then applicable Adjusted LIBOR rate), (b) if the   prepayment, refinancing, substitution, replacement, amendment, waiver or   modification is effectuated by the incurrence by the Borrower or any   subsidiary of new indebtedness, such new indebtedness is first lien secured   bank financing, and(c) if such prepayment, refinancing, substitution,   replacement, amendment, waiver or modification results in first lien secured   bank financing having an “effective yield” (as reasonably determined by the   Bank Administrative Agent in consultation with the Borrower, consistent with   generally accepted financial practices, after giving effect to, among other   factors; margin, upfront or similar fees or original issue discount shared   with all providers of such financing (calculated based on assumed four year   average life and without present value discount), but excluding the effect of   any arrangement, commitment, underwriting, structuring, syndication or other   fees 
    

 

C-3

 

	
 
    	
 
    	
payable in connection therewith that are not shared   with all providers of such financing, and without taking into account any   fluctuations in the Adjusted LIBOR, but including any Adjusted LIBOR floor or   similar floor that is higher than the then applicable Adjusted LIBOR rate)   that is less than the “effective yield” (as reasonably determined by the Bank   Administrative Agent in consultation with the Borrower, on the same basis) of   such Backstop Term Loans prior to being so prepaid, refinanced, substituted   or replaced or subject to such amendment, waiver or modification of the   Backstop Facility.
    
	
 
    	
 
    	
 
    
	
Documentation:
    	
 
    	
The definitive documentation for the Backstop   Facility will be negotiated in good faith and will be consistent with this   Backstop Term Sheet and, subject to the foregoing, consistent with and   substantially similar to, with respect to covenants and defaults, the   Existing Term Loan Credit Agreement, taking account of and being modified   fully as appropriate to reflect the terms set forth in the Commitment Letter   and Fee Letter and the operational and strategic requirements of the Company   and the Acquired Business and its and their respective subsidiaries   (including as to operational and strategic requirements of the Company and   the Acquired Business and its and their respective subsidiaries, in light of   their size, industries, business, business practices and business plans); and   with respect to those provisions reflecting credit agreement format   (including representations and warranties), consistent with the Existing Term   Loan Credit Agreement with changes to reflect the technical aspects of the   Backstop Facility and operational and administrative changes reasonably requested   by the Bank Administrative Agent; and, in any event, will contain only those   conditions to borrowing, representations and warranties, covenants and events   of default expressly set forth in this Backstop Term Sheet (such   documentation, the “Backstop Loan Documentation”). Notwithstanding the   foregoing, the only conditions to the availability of the Backstop Facility   on the Closing Date shall be the applicable conditions set forth in the   Funding Conditions Provision and in Exhibit C to the Commitment Letter.
    

 

C-4

 

	
 
    	
 
    	
The definitive documentation for the Backstop   Facility, shall include an Additional Indebtedness Joinder to the ABL/Term   Loan Intercreditor Agreement in the form of Exhibit B thereto.

 

Notwithstanding the foregoing, the only conditions   to the availability of the Backstop Facility on the Closing Date shall be the   applicable conditions set forth in the Funding Conditions Provision and in   Exhibit D to the Commitment Letter and under the heading “Conditions   Precedent to Initial Extension of Credit” below.
    
	
 
    	
 
    	
 
    
	
Representations and Warranties:
    	
 
    	
As per the Existing Term Loan Credit Agreement, it   being understood that the failure of any representation or warranty (other   than the Specified Representations and the Business Representations) to be   true and correct on the Closing Date will not constitute the failure of a   condition precedent to funding or a default under the Backstop Facility.
    
	
 
    	
 
    	
 
    
	
Conditions Precedent to Initial Extension of Credit:
    	
 
    	
The initial extension of credit under the Backstop   Facility will be subject solely to (a) the applicable conditions set   forth in the Funding Conditions Provision and in Exhibit D to the   Commitment Letter and (b) the condition that the Specified   Representations and, to the extent required by the Funding Conditions   Provision, the Business Representations, shall be true and correct in all   material respects on and as of the Closing Date (although any Specified   Representation or Business Representation which expressly relates to a given   date or period shall be required only to be true and correct in all material   respects as of the respective date or for the respective period, as the case   may be).
    
	
 
    	
 
    	
 
    
	
Affirmative Covenants:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Negative Covenants:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Financial Covenants:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Voting:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    

 

C-5

 

	
Cost and Yield Protection:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Assignments and Participations:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Successor Administrative Agent:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Expenses and Indemnification:
    	
 
    	
If the Closing Date occurs, as per the Existing Term   Loan Credit Agreement; provided that,   for the avoidance of doubt, the reimbursement of the reasonable fees,   disbursements and other charges of counsel in connection with the   preparation, execution, delivery and syndication of the Backstop Facility   shall be limited to fees, disbursements and charges of counsel identified herein   (and, for the avoidance of doubt, not of counsel to any Committed Lender,   Lead Arranger or Bank Administrative Agent individually).
    
	
 
    	
 
    	
 
    
	
Governing Law and Forum:
    	
 
    	
As per the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Counsel to the Bank Administrative Agent and to the   Lead Arranger:
    	
 
    	
Cahill Gordon & Reindel LLP.
    

 

C-6

 

ANNEX I to

EXHIBIT C

 

	
Interest Rates:
    	
 
    	
The per annum interest rates under the Backstop   Facility will be as follows:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
At the option of the Borrower, Adjusted LIBOR plus   3.00% or ABR plus 2.00%.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrower may elect interest periods of 1, 2, 3   or 6 months (or, if agreed to by all relevant Lenders, 12 months or a   shorter period) for Adjusted LIBOR borrowings, as per the Existing Term Loan   Credit Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Calculation of interest shall be on the basis of the   actual days elapsed in a year of 360 days (or 365 or 366 days, as the case   may be, in the case of ABR loans based on the Prime Rate), and interest shall   be payable at the end of each interest period and, in any event, at least   every 3 months.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ABR shall mean the “Alternate Base Rate” as defined   in the Existing Term Loan Credit Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Adjusted LIBOR shall mean the “Adjusted LIBOR Rate”   as defined in the Existing Term Loan Credit Agreement (it being understood   and agreed, for the avoidance of doubt, that the “LIBOR Floor” shall be 1.00%   per annum).
    

 

C-I-1

 

EXHIBIT D

 

Project Ranch
  Summary of Additional Conditions

 

All capitalized terms used but not defined herein shall have the meaning given to them in the Commitment Letter to which this Summary of Additional Conditions is attached, including the other Exhibits thereto.

 

Except as otherwise set forth below, the initial borrowing under the Term Loan Facilities shall be subject to the satisfaction or waiver of the following additional conditions:

 

1.             The Acquisition shall have been or, substantially concurrently with the initial borrowing under the Term Loan Facilities shall be, consummated in all material respects in accordance with the terms of the Acquisition Agreement, without giving effect to any modifications, amendments, express waivers or express consents thereunder by the Buyer that are materially adverse to the Lenders without the consent of the Lead Arrangers (such consent not to be unreasonably withheld, conditioned or delayed), it being understood and agreed that any change in the purchase price shall not be deemed to be materially adverse to the Lenders but (x) any resulting reduction in purchase price to the extent resulting in lower cash funding by the Buyer shall be allocated to a reduction in the Term Loan Facilities and (y) any increase in purchase price (excluding, for the avoidance of doubt, purchase price adjustments pursuant to the Acquisition Agreement) may be funded with the Company’s cash, borrowings under the ABL Facility (provided, that the proceeds of the ABL Facility may not be used to fund an increase in the purchase price in excess of 10% of the Acquisition Costs) or the proceeds of a common stock or other “qualified” equity issuance or a common equity contribution received by the Company.

 

2.             The Refinancing (if any) shall have been, or substantially concurrently with the initial borrowing under the Term Loan Facilities shall be, consummated.

 

3.             No Material Adverse Effect (as defined in the Acquisition Agreement) on the Company (as defined in the Acquisition Agreement) shall have occurred since the date of the Acquisition Agreement (other than any Material Adverse Effect under clause (i)(B) of the definition of “Material Adverse Effect” that has been cured prior to the Closing Date).

 

4.             All fees related to the Transactions payable to the Lead Arrangers, the applicable Bank Administrative Agent or the Lenders shall have been paid to the extent due.

 

5.             The Lead Arrangers shall have received (a) audited consolidated balance sheets and related statements of operations, comprehensive income (loss) and cash flows

 

D-1

 

of the Company for the three most recently completed fiscal years ended at least 90 days prior to the Closing Date, (b) unaudited consolidated balance sheets and related statements of operations, comprehensive income (loss) and cash flows of the Company for any subsequent interim fiscal period of the Company ended at least 45 days prior to the Closing Date and for the comparable period of the prior fiscal year, (c) audited consolidated balance sheets and related statements of operations, comprehensive income (loss) and cash flows of Rural/Metro Corporation (a direct, wholly-owned subsidiary of the Acquired Business) (“OpCo”) for the twelve-month periods ended December 31, 2013 (in respect of Opco’s predecessor entity other than in the case of the balance sheet), December 31, 2014 and for each subsequent fiscal year ended at least 90 days prior to the Closing Date and (d) unaudited consolidated balance sheets and related statements of operations, comprehensive income (loss) and cash flows of OpCo for any subsequent interim fiscal period of the Company ended at least 45 days prior to the Closing Date and for the comparable period of the prior fiscal year (which unaudited interim financial statements shall not be required to be reviewed by any independent accounting firm or be accompanied by any notes thereto). The Lead Arrangers hereby acknowledge receipt of the financial statements (I) in the foregoing clause (a) for the fiscal years ended December 31, 2012, December 31, 2013 and December 31, 2014, (II) in the foregoing clause (b) for the fiscal periods ended March 31, 2015, (III) in the foregoing clause (c) for the fiscal years ended December 31, 2013 and December 31, 2014, and (IV) in the foregoing clause (d) for the fiscal periods ended March 31, 2015.

 

6.             The Lead Arrangers shall have received an unaudited pro forma consolidated balance sheet and a related unaudited pro forma statement of operations of the Company and its subsidiaries as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days prior to the Closing Date (or, if the end of the most recently completed four-fiscal quarter period of the Company is the end of a fiscal year of the Company, ended at least 90 days prior to the Closing Date), prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of operations), which shall include information customary for financings similar to the Term Loan Facilities for any other consummated or probable acquisitions or dispositions, to the extent such information would be required in connection with a registered securities offering by Section 3-05 of Regulation S-X of the Securities Act of 1933, as amended, or would be customarily included in private placements under Rule 144A of the Securities Act of 1933, as amended, in each case in connection with any such acquisition or disposition, which financial statements need not be prepared in compliance with Regulation S-X of the Securities Act of 1933, as amended or include adjustments for purchase accounting, in each case to the extent customary for senior secured bank financing transactions of this type.

 

D-2

 

7.                                      The Lead Arrangers shall have received a certificate of the chief financial officer or treasurer (or other comparable officer) of the Company substantially in the form of Annex I to Exhibit D attached hereto certifying the solvency, after giving effect to the Transactions, of the Company and its subsidiaries on a consolidated basis.

 

8.                                      The Lead Arrangers shall have received at least three business days prior to the Closing Date all documentation and information as is reasonably requested in writing by the applicable Bank Administrative Agent, at least 10 calendar days prior to the Closing Date, about the Borrower and the Guarantors mutually agreed to be required by U.S. regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act.

 

10.                               Subject in all respects to the Funding Conditions Provision, (a) the Guarantees of the Term Loan Facilities shall have been executed by the Guarantors and be in full force and effect or substantially simultaneously with the initial borrowing under the Term Loan Facilities and (b) all documents and instruments required to perfect the applicable Bank Administrative Agent’s security interest, in the Collateral with respect to the Term Loan Facilities shall have been executed and delivered by the Borrower and the Guarantors or substantially simultaneously with the initial borrowings under the Term Loan Facilities, shall be executed and delivered by the Borrower and the Guarantors and, if applicable, be in proper form for filing, and none of the Collateral shall be subject to any other pledges, security interest or mortgages, except for the liens permitted under the Facilities Documentation or to be released on or prior to the Closing Date.

 

11.                               You shall have provided to the Lead Arrangers the financial information identified in paragraphs 5 and 6 of this Summary of Additional Conditions, in each case, not less than 20 consecutive calendar days prior to the Closing Date (provided that (x) if such period has not ended on or prior to August 21, 2015, such period shall not be deemed to have commenced until September 8, 2015, (y) if such period has not ended on or prior to December 22, 2015, such period shall not be deemed to have commenced until January 4, 2016 and (z) the days from November 26, 2015 to November 29, 2015 shall not be considered calendar days for purposes of such period).

 

12.                               Solely with respect to the Incremental Facility, the conditions set forth in Section 2.6 of the Existing Term Loan Credit Agreement shall have been satisfied.

 

13.                               Solely with respect to a Backstop Facility, the Borrower shall have executed and delivered the Additional Indebtedness Designation and an acknowledgment with respect to the ABL/Term Loan Intercreditor Agreement and related joinder.

 

D-3

 

Annex I to Exhibit C

 

Form of Solvency Certificate

 

Date:       , 201[ ]

 

To the Administrative Agent and each of the Lenders party to the Credit Agreement referred to below:

 

I, the undersigned, the Chief Financial Officer of      , a             (the “Borrower”), in that capacity only and not in my individual capacity (and without personal liability), do hereby certify as of the date hereof, and based upon (i) facts and circumstances as they exist as of the date hereof (and disclaiming any responsibility for changes in such fact and circumstances after the date hereof) and (ii) such materials and information as I have deemed relevant to the determination of the matters set forth in this certificate, that:

 

1.                                      This certificate is furnished to the Administrative Agent and the Lenders pursuant to Section    of the Credit Agreement, dated as of               , 201[ ], among           (the “Credit Agreement”).  Unless otherwise defined herein, capitalized terms used in this certificate shall have the meanings set forth in the Credit Agreement.

 

2.                                      For purposes of this certificate, the terms below shall have the following definitions:

 

(a)                                 “Fair Value”

 

The amount at which the assets (both tangible and intangible), in their entirety, of the Borrower and its Subsidiaries taken as a whole would change hands between a willing buyer and a willing seller, within a commercially reasonable period of time, each having reasonable knowledge of the relevant facts, with neither being under any compulsion to act.

 

(b)                                 “Present Fair Salable Value”

 

The amount that could be obtained by an independent willing seller from an independent willing buyer if the assets of the Borrower and its Subsidiaries taken as a whole are sold with reasonable promptness in an arm’s-length transaction under present conditions for the sale of comparable business enterprises insofar as such conditions can be reasonably evaluated.

 

(c)                                  “Stated Liabilities”

 

The recorded liabilities (including contingent liabilities that would be recorded in accordance with GAAP) of the Borrower and its Subsidiaries taken as a whole, as of the date hereof after giving effect to the consummation of the Transactions, determined in accordance with GAAP consistently applied.

 

(d)                                 “Identified Contingent Liabilities”

 

C-I-1

 

The maximum estimated amount of liabilities reasonably likely to result from pending litigation, asserted claims and assessments, guaranties, uninsured risks and other contingent liabilities of the Borrower and its Subsidiaries taken as a whole after giving effect to the Transactions (including all fees and expenses related thereto but exclusive of such contingent liabilities to the extent reflected in Stated Liabilities), as and to the extent identified and explained in terms of their nature and estimated magnitude by responsible officers of the Borrower.

 

(e)                                  “Will be able to pay their Stated Liabilities and Identified Contingent Liabilities as they mature”

 

For the period from the date hereof through the Maturity Date, the Borrower and its Subsidiaries taken as a whole will have sufficient assets and cash flow to pay their respective Stated Liabilities and Identified Contingent Liabilities as those liabilities mature or (in the case of contingent liabilities) otherwise become payable.

 

(f)                                   “Do not have Unreasonably Small Capital”

 

For the period from the date hereof through the Maturity Date, the Borrower and its Subsidiaries taken as a whole after consummation of the Transactions is a going concern and has sufficient capital to ensure that it will continue to be a going concern for such period.

 

3.                                      For purposes of this certificate, I, or officers of the Borrower under my direction and supervision, have performed the following procedures as of and for the periods set forth below.

 

(a)                                 I have reviewed the financial statements (including the pro forma financial statements) referred to in Section [  ] of the Credit Agreement.

 

(b)                                 I have knowledge of and have reviewed to my satisfaction the Credit Agreement.

 

(c)                                  As chief financial officer of the Borrower, I am familiar with the financial condition of the Borrower and its Subsidiaries.

 

4.                                      Based on and subject to the foregoing, I hereby certify on behalf of the Borrower that after giving effect to the consummation of the Transactions, it is my opinion that: (i) the Fair Value and Present Fair Salable Value of the assets of the Borrower and its Subsidiaries taken as a whole exceed their Stated Liabilities and Identified Contingent Liabilities; (ii) the Borrower and its Subsidiaries taken as a whole do not have Unreasonably Small Capital; and (iii) the Borrower and its Subsidiaries taken as a whole will be able to pay their Stated Liabilities and Identified Contingent Liabilities as they mature.

 

* * *

 

C-I-2

 

IN WITNESS WHEREOF, the Borrower has caused this certificate to be executed on its behalf by its Chief Financial Officer as of the date first written above.

 

 

	
 
    	
[Borrower]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title: Chief   Financial Officer
    

 

C-I-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]