Document:

exv10w5

Exhibit 10.5

SECURITY AND PLEDGE AGREEMENT

	 	 	THIS SECURITY AND PLEDGE AGREEMENT (this “Agreement”) is entered into as of April 1, 2011
among the parties identified as “Obligors” on the signature pages hereto and such other parties
that may become Obligors hereunder after the date hereof (each individually an “Obligor” and
collectively the “Obligors”), and BANK OF AMERICA, N.A., in its capacity as administrative agent
(in such capacity, the “Administrative Agent”) for the holders of the Secured Obligations (defined
below).

RECITALS

     WHEREAS, pursuant to the Credit Agreement (as amended, modified, supplemented, increased,
extended, restated, refinanced and replaced from time to time, the “Credit Agreement”) dated as of
the date hereof among Acadia Healthcare Company, LLC, a Delaware limited liability company, the
Guarantors identified therein, the Lenders identified therein and the Administrative Agent, the
Lenders have agreed to make Loans and issue Letters of Credit upon the terms and subject to the
conditions set forth therein; and

     WHEREAS, this Agreement is required by the terms of the Credit Agreement.

     NOW, THEREFORE, in consideration of these premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. Definitions.

     (a) Capitalized terms used and not otherwise defined herein shall have the meanings ascribed
to such terms in the Credit Agreement, and the following terms which are defined in the Uniform
Commercial Code in effect from time to time in the State of New York except as such terms may be
used in connection with the perfection of the Collateral and then the applicable jurisdiction with
respect to such affected Collateral shall apply (the “UCC”): Accession, Account, Adverse Claim,
As-Extracted Collateral, Chattel Paper, Commercial Tort Claim, Consumer Goods, Deposit Account,
Document, Electronic Chattel Paper, Equipment, Farm Products, Financial Asset, Fixtures, General
Intangible, Goods, Instrument, Inventory, Investment Company Security, Investment Property,
Letter-of-Credit Right, Manufactured Home, Proceeds, Securities Account, Security Entitlement,
Security, Software, Supporting Obligation and Tangible Chattel Paper.

     (b) In addition, the following terms shall have the meanings set
forth below:

         “Collateral” has the meaning provided in Section 2
hereof.

     “Copyright License” means any written agreement, naming any Obligor as
licensor, granting any right under any Copyright.

     “Copyrights” means (a) all registered United States copyrights in all Works, now
existing or hereafter created or acquired, all registrations and recordings thereof, and
all applications in connection therewith, including, without limitation, registrations,
recordings and applications in the United States Copyright Office, and (b) all renewals
thereof.

     “Patent License” means any agreement, whether written or oral, providing for the grant
by or to a Obligor of any right to manufacture, use or sell any invention covered by a
Patent.

 

 

     “Patents” means (a) all letters patent of the United States or any other country and
all reissues and extensions thereof, and (b) all applications for letters patent of the
United States or any other country and all divisions, continuations and
continuations-in-part thereof.

     “Pledged Equity” means, with respect to each Obligor, (i) 100% of the issued and
outstanding Equity Interests of each Domestic Subsidiary that is directly owned by such
Obligor and (ii) 65% (or such greater percentage that, due to a change in an applicable Law
after the date hereof, (A) could not reasonably be expected to cause the undistributed
earnings of such Foreign Subsidiary as determined for United States federal income tax
purposes to be treated as a deemed dividend to such Foreign Subsidiary’s United States
parent and (B) could not reasonably be expected to cause any material adverse tax
consequences) of the issued and outstanding Equity Interests entitled to vote (within the
meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity
Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in
each Foreign Subsidiary that is directly owned by such Obligor, including the Equity
Interests of the Subsidiaries owned by such Obligor as set forth on Schedule 1
hereto, in each case together with the certificates (or other agreements or instruments), if
any, representing such Equity Interests, and all options and other rights, contractual or
otherwise, with respect thereto, including, but not limited to, the following:

     (1) all Equity Interests representing a dividend thereon, or representing a
distribution or return of capital upon or in respect thereof, or resulting from a
stock split, revision, reclassification or other exchange therefor, and any
subscriptions, warrants, rights or options issued to the holder thereof, or
otherwise in respect thereof; and

     (2) in the event of any consolidation or merger involving the issuer thereof
and in which such issuer is not the surviving Person, all shares of each class of
the Equity Interests of the successor Person formed by or resulting from such
consolidation or merger, to the extent that such successor Person is a direct
Subsidiary of an Obligor.

     “Secured Obligations” means, without duplication, (a) all Obligations and (b)
all costs and expenses incurred in connection with enforcement and collection of the
Obligations, including the fees, charges and disbursements of counsel in accordance with
Section 11.04(a) of the Credit Agreement.

     “Trademark License” means any agreement, written or oral, providing for the
grant by or to an Obligor of any right to use any Trademark.

     “Trademarks” means (a) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos and other
source or business identifiers, and the goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any state thereof or any
other country or any political subdivision thereof, or otherwise and (b) all renewals
thereof.

     “Work” means any work that is subject to copyright protection pursuant to Title 17 of
the United States Code.

     2. Grant of Security Interest in the Collateral. To secure the prompt payment in
full when due,
whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured
Obligations, each Obligor hereby grants to the Administrative Agent, for the benefit of the holders
of the Secured Obligations, a

2

 

continuing security interest in, and a right to set off against, any and all right, title and
interest of such Obligor in and to all of the following, whether now owned or existing or owned,
acquired, or arising hereafter (collectively, the “Collateral”): (a) all Accounts; (b) all cash and
currency; (c) all Chattel Paper; (d) those certain Commercial Tort Claims set forth on Schedule
2 hereto; (e) all Copyrights; (f) all Copyright Licenses; (g) all Deposit Accounts; (h) all
Documents; (i) all Equipment; (j) all Fixtures; (k) all General Intangibles; (1) all Instruments;
(m) all Inventory; (n) all Investment Property; (o) all Letter-of-Credit Rights; (p) all Patents;
(q) all Patent Licenses; (r) all Pledged Equity; (s) all Software; (t) all Supporting Obligations;
(u) all Trademarks; (v) all Trademark Licenses; and (w) all Accessions and all Proceeds of any and
all of the foregoing.

     Notwithstanding anything to the contrary contained herein, the security interests granted
under this Agreement shall not extend to (a) any Excluded Account, (b) any vehicles or rolling
stock, (c) unless requested by the Administrative Agent or the Required Lenders, any IP Rights for
which a perfected Lien thereon is not effected either by filing of a Uniform Commercial Code
financing statement or by appropriate evidence of such Lien being filed in either the United States
Copyright Office or the United States Patent and Trademark Office, (d) the Equity Interests of any
Foreign Subsidiary to the extent not required to be pledged to secure the Obligations pursuant to
Section 7.13(a) of the Credit Agreement, (e) any property which, subject to the terms of Section
8.09 of the Credit Agreement, is subject to a Lien of the type described in Section 8.01(i) of the
Credit Agreement pursuant to documents which prohibit such Obligor from granting any other Liens in
such property and (f) any rights or interest in any lease, license, contract or other agreement of
any Obligor if the grant of a security interest in such lease, license, contract or other agreement
in the manner contemplated by this Agreement is prohibited under the terms of such lease, license,
contract or other agreement or under applicable Law or would result in default thereunder, the
termination thereof or give the other parties thereto the right to terminate, accelerate or
otherwise alter such Obligor’s rights, titles and interests thereunder (including upon the giving
of notice or the lapse of time or both), in each case except to the extent that (i) such
prohibition could not be rendered ineffective pursuant to the applicable Uniform Commercial Code or
any other applicable Law (including Debtor Relief Laws) or principles of equity and (ii) such
prohibition has not been waived, terminated or eliminated (after the Borrower has used commercially
reasonable efforts to obtain such consent upon the request of the Administrative Agent).

     The Obligors and the Administrative Agent, on behalf of the holders of the Secured
Obligations, hereby acknowledge and agree that the security interest created hereby in the
Collateral (i) constitutes continuing collateral security for all of the Secured Obligations,
whether now existing or hereafter arising and (ii) is not to be construed as an assignment of any
Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks or Trademark Licenses.

     3. Representations and Warranties. Each Obligor hereby represents and warrants to
the
Administrative Agent, for the benefit of the holders of the Secured Obligations, that:

     (a) Ownership. Each Obligor is the legal and beneficial owner of its Collateral
or has other requisite rights in its Collateral and has the right to pledge, sell, assign or
transfer the same. There exists no Adverse Claim with respect to the Pledged Equity of such
Obligor.

     (b) Security Interest/Priority. This Agreement creates a valid security
interest in favor of the Administrative Agent, for the benefit of the holders of the Secured
Obligations, in the Collateral of such Obligor and, when properly perfected by filing, shall
constitute a valid and perfected, first priority security interest in such Collateral
(including all uncertificated Pledged Equity consisting of partnership or limited liability
company interests that do not constitute Securities), to the extent such security interest
can be perfected by filing under the UCC, free and clear of all Liens except for Permitted
Liens. The taking possession by the Administrative Agent

3

 

of the certificated securities (if any) evidencing the Pledged Equity and all other
Instruments constituting Collateral will perfect and establish the first priority
of the Administrative Agent’s security interest in all the Pledged Equity evidenced
by such certificated securities and such Instruments. With respect to any
Collateral consisting of a Deposit Account, Security Entitlement or held in a
Securities Account, upon execution and delivery by the applicable Obligor, the
applicable Securities Intermediary and the Administrative Agent of an agreement
granting control to the Administrative Agent over such Collateral, the
Administrative Agent shall have a valid and perfected, first priority security
interest in such Collateral.

     (c) Types of Collateral. None of the Collateral consists of, or is the
Proceeds of, As-Extracted Collateral, Consumer Goods, Farm Products, Manufactured
Homes or standing timber.

     (d) Equipment and Inventory. With respect to any Equipment and/or
Inventory of an Obligor, each such Obligor has exclusive possession and control of
such Equipment and Inventory of such Obligor except for (i) Equipment leased by such
Obligor as a lessee, (ii) Equipment or Inventory in transit with common carriers or
(iii) Equipment absent for repair or refurbishment or absent for other bona fide
business purposes. No Inventory of an Obligor is held by a Person other than an
Obligor pursuant to consignment, sale or return, sale on approval or similar
arrangement.

     (e) Authorization of Pledged Equity. All Pledged Equity is duly
authorized and validly issued, is fully paid and, to the extent applicable,
nonassessable and is not subject to the preemptive rights, warrants, options or other
rights to purchase of any Person, or equityholder, voting trust or similar agreements
outstanding with respect to, or property that is convertible, into, or that requires
the issuance and sale of, any of the Pledged Equity, except to the extent expressly
permitted under the Loan Documents.

     (f)
No Other Equity Interests, Instruments, Etc. As of the Closing Date,
no Obligor owns any certificated Equity Interests in any Subsidiary that are required
to be pledged and delivered to the Administrative Agent hereunder other than as set
forth on Schedule 1 hereto, and all such certificated Equity Interests have
been delivered to the Administrative Agent.

     (g) Partnership and Limited Liability Company Interests. Except as
previously disclosed to the Administrative Agent in writing, none of the Collateral
consisting of an interest in a partnership or a limited liability company (i) is
dealt in or traded on a securities exchange or in a securities market, (ii) by its
terms expressly provides that it is a Security governed by Article 8 of the UCC,
(iii) is an Investment Company Security, (iv) is held in a Securities Account or (v)
constitutes a Security or a Financial Asset.

     (h)
Contracts; Agreements; Licenses. The Obligors have no material
contracts, agreements or licenses which constitute Collateral which prevent the
granting of a security interest therein.

     (i) Consents; Etc. There are no restrictions in any Organization
Document governing
any Pledged Equity or any other document related thereto which would limit or
restrict (i) the grant of a Lien pursuant to this Agreement on such Pledged Equity,
(ii) the perfection of such Lien or (iii) the exercise of remedies in respect of
such perfected Lien in the Pledged Equity as contemplated by this Agreement. Except
for (i) the filing or recording of UCC financing statements, (ii) the filing of
appropriate notices with the United States Patent and Trademark Office and the
United States Copyright Office, (iii) obtaining control to perfect
the Liens created by this Agreement (to the extent required under Section 4(a)
hereof), (iv) such actions as may be required by Laws affecting the offering and
sale of securities, (v) such actions as may be required by applicable foreign Laws

4

 

affecting the pledge of the Pledged Equity of Foreign Subsidiaries and (vi) consents,
authorizations, filings or other actions which have been obtained or made, no consent or
authorization of, filing with, or other act by or in respect of, any arbitrator or Governmental
Authority and no consent of any other Person (including, without limitation, any stockholder,
member or creditor of such Obligor), is required for (A) the grant by such Obligor of the security
interest in the Collateral granted hereby or for the execution, delivery or performance of this
Agreement by such Obligor, (B) the perfection of such security interest (to the extent such
security interest can be perfected by filing under the UCC, the granting of control (to the extent
required under Section 4(a) hereof) or by filing an appropriate notice with the United States
Patent and Trademark Office or the United States Copyright Office) or (C) the exercise by the
Administrative Agent or the holders of the Secured Obligations of the rights and remedies provided
for in this Agreement.

     (j) Commercial Tort Claims. As of the Closing Date, no Obligor has any
Commercial Tort Claims seeking damages in excess of $100,000 other than as set forth on
Schedule 2 hereto.

4. Covenants. Each Obligor covenants that until Satisfaction in Full, such Obligor shall:

     (a) Instruments/Chattel Paper/Pledged Equity/Control.

     (i) If any amount in excess of $100,000 payable under or in connection with any of the
Collateral shall be or become evidenced by any Instrument or Tangible Chattel Paper, or if
any property constituting Collateral shall be stored or shipped subject to a Document,
ensure that such Instrument, Tangible Chattel Paper or Document is either in the possession
of such Obligor at all times or, if requested by the Administrative Agent to perfect its
security interest in such Collateral, is delivered to the Administrative Agent duly
endorsed in a manner satisfactory to the Administrative Agent. Such Obligor shall ensure
that any Collateral consisting of Tangible Chattel Paper is marked with a legend acceptable
to the Administrative Agent indicating the Administrative Agent’s security interest in such
Tangible Chattel Paper.

     (ii) Deliver to the Administrative Agent promptly upon the receipt thereof by or on
behalf of an Obligor, all certificates and instruments constituting Pledged Equity. Prior
to delivery to the Administrative Agent, all such certificates constituting Pledged Equity
shall be held in trust by such Obligor for the benefit of the Administrative Agent pursuant
hereto. All such certificates representing Pledged Equity shall be delivered in suitable
form for transfer by delivery or shall be accompanied by duly executed instruments of
transfer or assignment in blank, substantially in the form provided in Exhibit 4(a)
hereto.

     (iii) Execute and deliver, and use commercially reasonable efforts to cause third
parties (if necessary) to execute and deliver all agreements, assignments, instruments or
other documents as reasonably requested by the Administrative Agent for the purpose of
obtaining and maintaining control with respect to any Collateral consisting of (i) Deposit
Accounts, (ii) Investment Property, (iii) Letter-of-Credit Rights and (iv) Electronic
Chattel Paper.

     (b)
Filing of Financing Statements, Notices, etc. Each Obligor shall execute and
deliver to the Administrative Agent such agreements, assignments or instruments (including
affidavits, notices, reaffirmations and amendments and restatements of existing
documents, as the Administrative Agent may reasonably request) and do all such other things as
the Administrative Agent may reasonably deem necessary or appropriate (i) to assure to the
Administrative Agent its

5

 

security interests hereunder, including (A) such instruments as the Administrative Agent may from
time to time reasonably request in order to perfect and maintain the security interests granted
hereunder in accordance with the UCC, (B) with regard to Copyrights, a Notice of Grant of Security
Interest in Copyrights in the form of Exhibit 4(c)(i), (C) with regard to Patents, a Notice
of Grant of Security Interest in Patents for filing with the United States Patent and Trademark
Office in the form of Exhibit 4(c)(ii) hereto and (D) with regard to Trademarks, a Notice of Grant
of Security Interest in Trademarks for filing with the United States Patent and Trademark Office in
the form of Exhibit 4(c)(iii) hereto, (ii) to consummate the transactions contemplated
hereby and (iii) to otherwise protect and assure the Administrative Agent of its rights and
interests hereunder. Furthermore, each Obligor also hereby irrevocably, until Satisfaction in Full,
makes, constitutes and appoints the Administrative Agent, its nominee or any other person whom the
Administrative Agent may designate, as such Obligor’s attorney in fact with full power and for the
limited purpose to sign in the name of such Obligor any financing statements, or amendments and
supplements to financing statements, renewal financing statements, notices or any similar documents
which in the Administrative Agent’s reasonable discretion would be necessary or appropriate in
order to perfect and maintain perfection of the security interests granted hereunder, such power,
being coupled with an interest, being and remaining irrevocable until Satisfaction in Full. Each
Obligor hereby agrees that a carbon, photographic or other reproduction of this Agreement or any
such financing statement is sufficient for filing as a financing statement by the Administrative
Agent without notice thereof to such Obligor wherever the Administrative Agent may in its sole
discretion desire to file the same.

     (c) Collateral Held by Warehouseman, Bailee, etc. If any Collateral is at any time in
the possession or control of a warehouseman, bailee or any agent or processor of such Obligor and
the Administrative Agent so requests (i) notify such Person in writing of the Administrative
Agent’s security interest therein, (ii) instruct such Person to hold all such Collateral for the
Administrative Agent’s account and subject to the Administrative Agent’s instructions and (iii) use
commercially reasonable efforts to obtain a written acknowledgment from such Person that it is
holding such Collateral for the benefit of the Administrative Agent.

     (d)
Commercial Tort Claims. (i) Within ten (10) business days, promptly forward to the
Administrative Agent an updated Schedule 2 listing any and all Commercial Tort Claims by or
in favor of such Obligor seeking damages in excess of $100,000 and (ii) execute and deliver such
statements, documents and notices and do and cause to be done all such things as may be reasonably
required by the Administrative Agent, or required by Law to create, preserve, perfect and maintain
the Administrative Agent’s security interest in any Commercial Tort Claims initiated by or in favor
of any Obligor.

     (e) Books and Records. Mark its books and records (and shall cause the issuer of the
Pledged Equity of such Obligor to mark its books and records) to reflect the security interest
granted pursuant to this Agreement.

     (f) Nature of Collateral. At all times maintain the Collateral as personal property
and not affix any of the Collateral to any real property in a manner which would change its nature
from personal property to real property or a Fixture to real property, unless the Administrative
Agent shall have a perfected Lien on such Fixture or real property.

     (g) Issuance or Acquisition of Equity Interests in Partnership or Limited Liability
Company. Not without executing and delivering, or causing to be executed and delivered, to the
Administrative Agent such agreements, documents and instruments as the Administrative Agent may
reasonably require, issue or acquire any Pledged Equity consisting of an interest in a partnership
or a limited liability company that (i) is dealt in or traded on a securities exchange or

6

 

in a securities market, (ii) by its terms expressly provides that it is a Security
governed by Article 8 of the UCC, (iii) is an Investment Company Security, (iv) is held in
a Securities Account or (v) constitutes a Security or a Financial Asset.

     5. Authorization to File Financing Statements. Each Obligor hereby authorizes
the Administrative Agent to prepare and file such financing statements (including continuation
statements) or amendments thereof or supplements thereto or other instruments as the Administrative
Agent may from time to time deem necessary in order to perfect and maintain the security interests
granted hereunder in accordance with the UCC (including authorization to describe the Collateral as
“all personal property”, “all assets” or words of similar meaning).

     6. Advances. On failure of any Obligor to perform any of the covenants and
agreements contained herein, the Administrative Agent may, at its sole option and in its sole
discretion, after five (5) days written notice to the Obligors, perform the same and in so doing
may expend such sums as the Administrative Agent may reasonably deem advisable in the performance
thereof, including, without limitation, the payment of any insurance premiums, the payment of any
taxes, a payment to obtain a release of a Lien or potential Lien, expenditures made in defending
against any adverse claim and all other expenditures which the Administrative Agent may make for
the protection of the security hereof or which may be compelled to make by operation of Law. All
such sums and amounts so expended shall be repayable by the Obligors on a joint and several basis
promptly upon timely notice thereof and demand therefor, shall constitute additional Secured
Obligations and shall bear interest from the date said amounts are expended at the Default Rate. No
such performance of any covenant or agreement by the Administrative Agent on behalf of any Obligor,
and no such advance or expenditure therefor, shall relieve the Obligors of any Default or Event of
Default. The Administrative Agent may make any payment hereby authorized in accordance with any
bill, statement or estimate procured from the appropriate public office or holder of the claim to
be discharged without inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent
such payment is being contested in good faith by an Obligor in appropriate proceedings and against
which adequate reserves are being maintained in accordance with GAAP.

     7. Remedies.

     (a) General Remedies. During the continuation of an Event of Default, the
Administrative Agent shall have, in addition to the rights and remedies provided herein, in the
Loan Documents, in any other documents relating to the Secured Obligations, or by Law (including,
but not limited to, levy of attachment, garnishment and the rights and remedies set forth in the
UCC of the jurisdiction applicable to the affected Collateral), the rights and remedies of a
secured party under the UCC (regardless of whether the UCC is the law of the jurisdiction where
the rights and remedies are asserted and regardless of whether the UCC applies to the affected
Collateral), and further, the Administrative Agent may, with or without judicial process or the
aid and assistance of others, (i) enter on any premises on which any of the Collateral may be
located and, without resistance or interference by the Obligors, take possession of the
Collateral, (ii) dispose of any Collateral on any such premises, (iii) require the Obligors to
assemble and make available to the Administrative Agent at the expense of the Obligors any
Collateral at any place and time designated by the Administrative Agent which is reasonably
convenient to both parties, (iv) remove any Collateral from any such premises for the purpose of
effecting sale or other disposition thereof, and/or (v) without demand and without advertisement,
notice, hearing or process of law, all of which each of the Obligors hereby waives to the fullest
extent permitted by Law, at any place and time or times, sell and deliver any or all Collateral
held by or for it at public or private sale (which in the case of a private sale of Pledged
Equity, shall be to a restricted group of purchasers who will be obligated to agree, among other
things, to acquire such securities for their own account, for investment and not with a view to
the distribution or resale thereof), at any exchange or broker’s board or elsewhere, by one or
more contracts, in one or more parcels, for cash,

7

 

upon credit or otherwise, at such prices and upon such terms as the Administrative Agent deems
advisable, in its sole discretion (subject to any and all mandatory legal requirements).
Each Obligor acknowledges that any such private sale may be at prices and on terms less
favorable to the seller than the prices and other terms which might have been obtained at
a public sale and, notwithstanding the foregoing, agrees that such private sale shall be
deemed to have been made in a commercially reasonable manner and, in the case of a sale
of Pledged Equity, that the Administrative Agent shall have no obligation to delay sale of
any such securities for the period of time necessary to permit the issuer of such securities
to register such securities for public sale under the Securities Act of 1933. Neither the
Administrative Agent’s compliance with applicable Law nor its disclaimer of warranties
relating to the Collateral shall be considered to adversely affect the commercial
reasonableness of any sale. To the extent the rights of notice cannot
be legally waived hereunder, each Obligor agrees that any requirement of reasonable notice shall be met if such
notice, specifying the place of any public sale or the time after which any private sale
is to be made, is personally served on or mailed, postage prepaid, to the Obligors in
accordance with the notice provisions of Section 11.02 of the Credit Agreement at
least 10 days before the time of sale or other event giving rise to the requirement of such notice.
The Administrative Agent may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without further notice,
be made at the time and place to which it was so adjourned. Each Obligor further
acknowledges and agrees that any offer to sell any Pledged Equity which has been (i)
publicly advertised on a bona fide basis in a newspaper or other publication of general
circulation in the financial community of New York, New York (to the extent that such
offer may be advertised without prior registration under the Securities Act of 1933), or
(ii) made privately in the manner described above shall be deemed to involve a “public sale”
under the UCC, notwithstanding that such sale may not constitute a “public offering” under the
Securities Act of 1933, and the Administrative Agent may, in such event, bid for the
purchase of such securities. The Administrative Agent shall not be obligated to make any
sale or other disposition of the Collateral regardless of notice having been given. To
the extent permitted by applicable Law, any holder of Secured Obligations may be a
purchaser at any such sale. To the extent permitted by applicable Law, each of the
Obligors hereby waives all of its rights of redemption with respect to any such sale. Subject
to the provisions of applicable Law, the Administrative Agent may postpone or cause the
postponement of the sale of all or any portion of the Collateral by announcement at the
time and place of such sale, and such sale may, without further notice, to the extent
permitted by Law, be made at the time and place to which the sale was postponed, or the
Administrative Agent may further postpone such sale by announcement made at such time and place.

     (b) Remedies relating to Accounts. During the continuation of an Event
of Default, whether or not the Administrative Agent has exercised any or all of its
rights and remedies hereunder, (i) each Obligor will promptly upon request of the
Administrative Agent instruct all account debtors to remit all payments in respect
of Accounts to a mailing location selected by the Administrative Agent and (ii) the
Administrative Agent shall have the right to enforce any Obligor’s rights against
its customers and account debtors, and the Administrative Agent or its designee may
notify any Obligor’s customers and account debtors that the Accounts of such
Obligor have been assigned to the Administrative Agent or of the Administrative
Agent’s security interest therein, and may (either in its own name or in the name
of an Obligor or both) demand, collect (including without limitation by way of a
lockbox arrangement), receive, take receipt for, sell, sue for, compound, settle,
compromise and give acquittance for any and all amounts due or to become due on any
Account, and, in the Administrative Agent’s discretion, file any claim or take any
other action or proceeding to protect and realize upon the security interest of the
holders of the Secured Obligations in the Accounts. Each Obligor acknowledges and
agrees that the Proceeds of its Accounts remitted to or on behalf of the
Administrative Agent in accordance with the provisions hereof shall be solely for
the Administrative Agent’s own convenience and that such Obligor shall not have any
right, title or interest in such Accounts or in any such other amounts except as
expressly provided herein. Neither the Administrative Agent nor the holders of the
Secured Obligations shall have any liability or responsibility to any Obligor for
acceptance of a check, draft or other order for payment of money bearing the
legend “payment in full” or words of similar import or any other restrictive
legend or endorsement or be responsible for determining the correctness of any

8

 

remittance. Furthermore, during the continuation of an Event of Default, (i) the Administrative
Agent shall have the right, but not the obligation, to make test verifications of the Accounts in
any manner and through any medium that it reasonably considers advisable, and the Obligors shall
furnish all such assistance and information as the Administrative Agent may require in connection
with such test verifications, (ii) upon the Administrative Agent’s request and at the expense of
the Obligors, the Obligors shall cause independent public accountants or others satisfactory to
the Administrative Agent to furnish to the Administrative Agent reports showing reconciliations,
aging and test verifications of, and trial balances for, the Accounts and (iii) the Administrative
Agent in its own name or in the name of others may communicate with account debtors on the
Accounts to verify with them to the Administrative Agent’s satisfaction the existence, amount and
terms of any Accounts.

     (c) Deposit Accounts. Upon the occurrence of an Event of Default and during
continuation thereof, the Administrative Agent may prevent withdrawals or other dispositions of
funds in Deposit Accounts maintained with the Administrative Agent.

     (d) Access. In addition to the rights and remedies hereunder, during the
continuation of an Event of Default, the Administrative Agent shall have the right to enter and
remain upon the various premises of the Obligors without cost or charge to the Administrative
Agent, and use the same, together with materials, supplies, books and records of the Obligors for
the purpose of collecting and liquidating the Collateral, or for preparing for sale and conducting
the sale of the Collateral, whether by foreclosure, auction or otherwise. In addition, the
Administrative Agent may remove Collateral, or any part thereof, from such premises and/or any
records with respect thereto, in order to effectively collect or liquidate such Collateral.

     (e) Nonexclusive Nature of Remedies. Failure by the Administrative Agent or the
holders of the Secured Obligations to exercise any right, remedy or option under this Agreement,
any other Loan Document, any other document relating to the Secured Obligations, or as provided by
Law, or any delay by the Administrative Agent or the holders of the Secured Obligations in
exercising the same, shall not operate as a waiver of any such right, remedy or option. No waiver
hereunder shall be effective unless it is in writing, signed by the party against whom such waiver
is sought to be enforced and then only to the extent specifically stated, which in the case of the
Administrative Agent or the holders of the Secured Obligations shall only be granted as provided
herein. To the extent permitted by Law, neither the Administrative Agent, the holders of the
Secured Obligations, nor any party acting as attorney for the Administrative Agent or the holders
of the Secured Obligations, shall be liable hereunder for any acts or omissions or for any error of
judgment or mistake of fact or law other than their gross negligence or willful misconduct
hereunder. The rights and remedies of the Administrative Agent and the holders of the Secured
Obligations under this Agreement shall be cumulative and not exclusive of any other right or remedy
which the Administrative Agent or the holders of the Secured Obligations may have.

     (f) Retention
of Collateral. In addition to the rights and remedies hereunder, the
Administrative Agent may, in compliance with Sections 9-620 and 9-621 of the UCC or otherwise
complying with the requirements of applicable Law of the relevant jurisdiction, accept or retain
the Collateral in satisfaction of the Secured Obligations. Unless and until the Administrative
Agent shall have provided such notices, however, the Administrative Agent shall not be deemed to
have retained any Collateral in satisfaction of any Secured Obligations for any reason.

     (g) Deficiency. In the event that the proceeds of any sale, collection or realization
are insufficient to pay all amounts to which the Administrative Agent or the holders of the Secured
Obligations are legally entitled, the Obligors shall be jointly and severally liable for the
deficiency, together with interest thereon at the Default Rate, together with the costs of
collection and the fees, charges and disbursements of counsel. Any surplus remaining after the full
payment and satisfaction of the Secured Obligations shall be returned to the Obligors or to
whomsoever a court of competent jurisdiction shall determine to be entitled

9

 

thereto. Notwithstanding any provision to the contrary contained herein, in any other of the Loan
Documents or in any other documents relating to the Secured Obligations, the obligations of each
Obligor under the Credit Agreement and the other Loan Documents shall be limited to an aggregate
amount equal to the largest amount that would not render such obligations subject to avoidance
under Section 548 of the Bankruptcy Code of the United States or any other applicable Debtor Relief
Law (including any comparable provisions of any applicable state Law).

     8. Rights of the Administrative Agent.

     (a) Power of Attorney. In addition to other powers of attorney contained herein, each
Obligor hereby designates and appoints the Administrative Agent, on behalf of the holders of the
Secured Obligations, and each of its designees or agents, as attorney-in-fact of such Obligor,
irrevocably until Satisfaction in Full and with power of substitution, with authority to take any
or all of the following actions during the continuance of an Event of Default:

     (i) to demand, collect, settle, compromise, adjust, give discharges and releases, all
as the Administrative Agent may reasonably determine;

     (ii) to commence and prosecute any actions at any court for the purposes of collecting
any Collateral and enforcing any other right in respect thereof;

     (iii) to defend, settle or compromise any action brought and, in connection therewith,
give such discharge or release as the Administrative Agent may deem reasonably appropriate;

     (iv) receive, open and dispose of mail addressed to an Obligor and endorse checks,
notes, drafts, acceptances, money orders, bills of lading, warehouse receipts or other
instruments or documents evidencing payment, shipment or storage of the goods giving rise
to the Collateral of such Obligor on behalf of and in the name of such Obligor, or
securing, or relating to such Collateral;

     (v) sell, assign, transfer, make any agreement in respect of, or otherwise deal with
or exercise rights in respect of, any Collateral or the goods or services which have given
rise thereto, as fully and completely as though the Administrative Agent were the absolute
owner thereof for all purposes;

     (vi) adjust and settle claims under any insurance policy relating thereto;

     (vii) execute and deliver all assignments, conveyances, statements, financing
statements, renewal financing statements, security agreements, affidavits, notices and
other agreements, instruments and documents that the Administrative Agent may determine
necessary in order to perfect and maintain the security interests and liens granted in this
Agreement and in order to fully consummate all of the transactions contemplated therein;

     (viii) institute any foreclosure proceedings that the Administrative Agent may deem
appropriate;

     (ix) to sign and endorse any drafts, assignments, proxies, stock powers,
verifications, notices and other documents relating to the Collateral;

     (x) to exchange any of the Pledged Equity or other property upon any merger,
consolidation, reorganization, recapitalization or other readjustment of the issuer thereof
and, in connection therewith, deposit any of the Pledged Equity with any committee,
depository, transfer

10

 

agent, registrar or other designated agency upon such terms as the Administrative Agent may
reasonably deem appropriate;

     (xi) to vote for a shareholder resolution, or to sign an instrument in writing,
sanctioning the transfer of any or all of the Pledged Equity into the name of the
Administrative Agent or one or more of the holders of the Secured Obligations or into the
name of any transferee to whom the Pledged Equity or any part thereof may be sold pursuant
to Section 7 hereof;

     (xii) to pay or discharge taxes, liens, security interests or other encumbrances
levied or placed on or threatened against the Collateral;

     (xiii) to direct any parties liable for any payment in connection with any of the
Collateral to make payment of any and all monies due and to become due thereunder directly
to the Administrative Agent or as the Administrative Agent shall direct;

     (xiv) to receive payment of and receipt for any and all monies, claims, and other
amounts due and to become due at any time in respect of or arising out of any Collateral;
and

     (xv) do and perform all such other acts and things as the Administrative Agent may
reasonably deem to be necessary, proper or convenient in connection with the Collateral.

	     This power of attorney is a power coupled with an interest and shall be irrevocable until
Satisfaction in Full. The Administrative Agent shall be under no duty to exercise or withhold the
exercise of any of the rights, powers, privileges and options expressly or implicitly granted to
the Administrative Agent in this Agreement, and shall not be liable for any failure to do so or
any delay in doing so. The Administrative Agent shall not be liable for any act or omission or for
any error of judgment or any mistake of fact or law in its individual capacity or its capacity as
attorney-in-fact except acts or omissions resulting from its gross negligence or willful
misconduct. This power of attorney is conferred on the Administrative Agent solely to protect,
preserve and realize upon its security interest in the Collateral.

     (b) Assignment by the Administrative Agent. The Administrative Agent may from time to
time assign the Secured Obligations to a successor Administrative Agent appointed in accordance
with the Credit Agreement, and such successor shall be entitled to all of the rights and remedies
of the Administrative Agent under this Agreement in relation thereto.

     (c) The Administrative Agent’s Duty of Care. Other than the exercise of reasonable
care to assure the safe custody of the Collateral while being held by the Administrative Agent
hereunder, the Administrative Agent shall have no duty or liability to preserve rights pertaining
thereto, it being understood and agreed that the Obligors shall be responsible for preservation of
all rights in the Collateral, and the Administrative Agent shall be relieved of all responsibility
for the Collateral upon surrendering it or tendering the surrender of it to the Obligors. The
Administrative Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which the Administrative Agent accords its own property, which shall be
no less than the treatment employed by a reasonable and prudent agent in the industry, it being
understood that the Administrative Agent shall not have responsibility for taking any necessary
steps to preserve rights against any parties with respect to any of the Collateral. In the event of
a public or private sale of Collateral pursuant to Section 7 hereof, the Administrative Agent shall
have no responsibility for (i) ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relating to any Collateral, whether or not the
Administrative Agent has or is deemed to have knowledge of such matters, or (ii) taking any steps
to clean, repair or otherwise prepare the Collateral for sale.

11

 

     (d) Liability with Respect to Accounts. Anything herein to the contrary notwithstanding,
each of the Obligors shall remain liable under each of the Accounts to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in accordance with
the terms of any agreement giving rise to each such Account. Neither the Administrative Agent nor
any holder of Secured Obligations shall have any obligation or liability under any Account (or any
agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the
Administrative Agent or any holder of Secured Obligations of any payment relating to such Account
pursuant hereto, nor shall the Administrative Agent or any holder of Secured Obligations be
obligated in any manner to perform any of the obligations of an Obligor under or pursuant to any
Account (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the
nature or the sufficiency of any payment received by it or as to the sufficiency of any performance
by any party under any Account (or any agreement giving rise thereto), to present or file any
claim, to take any action to enforce any performance or to collect the payment of any amounts which
may have been assigned to it or to which it may be entitled at any time or times.

(e) Voting and Payment Rights in Respect of the Pledged Equity.

     (i) So long as no Event of Default shall exist, each Obligor may (A) exercise any and
all voting and other consensual rights pertaining to the Pledged Equity of such Obligor or
any part thereof for any purpose not inconsistent with the terms of this Agreement or the
Credit Agreement and (B) receive and retain any and all dividends (other than stock
dividends and other dividends constituting Collateral which are addressed hereinabove),
principal or interest paid in respect of the Pledged Equity to the extent they are allowed
under the Credit Agreement; and

     (ii) During the continuance of an Event of Default after delivery of written notice
from the Administrative Agent, (A) all rights of an Obligor to exercise the voting and
other consensual rights which it would otherwise be entitled to exercise pursuant to clause
(i)(A) above shall cease and all such rights shall thereupon become vested in the
Administrative Agent which shall then have the sole right to exercise such voting and other
consensual rights, (B) all rights of an Obligor to receive the dividends, principal and
interest payments which it would otherwise be authorized to receive and retain pursuant to
clause (i)(B) above shall cease and all such rights shall thereupon be vested in the
Administrative Agent which shall then have the sole right to receive and hold as Collateral
such dividends, principal and interest payments, and (C) all dividends, principal and
interest payments which are received by an Obligor contrary to the provisions of clause
(ii)(B) above shall be received in trust for the benefit of the Administrative Agent, shall
be segregated from other property or funds of such Obligor, and shall be forthwith paid
over to the Administrative Agent as Collateral in the exact form received, to be held by
the Administrative Agent as Collateral and as further collateral security for the Secured
Obligations.

     (f) Releases of Collateral. (i) If any Collateral shall be sold, transferred or
otherwise disposed of by any Obligor in a transaction permitted by the Credit Agreement, then the
Administrative Agent, at the request and sole expense of such Obligor, shall promptly execute and
deliver to such Obligor all releases and other documents, and take such other action, reasonably
necessary for the release of the Liens created hereby or by any other Collateral Document on such
Collateral. (ii) The Administrative Agent may release any of the Pledged Equity from this Agreement
or may substitute any of the Pledged Equity for other Pledged Equity without altering, varying or
diminishing in any way the force, effect, lien, pledge or security interest of this Agreement as to
any Pledged Equity not expressly released or substituted, and this Agreement shall continue as a
first priority lien on all Pledged Equity not expressly released or substituted.

     9. Application of Proceeds. Upon the acceleration of the Obligations pursuant to
Section 9.02
of the Credit Agreement, any payments in respect of the Secured Obligations and any proceeds of the
Collateral, when received by the Administrative Agent or any holder of the Secured Obligations in
cash or its

12

 

equivalent, will be applied in reduction of the Secured Obligations in the order set forth in
Section 9.03 of the Credit Agreement.

     10. Continuing Agreement.

     (a) This Agreement shall remain in full force and effect until Satisfaction in Full, at which
time this Agreement and the liens and security interests granted herein shall be automatically
terminated and the Administrative Agent shall, upon the request and at the expense of the Obligors,
forthwith provide evidence of the release all of its liens and security interests hereunder and
shall execute and deliver all UCC termination statements and/or other documents reasonably
requested by the Obligors evidencing such termination.

     (b) This Agreement shall be automatically reinstated if at any time payment, in whole or in
part, of any of the Satisfaction in Full is rescinded or must otherwise be restored or returned by
the Administrative Agent or any holder of the Secured Obligations as a preference, fraudulent
conveyance or otherwise under any Debtor Relief Law, all as though such payment had not been made;
provided that in the event payment of all or any part of the Satisfaction in Full is rescinded or
must be restored or returned, all reasonable costs and expenses (including without limitation any
reasonable legal fees and disbursements) incurred by the Administrative Agent or any holder of the
Secured Obligations in defending and enforcing such reinstatement shall be deemed to be included as
a part of the Secured Obligations.

     11. Amendments; Waivers; Modifications, etc. This Agreement and the provisions hereof
may not be amended, waived, modified, changed, discharged or terminated except as set forth in
Section 11.01 of the Credit Agreement; provided that any update or revision to Schedule
2 hereof delivered by any Obligor shall not constitute an amendment for purposes of this
Section 11 or Section 11.01 of the Credit Agreement.

     12. Successors in Interest. This Agreement shall be binding upon each Obligor, its
successors and assigns and shall inure, together with the rights and remedies of the Administrative
Agent and the holders of the Secured Obligations hereunder, to the benefit of the Administrative
Agent and the holders of the Secured Obligations and their successors and permitted assigns.

     13. Notices. All notices required or permitted to be given under this Agreement
shall be in conformance with Section 11.02 of the Credit Agreement.

     14. Counterparts. This Agreement may be executed in any number of counterparts (and
by different parties hereto in different counterparts), each of which where so executed and
delivered shall be an original, but all of which shall constitute one and the same instrument. It
shall not be necessary in making proof of this Agreement to produce or account for more than one
such counterpart. Delivery of an executed counterpart of a signature page of this Agreement by
telecopy or other electronic imaging means shall be effective as delivery of a manually executed
counterpart of this Agreement.

     15. Headings. The headings of the sections hereof are provided for convenience only
and shall not in any way affect the interpretation of any provision of this Agreement.

     16. Governing
Law: Submission to Jurisdiction; Venue; WAIVER OF JURY TRIAL. The
terms of Sections 11.14 and 11.15 of the Credit Agreement with respect to governing law,
submission to jurisdiction, venue and waiver of jury trial are incorporated herein by reference,
mutatis mutandis, and the parties hereto agree to such terms.

13

 

     17. Severability. If any provision of this Agreement is determined to be illegal,
invalid or unenforceable, such provision shall be fully severable and the remaining provisions
shall remain in full force and effect and shall be construed without giving effect to the illegal,
invalid or unenforceable provisions.

     18. Entirety. This Agreement, the other Loan Documents and the other documents
relating to the Secured Obligations represent the entire agreement of the parties hereto and
thereto, and supersede all prior agreements and understandings, oral or written, if any, including
any commitment letters or correspondence relating to the Loan Documents, any other documents
relating to the Secured Obligations, or the transactions contemplated herein and therein.

     19. Other Security. To the extent that any of the Secured Obligations are now or
hereafter secured by property other than the Collateral (including, without limitation, real
property and securities owned by an Obligor), or by a guarantee, endorsement or property of any
other Person, then the Administrative Agent shall have the right to proceed against such other
property, guarantee or endorsement upon the occurrence of any Event of Default, and the
Administrative Agent shall have the right, in its sole discretion, to determine which rights,
security, liens, security interests or remedies the Administrative Agent shall at any time pursue,
relinquish, subordinate, modify or take with respect thereto, without in any way modifying or
affecting any of them or the Secured Obligations or any of the rights of the Administrative Agent
or the holders of the Secured Obligations under this Agreement, under any other of the Loan
Documents or under any other document relating to the Secured Obligations.

     20. Joinder. At any time after the date of this Agreement, one or more additional
Persons may become party hereto by executing and delivering to the Administrative Agent a Joinder
Agreement. Immediately upon such execution and delivery of such Joinder Agreement (and without any
further action), each such additional Person will become a party to this Agreement as an “Obligor”
and have all of the rights and obligations of an Obligor hereunder and this Agreement and the
schedules hereto shall be deemed amended by such Joinder Agreement.

     21. Rights of Required Lenders. All rights of the Administrative Agent hereunder, if
not exercised by the Administrative Agent, may be exercised by the Required Lenders.

[SIGNATURE PAGES FOLLOW]

14

 

Each of the parties hereto has caused a counterpart of this Security and Pledge Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 	 
	 	 	 	 	 	 
	OBLIGORS:	 	ACADIA HEALTHCARE
COMPANY, LLC,	 
	 	 	a Delaware limited liability company	 
	 	 	ACADIA HEALTHCARE HOLDINGS, LLC,	 
	 	 	a Delaware limited liability company	 
	 	 	ACADIA MANAGEMENT COMPANY, INC., a Delaware corporation	 
	 
	 	 	 	 	 
	 

	 	By:	 	/s/ Joey A. Jacobs	 
	 

	 	Name:
	 	 
 Joey
A. Jacobs	 
	 

	 	Title:
	 	Chief Executive Officer	 

	 	 	 

	 

	 	ACADIA-YFCS HOLDINGS, INC., a Delaware corporation
	 

	 	YOUTH & FAMILY CENTERED SERVICES, INC., a Georgia corporation
	 

	 	ACADIA HOSPITAL OF LONGVIEW, LLC,
	 

	 	a Delaware limited liability company
	 

	 	KIDS BEHAVIORAL HEALTH OF MONTANA, INC., a Montana corporation
	 

	 	ACADIA VILLAGE, LLC, a Delaware limited liability company
	 

	 	LAKEVIEW BEHAVIORAL HEALTH SYSTEM LLC,
	 

	 	a Delaware limited liability company
	 

	 	ACADIA RIVERWOODS, LLC, a Delaware limited liability company
	 

	 	ACADIA LOUISIANA, LLC, a Delaware limited liability company
	 

	 	ACADIA ABILENE, LLC, a Delaware limited liability company
	 

	 	ACADIA HOSPITAL OF LAFAYETTE, LLC,
	 

	 	a Delaware limited liability company
	 

	 	YFCS MANAGEMENT, INC., a Georgia corporation
	 

	 	YFCS HOLDINGS-GEORGIA, INC., a Georgia corporation
	 

	 	OPTIONS COMMUNITY BASED SERVICES, INC., an Indiana corporation
	 

	 	OPTIONS TREATMENT CENTER ACQUISITION CORPORATION,
	 

	 	an Indiana corporation
	 

	 	RESOLUTE ACQUISITION CORPORATION, an Indiana corporation
	 

	 	RESOURCE COMMUNITY BASED SERVICES, INC., an Indiana corporation
	 

	 	RTC RESOURCE ACQUISITION CORPORATION, an Indiana corporation
	 

	 	SUCCESS ACQUISITION CORPORATION, an Indiana corporation
	 

	 	ASCENT ACQUISITION CORPORATION, an Arkansas corporation
	 

	 	SOUTHWOOD PSYCHIATRIC HOSPITAL, INC., a Pennsylvania corporation
	 

	 	MEMORIAL HOSPITAL ACQUISITION CORPORATION,
	 

	 	a New Mexico corporation
	 

	 	MILLCREEK MANAGEMENT CORPORATION, a Georgia corporation
	 

	 	REHABILITATION CENTERS, INC., a Mississippi corporation
	 

	 	LAKELAND HOSPITAL ACQUISITION CORPORATION,
	 

	 	a Georgia corporation
	 

	 	PSYCHSOLUTIONS ACQUISITION CORPORATION, a Florida corporation

	 	 	 	 	 	 	 

	 

	 	By:	 	/s/ Joey A. Jacobs	 	 
	 

	 	Name:
	 	 

Joey A. Jacobs
	 	 
	 

	 	Title:
	 	President	 	 

[SIGNATURE PAGES CONTINUE]

 

 

	 	 	 

	 

	 	YOUTH AND FAMILY CENTERED SERVICES OF NEW MEXICO, INC., a
	 

	 	New Mexico corporation
	 

	 	SOUTHWESTERN CHILDREN’S HEALTH SERVICES, INC.,
	 

	 	an Arizona corporation
	 

	 	YOUTH AND FAMILY CENTERED SERVICES OF FLORIDA, INC.,
	 

	 	a Florida corporation
	 

	 	PEDIATRIC SPECIALTY CARE, INC., an Arkansas corporation
	 

	 	CHILD & YOUTH PEDIATRIC DAY CLINICS, INC, an Arkansas corporation
	 

	 	MED PROPERTIES, INC., an Arkansas corporation
	 

	 	ASCENT ACQUISITION CORPORATION-CYPDC, an Arkansas corporation
	 

	 	ASCENT ACQUISITION CORPORATION-PSC, an Arkansas corporation
	 

	 	MEDUCARE TRANSPORT, L.L.C., an Arkansas limited liability company
	 

	 	PEDIATRIC SPECIALTY CARE PROPERTIES, LLC,
	 

	 	an Arkansas limited liability company
	 

	 	CHILDRENS MEDICAL TRANSPORTATION SERVICES, LLC,
	 

	 	an Arkansas limited liability company
	 

	 	MILLCREEK SCHOOLS INC., a Mississippi corporation
	 

	 	HABILITATION CENTER, INC., an Arkansas corporation
	 

	 	MILLCREEK SCHOOL OF ARKANSAS, INC., an Arkansas corporation
	 

	 	PSYCHSOLUTIONS, INC., a Florida corporation

	 	 	 	 	 	 	 

	 

	 	By:	 	/s/ Joey A. Jacobs	 	 
	 

	 	Name:
	 	 

 Joey A. Jacobs
	 	 
	 

	 	Title:
	 	President	 	 

[Signature Page to Security and Pledge Agreement]

 

 

	 	 	 	 	 

	Accepted and agreed to as of the date first above written.	 	 
	 
	BANK OF AMERICA, NA., as Administrative Agent	 	 

	 	 	 	 	 

	By:	 	/s/ Robert Salazar	 	 
	Name:
	 	 

Robert Salazar
	 	 
	Title:
	 	Vice President	 	 

 

 

SCHEDULE 1

PLEDGED EQUITY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	Certificate	 	Percentage
	Obligor	 	Name of Subsidiary	 	Shares	 	Number	 	Ownership
	Acadia Healthcare Holdings, LLC

	 	Acadia Healthcare Company, LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Acadia-YFCS Holdings, Inc.
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadiac-YFCS Holdings, Inc.

	 	Youth and Family Centered Services,
Inc.
	 	 	100	 	 	 	2011-1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Acadia Management Company, Inc.
	 	 	1,000	 	 	 	C-2	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Acadia Hospital of Longview, LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Kids Behavioral Health of Montana, Inc.
	 	 	1,000	 	 	 	7	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Acadia Village, LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Lakeview Behavioral Health System LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Acadia Riverwoods, LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Acadia Louisiana, LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Acadia Abilene, LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acadia Healthcare Company, LLC

	 	Acadia Hospital of Lafayette, LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	YFCS Management, Inc.
	 	 	1,000	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	YFCS Holdings-Georgia, Inc.
	 	 	1,000	 	 	 	3	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Options Community Based Services, Inc.
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Options Treatment Center Acquisition
Corporation
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Resolute Acquisition Corporation
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Resource Community Based Services,
Inc.
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	RTC Resource Acquisition Corporation
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Success Acquisition Corporation
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Ascent Acquisition Corporation
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Southwood Psychiatric Hospital, Inc.
	 	 	100	 	 	 	4	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Memorial Hospital Acquisition

Corporation
	 	 	1,000	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and Family Centered Services,
Inc.

	 	Millcreek Management Corporation
	 	 	1,000 1,900	 	 	 	1

2	 	 	 	100	%

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	Certificate	 	Percentage
	Obligor	 	Name of Subsidiary	 	Shares	 	Number	 	Ownership
	Youth and
Family Centered
Services, Inc.

	 	Rehabilitation Centers, Inc.
	 	 	10	 	 	 	18	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and
Family Centered
Services, Inc.

	 	Lakeland Hospital Acquisition

Corporation
	 	 	1,000	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Youth and
Family Centered
Services, Inc.

	 	PsychSolutions Acquisition

Corporation
	 	 	100	 	 	 	01	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	YFCS
Holdings-Georgia,
Inc.

	 	Youth And Family Centered Services of New
Mexico, Inc.
	 	 	1,000	 	 	 	4	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	YFCS
Holdings-Georgia,
Inc.

	 	Southwestern Children’s Health Services,
Inc.
	 	 	100	 	 	 	3	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	YFCS
Holdings-Georgia,
Inc.

	 	Youth And Family Centered Services Of
Florida, Inc.
	 	 	1,000	 	 	 	4	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ascent
Acquisition
Corporation

	 	Pediatrc Specialty Care, Inc.
	 	 	10,000	 	 	 	9	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ascent
Acquisition
Corporation

	 	Child & Youth Pediatric Day Clinics,
Inc
	 	 	400	 	 	 	5	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ascent
Acquisition
Corporation

	 	Med Properties, Inc.
	 	 	10,000	 	 	 	7	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ascent
Acquisition
Corporation

	 	Ascent Acquisition Corporation-CYPDC
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ascent
Acquisition
Corporation

	 	Ascent Acquisition Corporation-PSC
	 	 	100	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ascent
Acquisition
Corporation

	 	Meducare Transport, L.L.C.
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ascent
Acquisition
Corporation

	 	Pediatric Specialty Care Properties,
LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ascent
Acquisition
Corporation

	 	Childrens Medical Transportation
Services, LLC
	 	 	N/A	 	 	 	N/A	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rehabilitation
Centers, Inc.

	 	Millcreek Schools Inc.
	 	 	1,000	 	 	 	1	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rehabilitation
Centers, Inc.

	 	Habilitation Center, Inc.
	 	 	100	 	 	 	2	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rehabilitation
Centers, Inc.

	 	Millcreek School of Arkansas, Inc.
	 	 	100	 	 	 	2	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PsychSolutions
Acquisition
Corporation

	 	PsychSolutions, Inc.
	 	 	600	 	 	 	8	 	 	 	100	%

 

 

SCHEDULE 2

COMMERCIAL TORT CLAIMS

None.

 

 

EXHIBIT 4(a)

IRREVOCABLE STOCK POWER

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to

the
following equity interests of                     , a                      corporation:

	 	 	 

	No. of Shares
	 	Certificate No.

and irrevocably appoints                      its agent and attorney-in-fact to
transfer all or any part of such equity interests and to take all necessary and appropriate action
to effect any such transfer. The agent and attorney-in-fact may substitute and appoint one or more
persons to act for him.

	 	 	 	 	 

	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 

 

 

EXHIBIT 4(c)(i)

NOTICE

OF

GRANT OF SECURITY INTEREST

IN COPYRIGHTS

United States Copyright Office

Ladies and Gentlemen:

     Please be advised that pursuant to the Security and Pledge Agreement dated as of April 1,
2011 (as the same may be amended, modified, extended or restated from time to time, the
“Agreement”) by and among the Obligors party thereto (each an “Obligor” and collectively, the
“Obligors”) and Bank of America, N.A., as administrative agent (the “Administrative Agent”) for
the holders of the Secured Obligations referenced therein, the undersigned Obligor has granted a
continuing security interest in and continuing lien upon the copyrights and copyright applications
set forth on Schedule 1 hereto to the Administrative Agent for the ratable benefit of the holders
of the Secured Obligations.

     The undersigned Obligor and the Administrative Agent, on behalf of the holders of the
Secured Obligations, hereby acknowledge and agree that the security interest in the foregoing
copyrights and copyright applications (i) may only be terminated in accordance with the terms of
the Agreement and (ii) is not to be construed as an assignment of any copyright or copyright
application.

	 	 	 	 	 

	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[Obligor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

	 	 	 	 	 

	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

 

 

EXHIBIT 4(c)(ii)

NOTICE

OF GRANT OF SECURITY INTEREST

IN

PATENTS

United States Patent and Trademark Office

Ladies and Gentlemen:

     Please be advised that pursuant to the Security and Pledge Agreement dated as of April 1, 2011
(as the same may be amended, modified, extended or restated from time to time, the “Agreement”) by
and among the Obligors party thereto (each an “Obligor” and collectively, the “Obligors”) and Bank
of America, N.A., as administrative agent (the “Administrative Agent”) for the holders of the
Secured Obligations referenced therein, the undersigned Obligor has granted a continuing security
interest in and continuing lien upon the patents and patent applications set forth on Schedule 1
hereto to the Administrative Agent for the ratable benefit of the holders of the Secured
Obligations.

     The undersigned Obligor and the Administrative Agent, on behalf of the holders of the Secured
Obligations, hereby acknowledge and agree that the security interest in the foregoing patents and
patent applications (i) may only be terminated in accordance with the terms of the Agreement and
(ii) is not to be construed as an assignment of any patent or patent application.

	 	 	 	 	 

	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[Obligor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

	 	 	 	 	 

	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

 

 

EXHIBIT 4(c)(iii)

NOTICE

OF GRANT OF SECURITY INTEREST

IN

TRADEMARKS

United States Patent and Trademark Office

Ladies and Gentlemen:

     Please be advised that pursuant to the Security and Pledge Agreement dated as of April 1, 2011
(as the same may be amended, modified, extended or restated from time to time, the “Agreement”) by
and among the Obligors party thereto (each an “Obligor” and collectively, the “Obligors”) and Bank
of America, N.A., as Administrative Agent (the “Administrative Agent”) for the holders of the
Secured Obligations referenced therein, the undersigned Obligor has granted a continuing security
interest in and continuing lien upon the trademarks and trademark applications set forth on
Schedule 1 hereto to the Administrative Agent for the ratable benefit of the holders of the Secured
Obligations.

     The undersigned Obligor and the Administrative Agent, on behalf of the holders of the Secured
Obligations, hereby acknowledge and agree that the security interest in the foregoing trademarks
and trademark applications (i) may only be terminated in accordance with the terms of the
Agreement and (ii) is not to be construed as an assignment of any trademark or trademark
application.

	 	 	 	 	 

	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[Obligor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:
	 	 
 
	 

	 	Title:	 	 

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

	 	 	 	 	 

	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:exv10w6

Exhibit 10.6

JEFFERIES FINANCE LLC

520 Madison Avenue

New York, New York 10022

July 12, 2011

AMENDED AND RESTATED

COMMITMENT LETTER

Acadia Healthcare Company, Inc.

725 Cool Springs Blvd. Suite 600

Franklin, TN 37067

			
	Attention:      	 	Brent Turner, Co-President

			
	      Re:      	 	Acquisition of PHC, Inc.

Ladies and Gentlemen:

     You have advised Jefferies Finance LLC (“we”, “us” or “our”) that (i) Acadia Healthcare
Company, Inc., a Delaware corporation (the “Acquiror”, “Acadia” or “you”) intends to acquire all of
the issued and outstanding capital stock of PHC, Inc., a Massachusetts corporation (the “Target,”
and together with its subsidiaries, the “Acquired Business”), from the shareholders of the Target
(the “Target Shareholder”) in a merger transaction (the “Merger”) in which Target will be merged
with and into a subsidiary of the Company with Target surviving and each share of Target common
stock shall be exchanged for common stock of the Company based upon the exchange ratio set forth in
the Merger Agreement, dated as of May 23, 2011, by and among the Company, Target and Acadia Merger
Sub, LLC (the “Merger Agreement”), (ii) Acadia will refinance (together with any applicable
prepayment premium or fee, with the commitments thereunder being terminated, and all guarantees and
security in respect thereof being released) all of the existing debt (“Existing Debt”) of the
Acquiror and its subsidiaries and of the Acquired Business (other than indebtedness under the
Existing Credit Agreement (as defined below) and other indebtedness to be mutually agreed upon)
(the “Refinancing”) and (iii) to pay a dividend to Acadia’s stockholders in an amount not to exceed
$90.0 million (the “Distribution”), provided that to the extent the Distribution is less than $90.0
million, the Company will issue promissory notes to the extent of the shortfall (the “Promissory
Notes”), which Promissory Notes shall contain customary subordination provisions for debt held by
equity holders in transactions of this type (provided that, such Promissory Notes may pay interest
in cash in intervals and amounts to be mutually agreed). The “Sponsor” means Waud Capital and its
affiliates. Capitalized terms used but not defined herein and defined in any exhibit hereto have
the meanings assigned to them in such exhibit.

     You have advised us that the total purchase price for the Merger (including fees, commissions
and expenses and the Refinancing) and the Distribution will be financed from the following sources:

          (i) the issuance and sale (the “Notes Offering”) of senior unsecured notes (the
“Notes”) yielding gross proceeds of $150.0 million (or, if the offering of the Notes is not
consummated prior to, or concurrently with, the Merger, the drawdown of senior increasing
rate

 

 

loans (the “Bridge Loans”) under a senior unsecured bridge loan facility having the
terms set forth in Exhibits A and B hereto (the “Bridge Loan Facility”) in
aggregate principal amount of $150.0 million) (in no event shall the amount of the Bridge
Loan Facility be less than $150 million), and

          (ii) the issuance by the Borrower to the Target Shareholders of the Borrower’s common
stock and the payment to the shareholders of the Target of $5.0 million in respect of such
stockholders’ Class B Common Stock (the “Stockholder Payment”).

     The transaction described in clause (i) above is referred to as the “Debt Financing” and,
together with the Merger, the Refinancing, the Distribution, the Stockholder Payment and the
payment of all related fees, premiums, costs, commissions and expenses are collectively referred to
as the “Transactions.” You and your subsidiaries (including, following the Merger, the Target and
its subsidiaries) are collectively referred to herein as the “Company.” The closing date of the
Transactions is referred to herein as the “Closing Date.” As used in this Commitment Letter and
the other Debt Financing Letters (as defined below), the words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” This Commitment
Letter amends and restates in its entirety the commitment letter, dated as of May 23, 2011, between
you and us.

     1. The Commitments.

     We are pleased to inform you that we hereby commit, directly or through one or more of our
affiliates (other than Excluded Affiliates), to provide 100% of the entire aggregate principal
amount of the Bridge Loan Facility. The commitments described in this Section 1 are
collectively referred to herein as the “Commitments.” Our Commitments are subject to the Specified
Conditions (as defined in Section 3 below) and are on the terms set forth in (i) this
letter (including the exhibits, schedules and annexes hereto, collectively, this “Commitment
Letter”), (ii) the fee letter, dated as of May 23, 2011 (the “Fee Letter”), between you and us, and
(iii) the engagement letter, dated as of May 23, 2011 (including any exhibits, schedules and
annexes thereto, collectively, the “Engagement Letter” and together with this Commitment Letter and
the Fee Letter, the “Debt Financing Letters”), between you and Jefferies & Company, Inc. (“Jefco”).

     The terms of this Commitment Letter are intended as an outline of principally all of the
material provisions of the Bridge Loan Facility, including all of the terms, conditions, covenants,
representations, warranties, default clauses and other provisions that will be contained in the
credit agreement relating to the Bridge Loan Facility, which credit agreement and other definitive
debt documents shall be prepared by our counsel and be mutually acceptable to you and us
(collectively, the “Definitive Debt Documents”). For the avoidance of doubt, the Definitive Debt
Documents governing or evidencing the Bridge Loans, the Extended Term Loans and the Exchange Notes
(collectively, the “Bridge Loan Documents”) shall not contain (A) any representations or warranties
other than those described under the caption “Representations and Warranties” as set forth in
Exhibits A and B hereto, (B) any affirmative or negative covenants other than those described under
the captions “Affirmative Covenants” and “Negative Covenants” as set forth in Exhibits A and B
hereto or any financial covenant, (C) any defaults or events of default other than those described
under the caption “Events of Default” as set forth in Exhibits A and B hereto, and (D) any
conditions precedent to the closing of the Bridge Loan Facility and the making of the initial loans
and other extensions of credit under the Bridge Loan Facility other than the Specified Conditions
(as defined in Section 3 below); it being understood and agreed that the Bridge
Loan Documents for the Bridge Loan Facility shall give due regard (as applicable) for the Credit
Agreement, dated as of April 1, 2011 (as amended by Amendment No. 1, dated as of the date hereof and
Amendment No. 2 dated as of the date hereof, the “Existing Credit Agreement”), among you, your
affiliates party thereto as guarantors, the Lenders party thereto, Bank of America, N.A. as
Administrative Agent, Fifth

2

 

Third Bank, as Syndication Agent, General Electric Capital Corporation, as Documentation Agent
and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Sole Lead Arranger and Book Manager (and
the related guarantee agreements executed and/or delivered in connection therewith), as modified by
the terms set forth in Exhibits A, to reflect the agency and other standard provisions of the
Administrative Agent, and by such other modifications customary for transactions of this type
giving due regard to prevailing conditions in the syndicated loan and financial markets and the
operational requirements of the Borrower and its subsidiaries (after giving effect to the
Transactions) in light of their size, industry, businesses and business practices (collectively,
the “Documentation Principles”).

     Those matters that are not covered or made clear in the Debt Financing Letters are subject to
the mutual and reasonable agreement of the parties. No party has been authorized by us to make any
oral or written statements or representations that are inconsistent with the Debt Financing
Letters.

     2. Titles and Roles. As consideration for the Commitments, you hereby agree that:

          (a) You hereby retain:

          (i) Jefco to act in the capacities and in connection with the matters set forth in the
Engagement Letter, and

          (ii) Jefferies Finance or its designee to act as the sole administrative agent, sole
collateral agent, sole book-runner, sole lead arranger and sole syndication agent for you, the
Target and its subsidiaries and its parent holding companies in connection with the Bridge Loan
Facility.

          (b) No other titles shall be awarded and no compensation (other than that expressly
contemplated by the Debt Financing Letters) shall be paid in connection with the Bridge Loan
Facility and the Notes Offering unless otherwise agreed to in writing by you and us.

     3. Conditions Precedent. The closing of the Bridge Loan Facility and the making of
the initial loans and other extensions of credit under the Bridge Loan Facility are, subject to
Section 15 below, solely conditioned upon satisfaction or waiver by us of each of the
conditions precedent set forth or referred to in Exhibit C hereto (the “Specified
Conditions”).

     It is understood and agreed that the only representations and warranties the accuracy of which
shall be a condition to the availability of the Bridge Loan Facility on the Closing Date shall be
(i) such of the representations and warranties made by (or with respect to) the Acquired Business
in the Purchase Agreement as are material to the interests of the Lenders, but only to the extent
that you have (or your applicable affiliate has) the right to terminate your (or its) obligations
under the Purchase Agreement or decline to consummate the Merger as a result of a breach of such
representations and warranties and (ii) the Specified Representations (as defined below). For
purposes hereof, “Specified Representations” means the representations and warranties set forth in
the Definitive Debt Documents relating to corporate or other organizational existence,
organizational power and authority (as to execution, delivery and performance of the applicable
Definitive Debt Documents), the due authorization, execution, delivery and enforceability of the
applicable Definitive Debt Documents, solvency of the Borrower and its subsidiaries on a
consolidated basis on the Closing Date, no conflicts of the Definitive Debt Documents with, or
violation of, the charter documents, the absence of events of default under material indebtedness,
use of proceeds and Federal Reserve margin regulations, the Patriot Act, and the Investment Company
Act.

          (a) The terms of the Definitive Debt Documents shall be in a form such that they do not impair
availability of the Bridge Loan Facility on the Closing Date if the express conditions set forth in
Exhibit C are satisfied.

3

 

This paragraph shall be referred to herein as the “Certain Funds Provision”.

     4. Syndication.

          (a) We reserve the right, at any time prior to or after execution of the Definitive Debt
Documents, to syndicate all or part of our Commitments to third parties identified by us acceptable
to you (subject to any contrary provisions in Exhibit A) (collectively, the “Investors”);
provided that we agree not to syndicate our commitments to (x) those banks, financial institutions
or other persons separately identified in writing by you or the Sponsor to us on or prior to the
execution of this Commitment Letter (provided that the Sponsor acknowledges that it shall only
identify a limited number of such persons), or (y) competitors of the Company identified by you in
writing to Jefferies Finance on or prior to the execution of this Commitment Letter or (z) Excluded
Affiliates (as defined below) (collectively, the “Disqualified Institutions”). Jefferies Finance
may assign (but may participate) all or any portion of its commitments hereunder prior to the
Closing Date except to any of its affiliates (other than an Excluded Affiliate); provided that (A)
Jefferies Finance shall not be relieved, released or novated from its obligations hereunder
(including its obligation to fund the Bridge Loan Facility on the date of the consummation of the
Merger with the proceeds of the initial funding under the Bridge Loan Facility) in connection with
any syndication, assignment or participation of the Bridge Loan Facility, including its commitments
in respect thereof, until after the Closing Date has occurred, (B) no assignment or novation by
Jefferies Finance shall become effective as between you and Jefferies Finance with respect to all
or any portion of Jefferies Finance’s commitments in respect of the Bridge Loan Facility until the
initial funding of the Bridge Loan Facility and (C) unless you otherwise agree in writing,
Jefferies Finance shall retain exclusive control over all rights and obligations with respect to
its Commitments in respect of the Bridge Loan Facility, including all rights with respect to
consents, modifications, supplements, waivers and amendments until the Closing Date has occurred.
We will exclusively manage all aspects of any syndication in consultation with you, including
decisions as to the selection of prospective Investors to be approached, when they will be
approached, when their commitments will be accepted, which prospective Investors will participate
(subject to your and the Sponsor’s reasonable consent and excluding Disqualified Institutions), the
allocation of the commitments among the Investors, and the amount and distribution of fees. To
assist us in our syndication efforts until the earlier of 60 days after the Closing Date and
achieving Successful Syndication (as defined in the Fee Letter), you agree to prepare and provide
(and to use commercially reasonable efforts to cause the Acquired Business to prepare and provide)
all customary information with respect to the Company and the Transactions, including the
Projections (as defined below) as we may reasonably request in connection with the syndication of
the Commitments, provided that, following the consummation of the Merger, you shall cause the
Acquired Business to prepare and provide us with such information. Notwithstanding anything to the
contrary contained in this Section 4, the syndication of the Bridge Loan Facility shall not
be a condition precedent to the closing of the Bridge Loan Facility and the making of the initial
loans and other extensions of credit thereunder. “Excluded Affiliates” means our affiliates that
are engaged as principals primarily in private equity or venture capital.

          (b) We intend to commence our syndication efforts promptly upon execution of this Commitment
Letter, and you agree to assist us actively (and, in all events, using your commercially reasonable
efforts to cause the Acquired Business to assist us actively) from the date of this Commitment
Letter until the earlier to occur of (i) a Successful Syndication (as defined in the Fee Letter)
and (ii) 60 days after the Closing Date. Such assistance shall include:

          (i) using your commercially reasonable efforts to ensure that our efforts benefit from
your existing lending and investment banking relationships,

4

 

          (ii) direct contact at mutually agreed upon times between your senior management,
representatives and advisors, on the one hand, and the senior management, representatives
and advisors of the proposed Investors, on the other hand (and (x) prior to the consummation
of the Merger, your using commercially reasonable efforts to cause, and (y) thereafter, to
cause direct contact between senior management, representatives and advisors of the Acquired
Business, on the one hand, and the senior management, representatives and advisors of the
proposed Investors, on the other hand),

          (iii) your assistance in the preparation of one or more confidential information
memoranda (each, a “Confidential Information Memorandum”), and other customary marketing
materials to be used in connection with the syndication of our Commitments (together with
all Confidential Information Memoranda, the “Materials”),

          (iv) using your commercially reasonable efforts to obtain, prior to the commencement of
the Required Marketing Period, monitored public corporate (or corporate family) ratings from
each of Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc.
(“S&P”), and Moody’s Investors Service, Inc. (“Moody’s”) for the Acquiror and monitored
public ratings from each of S&P and Moody’s for the Notes, and

          (v) the hosting, with us, of one or more meetings with prospective Investors at such
times and in such places as may be mutually agreed (certain of which meetings may be via
telephonic conference in our reasonable determination).

          (c) You agree, at our reasonable request, to assist in the preparation of a version of any
Materials consisting exclusively of information and documentation that is either (i) publicly
available or (ii) not material with respect to the Company any of or its securities for purposes of
United States federal and state securities laws (such information and Materials, “Public Investor
Information”). Any information and documentation that is not Public Investor Information is
referred to herein, as “Material Non-Public Information”. In addition, you agree that, unless
specifically labeled “Private — Contains Non-Public Information,” no Materials disseminated to
potential Investors in connection with the syndication of the Bridge Loan Facility, whether through
an Internet website, electronically, in presentations, at meetings or otherwise, will contain any
Material Non-Public Information. You acknowledge and agree that the following documents contain and
shall contain solely Public Investor Information (unless you notify us promptly that any such
document contains Material Non-Public Information): (i) drafts and final Definitive Debt Documents
with respect to the Bridge Loan Facility, (ii) administrative materials prepared by us for
prospective Investors (including an Investor meeting invitation, Investor allocation, if any, and
funding and closing memoranda), and (iii) notification of changes in the terms of the Bridge Loan
Facility.

          (d) You agree that all Materials and Information (as defined below) (including draft and
execution versions of the Definitive Debt Documents may be disseminated in accordance with our
standard syndication practices (including through hard copy and via one or more internet sites
(including an IntraLinks, SyndTrak or similar workspace), e-mail or other electronic
transmissions). Without limiting the foregoing, you authorize, and will use commercially
reasonable efforts to obtain contractual undertakings from the Acquired Business to authorize, the
use of your and their and their logos in connection with any such dissemination. You further agree
that, at our expense, we may place advertisements in financial and other newspapers and periodicals
or on a home page or similar place for dissemination of information on the Internet or worldwide
web as we may choose, and circulate similar promotional materials, after the closing of the
Transactions in the form of a “tombstone” or otherwise, containing information customarily included
in such advertisements and materials, including (i) the

5

 

names of the Company and its subsidiaries (or any of them), (ii) our and our affiliates’
titles and roles in connection with the Transactions, and (iii) the amount, type and closing date
of such Transactions.

     5. Information. You represent and warrant that:

          (a) all written information (including the Materials but excluding the Projections, budgets,
estimates and general economic or industry specific information, the “Information”) about the
Company or (to the best of your knowledge) the Acquired Business that has been or will be made
available to us by or on behalf of you or the Acquired Business or any of your or their respective
its representatives is or will be, when furnished, taken as a whole, complete and correct in all
material respects (after giving effect to all supplements thereto),

          (b) none of the Information shall, when furnished or on the Closing Date, contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements
contained therein not materially misleading, taken as a whole, in light of the circumstances under
which such statements are made (after giving effect to all supplements thereto), and

          (c) all projections and other forward-looking information that have been or will be made
available to us by or on behalf of you or any of your representatives (collectively, the
“Projections”) have been or will be prepared in good faith based upon assumptions that are
reasonable at the time made and at the time the related Projections are made available to us (it
being understood and agreed that financial projections are not a guarantee of financial performance
and actual results may differ from financial projections and such differences may be material).

     You agree that if at any time, on or prior to the earlier of (i) a Successful Syndication and
(ii) 60 days after the Closing Date, any of the representations and warranties in the preceding
sentence would be incorrect if the Information or Projections were then being furnished, and such
representations and warranties were then being made, at such time, you covenant to (i) promptly
notify us of such occurrence and (ii) supplement promptly the Information and/or the Projections,
as the case may be, so that such representations and warranties will be correct under those
circumstances.

     You shall be solely responsible for Information, including the contents of all Materials. We
(i) will be relying on Information and data provided by or on behalf of you or the Acquired
Business or any of your or its representatives or otherwise available from generally recognized
public sources, without having independently verified the accuracy or completeness of the same,
(ii) do not assume responsibility for the accuracy or completeness of any such Information and data
and (iii) will not make an appraisal of your assets or liabilities or the Acquired Business.

     6. Clear Market. You agree that, from May 23, 2011 until the earlier of (a) 60 days
after the Closing Date and (b) the date on which we (and our affiliates) have consummated a
Successful Syndication (as defined in the Fee Letter), you will not, and you will not permit the
Acquired Business or any of your subsidiaries to, directly or indirectly, (i) syndicate, place,
sell or issue, (ii) attempt or offer to syndicate, place, sell or issue, (iii) announce or
authorize the announcement of the syndication, placement, sale or issuance of, or (iv) engage in
discussions concerning the syndication, placement, offering, sale or issuance of, any debt
facility, or debt, or preferred equity security of you, the Acquired Business or any of your
subsidiaries (other than the Notes Offering, the Promissory Notes and the Bridge Loan Facility,
debt incurred in the ordinary course of business, capital lease obligations, purchase money debt
incurred in connection with equipment and other indebtedness the aggregate principal amount of
which does not exceed $1,000,000 individually or $5,000,000 in the aggregate, unless, in each case
such action would have a material adverse impact on our ability to successfully syndicate the
Bridge Loan

6

 

Facility, and intercompany indebtedness), without our prior written consent, which may be
given or withheld in our sole discretion.

     7. Fees and Expenses. As consideration for the Commitments and our other undertakings
hereunder, you hereby agree to pay or cause to be paid to us, for our own account, and Jefco, for
its own account, the fees, expenses and other amounts set forth in the Debt Financing Letters.

     8. Indemnification and Waivers. As consideration for the Commitments and our other
undertakings hereunder, you agree to the provisions with respect to indemnification, waivers and
other matters contained in Annex A hereto, which is hereby incorporated by reference in
this Commitment Letter.

     9. Confidentiality. This Commitment Letter is delivered to you on the understanding
that neither the existence of this Commitment Letter or any other Debt Financing Letter nor any of
their terms or substance will be disclosed, directly or indirectly, to any other person or entity
except (a) as required by applicable law or compulsory legal process or pursuant to the order of
any court or administrative agency in any pending legal or administrative proceeding (in which case
you agree, to the extent not prohibited by applicable law, to inform us promptly thereof), (b) to
your or the Sponsor’s officers, directors, employees, attorneys, accountants and advisors on a
confidential and need-to-know basis and only in connection with the Transactions, (c) the
information contained in this Commitment Letter (but not any other Debt Financing Letter) may be
disclosed to rating agencies in connection with their review of the Bridge Loan Facility and the
Notes Offering or the Company and/or the Acquired Business, (d) the information contained in this
Commitment Letter (but not any other Debt Financing Letter) may be disclosed in any Confidential
Information Memorandum and any offering materials for the Notes Offering, (e) this Commitment
Letter (but not any other Debt Financing Letter (unless otherwise disclosed by us to them)) may be
disclosed to the Acquired Business and its respective officers, directors, employees, attorneys,
accountants and advisors, in each case on a confidential and need-to-know basis and only in
connection with the Transactions and (f) to the extent required by applicable law, this Commitment
Letter and the existence and contents of the Fee Letter in any proxy, public filing, prospectus,
offering memorandum or offering circular in connection with the Merger or the financing thereof
(provided that any information about fees disclosed in reliance of this clause (f) shall be limited
to the aggregate fee amount contained in the Fee Letter disclosed as part of Projections, pro forma
information or a generic disclosure of aggregate sources and uses related to fee amounts related to
the Transactions to the extent customary or required in offering and marketing materials for the
Notes, the Bridge Loan Facility or in any public filing relating to the Transactions).

     We and our affiliates shall use all information received by us and them from you, the Acquired
Business or your or its respective affiliates and representatives in connection with the
Acquisition and the related transactions solely for the purposes of providing the services
contemplated by this Commitment Letter and shall treat confidentially all such information;
provided, however, that nothing herein shall prevent us from disclosing any such information (a) to
Moody’s and S&P on a confidential basis, (b) to any Investors or participants or prospective
Investors or participants (other than Disqualified Institutions), (c) in any legal, judicial,
administrative proceeding or other compulsory process or otherwise as required by applicable law,
rule or regulations (in which case we will promptly notify you, in advance, to the extent permitted
by law, rule or regulation), (d) upon the request or demand of any governmental or regulatory
authority having jurisdiction over us or any of our affiliates or upon the good faith determination
by counsel that such information should be disclosed in light of ongoing oversight or review by any
governmental or regulatory authority having jurisdiction over us or our affiliates (in which case
we shall, except with respect to any audit or examination conducted by accountants or any
governmental regulatory authority exercising examination or regulatory authority, promptly notify
you, in advance, to the extent lawfully permitted to do so), (e) to the officers, directors,
employees, legal counsel,

7

 

independent auditors, professionals and other experts or agents of us (collectively,
“Representatives”) on a reasonable “need-to-know” basis in connection with this transaction and who
are informed of the confidential nature of such information and are or have been advised of their
obligation to keep information of this type confidential, (f) to any of our respective affiliates,
Representatives of our affiliates (provided that any such affiliate, Representative is advised of
its obligation to retain such information as confidential, and we shall be responsible for our
affiliates’ and our affiliates’ Representatives’ compliance with this paragraph) solely in
connection with the Transactions, (g) to the extent any such information is or becomes publicly
available other than by reason of disclosure by us, our affiliates or Representatives in breach of
this Commitment Letter and (h) to establish a “due diligence” defense; provided that the disclosure
of any such information to any Lenders or prospective Lenders or participants or prospective
participants referred to above shall be made subject to the acknowledgment and acceptance by such
Lender or prospective Lender or participant or prospective participant that such information is
being disseminated on a confidential basis (on substantially the terms set forth in this paragraph
or as is otherwise reasonably acceptable to you and us, including, without limitation, as agreed in
any confidential information memorandum or other marketing materials) in accordance with our
standard syndication processes or customary market standards for dissemination of such type of
information. Our obligations under this paragraph shall automatically terminate and be superseded
by the confidentiality provisions in the Definitive Debt Documents upon the execution and delivery
thereof and in any event shall terminate on May 23, 2012.

     Notwithstanding anything herein to the contrary, you and we (and any of your and our
respective employees, representatives or other agents) may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the transactions contemplated by the
Debt Financing Letters and all materials of any kind (including opinions or other tax analyses)
that are provided to you or us relating to such tax treatment and tax structure, except that (i)
tax treatment and tax structure shall not include the identity of any existing or future party (or
any affiliate of such party) to any Debt Financing Letter, and (ii) neither you nor we shall
disclose any information relating to such tax treatment and tax structure to the extent
nondisclosure is reasonably necessary in order to comply with applicable securities laws. For this
purpose, the tax treatment of the transactions contemplated by the Debt Financing Letters is the
purported or claimed U.S. federal income tax treatment of such transactions and the tax structure
of such transactions is any fact that may be relevant to understanding the purported or claimed
U.S. federal income tax treatment of such transactions.

     10. Conflicts of Interest. You acknowledge and agree that:

          (a) we and/or our affiliates and subsidiaries (the “Jefferies Group”), in our and their
respective capacities as principal or agent are involved in a wide range of commercial banking and
investment banking activities globally (including investment advisory, asset management, research,
securities issuance, trading, and brokerage) from which conflicting interests or duties may arise
and, therefore, conflicts may arise between (i) our interests and duties hereunder and (ii) the
duties or interests of another member of the Jefferies Group,

          (b) we and any other member of the Jefferies Group may, at any time, (i) provide services to
any other person, (ii) engage in any transaction (on our or its own account or otherwise) with
respect to you or any member of the same group as you or (iii) act in relation to any matter for
any other person whose interests may be adverse to you or any member of your group (a “Third
Party”), and may retain for our or its own benefit any related remuneration or profit,
notwithstanding that a conflict of interest exists or may arise and/or any member of the Jefferies
Group is in possession or has come or comes into possession (whether before, during or after the
consummation of the transactions contemplated hereunder) of information confidential to you;
provided that such information confidential to you shall not be (x) used by us or any other member
of the Jefferies Group in performing services to

8

 

any Third Party or (y) shared with any Third Party to whom we are providing services, except
at your direction.

          (c) information that is held elsewhere within us or the Jefferies Group, but of which none of
the individual directors, officers or employees having primary responsibility for the consummation
of the transactions contemplated by the Debt Financing Letters actually has knowledge (or can
properly obtain knowledge without breach of internal procedures), shall not for any purpose be
taken into account in determining our responsibilities to you hereunder,

          (d) neither we nor any other member of the Jefferies Group shall have any duty to disclose to
you, or utilize for your benefit, any non-public information acquired in the course of providing
services to any other person, engaging in any transaction (on our or its own account or otherwise)
or otherwise carrying on our or its business,

          (e) (i) neither we nor any of our affiliates have assumed any advisory responsibility or any
other obligation in favor of the Acquiror or its subsidiaries or any of their respective affiliates
except the obligations expressly provided for under the Debt Financing Letters, (ii) we and our
affiliates, on the one hand, and each of the Acquiror and its affiliates, on the other hand, have
an arm’s-length business relationship that does not directly or indirectly give rise to, nor does
any of the Acquiror or its affiliates rely on, any fiduciary duty on the part of us or any of our
affiliates and (iii) we are (and are affiliated with) full service financial firms and as such may
effect from time to time transactions for our own account or the account of customers, and hold
long or short positions in debt, equity-linked or equity securities or loans of companies that may
be the subject of the transactions contemplated by this Commitment Letter (and, in particular, we
and any other member of the Jefferies Group may at any time hold debt or equity securities for our
or its own account in the Company). With respect to any securities and/or financial instruments so
held by us, any of our affiliates or any of our respective customers, all rights in respect of such
securities and financial instruments, including any voting rights, will be exercised by the holder
of such rights, in its sole discretion. You hereby waive and release, to the fullest extent
permitted by law, any claims you have, or may have, with respect to (i) any breach or alleged
breach of fiduciary duty or (ii) any conflict of interest arising from the aforementioned
transactions, activities, investments or holdings, or arising from our failure or the failure of
any of our affiliates to bring such transactions, activities, investments or holdings to your
attention, and

          (f) neither we nor any of our affiliates are advising you as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. You shall consult with your own advisors
concerning such matters and shall be responsible for making your own independent investigation and
appraisal of the transactions contemplated by the Debt Financing Letters, and neither we nor our
affiliates shall have responsibility or liability to you with respect thereto. Any review by us, or
on our behalf, of the Company, the Transactions, the other transactions contemplated by the Debt
Financing Letters or other matters relating to such transactions will be performed solely for our
benefit and shall not be on behalf of you or any of your affiliates.

     11. Choice of Law; Jurisdiction; Waivers. The Debt Financing Letters shall be
governed by, and construed in accordance with, the laws of the State of New York without regard to
conflict of law principles (other than sections 5-1401 and 5-1402 of the New York General
Obligations Law); provided, however, that the interpretation of the definition of Phoenix
Material Adverse Effect (and whether or not a Phoenix Material Adverse Effect has occurred) and
Ajax Material Adverse Effect (and whether or not an Ajax Material Adverse Effect has occurred) in
this Commitment Letter and the other exhibits and annexes hereto shall be governed by, and
construed in accordance with, the laws of the State of Delaware, regardless of the laws that might
otherwise govern under applicable principles of conflicts of laws thereof. To the fullest extent
permitted by applicable law, you and we hereby irrevocably submit to the exclusive

9

 

jurisdiction of any New York State court or federal court sitting in the County of New York
and the Borough of Manhattan in respect of any claim, suit, action or proceeding arising out of or
relating to the provisions of any Debt Financing Letter, the Transactions or any of the other
transactions contemplated hereby or thereby and irrevocably agree that all claims in respect of any
such claim, suit, action or proceeding may be heard and determined in any such court and that
service of process therein may be made by certified mail, postage prepaid, to your or our address,
as the case may be, set forth above. You and we hereby waive, to the fullest extent permitted by
applicable law, any objection that you or we may now or hereafter have to the laying of venue of
any such claim, suit, action or proceeding brought in any such court, and any claim that any such
claim, suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. You and we hereby waive, to the fullest extent permitted by applicable law, any right to
trial by jury with respect to any claim, suit, action or proceeding arising out of or relating to
the Debt Financing Letters, any of the Transactions or any of the other transactions contemplated
hereby or thereby. The provisions of this Section 11 are intended to be effective upon the
execution of this Commitment Letter without any further action by you, and the introduction of a
true copy of this Commitment Letter into evidence shall be conclusive and final evidence as to such
matters.

     12. Miscellaneous.

          (a) This Commitment Letter may be executed in one or more counterparts, each of which will be
deemed an original, but all of which taken together will constitute one and the same instrument.
Delivery of an executed signature page of this Commitment Letter by facsimile, PDF or other
electronic transmission will be effective as delivery of a manually executed counterpart hereof.

          (b) You may not assign any of your rights, or be relieved of any of your obligations, under
this Commitment Letter without our prior written consent (other than the assignment solely of your
rights hereunder to a domestic wholly-owned subsidiary formed for the purpose of consummating the
Merger reasonably acceptable to us), which may be given or withheld in our sole discretion (and any
purported assignment without such consent, at our sole option, shall be null and void). Any and
all obligations of, and services to be provided by, us hereunder (including the Commitments) may be
performed, and any and all of our rights hereunder may be exercised, by or through any of our
affiliates or branches (other than Excluded Affiliates) and we reserve the right to allocate, in
whole or in part, to our affiliates or branches (other than Excluded Affiliates) certain fees
payable to us in such manner as we and our affiliates (other than Excluded Affiliates) may agree in
our and their sole discretion. You further acknowledge that, subject to Sections 9(b) and 12(e)
herein, we may share with any of our affiliates, and such affiliates may share with us, any
information relating to the Transactions, you or the Acquired Business (and your and their
respective affiliates), or any of the matters contemplated in the Debt Financing Letters.

          (c) This Commitment Letter has been and is made solely for the benefit of you, us and the
Indemnified Parties (as defined in Annex A hereto) and your, our and their respective
successors and assigns, and nothing in this Commitment Letter, expressed or implied, is intended to
confer or does confer on any other person or entity any rights or remedies under or by reason of
this Commitment Letter or your and our agreements contained herein.

          (d) The Debt Financing Letters set forth the entire understanding of the parties hereto as to
the scope of the Commitments and our obligations hereunder and thereunder. The Debt Financing
Letters supersede all prior understandings and proposals, whether written or oral, between us and
you relating to any financing or the transactions contemplated hereby and thereby (other than as
set forth in the Engagement Letter, dated as of January 26, 2011, between the Target and Jefco and
the Engagement Letter, dated as of February 18, 2011, between the Target and Jefco, in each case as
amended or otherwise modified from time to time).

10

 

          (e) You acknowledge that one or more of our affiliates has been retained as a sell-side
financial advisor to the Target Shareholders (in such capacity and in
providing such services, the “Financial Advisor”) in connection with the Transactions. You agree to any such retention, and 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, (i) the engagement of the Financial
Advisor or (ii) us or the Financial Advisor or any of our or its affiliates arranging or providing
or contemplating arranging or providing financing for a competing bidder and, on the other hand,
our relationship with you as described and referred to in the Debt Financing Letters. You
acknowledge that, in its capacity as such, (A) the Financial Advisor may recommend to the Target
Shareholders that the Target Shareholders not pursue or accept your offer or proposal to acquire
the Acquired Business, (B) the Financial Advisor may advise the Target Shareholders and the
Acquired Business in other manners adverse to your interests, including by providing advice on
pricing, leverage levels, and timing and conditions of closing with respect to your bid, taking
other actions with respect to your bid and taking action under any definitive agreement between
you, the Target Shareholders and/or the Acquired Business, and (C) the Financial Advisor may
possess information about the Target Shareholders, the Acquired Business, the Acquisition and other
potential purchasers and their respective strategies and proposals, but the Financial Advisor shall
have no obligation to disclose to you the substance of such information or the fact that it is in
possession thereof.

          (f) You acknowledge that we and our affiliates may be arranging or providing (or contemplating
arranging or providing) a committed form of acquisition financing to other potential purchasers of
the Acquired Business and that, in such capacity, we and our affiliates may acquire information
about the Acquired Business, the Merger, and such other potential purchasers and their strategies
and proposals, but that nonetheless neither we nor our affiliates shall have any obligation to
disclose to you or your affiliates the substance of such information or the fact that we or our
affiliates are in possession thereof.

          (g) You agree that we or any of our affiliates may disclose nonconfidential information about
the Transactions to market data collectors and similar service providers to the financing
community.

          (h) We hereby notify you and, upon its becoming bound by the provisions hereof, each other
Credit Party (as defined in Exhibit A hereto), that pursuant to the requirements of the USA
PATRIOT Improvement and Reauthorization Act, Pub. L. 109-177 (signed into law March 9, 2006) (as
amended from time to time, the “Patriot Act”), we and each Investor may be required to obtain,
verify and record information that identifies the Credit Parties, which information includes the
name, address, tax identification number and other information regarding the Credit Parties that
will allow us or such Investor to identify the Credit Parties in accordance with the Patriot Act.
This notice is given in accordance with the requirements of the Patriot Act and is effective as to
us and each Investor. You agree that we shall be permitted to share any or all such information
with the Investors.

     13. Amendment; Waiver. This Commitment Letter may not be modified or amended except
in a writing duly executed by the parties hereto. No waiver by any party of any breach of, or any
provision of, this Commitment Letter shall be deemed a waiver of any similar or any other breach or
provision of this Commitment Letter at the same or any prior or subsequent time. To be effective,
a waiver must be set forth in writing signed by the waiving party and must specifically refer to
this Commitment Letter and the breach or provision being waived.

     14. Surviving Provisions. Notwithstanding anything to the contrary in this Commitment
Letter: (i) Sections 7 to and including 13 hereof, Section 15 hereof and
this Section 14 shall survive the expiration or termination of this Commitment Letter,
regardless of whether the Definitive Debt Documents have been executed and delivered or the
Transactions consummated(provided that Section 8

11

 

and Section 9 shall be superseded by the Definitive Debt Documents to the extent the
provisions of such Sections are expressly provided for in the Definitive Debt Documents) and (ii)
Sections 2 and 4 to and including 13 hereof shall survive execution and
delivery of the Definitive Debt Documents and the consummation of the Transactions.

     15. Expiration and Termination. Except with respect to any provision that expressly
survives pursuant to Section 14, this Commitment Letter (but not the other Debt Financing
Letters) will terminate automatically on the earliest of (i) the date of termination or expiry of
the Purchase Agreement or abandonment of the Merger, (ii) the closing of the Merger and funding of
the Bridge Loan Facility, (iii) 5:00 p.m., New York City time, on December 15, 2011 and (iv) notice
from you. In addition, our Commitment hereunder to provide Bridge Loans shall terminate upon the
closing of the sale of the Notes (in escrow or otherwise) and your receipt of gross proceeds equal
to at least $150 million.

[Remainder of page intentionally blank]

12

 

     We are pleased to have the opportunity to work with you in connection with this important
financing.

	 	 	 	 	 
	 	Very truly yours,

JEFFERIES FINANCE LLC

 	 
	 	By:  	
/s/ E. Joseph Hess	 
	 	 	Name:  	E. Joseph Hess	 
	 	 	Title:  	Managing Director	 
	 

13

 

Accepted and agreed to as of the

date first above written:

ACADIA HEALTHCARE COMPANY, INC.

	 	 	 	 	 	 

	By:

	 	/s/ Joey A. Jacobs	 
	 

	 	 	 
	 

	 	Name:	 	Joey A. Jacobs	 
	 

	 	Title:	 	Chief Executive Officer	 

14

 

ANNEX A TO COMMITMENT LETTER

INDEMNIFICATION AND WAIVER

     Except as otherwise defined in this Annex A, capitalized terms used but not defined
herein have the meanings assigned to them elsewhere in this Commitment Letter.

You hereby agree (i) to indemnify and hold harmless Jefferies Finance (“we” or “us”), the Investors
and each of our and their respective affiliates and subsidiaries (including Jefferies & Company,
Inc. (“Jefco”) and each of the respective officers, directors, partners, trustees, employees,
affiliates, shareholders, advisors, agents, representatives, attorneys-in-fact and controlling
persons of each of the foregoing (each, an “Indemnified Party”) from and against any and all
losses, claims, damages and liabilities (collectively, “Losses”) to which any such Indemnified
Party, directly or indirectly, may become subject arising out of, relating to, resulting from or
otherwise in connection with the Debt Financing Letters (other than the Engagement Letter), the
Debt Financing, the use of the proceeds therefrom, the Transactions, any of the other transactions
contemplated by the Debt Financing Letters (but not for financial advisory services provided by the
Financial Advisor acting in such capacity), or any action, claim, suit, litigation, investigation,
inquiry or proceeding (each, a “Claim”) directly or indirectly arising out of, relating to,
resulting from or otherwise in connection with any of the foregoing (IN ALL CASES, WHETHER OR NOT
CAUSED OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF
THE INDEMNIFIED PERSON), regardless of whether any Indemnified Party is a named party thereto or
whether such Claim is brought by you, any of your affiliates or a third party and (ii) to promptly
reimburse each Indemnified Party at any time and from time to time following written demand for all
reasonable legal fees (limited to one counsel, one local counsel and, in the event of any actual or
potential conflict of interest, one additional counsel for each Indemnified Party subject to such
conflict) and reasonable out-of-pocket expenses incurred by it in connection with investigating,
preparing to defend or defending, or providing evidence in or preparing to serve or serving as a
witness with respect to, any Claim, directly or indirectly, arising out of, relating to, resulting
from or otherwise in connection with any of the foregoing (including in connection with the
enforcement of the indemnification obligations and waivers set forth in this Annex A);
provided, however, that no Indemnified Party will be entitled to indemnity and waivers hereunder in
respect of any Loss to the extent that (A) it is found by a final, non-appealable judgment of a
court of competent jurisdiction that such Loss resulted directly from the bad faith, gross
negligence or willful misconduct of such Indemnified Party, (B) result directly from a Claim
brought by you against an Indemnified Party for a material breach of our initial funding
obligations under the Commitment Letter, if you have obtained a final and nonappealable judgment in
its favor on such Claim as determined by a court of competent jurisdiction or (C) it results from a
dispute solely between the Indemnified Parties and not (1) involving any action or inaction by you
or any of your subsidiaries or (2) relating to any action of such Indemnified Party in its capacity
as Administrative Agent or Arranger. In addition, in no event will any person be liable for
consequential, special, exemplary, punitive or indirect damages (including any loss of profits,
business or anticipated savings), whether, directly or indirectly, as a result of any failure to
fund all or any portion of the Debt Financing or otherwise arising out of, relating to, resulting
from or otherwise in connection with the Debt Financing or arising out of, relating to, resulting
from or otherwise in connection with any Claim or otherwise (provided that the foregoing shall in
no event affect you obligation to indemnify any Indemnified Party as a set forth in this Annex A
for Claims not raised by such Indemnified Party). In addition, no Indemnified Party will be liable
for any damages arising from the use by unauthorized persons of Information, Projections or other
Materials sent through electronic, telecommunications or other information transmission systems
that are intercepted or otherwise obtained by such persons, except to the extent it is found by a
final, non-appealable judgment of a court of competent jurisdiction that such Loss resulted
directly from the bad faith, gross negligence or willful misconduct of such Indemnified Party.

Annex A-1

 

     You shall not settle or compromise or consent to the entry of any judgment in or otherwise
seek to terminate any pending or threatened Claim in which any Indemnified Party is or could be a
party and as to which indemnification or contribution could have been sought by such Indemnified
Party hereunder whether or not such Indemnified Party is a party to any Debt Financing Letter,
unless (i) such Indemnified Party and each other Indemnified Party from which such Indemnified
Party could have sought indemnification or contribution have given their prior written consent,
such consent not to be unreasonably withheld, conditioned or delayed or (ii) the settlement,
compromise, consent or termination includes an express unconditional release of all Indemnified
Parties and their respective affiliates from all Losses, directly or indirectly, arising out of,
relating to, resulting from or otherwise in connection with such Claim.

     If for any reason (other than the express carve-outs set forth above) the foregoing indemnity
is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless, then
you to the fullest extent permitted by law, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses in such proportion as is appropriate to reflect the
relative benefits received by you, on the one hand, and by us, on the other hand, from the
Transactions or, if allocation on that basis is not permitted under applicable law, in such
proportion as is appropriate to reflect not only the relative benefits received by you, on the one
hand, and us, on the other hand, but also the relative fault of you, on the one hand, and us, on
the other hand, as well as any relevant equitable considerations. Notwithstanding the provisions
hereof, the aggregate contribution of all Indemnified Parties to all Losses shall not exceed the
amount of fees actually received by us and Jefco pursuant to the Fee Letter and the Engagement
Letter. For the purposes of this paragraph, it is hereby further agreed that (i) the relative
benefits to you, on the one hand, and us, on the other hand, with respect to the Transactions shall
be deemed to be in the same proportion as (x) the total value paid or received or contemplated to
be paid or received by you, your equityholders and/or your or their respective affiliates, as the
case may be, in the Transactions, whether or not the Transactions are consummated, bears to (y) the
fees actually paid to us and Jefco under the Fee Letter and the Engagement Letter and (ii) the
relative fault of you, on the one hand, and us, on the other hand, with respect to the Transactions
shall be determined by reference to, among other things, whether any untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by you, any of your affiliates and/or any of your or their respective
officers, directors, partners, trustees, employees, affiliates, shareholders, advisors, agents,
representatives, attorneys-in-fact and controlling persons (collectively, the “Acquiror Group”) or
by us, as well as your and our relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

     The indemnity, contribution and expense reimbursement obligations set forth herein (i) shall
be in addition to any liability you may have to any Indemnified Party at law, in equity or
otherwise, (ii) shall survive the expiration or termination of the Debt Financing Letters
(notwithstanding any other provision of any Debt Financing Letter or the Definitive Debt
Documents), (iii) shall apply to any modification, amendment, waiver or supplement of our and any
of our affiliates’ commitment and/or engagement, (iv) shall remain operative and in full force and
effect regardless of any investigation made by or on behalf of us or any other Indemnified Party
and (v) shall be binding on any successor or assign of you and the successors or assigns to any
substantial portion of your business and assets.

* * *

Annex A-2

 

EXHIBIT A TO COMMITMENT LETTER

SUMMARY OF TERMS OF THE BRIDGE LOANS

     Set forth below is a summary of certain of the terms of the Bridge Loan Facility and the
documentation related thereto. Capitalized terms used and not otherwise defined in this
Exhibit A have the meanings set forth elsewhere in this Commitment Letter.

	 	 	 	 	 

	I.

	 	Parties	 	 
	 
	 	 	 	 
	 

	 	Borrower
	 	Acadia Healthcare Company, Inc. (the “Borrower”).
	 
	 	 	 	 
	 

	 	Guarantors
	 	Each of the Borrower’s direct and indirect
wholly-owned subsidiaries (other than any
subsidiary that is a “controlled foreign
corporation” within the meaning of section 957
of the United States Tax Code of 1986, as
amended (a “CFC”), to the extent making such
CFC a guarantor would be reasonably likely to
result in material adverse tax consequences to
the Borrower) (collectively, the “Guarantors;”
the Borrower and the Guarantors, collectively
with the Borrower, the “Credit Parties”);
provided that Guarantors shall not include (a)
unrestricted subsidiaries, (b) immaterial
subsidiaries, (c) special purpose entities, if
any, (d) captive insurance companies, if any and
(e) any subsidiary (1) that is prohibited by
applicable law, rule or regulation from
guaranteeing the Bridge Loans or (2) which would
result in a material adverse tax consequence to
the Borrower or one of its subsidiaries
(including as a result of the operation of
Section 956 of the IRS Code or any similar law
or regulation in any applicable jurisdiction;
provided that the foregoing clauses (a), (b),
(c) and (d) shall be subject to mutually agreed
parameters.
	 
	 	 	 	 
	 

	 	Sole Lead Arranger, Sole
Syndication Agent and Sole
Book-Runner
	 	
Jefferies Finance LLC (“Jefferies Finance”) (in
such capacities, the “Arranger”). The Arranger
will perform the duties customarily associated
with such role.
	 
	 	 	 	 
	 

	 	Administrative Agent
	 	Jefferies Finance (in such capacity together
with permitted successors and assigns, the
“Administrative Agent”). The Administrative
Agent will perform the duties customarily
associated with such role.
	 
	 	 	 	 
	 

	 	Lenders
	 	A syndicate of banks, financial institutions and
other entities, excluding Disqualified
Institutions (collectively, the “Lenders”)
arranged by the Arranger and in consultation
with the Borrower.

Exhibit A-1

 

	 	 	 	 	 

	 
	 	 	 	 
	 

	 	Closing Date
	 	The date, on or before the date on which the
Commitments are terminated in accordance with
Section 15 of this Commitment Letter, on which
the Merger is consummated (the “Closing Date”).
	 
	 	 	 	 
	 

	 	Bridge Loan Documents
	 	The definitive documentation governing or
evidencing the Bridge Loans, the Extended Term
Loans and the Exchange Notes which is consistent
with the Documentation Principles (collectively,
the “Bridge Loan Documents”).
	 
	 	 	 	 
	II.

	 	Bridge Loan Facility	 	 
	 
	 	 	 	 
	 

	 	Bridge Loans
	 	An aggregate principal amount of $150.0 million
of senior increasing rate bridge loans (the
“Bridge Loans”). At the option of the Lenders,
the Bridge Loans may be replaced with, or
originally made in the form of, notes on
identical economic terms.
	 
	 	 	 	 
	 

	 	Use of Proceeds
	 	To finance, in part, the Merger, to finance the
Refinancing, the Distribution, the Stockholder
Payment and to pay fees, costs, premiums,
commissions and expenses in connection with the
foregoing.
	 
	 	 	 	 
	 

	 	Maturity
	 	One year from the initial funding date of the
Bridge Loans (the “Bridge Loan Maturity Date”).
	 
	 	 	 	 
	 

	 	Rollover
	 	If the Bridge Loans are not repaid in full on or
prior to the Bridge Loan Maturity Date and the
Borrower has paid the Rollover Fee (as set forth
in the Fee Letter), and provided that no
Conversion Default (as defined below) has
occurred and is continuing, the Bridge Loans
shall be automatically converted on the Bridge
Loan Maturity Date into senior term loans due on
the date that is six years after of the Bridge
Loan Maturity Date (the “Extended Term Loans”)
in an aggregate principal amount equal to the
aggregate principal amount of Bridge Loans so
converted. The Extended Term Loans will have
the terms set forth in Exhibit B to this
Commitment Letter. Under certain circumstances
to be determined by the Arranger, Extended Term
Loans may be exchanged by the holders thereof
for exchange notes (“Exchange Notes”), which
will have the terms set forth in Exhibit B to
this Commitment Letter; provided, that no
Exchange Notes shall be issued until the
Borrower shall have received requests to issue
at least $50.0 million in the aggregate
principal amount of Exchange Notes. The
Exchange Notes will be issued under an indenture
that will have the terms set forth in Exhibit B
to this Commitment Letter.

Exhibit A-2

 

	 	 	 	 	 

	 
	 	 	 	 
	 

	 	 	 	“Conversion Default” shall mean (i) Demand
Failure Default, (ii) any payment or
“bankruptcy default” (to be defined in the
Bridge Loan Documents) or (iii) any failure to
pay fees when due under the Fee Letter.
	 
	 	 	 	 
	 

	 	 	 	The Extended Term Loans will be governed by the
provisions of the Bridge Loan Documents and will
have the same terms as the Bridge Loans except
as expressly set forth in Exhibit B to this
Commitment Letter.
	 
	 	 	 	 
	III.

	 	Certain Payment Provisions	 	 
	 
	 	 	 	 
	 

	 	Interest
	 	The Bridge Loans will bear interest at a rate
per annum equal to the higher of (i) 1.50% and
(ii) three-month LIBOR, adjusted quarterly,
plus, in either case, a spread of 7.75% (the
“Rate”), and as further increased pursuant to
the provisions of the Fee Letter, but in no
event to exceed the Interest Rate Cap (as
defined in the Fee Letter), after giving effect
to any default interest.
	 
	 	 	 	 
	 

	 	 	 	Interest will be payable quarterly in arrears,
on the Bridge Loan Maturity Date and on the date
of any prepayment of the Bridge Loans. For
amounts outstanding after the Bridge Loan
Maturity Date, interest will be payable on
demand at the default rate, unless the Bridge
Loans are converted on or prior to such date.
	 
	 	 	 	 
	 

	 	Default Rate
	 	At any time (x) during the continuance of any
payment or bankruptcy default or (y) upon the
election of the Required Lenders or the
Administrative Agent, after the occurrence and
during the continuance of any other event of
default, the Bridge Loans and other obligations
under the Bridge Loan Facility shall bear
interest at 2.00% above the rate otherwise
applicable to the Bridge Loans and shall be
payable in cash on demand.
	 
	 	 	 	 
	 

	 	 	 	Notwithstanding anything to the contrary set
forth herein, in no event shall any cap
(including the Rate and the Interest Rate Cap
(as defined in the Fee Letter)) or limit on the
yield or interest rate payable with respect to
the Bridge Loans, Extended Term Loans or
Exchange Notes (including any limit upon the
amount of interest payable in cash) limit or
otherwise affect the payment in cash of any
default rate of interest in respect of any
Bridge Loans, Extended Term Loans or Exchange
Notes.
	 
	 	 	 	 
	 

	 	Optional Repayment
	 	The Bridge Loans may be repaid, in whole or in
part, on a pro rata basis, at the option of the
Borrower at any time upon two business days’
prior written notice, at a price equal to 100%
of the principal amount thereof, plus all
accrued and unpaid interest and fees to the date of

Exhibit A-3

 

	 	 	 	 	 

	 
	 	 	 	 
	 

	 	 	 	repayment.
	 
	 	 	 	 
	 

	 	Mandatory Repayment
	 	Subject to any amounts required under the
Existing Credit Agreement and other exceptions
to be mutually agreed, the Borrower will repay
the Bridge Loans with the net cash proceeds from
(i) any direct or indirect public offering or
private placement of Notes or any other issuance
or sale of (x) debt securities or equity
securities of the Borrower or a parent holding
company of the Borrower or (y) debt securities
of any of their subsidiaries, (ii) the
incurrence of any other indebtedness for
borrowed money (other than certain other limited
exceptions to be agreed upon) by the Borrower, a
parent holding company of the Borrower or any of
their subsidiaries, (iii) sales of assets or any
issuance or sales of equity of any subsidiary of
the Borrower (in each case, with customary
exceptions and reinvestment rights to be
mutually agreed upon) or receipt of insurance or
condemnation proceeds by the Borrower, a parent
holding company of the Borrower or any of their
subsidiaries and (iv) 50% of excess cash flow
(to be defined in a manner reasonably
satisfactory to the Arranger) for each fiscal
year of the Borrower (commencing with the fiscal
year in which the Closing Date occurs), in each
case, at 100%, of the principal amount of the
Bridge Loans repaid, plus accrued fees and all
accrued and unpaid interest and fees to the date
of the repayment.
	 
	 	 	 	 
	 

	 	Change of Control
	 	Each holder of the Bridge Loans will be entitled
to require the Borrower, and the Borrower shall
offer, to repay the Bridge Loans held by such
holder, at a price of 100% of the principal
amount thereof, plus all accrued fees and all
accrued and unpaid interest to the date of
repayment, upon the occurrence of a “change of
control” (to be defined in the Bridge Loan
Documents in a manner reasonably satisfactory to
the Arranger and the Borrower).
	 
	 	 	 	 
	IV.

	 	Guarantees
	 	The Guarantors will unconditionally guarantee
the obligations of each Credit Party in respect
of the Bridge Loans (the “Guarantees”). Such
Guarantees will be in form and substance
reasonably satisfactory to the Administrative
Agent and the Arranger. All Guarantees shall be
guarantees of payment and performance, and not
of collection.
	 
	 	 	 	 
	V.

	 	Other Provisions	 	 
	 
	 	 	 	 
	 

	 	Representations and Warranties
	 	Consistent with the Documentation Principles
(subject to qualifications, exceptions and
limitations to be mutually agreed upon and
applicable to the Borrower and its

Exhibit A-4

 

	 	 	 	 	 

	 
	 	 	 	 
	 

	 	 
	 	restricted subsidiaries) and including: organization and
powers; authorization, execution, delivery and
enforceability of Bridge Loan Documents; no
conflicts; financial statements, projections, no
undisclosed liabilities and other information;
no material adverse effect; properties; (subject
to ordinary wear and tear, casualty and
condemnation); intellectual property; equity
interests and subsidiaries; litigation and
compliance with laws (including healthcare and
other regulatory matters); organizational
documents and material agreements; federal
reserve regulations; governmental and
third-party approvals; Investment Company Act of
1940, as amended, and other laws restricting
incurrence of debt; use of proceeds; taxes;
accuracy and completeness of written disclosure;
labor matters; solvency of the Borrower and its
subsidiaries (on a consolidated basis); employee
benefit plans and ERISA; healthcare and
environmental matters; insurance; reimbursement
from payors; licensing and accreditation;
acquisition documents; and anti-terrorism laws,
money laundering activities and dealing with
embargoed persons.
	 
	 	 	 	 
	 

	 	Covenants
	 	The Bridge Loan Documents will contain such
affirmative and negative covenants as are usual
and customary for bridge loan financings of this
type and consistent with the Documentation
Principles, it being understood and agreed that
the covenants of the Bridge Loans (and the
Extended Term Loans and the Exchange Notes) will
be incurrence-based covenants based on those
contained in the preliminary offering memorandum
or prospectus used to market the Notes prior to
the Closing Date; provided, that prior to the
Bridge Loan Maturity Date, the covenants of the
Bridge Loans
will be more restrictive than those of the
Extended Term Loans, the Exchange Notes and the
preliminary offering memorandum or prospectus
used to market the Notes prior to the Closing
Date, as reasonably agreed by the Arranger and
the Borrower consistent with Documentation
Principles.
	 
	 	 	 	 
	 

	 	Events of Default; Remedies
	 	The Bridge Loan Documents will contain such
events of default (including grace periods) as
are usual and customary for bridge loan
financings of this type and consistent with
Documentation Principles; including nonpayment
of principal, interest or other amounts;
violations of covenants; incorrectness of
representation and warranties in any material
respect; cross payment default at maturity and
cross acceleration, in each case to material
indebtedness; bankruptcy; material judgments;
ERISA events; and actual or asserted invalidity of

Exhibit A-5

 

	 	 	 	 	 

	 
	 	 	 	 
	 

	 	 
	 	guarantees.
	 
	 	 	 	 
	 

	 	Voting
	 	Amendments and waivers with respect to the
Bridge Loan Documents will require the approval
of Lenders holding not less than a majority of
the aggregate principal amount of the Bridge
Loans, Extended Term Loans or Exchange Notes, as
the case may be, except that (i) the consent of
each Lender directly affected thereby shall be
required with respect to (a) reductions in the
amount or extensions of the final maturity of
any Bridge Loan, Extended Term Loan or Exchange
Note, as the case may be, or the reduction of
the non-redeemability period for any Exchange
Note, as applicable, (b) reductions in the rate
of interest (other than a waiver of default
interest, defaults, or events of default) or any
fee or other amount payable or extensions of any
scheduled due date thereof, (c) increases in the
amount or extensions of the expiration date of
any Lender’s commitment or (d) modifications to
the assignment provisions of the Bridge Loan
Documents that further restrict assignments
thereunder, and (ii) the consent of 100% of the
Lenders shall be required with respect to (a)
reductions of any of the voting percentages or
the pro rata provisions, (b) releases of all or
substantially all of the value of the guarantees
of the Guarantors, or of all or substantially
all of the Collateral (other than in connection
with a permitted asset sale), (c) alterations of
(or additions to) the restrictions on the
ability of Lenders to exchange Extended Term
Loans for Exchange Notes, (d) modification of
the principal amount of Exchange Notes into
which the Extended Term Loans may be exchanged
or (e) assignments by any Credit Party of its
rights or obligations under the Bridge Loan
Facility.
	 
	 	 	 	 
	 

	 	Transferability
	 	Each holder of Bridge Loans will be free to sell
or transfer all or any part of its Bridge Loans
to any third party in accordance with applicable
law with the consent of the Administrative Agent
(not to be unreasonably withheld) in compliance
with applicable law (provided that such holder
shall give prompt written notice to the
Administrative Agent and the Borrower of any
such sale or transfer); provided that for the
six month period commencing on the Closing Date
and so long as no event of default exists, the
consent of the Borrower shall be required with
respect to any assignment that would result in
the Arranger collectively holding less than
50.1% of the aggregate outstanding principal
amount of the Bridge Loans. Each holder of
Bridge Loans will be free to pledge any or all
of the Bridge Loans in accordance with
applicable law.

Exhibit A-6

 

	 	 	 	 	 

	 
	 	 	 	 
	 

	 	Cost and Yield Protection
	 	Each holder of Bridge Loans will receive cost
and interest rate protection customary for
facilities and transactions of this type (as
reasonably determined by the Arranger),
including compensation in respect of
prepayments, taxes (including gross-up
provisions for withholding taxes imposed by any
governmental authority and income taxes
associated with all gross-up payments), changes
in capital requirements, guidelines or policies
or their interpretation or application,
illegality, change in circumstances, reserves
and other provisions deemed necessary by the
Arranger to provide customary protection for
U.S. and non-U.S. financial institutions and
other lenders (including relating to the
Dodd-Frank Act and the rules and regulations
with respect thereto).
	 
	 	 	 	 
	 

	 	Expenses
	 	The Borrower shall pay, promptly following
written demand, on the Closing Date and from
time to time thereafter, promptly following
written demand documentation reasonably
supporting such request), (i) all reasonable and
documented out-of-pocket expenses of the
Administrative Agent, the Syndication Agent and
the Arranger associated with the syndication of
the Bridge Loan Facility and the preparation,
negotiation, execution, delivery, filing and
administration of the Bridge Loan Documents and
any amendment or waiver with respect thereto
(including the reasonable and documented fees,
disbursements and other charges of one primary
counsel and one local counsel and, in the event
of any actual or potential conflict of interest,
one additional counsel for each Indemnified
Party subject to such conflict and the
reasonable charges of IntraLinks, SyndTrak or a
similar service and (ii) all out-of-pocket
expenses of the Administrative Agent, the
Syndication Agent, the Arranger, any other agent
appointed in respect of the Bridge Loan Facility
and the Lenders (including the fees,
disbursements and other charges of internal and
external counsel and consultants) in connection
with the enforcement of, or preservation of
rights under, the Bridge Loan Documents.
	 
	 	 	 	 
	 

	 	Indemnification
	 	The Bridge Loan Documents will contain customary
indemnities (as reasonably determined by the
Administrative Agent) (but not for financial
advisory services provided by the Financial
Advisor acting in such capacity) for (i) the
Arranger, the Syndication Agent, the
Administrative Agent and the Lenders, (ii) each
affiliate of any of the foregoing persons and
(iii) each of the respective officers,
directors, partners, trustees, employees,
affiliates, shareholders, advisors, agents,
attorneys-in-fact and controlling persons of
each of the foregoing persons referred to in
clauses (i) and (ii) above

Exhibit A-7

 

	 	 	 	 	 

	 
	 	 	 	 
	 

	 	 
	 	provided, however,
that no Indemnified Party will be entitled to
indemnity and waivers hereunder in respect of
any Loss to the extent that (A) it is found by a
final, non-appealable judgment of a court of
competent jurisdiction that such Loss resulted
directly from the bad faith, gross negligence or
willful misconduct of such Indemnified Party or
(B) it results from a dispute solely between the
Indemnified Parties and not (1) involving any
action or inaction by you or any of your
subsidiaries or (2) relating to any action of
such Indemnified Party in its capacity as
Administrative Agent or Arranger; provided
further, that such indemnity shall only require
the reimbursement of reasonable fees and
expenses of one primary counsel for all
indemnified persons, one local counsel and, in
the event of any actual or potential conflict of
interest, one additional counsel for each
Indemnified Party subject to such conflict.
	 
	 	 	 	 
	 

	 	Governing Law and Forum
	 	State of New York.
	 
	 	 	 	 
	 

	 	Counsel to the Arranger, the
Administrative Agent and the
Collateral Agent
	 	

Proskauer Rose LLP.

* * *

Exhibit A-8

 

EXHIBIT B TO COMMITMENT LETTER

SUMMARY OF TERMS OF EXTENDED TERM LOANS

AND EXCHANGE NOTES

     Set forth below is a summary of certain of the terms of the Extended Term Loans and the
Exchange Notes and the documentation related thereto. Capitalized terms used and not otherwise
defined in this Exhibit B have the meanings set forth elsewhere in this Commitment Letter.

Extended Term Loans

     On the Bridge Loan Maturity Date, so long as no Conversion Default has occurred and is
continuing, the outstanding Bridge Loans will be converted automatically into Extended Term Loans.
The Extended Term Loans will be governed by the provisions of the Bridge Loan Documents and, except
as expressly set forth below, will have the same terms as the Bridge Loans.

	 	 	 

	Maturity

	 	The Extended Term Loans will mature on the sixth
anniversary of the Bridge Loan Maturity Date.
	 
	 	 
	Interest Rate

	 	The Extended Term Loans will bear interest at a
floating rate per annum (the “Interest Rate”)
equal to the maximum amount of the Rate
(including after giving effect to increases
thereto pursuant to the provisions of the Fee
Letter), without giving effect to any default
interest.
	 
	 	 
	 

	 	Interest will be payable in arrears at the end
of each fiscal quarter of the Borrower. Default
interest will be payable on demand.
	 
	 	 
	 

	 	Notwithstanding the foregoing, after the
occurrence and during the continuation of an
event of default or any payment or bankruptcy
default, interest will accrue on the Extended
Term Loans at the then-applicable rate plus
2.00% per annum.

Exhibit B-1

 

Exchange Notes

     At any time on or after the Bridge Loan Maturity Date, upon five or more business days’ prior
notice, the Extended Term Loans may, at the option of any Lender, be exchanged for a principal
amount of Exchange Notes equal to 100% of the aggregate principal amount of the Extended Term Loans
so exchanged (plus any accrued interest thereon not required to be paid in cash); provided,
that the Borrower shall not be obligated to issue any Exchange Notes until Lenders holding at least
$50 million of Extended Term Loans request such exchange. The Borrower will issue Exchange Notes
under an indenture (the “Indenture”) that complies with the Trust Indenture Act of 1939, as
amended. The Borrower will appoint a trustee reasonably acceptable to the Lenders.

	 	 	 

	Maturity Date

	 	The Exchange Notes will mature on the
sixth anniversary of the Bridge Loan
Maturity Date.
	 
	 	 
	Interest Rate

	 	Each Exchange Note will bear interest
(at the sole option of the holder of
such Exchange Note) at (i) a fixed rate
equal to the interest rate on the
Extended Term Loan surrendered in
exchange for such Exchange Note as of
the date of such exchange or (ii) a
floating rate per annum equal to
three-month LIBOR (as adjusted at the
end of each interest period and adjusted
for all applicable reserve requirements)
plus an applicable margin (to be
mutually determined).
	 
	 	 
	 

	 	Interest will be payable in arrears
semi-annually. Default interest will be
payable on demand.
	 
	 	 
	 

	 	Notwithstanding the foregoing, after the
occurrence and during the continuation
of an event of default or a payment or
bankruptcy default, interest will accrue
on the Extended Term Loans at the
then-applicable rate plus 2.00% per
annum.
	 
	 	 
	Transferability

	 	If the Extended Term Loans are converted
to Exchange Notes, the Borrower,
promptly following reasonable request by
any holder of such Exchange Notes or the
Administrative Agent, shall be required
to ensure that such Exchange Notes are
DTC-eligible.
	 
	 	 
	Optional Redemption

	 	Exchange Notes will be non-callable
until the third anniversary of the
Bridge Loan Maturity Date (subject to
“equity clawback” provisions acceptable
to the Arranger). Thereafter, each
Exchange Note will be callable at par
plus accrued interest plus a premium
equal to one half of the coupon on such
Exchange Note, which premium shall
decline ratably on each yearly
anniversary of the Bridge Loan Maturity
Date to zero on the date that is six
months prior to the maturity of the
Exchange Notes.
	 
	 	 
	 

	 	Prior to the third anniversary of the date of funding of the

Exhibit B-2

 

	 	 	 

	 
	 	 
	 

	 	Bridge Loans, the
Borrower may redeem such Exchange Notes
at a make-whole price based on U.S.
Treasury note with a maturity closest to
the third anniversary of such funding
date plus 50 basis points.
	 
	 	 
	 

	 	The optional redemption provisions will
be otherwise consistent with high yield
debt securities.
	 
	 	 
	Defeasance Provisions

	 	Customary defeasance provisions for high
yield offerings and transactions of this
type.
	 
	 	 
	Modification

	 	Customary modification provisions for
high yield offerings and transaction of
this type.
	 
	 	 
	Change of Control

	 	The Borrower will make an offer to
repurchase the Exchange Notes following
the occurrence of a “change of control”
(to be defined in a manner consistent
with Sponsor Precedent) at 101% of the
outstanding principal amount thereof.
	 
	 	 
	Registration Rights

	 	Within 120 days after the Bridge Loan
Maturity Date, the Borrower will file
and will use its best efforts to cause
to become effective as soon thereafter
as practicable, a shelf registration
statement with respect to the Exchange
Notes (a “Shelf Registration
Statement”). If a Shelf Registration
Statement is filed, the Borrower will
keep such registration statement
effective and available (subject to
customary exceptions) until it is no
longer needed, as reasonably determined
by the Arranger, to permit unrestricted
resales of all of the Exchange Notes and
in no event longer than two years. If,
within 270 days after the Bridge Loan
Maturity Date (the “Effectiveness
Date”), a Shelf Registration Statement
for the Exchange Notes has not been
declared effective, then the Borrower
will pay liquidated damages in the form
of increased interest of 25 basis points
per annum on the principal amount of
Exchange Notes and Extended Term Loans
outstanding to holders of such Exchange
Notes and Extended Term Loans who are
unable freely to transfer Exchange Notes
from and including the day that is 30
days after the Effectiveness Date to but
excluding the effective date of such
Shelf Registration Statement. On the
90th day after the Effectiveness Date,
the liquidated damages shall increase by
25 basis points per annum, and on each
90-day anniversary thereafter, shall
increase by 25 basis points per annum,
to a maximum increase in interest
pursuant to this sentence of 100 basis
points per annum. The Borrower will
also pay such liquidated damages for any
period of time (subject to customary
exceptions) following the effectiveness
of a Shelf Registration

Exhibit B-3

 

	 	 	 

	 
	 	 
	 

	 	Statement that
such Shelf Registration Statement is not
available for sales thereunder (subject
to customary exceptions). All accrued
liquidated damages will be paid on each
quarterly interest payment date. For the
avoidance of doubt, the amount of
liquidated damages payable hereunder is
in addition (and not otherwise subject)
to any other interest rate caps or
limitations contained in any Debt
Financing Letter. In addition, unless
and until the Borrower has consummated
the registered exchange offer and caused
the Shelf Registration Statement to
become effective, the holders of the
Exchange Notes will have the right to
“piggy-back” the Exchange Notes in the
registration of any debt securities
(subject to customary scale-back
provisions) that are registered by the
Borrower (other than on a Form S-4)
unless all the Exchange Notes, Bridge
Loans and Extended Term Loans will be
redeemed or repaid from the proceeds of
such securities.
	 
	 	 
	Covenants

	 	The Indenture will include covenants
similar to those contained in indentures
governing publicly traded high yield
debt securities (but more restrictive in
certain respects).
	 
	 	 
	Events of Default

	 	The Indenture will provide for events of
default similar to those contained in
indentures governing publicly traded
high yield debt securities.

* * *

Exhibit B-4

 

EXHIBIT C TO COMMITMENT LETTER

CLOSING CONDITIONS

     Capitalized terms used but not defined in this Exhibit C have the meanings assigned to
them elsewhere in this Commitment Letter. The closing of the Bridge Loan Facility and the making
of the loans under the Bridge Loan Facility are conditioned upon satisfaction of the Specified
Conditions (including, without limitation, the conditions precedent set forth or referred to in
this Exhibit C). For purposes of this Exhibit C, references to

“we”, “us” or “our”
means Jefferies Finance, Jefco and their respective affiliates.

GENERAL CONDITIONS

     1. Definitive Debt Documents. The Credit Parties shall have executed and delivered
the Bridge Loan Documents. All such Definitive Debt Documents shall be in full force and effect.

     2. Transactions. The Merger shall have been consummated (or substantially
simultaneously with the initial borrowing under the Bridge Facility) in all material respects in
accordance with an Agreement and Plan of Merger (together with the schedule and exhibits thereto,
the “Purchase Agreement”), to be entered into among the PHC, Inc., Acadia Healthcare Company, Inc
and Acadia Merger Sub, LLC, in form and substance reasonably satisfactory to us in each case (it
being understood that the form and substance of the Purchase Agreement, received by the Arranger on
May 23, 2011, is reasonably satisfactory) and no material provision of the Merger Agreement shall
have been waived, amended, supplemented or otherwise modified in a manner material and adverse to
the Lenders that has not been approved by us in writing (it being understood and agreed that any
(i) change resulting in a material reduction in the consideration to be paid, (ii) change to the
definition of “Ajax Material Adverse Effect”, “Phoenix Material Adverse Effect” or any similar
definition and (iii) modifications to any of the provisions relating to the Administrative Agent’s,
the Collateral Agent’s, the Arranger’s or any Lender’s liability, jurisdiction or status as a third
party beneficiary under the Purchase Agreement shall be deemed to be materially adverse to the
interest of the Lenders and the Arrangers). The Specified Purchase Agreement Representations and
the Specified Representations shall be true and correct in all material respects (and all respects
if qualified by materiality). The Merger Agreement shall be in full force and effect on the
Closing Date. The Board of Directors of the Target shall have approved the Merger (and such
approval shall continue until the consummation of the Merger).

     3. Refinancing of Existing Debt. Concurrently with the consummation of the Merger,
the Refinancing shall have been consummated, all commitments relating thereto shall have been
terminated, and all liens or security interests related thereto shall have been terminated or
released, in each case, on terms reasonably satisfactory to us. After giving effect to the
Transactions, the Company shall have outstanding no indebtedness or preferred stock (or direct or
indirect guarantee or other credit support in respect thereof) other than (i) the indebtedness in
respect of the Debt Financing, (ii) the Existing Credit Agreement and (iii) such other indebtedness
as may be agreed to by us. No provision of the Existing Credit
Agreement shall have been amended, supplemented, amended
and restated or otherwise modified without the prior written consent of the Arranger (which may not
be unreasonably withheld, conditioned or delayed). The amount of
Bridge Loans funded hereunder (when taken together with the amount of
Notes issued on or before the Closing Date) shall not be less than
$150 million.

     4. Consents and Approvals. All necessary governmental, regulatory and shareholder
approvals and consents necessary for the consummation of the Transactions shall have been obtained
and shall be in full force and effect, and all applicable waiting periods shall have expired
without any action being taken by any applicable authority that could reasonably be expected to
restrain, prevent or otherwise impose material and adverse conditions on any of the Transactions.

Exhibit C-1

 

     5. Financial Statements; Financial Performance. We shall have received (i) audited
consolidated financial statements of the Acquiror for the fiscal years ending December 31, 2010,
2009 and 2008, (ii) unaudited consolidated financial statements of the Acquiror for the quarter and
six-months ended June 30, 2010 and June 30, 2011 on or prior to August 15, 2011, (iii) audited
consolidated financial statements for the Acquired Business for the fiscal years ending June 30,
2010, 2009 and 2008, (iv) audited financial statements of the Acquired Business for the fiscal year
ended June 30, 2011 on or prior to September 15, 2011, (v) audited consolidated financial
statements of Youth & Family Centered Services, Inc. (“YFCS”) for the fiscal years ending December
31, 2010, 2009 and 2008, (vi) unaudited consolidated financial statements of the YFCS for the three
months ended March 31, 2010 and March 31, 2011, (vii) audited consolidated financial statements of
MeadowWood for the fiscal years ending December 31, 2010 and 2009, (viii) unaudited consolidated
financial statements of MeadowWood Behavioral Health (“MeadowWood”) for the quarter and six-months
ended June 30, 2010 and June 30, 2011 on or prior to September 15, 2011, and (ix) pro forma
financial statements meeting the requirements of Regulation S-X and giving effect to the Merger and
the acquisitions of YFCS by the Acquiror and MeadowWood by the Acquired Business.

Such financial statements shall show pro forma total leverage (using an indebtedness definition
consistent with Documentation Principles) of the Borrower and its consolidated subsidiaries after
giving effect to the Transactions (calculated in a manner we agree is appropriate) for the
twelve-month period ended not more than 45 days prior to the Closing Date of not greater than 5.85
to 1 (the “Closing Leverage Condition”).

          At least four (4) business days prior to the Closing Date, we shall have received evidence
reasonably satisfactory to us that after giving effect to the Merger on a Pro Forma Basis
Consolidated EBITDA (as defined in the Existing Credit Agreement) shall be not less than $53.5
million.

     6. Projections. You shall have delivered to us projections in form and substance
reasonably satisfactory to us (including the assumptions on which such projections are based) for
the Company for fiscal years 2011 through and including 2018 (it being understood and agreed that
the projections delivered to us on May 5, 2011 are satisfactory to us); provided, however, if you
are required to deliver to us updated projections pursuant to Section 4 of the Commitment Letter,
such projections shall be reasonably satisfactory to us.

     7. Material Adverse Effect. Since June 30, 2010 there shall not have been or have
occurred a Phoenix Material Adverse Effect (as defined in the Merger Agreement). Since December
31, 2010 there shall not have been or have occurred an Ajax Material Adverse Effect (as defined in
the Merger Agreement).

     8. Performance of Obligations. All costs, fees, expenses (including reasonable and
documented legal fees and out-of-pocket expenses, title premiums, survey charges and recording
taxes and fees) and other compensation and amounts contemplated by the Debt Financing Letters or
otherwise payable to us, the Lenders, the Investors or any of our or their respective affiliates,
shall have been paid to the extent due. The Debt Financing Letters shall be in full force and
effect. You shall have complied in all material respects with Section 6 (Clear Market) of the
Commitment Letter and Sections 2 (Market Flex) and 4 (Issuance of Permanent Instruments) of the Fee
Letter.

     9. Customary Closing Documents. All customary and reasonable closing documents
required to be delivered under the Definitive Debt Documents, including lien, litigation and tax
searches, and customary legal opinions, corporate records and documents from public officials and
officers’ certificates shall have been delivered. Without limiting the foregoing, you shall have
delivered (a) at least five business days prior to the Closing Date, all documentation and other
information required by bank

Exhibit C-2

 

regulatory authorities under applicable “know-your-customer” and anti-money laundering rules
and regulations, including the Patriot Act, and (b) a certificate from the chief financial officer
of the Company in form and substance satisfactory to us, as to the solvency of each of the Borrower
and its subsidiaries (on consolidated basis), immediately before and after giving effect to the
Transactions.

     10. Prior Marketing of Permanent Instruments.

          (a) Prior Marketing of Permanent Instruments. The Company shall have delivered to us in no
event later than 2 days prior to the start of the Required Marketing Period (defined below) an
initial draft of a customary Rule 144A confidential offering memorandum relating to the issuance of
the Notes, containing all financial statements and other data to be included therein (including all
audited financial statements, all unaudited financial statements (each of which shall have
undergone a SAS 100 review) and all appropriate pro forma financial statements) prepared in
accordance with, or reconciled to, generally accepted accounting principles in the United States
and prepared in accordance with Regulation S-X (other than Rules 3-10 and 3-16 of Regulation S-X),
and all other financial data (including selected financial data) and other information that would
be required in a registered offering of the Notes on a Form S-1 registration statement to the
extent the same is of the type and form customarily included in an offering memorandum for private
placements of non-convertible notes under Rule 144A (collectively, the “Required Information”) and
(ii) prior to the Required Marketing Period, a complete printed preliminary offering memorandum
(the “Preliminary Offering Memorandum”) usable in a customary high-yield road show relating to the
issuance of the Permanent Instruments that contains all Required Information. We shall have been
offered a period of not less than 15 business days prior to the Closing Date (or such shorter
period acceptable to us) to seek to place the Notes; provided that such period shall not include,
and shall be extended by, any day from and including August 19, 2011 through and including September 5, 2011 (such
period, as extended by the proviso, is the “Required Marketing Period”) to seek to place the Notes.
For clarification purposes, the Required Information shall include the following: (i) audited
consolidated financial statements of the Acquired Business for the fiscal year ending June 30, 2011
with respect to any Required Marketing Period ending after August 15, 2011, (ii) unaudited
consolidated interim financial statements for 2010 and 2011 for the Acquired Business, YFCS and
MeadowWood for the year to date period for any of the first three fiscal quarters ended more than
45 days prior to the pricing date for the offering of the Permanent Instruments, and (iii) pro
forma financial statements meeting the requirements of Regulation S-X and giving effect to the
Merger and the acquisitions of YFCS by the Acquiror and MeadowWood by the Acquired Business;
provided that no financial statements shall be required to include the disclosures required by
Rules 3-10 or 3-16 of Regulation S-X. Notwithstanding anything herein to the contrary, the Required
Information shall not include audited financial statements for MeadowWood other than for the years
ending December 31, 2009 and 2010.

          (b) Notwithstanding the foregoing, the Required Marketing Period shall be deemed not to have
commenced if, prior to the completion of the Required Marketing Period, (A) the Acquired Business’
auditor shall have withdrawn its audit opinion with respect to any year end audited financial
statements set forth in the Preliminary Offering Memorandum, (B) the financial statements included
in the Preliminary Offering Memorandum would be required to be updated under Rule 3-12 of
Regulation S-X in order to be sufficiently current on any day during the Required Marketing Period
to permit a registration statement using such financial statements to be declared effective by the
SEC on the last day of the Required Marketing Period, in which case the Required Marketing Period
shall not be deemed to commence until the receipt of updated financial information that would be
required under Rule 3-12 of Regulation S-X to permit a registration statement using such financial
statements to be declared effective by the SEC on the last day of such new Required Marketing
Period, and (C) the Company shall have publicly announced any intention to restate any material
financial information included in the Preliminary Offering Memorandum or that any such restatement
is under consideration, in which case the Required

Exhibit C-3

 

Marketing Period shall be deemed not to commence unless and until such restatement has been
completed or the Company has determined that no restatement shall be required.

     11. Comfort Letter. The independent accountants that have audited the financial
statements contained in the preliminary offering memorandum relating to the issuance of the Notes
shall make available and have delivered to us, (i) no later than the delivery to us of the
preliminary prospectus or preliminary offering memorandum in accordance with preceding paragraph,
in a form they are prepared to execute, a customary draft of a comfort letter (including, without
limitation, the items included in the “circle-up” and the degree of comfort provided with respect
thereto) prepared in accordance with the requirements of SAS 72 covering the financial statements
and other data included and incorporated by reference in the Preliminary Offering Memorandum (the
“Comfort Letter”), (ii) no later than the pricing of the offering of the Notes, an executed copy of
the Comfort Letter, and (iii) the date of consummation of the issuance of the Notes Offering, a
customary “bring down” comfort letter reasonably satisfactory to us.

     12. Delivery of Notice. The Administrative Agent shall have received a duly-completed
and timely-delivered notice of borrowing for the Bridge Loan Facility.

* * *

Exhibit C-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}]]