Document:

Exhibit 4.2

 

THIRD SUPPLEMENTAL INDENTURE

 

THIRD SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of the 27 day of June, 2013, among Hanger, Inc. (formerly known as Hanger Orthopedic Group, Inc.), a Delaware corporation (the “Company”), Accelerated Care Plus Leasing, Inc., a Delaware corporation, Barth Orthotic and Prosthetic Services, Inc., an Illinois corporation, BioConcepts, Inc., an Illinois corporation, East Coast Orthotics, Inc., a Florida corporation, Faith Prosthetic-Orthotic Services, Inc., a North Carolina corporation, Gadsden Limb & Brace Inc., an Alabama corporation, Genesis Medical Group, LLC, an Oregon limited liability company, Great Plains Orthotics & Prosthetics, Inc., an Iowa corporation, Innovative Prosthetic Care Tupelo, LLC, a Mississippi limited liability company, Innovative Prosthetic Care, Inc., a Mississippi corporation, Karsten Prosthetic Laboratories, Inc., a Colorado corporation, Mississippi Artificial Limb & Brace, LLC, a Mississippi limited liability company, Missoula Orthotics and Prosthetics Laboratories, Inc., a Montana corporation, MK Prosthetic & Orhtotic Services, Inc., a Texas corporation, Nascott, Inc., a Delaware corporation, OrPro, Inc., a California corporation, Ortho-Medical Products, Inc., a New York corporation, Orthotic & Prosthetic Technologies, Inc., a Texas corporation, Plattner Orthopedic Company, an Illinois corporation, Prosthetic Care of Anderson, L.L.C., a South Carolina limited liability company, Prosthetic Care, Inc., a South Carolina corporation, Rainier Surgical Incorporated, a Washington corporation, SCOPe Orthotics & Prosthetics, Inc., a California corporation, and US Orthotics & Prosthetics, Inc., a Virginia corporation (collectively, the “Guaranteeing Subsidiaries”), and Wilmington Trust Company, as Trustee (the “Trustee”), under the Indenture referred to below.

 

W  I  T  N  E  S  S  E  T  H

 

WHEREAS, the Company and the subsidiary guarantors listed on the signature pages thereto have heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of November 2, 2010, providing for the issuance of an aggregate principal amount of up to $200,000,000 of 71/8% Senior Notes due 2018 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiaries shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiaries shall unconditionally guarantee all of the Company’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary Guarantee”); and

 

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee and the Company are authorized to execute and deliver this Supplemental Indenture.

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiaries, the Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

 

 

1.                                      Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

2.                                      Agreement to Guarantee.  The Guaranteeing Subsidiaries hereby agree, jointly and severally with all existing Subsidiary Guarantors, to unconditionally guarantee the Company’s Obligations under the Notes on the terms and subject to the conditions set forth in Article 10 of the Indenture and to be bound by all other applicable provisions of the Indenture and the Notes and to perform all of the obligations and agreements of a Subsidiary Guarantor under the Indenture.

 

3.                                      Execution and Delivery.  The Guaranteeing Subsidiaries agree that the Subsidiary Guarantee shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee.

 

4.                                      No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner, stockholder or agent of any of the Guaranteeing Subsidiaries, as such, shall have any liability for any obligations of the Company or the Guaranteeing Subsidiaries under the Notes, any Subsidiary Guarantees, the Indenture or this Supplemental Indenture, or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of the Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.  Such waiver may not be effective to waive liabilities under the federal securities laws and it is the view of the Securities and Exchange Commission that such a waiver is against public policy.

 

5.                                      Ratification of Indenture and Notation of Guarantee; Supplemental Indenture Part of Indenture.  Except as expressly amended hereby, the Indenture, the Notation of Guarantee, dated as of November 2, 2010, the Notation of Guarantee, dated as of December 13, 2010, and the Notation of Guarantee, dated as of February 15, 2011, each among the subsidiary guarantors listed on the respective signature pages thereto, are in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

 

6.                                      New York Law to Govern.  THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

7.                                      Counterparts.  The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

 

8.                                      Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

 

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9.                                      The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiaries and the Company.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed and attested, all as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Hanger, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas E. Hartman
    
	
 
    	
 
    	
Name:
    	
Thomas   E. Hartman
    
	
 
    	
 
    	
Title:
    	
Vice   President, General Counsel and Assistant Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GUARANTEEING   SUBSIDIARIES:
    
	
 
    	
 
    
	
 
    	
Accelerated Care Plus Leasing, Inc.
    
	
 
    	
Barth Orthotic and Prosthetic Services, Inc.
    
	
 
    	
BioConcepts, Inc.
    
	
 
    	
East Coast Orthotics, Inc.
    
	
 
    	
Faith Prosthetic-Orthotic Services, Inc.
    
	
 
    	
Gadsden Limb & Brace Inc.
    
	
 
    	
Genesis Medical Group, LLC
    
	
 
    	
Great Plains Orthotics & Prosthetics, Inc.
    
	
 
    	
Innovative Prosthetic Care Tupelo, LLC
    
	
 
    	
Innovative Prosthetic Care, Inc.
    
	
 
    	
Karsten Prosthetic Laboratories, Inc.
    
	
 
    	
Mississippi Artificial Limb & Brace, LLC
    
	
 
    	
Missoula Orthotics and Prosthetics   Laboratories, Inc.
    
	
 
    	
MK Prosthetic & Orhtotic Services, Inc.
    
	
 
    	
Nascott, Inc.
    
	
 
    	
OrPro, Inc.
    
	
 
    	
Ortho-Medical Products, Inc.
    
	
 
    	
Orthotic & Prosthetic   Technologies, Inc.
    
	
 
    	
Plattner Orthopedic Company
    
	
 
    	
Prosthetic Care of Anderson, L.L.C.
    
	
 
    	
Prosthetic Care, Inc.
    
	
 
    	
Rainier Surgical Incorporated
    
	
 
    	
SCOPe Orthotics & Prosthetics, Inc.
    
	
 
    	
US Orthotics & Prosthetics, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas E. Hartman
    
	
 
    	
 
    	
Name:
    	
Thomas   E. Hartman
    
	
 
    	
 
    	
Title:
    	
Vice President, General Counsel and Assistant   Secretary
    

 

Third Supplemental Indenture

(Hanger, Inc.)

 

S-1

 

	
 
    	
TRUSTEE:
    
	
 
    	
 
    
	
 
    	
Wilmington   Trust Company, as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   W. Thomas Morris, II
    
	
 
    	
 
    	
Name:   W. Thomas Morris, II
    
	
 
    	
 
    	
Title:   Vice President
    

 

Third Supplemental Indenture

(Hanger, Inc.)

 

S-2Exhibit 10.1

 

WAIVER AND AMENDMENT AGREEMENT

 

dated

 

June 13, 2013

 

to the

 

Facility Agreement

 

between

 

(1)                            Logitech International SA, rue du Sablon 2-4, 1110 Morges (CH-550-1007197-4) (the “Company”);

 

(2)                            THE ENTITIES listed  in Schedule 1 to this Waiver and Amendment Agreement as Borrowers (together with the Company the “Borrowers”);

 

(3)                            THE ENTITIES listed in Schedule 1  to this Waiver and Amendment Agreement as Guarantors (together with the Company the “Guarantors”);

 

(4)                            THE FINANCIAL INSTITUTIONS listed in Schedule 2 to this Waiver and Amendment Agreement as Lenders (the “Lenders”);

 

(5)                            Credit Suisse AG, Paradeplatz 8, 8001 Zurich as agent acting for itself and for the other Finance Parties (the “Agent”).

 

WHEREAS, Credit Suisse AG as Arranger, Agent and the Original Lenders entered into a USD 250’000’000 senior revolving credit facility Agreement dated December 23, 2011 with the Original Borrowers and the Original Guarantors (the “Facility Agreement”);

 

WHEREAS, by a letter dated May 22, 2013 (the “Amendment Request”), the Company has requested a waiver of the breach of the Interest Cover Ratio as of March, 31, 2013, and an amendment of the definition of EBITDA and of the definition of Interest Cover Ratio;

 

WHEREAS, the Agent and the Lenders have carefully reviewed and assessed the proposals made in the Amendment Request and agreed to the proposals made therein in the form and with the contents as set out in this agreement (the “Waiver and Amendment Agreement”).

 

 

NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 

 

1.                                      INTERPRETATION

 

Capitalized terms used herein (including the recitals) but not defined shall have the meaning as ascribed to them in the Facility Agreement. This Waiver and Amendment Agreement shall constitute a Finance Document.

 

2.                                      WAIVER

 

The Finance Parties herewith waive the Event of Default pursuant to Clause 23.2 (Financial covenant)  of the Facility Agreement which has arisen as a consequence of the breach of the Interest Cover Ratio as of March 31, 2013.

 

3.                                      AMENDMENTS

 

The following definitions of the Facility Agreement shall henceforth read as follows:

 

·                 “EBITDA” means earnings before interest, tax, depreciation, amortization and impairment of goodwill and other intangible assets, based on the consolidated accounts of the Group according to GAAP, whereby in the calculation of EBITDA losses and profits from discontinued operations shall be disregarded;

 

·                  “Interest Cover Ratio” means EBITDA divided by Net Interest Expense.

 

4.                                      WAIVER AND AMENDMENT FEE

 

The Company shall pay to the Agent (for the respective Lenders) a waiver and amendment fee (the “Waiver and Amendment Fee”) of 10 basis points calculated on the Commitment of each Lender (the amount of such Commitment to be determined as of the date of the entry into force of this Waiver and Amendment Agreement) who has consented to the proposed waiver and amendments. Payment of the Waiver and Amendment Fee shall be made within five (5) Business Days as from the entry into force of this Waiver and Amendment Agreement pursuant to Clause 6 hereinafter.

 

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5.                                      CONFIRMATION

 

The Borrowers and the Guarantors herewith confirm that their rights and obligations under the Facility Agreement shall not be novated by this Waiver and Amendment Agreement but shall continue to be valid and enforceable subject only to the waiver and the amendments expressly provided for and agreed upon in this Waiver and Amendment Agreement.

 

6.                                      ENTRY INTO FORCE OF THE WAIVER AND AMENDMENT AGREEMENT

 

This Waiver and Amendment Agreement shall enter into force and become effective upon due execution of it by Logitech International SA on behalf of all Borrowers and Guarantors and Credit Suisse AG as Agent acting for itself and on behalf of the other Finance Parties. Upon this Waiver and Amendment Agreement becoming effective, the waiver granted in Clause 2 of this Waiver and Amendment Agreement shall be deemed effective and the Facility Agreement shall be deemed amended pursuant to the terms and conditions of this Waiver and Amendment Agreement.

 

7.                                      SCHEDULES

 

The Schedules hereto form an integral part of this Waiver and Amendment Agreement.

 

8.                                      GOVERNING LAW

 

This Waiver and Amendment Agreement is governed by Swiss law.

 

9.                                      ENFORCEMENT

 

9.1                               Jurisdiction

 

Each of the Obligors and each of the Finance Parties agrees that any legal action arising out of or relating to this Waiver and Amendment Agreement, including actions relating to disputes on the conclusion, validity or amendment of this Waiver and Amendment Agreement, may exclusively be brought before the courts of Zurich, Switzerland, venue being Zurich 1, provided that nothing in this Waiver and Amendment Agreement shall limit the right of the Finance Parties, or any of them, to

 

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commence any legal action against any Obligor and/or its assets in any other jurisdiction or to serve process in any manner permitted by law, and the taking of proceedings in any jurisdiction shall not preclude the Finance Parties, or any of them, from taking proceedings in any other jurisdiction whether concurrently or not, to the extent legally permitted.

 

9.2                               Service of Process

 

Each Obligor domiciled outside of Switzerland appoints the Company as its agent to receive and acknowledge on its behalf service of process, summons, order, judgment or other notice of legal process in Switzerland under or in connection with this Waiver and Amendment Agreement. If for any reason the agent named above or its successor no longer serves as agent of such Obligor for this purpose, that Obligor shall promptly appoint a successor agent approved by the Agent and notify the Agent thereof. Until the Agent receives such notification, it shall be entitled to treat the agent named above (or its said successor) as the agent of that Obligor for the purpose of this Clause.

 

9.3                               Special Domicile

 

Each Obligor domiciled outside of Switzerland herewith elects Zurich as its special domicile in Switzerland within the meaning of Art. 50 section 2 of the Swiss Code on Debt Collection and Bankruptcy for the purpose of discharging its obligations under or in connection with this Waiver and Amendment Agreement.

 

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SCHEDULE 1

 

THE OBLIGORS

 

	
Borrowers
    	
 
    	
Registration number
    
	
 
    	
 
    	
 
    
	
Logitech International SA
    	
 
    	
CH-550-1007197-4
    

 

 

	
Guarantors
    	
 
    	
Registration number
    
	
 
    	
 
    	
 
    
	
Logitech International SA
    	
 
    	
CH-550-1007197-4
    

 

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SCHEDULE 2

 

THE LENDERS

 

	
Name of Original Lender
    	
 
    	
Commitment
    	
 
    	
Percentage
    	
 
    
	
Credit Suisse AG
    	
 
    	
USD
    	
60,000,000
    	
 
    	
24.00
    	
%
    
	
Banque Cantonale Vaudoise
    	
 
    	
USD
    	
30,000,000
    	
 
    	
12.00
    	
%
    
	
Citibank N.A., London Branch
    	
 
    	
USD
    	
30,000,000
    	
 
    	
12.00
    	
%
    
	
Raiffeisen Schweiz Genossenschaft
    	
 
    	
USD
    	
30,000,000
    	
 
    	
12.00
    	
%
    
	
Zürcher Kantonalbank
    	
 
    	
USD
    	
30,000,000
    	
 
    	
12.00
    	
%
    
	
Graubündner Kantonalbank
    	
 
    	
USD
    	
20,000,000
    	
 
    	
8.00
    	
%
    
	
Banca dello Stato del Cantone Ticino
    	
 
    	
USD
    	
15,000,000
    	
 
    	
6.00
    	
%
    
	
UBS AG
    	
 
    	
USD
    	
15,000,000
    	
 
    	
6.00
    	
%
    
	
Migros Bank AG
    	
 
    	
USD
    	
10,000,000
    	
 
    	
4.00
    	
%
    
	
Schaffhauser Kantonalbank
    	
 
    	
USD
    	
10,000,000
    	
 
    	
4.00
    	
%
    
	
Total
    	
 
    	
USD
    	
250,000,000
    	
 
    	
100.00
    	
%
    

 

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Waiver and Amendment Agreement CS/Logitech, June 13, 2013

 

SIGNATURE PAGE

 

Logitech International SA
 as Company, Borrower and Guarantor

 

 

	
by
    	
Joe Greenhalgh
    	
 
    	
 
    	
Bracken P.Darrell
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

 

Credit Suisse

as Agent acting for itself and the other Finance Parties

 

 

	
by
    	
/s/ Fabian Munzinger
    	
 
    	
 
    	
/s/ Barbara Giovani
    
	
 
    	
Fabian Munzinger
    	
 
    	
Barbara Giovani
    
	
 
    	
Vice President
    	
 
    	
Vice President
    

 

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