Document:

Exhibit 10.1

 

EXECUTION VERSION

 

JPMORGAN CHASE BANK, N.A.
 270 Park Avenue
 New York, New York 10017

 

August 23, 2016

 

PDC Energy, Inc.

1775 Sherman St., Suite 3000

Denver, CO 80203

Attention: Barton R. Brookman, Jr.,

President and Chief Executive Officer

 

Project A-Basin
 Commitment Letter

 

Ladies and Gentlemen:

 

You have advised JPMorgan Chase Bank, N.A. (“JPMorgan”, the “Commitment Party”, “us” or “we”) that PDC Energy, Inc., a Delaware corporation (“you” or the “Borrower”), intends to acquire the Target and the Target Assets pursuant to the Acquisition and consummate the other transactions described on Exhibit A hereto (together with the Acquisition, the “Transactions”).  Capitalized terms used but not defined herein are used with the meanings assigned to them in the Exhibits attached hereto (such Exhibits, together with this letter, collectively, the “Commitment Letter”).

 

To facilitate the Transactions, you have requested that JPMorgan structure, arrange and syndicate:

 

(a)                                 an amendment containing such waivers or amendments necessary to permit the Transactions under the Existing Credit Agreement and containing such additional terms and conditions set forth in Exhibit B to this Commitment Letter;

 

(b)                                 a $250.0 million increase of the commitments under the Existing Credit Facility; and

 

(c)                                  a $600.0 million Bridge Facility as described in Exhibit C.

 

1.              Commitments

 

In connection with the Transactions, JPMorgan is pleased to advise you of (a) its commitment (the “Backstop Commitment”) to acquire the Commitments (as defined in the Existing Credit Agreement) of each lender under the Existing Credit Facility which does not approve the Amendment in such amount as is necessary to approve the Amendment in an aggregate amount up to $256.5 million, (b) its commitment to provide 100% of the aggregate amount of the Incremental Facility (the “Incremental Commitment”), and (c) its commitment to provide 100% of the aggregate amount of the Bridge Facility, in each case upon the terms and conditions set forth in this letter and Exhibits B, C and D hereto (collectively, the “Term Sheets”).

 

 

2.              Titles and Roles

 

It is agreed that:

 

(a) (i) JPMorgan will act as sole lead arranger and sole bookrunner for the Amendment and the Incremental Facility (acting in such capacities, the “Senior Lead Arranger”); provided that the Borrower agrees that JPMorgan may perform its responsibilities hereunder through its affiliate, J.P. Morgan Securities LLC (“JPMS”) and (ii) JPMorgan will continue to act as sole administrative agent for the Revolving Facility; and

 

(b) (i) JPMorgan will act as sole lead arranger and sole bookrunner for the Bridge Facility (acting in such capacities, the “Bridge Lead Arranger” and, together with the Senior Lead Arranger, the “Lead Arrangers”); provided that the Borrower agrees that JPMorgan may perform its responsibilities hereunder through JPMS and (ii) JPMorgan will act as sole administrative agent for the Bridge Facility.

 

You agree that no other agents, co-agents, arrangers, co-arrangers, bookrunners, co-bookrunners, managers or co-managers will be appointed, no other titles will be awarded and no compensation (other than that expressly contemplated by the Term Sheets and Fee Letter referred to below) will be paid in connection with the Credit Facilities unless you and we shall so reasonably agree (it being understood and agreed that no other agent, co-agent, arranger, co-arranger, bookrunner, co-bookrunner, manager or co-manager shall be entitled to greater economics in respect of the Credit Facilities than the Commitment Party).

 

3.              Syndication

 

We intend to syndicate the Credit Facilities to a group of lenders identified by us in consultation with you and reasonably acceptable to you (together with JPMorgan, the “Lenders”).  The Commitment Party intends to commence syndication efforts promptly upon your acceptance of this Commitment Letter and the Fee Letter, and you agree actively to assist (and to use your commercially reasonable efforts to cause Target and Asset Sellers to actively assist) the Commitment Party in completing a syndication reasonably satisfactory to the Commitment Party until the earlier of (i) the occurrence of a Successful Syndication and (ii) the date that is 60 days following the Closing Date.  Such assistance shall include (A) your using commercially reasonable efforts to ensure that the syndication efforts benefit from your and your affiliates’ existing banking relationships, (B) using commercially reasonable efforts to make your senior management and advisors available to the proposed Lenders (and using your commercially reasonable efforts to make senior management of Target and the Asset Sellers available to the proposed Lenders), (C) your preparing and providing to the Commitment Party (and using commercially reasonable efforts to cause Target and the Asset Sellers to prepare and provide) all information with respect to you and the Acquisition and information in your possession regarding Target, Asset Sellers and their respective subsidiaries and the Target Assets, including all financial information (with respect to Target, Asset Sellers and the Target Assets, to the extent in your possession) and Projections (as defined below), as the Commitment Party may reasonably request in connection with the arrangement and syndication of the Credit Facilities and your assistance (and using your commercially reasonable efforts to cause Target and the Asset Sellers to assist) 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 the Credit Facilities (all such information, memoranda and material, “Information Materials”), (D) your hosting, with the Commitment Party, of one or more meetings of prospective Lenders at times and locations to be mutually agreed (and using your commercially reasonable efforts to cause the officers of Target and Asset Sellers to be available for such meetings), (E) your using your commercially reasonable efforts to obtain (x) corporate credit and/or corporate family ratings for the Borrower and (y) ratings for the Bridge Facility and the Senior Notes, in each case from

 

2

 

each of Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Financial Services LLC (“S&P”) as soon as practicable, and (F) your ensuring that, until the date that is 60 days following the Closing Date, there is no competing offering, placement, arrangement or syndication of any debt securities or common equity (other than the Securities) or bank financing (other than the Credit Facilities) or announcement thereof by or on behalf of you or your subsidiaries.  Upon the request of the Commitment Party, you will use your commercially reasonable efforts to cause Target and Asset Sellers to furnish, for no fee, to the Commitment Party an electronic version of Target’s and Asset Sellers’ trademarks, service marks and corporate logo for use in marketing materials for the purpose of facilitating the syndication of the Credit Facilities (the “License”); provided, however, that the License shall be used solely for the purpose described above and may not be assigned or transferred.  You also understand and acknowledge that we may provide to market data collectors, such as league table providers, or other service providers to the lending industry, information regarding the closing date, size, type, purpose of, and parties to, the Credit Facilities.  To the extent that you have agreed herein to use “commercially reasonable efforts” to cause Target and Asset Sellers to take certain actions, it is understood and agreed that your obligations are limited to those involved in enforcing the obligations of Target and Asset Sellers under the M&A Agreements between you and each of Target and Asset Sellers governing the Transactions.  Without limiting your obligations to assist with syndication efforts as set forth in this paragraph, we agree that we will not be released from our commitment hereunder in connection with any syndication or assignment to any Lender unless (A) (i) you have consented to such syndication or assignment in writing (such consent not to be unreasonably withheld or delayed) and (ii) any such Lender has entered into an amendment or joinder with respect to this Commitment Letter committing to provide a portion of the Credit Facilities (in which case our commitments hereunder shall be reduced at such time by an amount equal to the commitment assumed by such Lender) or (B) such Lender shall have entered into the applicable Credit Facilities Documentation and funded the portion of the Credit Facilities required to be funded by it on the Closing Date.

 

The Commitment Party will manage, in consultation with you, all aspects of the syndication, including decisions as to the selection of institutions to be approached and when they will be approached, when commitments will be accepted, which institutions will participate, the allocation of the commitments among the Lenders and the amount and distribution of fees among the Lenders.  You hereby acknowledge and agree that the Lead Arrangers will have no responsibility other than to arrange the syndication as set forth herein and each Lead Arranger is acting solely in the capacity of an arm’s length contractual counterparty to the Borrower with respect to the arrangement of the Credit Facilities (including in connection with negotiating the terms of the Credit Facilities) and not as a financial advisor or a fiduciary to, or an agent of, the Borrower or any other person. The Borrower agrees that it will not assert any claim against any Lead Arranger based on an alleged breach of fiduciary duty by such Lead Arranger in connection with this Commitment Letter and the transactions contemplated hereby.  Additionally, the Borrower acknowledges and agrees that, as a Lead Arranger, JPMorgan is not advising the Borrower as to any legal, tax, investment, accounting, regulatory or any other matters in any jurisdiction.  The Borrower shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and JPMorgan shall have no responsibility or liability to the Borrower with respect thereto.  Any review by JPMorgan of the Borrower, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of JPMorgan and shall not be on behalf of the Borrower.

 

At the request of the Commitment Party, you agree to assist in the preparation of a version of each Confidential Information Memorandum or other Information Material (a “Public Version”) consisting exclusively of information with respect to you and your affiliates, Target, Asset Sellers and their respective subsidiaries, the Target Assets, and the Acquisition that is either publicly available or not material with respect to you and your affiliates, Target, Asset Sellers and their respective subsidiaries, the

 

3

 

Target Assets, any of your or their respective securities or the Acquisition for purposes of United States federal and state securities laws or that would reasonably be expected to be included in an offering memorandum for an offering of high yield debt securities under Rule 144A concurrent with the syndication of the Credit Facilities (such information, “Non-MNPI”).  Such Public Versions, together with any other information prepared by you, Target, Asset Sellers or their respective affiliates or representatives and conspicuously marked “Public” (collectively, the “Public Information”), which at a minimum means that the word “Public” will appear prominently on the first page of any such information, may be distributed by us to prospective Lenders who have advised us that they wish to receive only Non-MNPI (“Public Side Lenders”).  You acknowledge and agree that, in addition to Public Information and unless you promptly notify us otherwise, (a) drafts and final definitive documentation with respect to the Credit Facilities, (b) administrative materials prepared by the Commitment Party for prospective Lenders (such as a lender meeting invitation, allocations and funding and closing memoranda) and (c) notifications of changes in the terms of the Credit Facilities may be distributed to Public Side Lenders.  You acknowledge that Commitment Party public-side employees and representatives who are publishing debt analysts may participate in any meetings held pursuant to clause (D) of the second preceding paragraph; provided that such analysts shall not publish any information obtained from such meetings (i) until the syndication of the Credit Facilities has been completed upon the making of allocations by the Lead Arrangers and the Lead Arrangers freeing the Credit Facilities to trade or (ii) in violation of any confidentiality agreement between you and the Commitment Party.

 

In connection with our distribution to prospective Lenders of any Confidential Information Memorandum and, upon our request, any other Information Materials, you will execute and deliver to us a customary authorization letter authorizing such distribution and, in the case of any Public Version thereof or other Public Information, representing that it only contains Non-MNPI.  Each Confidential Information Memorandum will be accompanied by a disclaimer exculpating you and us with respect to any use thereof and of any related Information Materials by the recipients thereof.

 

The term “Successful Syndication” shall mean that the Commitment Party and its affiliates shall hold commitments with respect to, or loans under, (i) the Revolving Facility of not more than $100.0 million and (ii) the Bridge Facility of not more than $0.00.

 

4.              Information

 

You hereby represent and warrant that (with respect to any information relating to Target, Asset Sellers and their respective subsidiaries or the Target Assets, to your knowledge) (a) all information (including all Information Materials), other than the Projections, information of a general economic or industry specific nature, and information and data prepared by a third party that is not one of your representatives (the “Information”), that has been or will be made available to us by you or any of your representatives in connection with the transactions contemplated hereby, when taken as a whole, does not or will not, when furnished to us, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (giving effect to all supplements and updates thereto) and (b) the financial projections, financial estimates, forecasts and other forward-looking information (the “Projections”) that have been or will be made available to us by you or any of your representatives in connection with the transactions contemplated hereby have been or will be prepared in good faith based upon assumptions believed by you to be reasonable at the time furnished to us (it being understood and agreed by the Commitment Party that such Projections are not to be viewed as facts and that actual results during the period or periods covered by any such Projections may differ from the projected results, and such differences may be material).  You agree that if, at any time prior to the Closing Date and thereafter until completion of our syndication efforts (but not later than 60 days after the Closing Date), you become aware that any of the representations in the preceding sentence would be

 

4

 

incorrect if such Information or Projections were furnished at such time and such representations were remade, in any material respect, then you will (or, with respect to the Information and Projections relating to Target, Asset Sellers, their respective subsidiaries or the Target Assets, will use commercially reasonable efforts to) promptly supplement the Information and the Projections so that (with respect to Information and Projections relating to Target, Asset Sellers, their respective subsidiaries or the Target Assets, to your knowledge) such representations when remade would be correct, in all material respects, under those circumstances.  You understand that in arranging and syndicating the Credit Facilities we may use and rely on the Information and Projections without independent verification thereof.

 

5.              Fees

 

As consideration for the commitments and agreements of the Commitment Party hereunder, you agree to pay or cause to be paid the nonrefundable fees described in the Fee Letter dated the date hereof and delivered herewith (the “Fee Letter”) on the terms and subject to the conditions set forth therein.

 

6.              Conditions

 

The Commitment Party’s commitments and agreements hereunder are solely subject to the satisfaction or waiver of the conditions expressly set forth in this Section 6, in Exhibit D and in Exhibit C under the heading “CERTAIN CONDITIONS — Conditions Precedent” (as applicable).

 

The Commitment Party’s commitments and agreements hereunder are subject to (a) between the date of the M&A Agreements and the Closing Date, there not having occurred any Company Material Adverse Effect (as defined in the Stock Purchase Agreement as in effect on the date hereof) or any Seller Material Adverse Effect (as defined in the Asset Purchase Agreement as in effect on the date hereof), and (b) your performance of all your obligations to pay fees and expenses hereunder and under the Fee Letter.

 

Notwithstanding anything in this Commitment Letter, the Fee Letter or the Credit Facilities Documentation (as defined in Exhibit D) to the contrary, (a) the only representations relating to the Target Assets, you, Target and its subsidiaries and their respective businesses the accuracy of which shall be a condition to availability of the Credit Facilities on the Closing Date shall be (i) such of the representations made by Target in the Stock Purchase Agreement (as in effect on the date hereof) and made by the Asset Sellers in the Asset Purchase Agreement (as in effect on the date hereof) as are material to the interests of the Lenders, but only to the extent that the accuracy of any such representation is a condition to the obligations of the Borrower (or an affiliate thereof) to close under the Stock Purchase Agreement or the Asset Purchase Agreement, as applicable, or the Borrower (or an affiliate thereof) has the right to terminate its obligations under the applicable M&A Agreement as a result of a breach of such representations in such M&A Agreement (the “M&A Agreements Representations”) and (ii) the Specified Representations (as defined below), and (b) the terms of the Credit Facilities Documentation shall be in a form such that they do not impair availability of the Credit Facilities on the Closing Date if the conditions set forth in this Commitment Letter are satisfied (it being understood that, to the extent any collateral (including the grant or perfection of any security interest) referred to in the Term Sheets is not or cannot be provided on the Closing Date (other than the grant and perfection of liens (i) in assets with respect to which a lien may be perfected solely by the filing of a financing statement under the Uniform Commercial Code (“UCC”), (ii) in capital stock with respect to which a lien may be perfected by the delivery of a stock certificate or (iii) in oil and gas properties with mortgages representing 85% of the Engineered Value (as defined in the Existing Credit Agreement) of the Direct Interests (as defined in the Existing Credit Agreement) of the Borrower (prior to giving effect to the Acquisition); provided, that the Borrower shall use commercially reasonable efforts to grant and perfect liens in oil and gas properties with mortgages representing 50% of the Engineered Value of the Direct Interests of the Target and the Target Assets and shall, in any case, grant and perfect such liens with mortgages representing 85% of the

 

5

 

Engineered Value of the Direct Interests of the Borrower after giving effect to the Acquisition no later than January 15, 2017) after your use of commercially reasonable efforts to do so without undue burden or expense, then the provision of such collateral shall not constitute a condition precedent to the availability of the Credit Facilities on the Closing Date, but may instead be provided after the Closing Date pursuant to arrangements to be mutually agreed).  For purposes hereof, “Specified Representations” means the representations and warranties referred to in the Term Sheets relating to corporate existence and qualification, power and authority, due authorization, execution and delivery of, and enforceability of, the Credit Facilities Documentation, effectiveness, validity and perfection of first priority liens under the security documents (subject to the limitations set forth in the preceding sentence), no conflicts with organizational documents or, except to the extent such conflict has not resulted in a Company Material Adverse Effect (as defined in the Stock Purchase Agreement as in effect on the date hereof) or a Seller Material Adverse Effect (as defined in the Asset Purchase Agreement as in effect on the date hereof), with applicable laws, governmental approvals, use of proceeds, compliance with laws, solvency, financial statements, Patriot Act, OFAC, FCPA, Federal Reserve margin regulations and the Investment Company Act.  Notwithstanding anything in this Commitment Letter or the Fee Letter or the Credit Facilities Documentation to the contrary, the only conditions to availability of the Credit Facilities on the Closing Date are expressly set forth in this Section 6, under the heading “CERTAIN CONDITIONS — Conditions Precedent” in Exhibit C, and in Exhibit D.  This paragraph, and the provisions herein, shall be referred to as the “Limited Conditionality Provision”.

 

7.              Indemnification and Expenses

 

You agree (a) to indemnify and hold harmless the Commitment Party, its affiliates and its and their respective directors, officers, employees, advisors, agents and other representatives (each, an “indemnified person”) from and against any and all losses, claims, damages and liabilities that are actually incurred by or awarded against any such indemnified person and that arise out of or in connection with this Commitment Letter, the Fee Letter, the Credit Facilities, the use of the proceeds thereof or the Acquisition and the Transactions or any claim, litigation, investigation or proceeding (a “Proceeding”) relating to any of the foregoing, regardless of whether any indemnified person is a party thereto, whether or not such Proceedings are brought by you, your equity holders, affiliates, creditors or any other person, and to reimburse each indemnified person upon demand for any reasonable and documented legal or other out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing, provided that the foregoing indemnity will not, as to any indemnified person, apply to losses, claims, damages, liabilities or related expenses to the extent they are found by a final, nonappealable judgment of a court of competent jurisdiction to arise from (i) the bad faith, willful misconduct or gross negligence of such indemnified person or its control affiliates, directors, officers or employees (collectively, the “Related Parties”), (ii) the material breach by such indemnified party of its obligations under this Commitment Letter, or (iii) any proceeding that does not involve an act or omission by you or any of your affiliates and that is brought by an indemnified person against any other indemnified person and (b) regardless of whether the Closing Date occurs, to reimburse the Commitment Party and its affiliates for all reasonable and documented out-of-pocket expenses that have been invoiced prior to the Closing Date or following termination or expiration of the commitments hereunder (including reasonable and documented due diligence expenses, syndication expenses, travel expenses, and the fees, charges and disbursements of counsel) incurred in connection with each of the Credit Facilities and any related documentation (including this Commitment Letter and the definitive financing documentation) or the administration, amendment, modification or waiver thereof.  It is further agreed that the Commitment Party shall only have liability to you (as opposed to any other person) and that the Commitment Party shall be liable solely in respect of its own commitment to the Credit Facilities on a several, and not joint, basis with any other party committing to the Credit Facilities.  No indemnified person shall be liable for any damages arising from the use by others of Information or other materials obtained through electronic, telecommunications or other information transmission systems except to the extent such damages are

 

6

 

found by a final, nonappealable judgment of a court of competent jurisdiction to have arisen from the bad faith, willful misconduct or gross negligence of such indemnified person or its control affiliates, directors, officers or employees.  None of the indemnified persons or you or any of your or their respective affiliates or the respective directors, officers, employees, advisors, and agents of the foregoing shall be liable for any indirect, special, punitive or consequential damages in connection with this Commitment Letter, the Fee Letter, the Credit Facilities or the transactions contemplated hereby; provided that nothing contained in this sentence shall limit your indemnity obligations to the extent set forth in this Section 7.

 

8.              Sharing of Information, Affiliate Activities

 

You acknowledge that the Commitment Party and its affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which you may have conflicting interests regarding the transactions described herein and otherwise.  The Commitment Party will not use confidential information obtained from you by virtue of the transactions contemplated by this Commitment Letter or its other relationships with you in connection with the performance by the Commitment Party of services for other companies, and the Commitment Party will not furnish any such information to other companies.  You also acknowledge that the Commitment Party has no obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, confidential information obtained from other companies.

 

You further acknowledge that the Commitment Party is a full service securities or banking firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services.  In the ordinary course of business, the Commitment Party may provide investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, you and other companies with which you may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by the Commitment Party or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.

 

9.              Confidentiality

 

This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter nor the Fee Letter nor any of their terms or substance shall be disclosed by you, directly or indirectly, to any other person except (a) you and your officers, directors, employees, affiliates, members, managers, partners, stockholders, attorneys, accountants, agents and advisors and those of Target and its subsidiaries and Target itself and those of the Asset Sellers and the Asset Sellers themselves, in each case on a confidential and need-to-know basis, (provided that any disclosure of the Fee Letter or its terms or substance to Target or Asset Sellers or their respective officers, directors, employees, attorneys, accountants, agents or advisors shall be redacted in a manner reasonably satisfactory to the Commitment Party), (b) in any legal, judicial or administrative proceeding or as otherwise required by law or regulation or as requested by a governmental authority (in which case you agree, to the extent permitted by law, to inform us promptly in advance thereof), (c) upon notice to the Commitment Party, this Commitment Letter and the existence and contents hereof (but not the Fee Letter or the contents thereof other than the existence thereof and the contents thereof as part of projections, pro forma information and a generic disclosure of aggregate sources and uses to the extent customary in marketing materials and other required filings) may be disclosed in any prospectus or offering memoranda relating to the Securities, in any syndication or other marketing material in connection with the Credit Facilities or in connection with any public filing requirement, (d) the Term Sheets may be disclosed to potential Lenders and to any rating agency in connection with the Acquisition, the Credit Facilities and the Securities and (e) the Term Sheets

 

7

 

may be disclosed to any rating agency in connection with obtaining ratings for the Borrower and/or the Credit Facilities.

 

The Commitment Party shall use all nonpublic information received by it in connection with the Acquisition and the related transactions solely for the purposes of providing the services that are the subject of this Commitment Letter and shall treat confidentially all such information; provided, however, that nothing herein shall prevent the Commitment Party from disclosing any such information (a) to rating agencies in connection with obtaining ratings for the Bridge Facility or the Senior Notes, (b) to any Lenders or participants or prospective Lenders or participants who are not Public Side Lenders, (c) to the extent required by any legal, judicial, administrative proceeding or other compulsory process or as required by applicable law or regulations (in which case the Commitment Party shall promptly notify you, in advance, to the extent permitted by law), (d) upon the request or demand of any regulatory authority having jurisdiction over the Commitment Party or its affiliates, (e) to the employees, legal counsel, independent auditors, professionals and other experts or agents of the Commitment Party (collectively, “Representatives”) 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 its respective affiliates (provided that any such affiliate is advised of its obligation to retain such information as confidential, and the Commitment Party shall be responsible for its affiliates’ compliance with this paragraph) solely in connection with the Acquisition and any related transactions, (g) to the extent any such information becomes publicly available other than by reason of disclosure by the Commitment Party, its affiliates or Representatives in breach of this Commitment Letter, (h) for purposes of establishing a “due diligence” defense and (i) pursuant to customary disclosure of information regarding the closing date, size, type, purpose of, and parties to, the Credit Facilities, in the ordinary course of business to market data collectors and similar service providers to the loan industry for league table purposes; 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 the Borrower and the Commitment Party) in accordance with the standard syndication processes of the Commitment Party or customary market standards for dissemination of such type of information.  The provisions of this paragraph shall automatically terminate one year following the date of this Commitment Letter.

 

10.       Miscellaneous

 

This Commitment Letter shall not be assignable by you (except to one or more of your subsidiaries immediately prior to or otherwise substantially concurrently with the consummation of the Acquisition) without the prior written consent of the Commitment Party (and any purported assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto and the indemnified persons and is not intended to and does not confer any benefits upon, or create any rights in favor of, any person other than the parties hereto and the indemnified persons to the extent expressly set forth herein.  The Commitment Party reserves the right to employ the services of its affiliates in providing services contemplated hereby and to allocate, in whole or in part, to its affiliates certain fees payable to the Commitment Party in such manner as the Commitment Party and its affiliates may agree in their sole discretion.  This Commitment Letter may not be amended or waived except by an instrument in writing signed by you and the Commitment Party.  This Commitment Letter may be executed in any number of counterparts, each of which shall be an original, and all of which, when taken together, shall constitute one agreement.  Delivery of an executed signature page of this Commitment Letter by facsimile or electronic transmission (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart hereof.  This Commitment Letter and the Fee Letter are the only agreements that have been entered into among us and you with respect to the Credit Facilities and set

 

8

 

forth the entire understanding of the parties with respect thereto.  This Commitment Letter and any claim or controversy arising hereunder or related hereto shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

 

You and we hereby irrevocably and unconditionally submit to the exclusive jurisdiction of any state or Federal court sitting in the Borough of Manhattan in the City of New York over any suit, action or proceeding arising out of or relating to the Transactions or the other transactions contemplated hereby, this Commitment Letter or the Fee Letter or the performance of services hereunder or thereunder.  You and we agree that service of any process, summons, notice or document by registered mail addressed to you or us shall be effective service of process for any suit, action or proceeding brought in any such court.  You and we hereby irrevocably and unconditionally waive any objection to the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding has been brought in any inconvenient forum.  You and we hereby irrevocably agree to waive trial by jury in any suit, action, proceeding, claim or counterclaim brought by or on behalf of any party related to or arising out of the Transactions, this Commitment Letter or the Fee Letter or the performance of services hereunder or thereunder.

 

The Commitment Party hereby notifies you that, pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law on October 26, 2001) (the “PATRIOT Act”), it is required to obtain, verify and record information that identifies the Borrower and each Guarantor, which information includes names, addresses, tax identification numbers and other information that will allow such Lender to identify the Borrower and each Guarantor in accordance with the PATRIOT Act.  This notice is given in accordance with the requirements of the PATRIOT Act and is effective for the Commitment Party and each Lender.

 

The indemnification, fee, expense, jurisdiction, syndication and confidentiality provisions contained herein and in the Fee Letter shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the commitments hereunder; provided that your obligations under this Commitment Letter (other than your obligations with respect to (a) assistance to be provided in connection with the syndication thereof (including as to the provision of information and representations with respect thereto) and (b) confidentiality) shall automatically terminate and be superseded, to the extent comparable, by the provisions of the Credit Facilities Documentation upon Closing Date, and you shall automatically be released from all liability in connection therewith at such time, in each case to the extent the Credit Facilities Documentation has comparable provisions with comparable coverage.

 

If the foregoing correctly sets forth our agreement, please indicate your acceptance of the terms of this Commitment Letter and the Fee Letter by returning to us executed counterparts of this Commitment Letter and the Fee Letter not later than 5:00 p.m., New York City time, on August 23, 2016.  This offer will automatically expire at such time if we have not received such executed counterparts in accordance with the preceding sentence.  In the event that the initial borrowing under one or both of the Credit Facilities does not occur on or before the Expiration Date, then this Commitment Letter and the commitments hereunder shall automatically terminate as to such facility unless we shall, in our discretion, agree to an extension.  “Expiration Date” means the earliest of (i) December 31, 2016 (provided that, if the M&A Agreements are amended solely to extend their respective termination dates, this date may be extended to the termination date set forth in such amendments, but in no case shall this date be extended beyond January 15, 2017), (ii) the closing of the Acquisition (x) in the case of the Incremental Facility, without the use of the Incremental Facility, or (y) in the case of the Bridge Facility, without the use of the Bridge Facility and (iii) the termination (in accordance with the terms thereof) of the M&A Agreements prior to closing of the Acquisition.

 

9

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ryan A. Fuessel
    
	
 
    	
 
    	
Name:
    	
Ryan A. Fuessel
    
	
 
    	
 
    	
Title:
    	
Authorized Signor
    

 

Commitment Letter Signature Page

 

 

	
Accepted and agreed to   as of the date first written above:
    
	
 
    
	
PDC ENERGY, INC.
    
	
 
    
	
By:
    	
/s/ Barton R. Brookman, Jr.
    	
 
    
	
 
    	
Name:
    	
Barton R. Brookman, Jr.
    	
 
    
	
 
    	
Title:
    	
President and Chief Executive Officer
    	
 
    

 

Commitment Letter Signature Page

 

 

EXHIBIT A

 

PROJECT A-BASIN
 TRANSACTION SUMMARY

 

Capitalized terms used but not defined in this Exhibit A shall have the meanings set forth in the Commitment Letter to which this Exhibit A is attached and in Exhibits B, C and D thereto.

 

PDC Energy, Inc. (the “Borrower”) intends to acquire (x) certain assets (the “Target Assets”) of the Asset Sellers (as defined below) pursuant to the Asset Purchase and Sale Agreement (together with all exhibits, schedules and disclosure letters thereto, the “Asset Purchase Agreement”) dated as of August 23, 2016 by and between 299 Resources, LLC, 299 Production, LLC, 299 Pipeline, LLC (collectively,  the “Asset Sellers”) and the Borrower and (y) all of the outstanding capital stock of Arris Petroleum Corporation (the “Target”) pursuant to the Stock Purchase and Sale Agreement (together with all exhibits, schedules and disclosure letters thereto, the “Stock Purchase Agreement” and, together with the Asset Purchase Agreement, the “M&A Agreements”) dated as of August 23, 2016 by and among the sellers party thereto, Target and the Borrower (the acquisition of (x) and (y) collectively, the “Acquisition”).  As part of the consideration for the Acquisition, the Borrower intends to issue certain equity interests in Borrower to the Asset Sellers and the sellers under the Stock Purchase Agreement pursuant to an Investment Agreement or Investment Agreements (collectively, and together with all exhibits, schedules and disclosure letters thereto, the “Investment Agreement” and, together with the M&A Agreements, the “Purchase Agreements”) by and between the Borrower and each of the Investors (as defined therein), the form of which will be attached to the Stock Purchase Agreement and the Asset Purchase Agreement as an exhibit, and which is expected to be executed on or about the Closing Date.  In connection therewith, it is intended that:

 

(a)                                 The Borrower will amend certain terms of its existing senior secured revolving credit facility (the “Existing Credit Facility”) under that certain Third Amended and Restated Credit Agreement, dated as of May 21, 2013 (as amended by that certain First Amendment to Third Amended and Restated Credit Agreement dated as of May 14, 2014, as further amended by that certain Second Amendment to Third Amended and Restated Credit Agreement dated as of September 30, 2015, as may have been further amended, restated, supplemented or otherwise modified through the date hereof, the “Existing Credit Agreement”), among the Borrower, the subsidiaries of the Borrower party thereto as guarantors, JPMorgan, as administrative agent, and the other parties and financial institutions party thereto, which amendments shall include an increase of the commitments thereunder by $250.0 million (the “Incremental Facility”) such that the total commitments thereunder, after giving effect to the Incremental Facility, shall be $700.0 million (the “Revolving Facility”), as further described in Exhibit B.

 

(b)                                 The Borrower will either (i) issue and sell senior unsecured notes (the “Senior Notes”), convertible debt securities (the “Convertible Notes”) and/or common equity (the “Common Equity” and, together with the Senior Notes and Convertible Notes, the “Securities”), in each case, in a public offering or in a Rule 144A private placement on or prior to the Closing Date yielding at least $600.0 million in gross cash proceeds on or prior to the Closing Date, or (ii) if and to the extent the Borrower does not, or it is unable to, issue Securities yielding at least $600.0 million in gross cash proceeds on or prior to the Closing Date, obtain at least $600.0 million, less the amount of the Securities, if any, issued on or prior to the Closing Date, in loans under a new senior unsecured bridge facility as described in Exhibit C (the “Bridge Facility” and, together with the Incremental Facility, the “Credit Facilities”).

 

 

(c)                                  The proceeds of the Credit Facilities and the Securities on the Closing Date will be applied (i) to pay the cash consideration for the Acquisition and (ii) to pay the fees and expenses incurred in connection with the Transactions (such fees and expenses, the “Transaction Costs”).

 

The transactions described above are collectively referred to herein as the “Transactions”.  For purposes of this Commitment Letter and the Fee Letter, “Closing Date” shall mean the date of the satisfaction or waiver of the conditions set forth in Exhibit D.

 

 

EXHIBIT B

 

PROJECT A-BASIN
 $700.0 million
  Revolving Facility

Amendment
 Summary of Terms and Conditions

 

The Borrower intends to amend certain provisions of the Existing Credit Agreement (the “Amendment”; and the Existing Credit Agreement as so amended, the “Amended Credit Agreement”). Set forth below are the principal terms of the Amendment.  Capitalized terms used but not defined shall have the meanings set forth in the Existing Credit Agreement or the Commitment Letter to which this Exhibit B is attached and in Exhibits A, C and D attached thereto, as the case may be.

 

1.              The Existing Credit Agreement will be amended to increase the Aggregate Commitments from $450.0 million to $700.0 million effective as of the Closing Date (and for the avoidance of doubt, the Borrowing Base will remain at $700.0 million).

 

2.              The definition of “Applicable Rate” in the Existing Credit Agreement shall be amended to reflect the following pricing grid, which shall become effective as of the Closing Date:

 

	
Borrowing Base Usage:
    	
 
    	
ABR
   Spread
    	
 
    	
Eurodollar
   Spread
    	
 
    	
Unused
   Commitment Fee
   Rate
    	
 
    
	
Equal to or greater than 90%
    	
 
    	
2.250
    	
%
    	
3.250
    	
%
    	
0.500
    	
%
    
	
Equal to or greater than 75% and less than 90%
    	
 
    	
2.000
    	
%
    	
3.000
    	
%
    	
0.500
    	
%
    
	
Equal to or greater than 50% and less than 75%
    	
 
    	
1.750
    	
%
    	
2.750
    	
%
    	
0.500
    	
%
    
	
Equal to or greater than 25% and less than 50%
    	
 
    	
1.500
    	
%
    	
2.500
    	
%
    	
0.500
    	
%
    
	
Less than 25%
    	
 
    	
1.250
    	
%
    	
2.250
    	
%
    	
0.500
    	
%
    

 

3.              Section 2.03 of the Existing Credit Agreement will be amended to allow the Borrower to increase Commitments without offering to allocate such new Commitments to the existing Lenders on a pro-rata basis;

 

4.              Section 2.17 of the Existing Credit Agreement will be amended to add a new subsection (j) substantially as follows: “FATCA Grandfathering.  For purposes of determining withholding Taxes imposed under FATCA, from and after the Closing Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Credit Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).”

 

5.              Article VI of the Existing Credit Agreement will be amended, effective as of the Closing Date, to add a new Section 6.20 consistent with Sections 4.5 and 4.8 of the Security Agreement that requires Borrower to enter into account control agreements for deposit and securities accounts if requested by the Administrative Agent.

 

 

6.              Sections 6.11 and 6.12(a) of the Existing Credit Agreement will be amended to replace all references to mortgage and title requirements of “80%” with “85%”, effective as of the Closing Date with respect to oil and gas properties owned prior to giving effect to the Acquisition, and effective as of January 15, 2017 with respect to oil and gas properties owned after giving effect to the Acquisition;

 

7.              Sections 6.09 and 7.04 of the Existing Credit Agreement will be amended, effective as of the date of the execution of the Amendment, to allow for the Acquisition and to clarify that deposits made in connection with permitted acquisitions are permitted;

 

8.              Section 7.01 of the Existing Credit Agreement and related defined terms will be amended, effective as of the date of the execution of the Amendment, to the extent necessary to permit the incurrence of the Bridge Facility, the Extended Term Loans, the Exchange Notes, the Senior Notes and the Convertible Notes;

 

9.              Section 7.11(b) of the Existing Credit Agreement will be amended to replace the cap on the Consolidated Leverage Ratio of “4.25 to 1.00” with “4.00 to 1.00” effective as of the Closing Date;

 

10.       The appropriate articles of the Existing Credit Agreement will be amended to include customary E.U. “bail-in” provisions, effective as of the date of the execution of the Amendment;

 

11.       The 25% automatic borrowing base reduction for the issuance of new senior notes set forth in Section 3.06 of the Existing Credit Agreement will be waived, effective as of the date of the execution of the Amendment, for the issuance of Senior Notes, Convertible Notes and Exchange Notes in connection with the Transactions; and

 

12.       other changes as agreed by us and you.

 

	
Governing Law and   Forum:
    	
New York.
    
	
 
    	
 
    
	
Counsel to the   Administrative
    	
 
    
	
Agent and the   Commitment Party:
    	
Simpson   Thacher & Bartlett LLP.
    

 

B-I-2

 

EXHIBIT C

 

PROJECT A-BASIN

Bridge Facility

$600.0 million

Summary of Terms and Conditions

 

Set forth below is a summary of the principal terms and conditions for the Bridge Facility.  Capitalized terms used but not defined herein shall have the meanings set forth in the Commitment Letter to which this Exhibit C is attached and Exhibits A, B and D attached thereto.

 

1.                                      PARTIES

 

	
Borrower:
    	
 
    	
PDC Energy, Inc., a Delaware corporation.
    
	
 
    	
 
    	
 
    
	
Guarantors:
    	
 
    	
The same as those under the Revolving Facility.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The guarantees of the Initial Bridge Loans and the   Extended Term Loans shall rank pari passu with all senior unsecured   indebtedness and shall rank senior to all subordinated unsecured indebtedness   of such Guarantors and shall rank junior to all secured indebtedness of such   Guarantors.
    
	
 
    	
 
    	
 
    
	
Sole Lead Arranger and Sole Bookrunner:
    	
 
    	
JPMorgan Chase Bank, N.A. (in such capacity, the “Bridge   Lead Arranger”).
    
	
 
    	
 
    	
 
    
	
Administrative Agent:
    	
 
    	
JPMorgan Chase Bank, N.A. (in such capacity, the “Administrative   Agent”) will act as the Administrative Agent for the Lenders holding the   Initial Bridge Loans (as defined below) from time to time.
    
	
 
    	
 
    	
 
    
	
Lenders:
    	
 
    	
A syndicate of banks, financial institutions and   other entities arranged by the Commitment Party and reasonably acceptable to   the Borrower (collectively, the “Lenders”).
    

 

2.                                      TYPE AND AMOUNT OF BRIDGE FACILITY

 

	
Initial Bridge Loans:
    	
 
    	
The Lenders will make senior unsecured loans (the “Initial   Bridge Loans”) to the Borrower on the Closing Date in an aggregate   principal amount not to exceed $600.0 million minus the amount of   gross proceeds from the Securities available on the Closing Date and any   asset sales for cash between the date of signing the Commitment Letter and   the Closing Date exceeding, individually or in the aggregate, $5.0 million   during such period.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
The Lenders will make the Initial Bridge Loans on   the Closing Date.
    
	
 
    	
 
    	
 
    
	
Use of Proceeds:
    	
 
    	
The proceeds of the Initial Bridge Loans will be   used to finance in part the Acquisition and the Transaction Costs.
    

 

 

	
Maturity/Exchange:
    	
 
    	
The Initial Bridge Loans will initially mature on   the first anniversary of the Closing Date (the “Initial Bridge Loan   Maturity Date”), with such maturity to be extended as provided below. If   any of the Initial Bridge Loans have not been previously repaid in full on or   prior to the Initial Bridge Loan Maturity Date and no bankruptcy (with   respect to the Borrower) event of default then exists, such Initial Bridge   Loans shall automatically be extended to the eighth anniversary of the   Closing Date (the “Extended Term Loans”). The Lenders in respect of   such Extended Term Loans will have the option at any time or from time to   time after the Initial Bridge Loan Maturity Date to receive Exchange Notes   (the “Exchange Notes”) in exchange for such Extended Term Loans having   the terms set forth in the term sheet attached hereto as Annex I; provided   that a Lender may not elect to exchange its outstanding Extended Term Loans   for Exchange Notes unless the conditions set forth in Annex I under “Principal   Amount” have been satisfied.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Initial Bridge Loans, the Extended Term Loans   and the Exchange Notes shall be pari passu for all purposes.
    
	
 
    	
 
    	
 
    
	
Interest:
    	
 
    	
Prior to the Initial Bridge Loan Maturity Date, the   Initial Bridge Loans will accrue interest at a rate per annum equal to the   Adjusted LIBOR (as defined below) plus 650 basis points (the “Initial   Margin”). Such spread over Adjusted LIBOR will increase by 50 basis   points at the end of each three-month period after the Closing Date.   Notwithstanding the foregoing, the interest rate in effect on the Initial   Bridge Loans at any time prior to the Initial Bridge Loan Maturity Date shall   not exceed an amount that causes the weighted average per annum yield to   maturity payable by the Borrower with respect to the Bridge Facility and the   Securities (as defined in the Fee Letter) (calculated in accordance with the   Fee Letter) to exceed the Weighted Average Bridge Cap (as defined in the Fee   Letter). At any time when the Borrower is in default in the payment of any   amount under the Bridge Facility, such overdue amount shall bear interest at   2.00% per annum above the rate otherwise applicable thereto.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Following the Initial Bridge Loan Maturity Date, all   outstanding Extended Term Loans will accrue interest at the rate provided for   Exchange Notes in Annex I hereto.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Calculation of interest shall be on the basis of   actual days elapsed in a year of 360 days.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Adjusted LIBOR” for each three-month period   after the Closing Date, means the greater of (i) 1.00% and (ii) the   rate (adjusted for statutory reserve requirements for eurocurrency   liabilities) for Eurodollar deposits for such three-month period appearing on
    

 

C-2

 

	
 
    	
 
    	
the LIBOR01 Page published by Reuters two   business days prior to the commencement of such period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest will be payable (or shall accrue) in arrears,   (a) for the Initial Bridge Loans, at the end of each three-month period   after the Closing Date and on the Initial Bridge Loan Maturity Date, and   (b) for the Extended Term Loans, semi-annually, commencing on the date   that is six months after the Initial Bridge Loan Maturity Date and on the   final maturity date.
    

 

3.                                      CERTAIN PAYMENT PROVISIONS

 

	
Optional Prepayment:
    	
 
    	
The Initial Bridge Loans may be prepaid, in whole or   in part in minimum amounts to be agreed, at the option of the Borrower, at   any time upon three business days’ prior notice (or such shorter period as   the Administrative Agent may agree to), without premium or penalty (other   than breakage) at par plus accrued and unpaid interest.
    
	
 
    	
 
    	
 
    
	
Mandatory Redemption:
    	
 
    	
The Borrower will be required to prepay Initial   Bridge Loans on a pro rata basis, at par plus accrued and unpaid interest, in   each case subject to exceptions and baskets to be agreed that are not less   favorable than those applicable to the Revolving Facility, from 100% of   (i) net cash proceeds of the issuance of the Securities (less the amount   required, if any, to repay the Revolving Facility) and any other   indebtedness, (ii) net cash proceeds from any issuance of equity, and   (iii) net cash proceeds of all non-ordinary course asset sales or   dispositions (including as a result of casualty or condemnation) by the   Borrower or any of its subsidiaries in excess of amounts either reinvested in   accordance with the Revolving Facility or required to repay the Revolving   Facility.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrower will also be required to make a   mandatory offer to prepay Initial Bridge Loans following the occurrence of a   change of control (to be defined) at 100% of the outstanding principal amount   thereof plus accrued and unpaid interest.
    

 

4.                                      CERTAIN CONDITIONS

 

	
Conditions Precedent:
    	
 
    	
The availability of the Bridge Facility on the   Closing Date will be subject only to the conditions precedent expressly set   forth in Section 6 of the Commitment Letter and on Exhibit D. For   the avoidance of doubt, it is agreed that conditions set forth herein are   subject, in all respects, to the Limited Conditionality Provision.
    

 

C-3

 

5.                                      DOCUMENTATION

 

	
Bridge Credit Documentation:
    	
 
    	
The definitive documentation for the Bridge Facility   (the “Bridge Credit Documentation”) will be negotiated in good faith   and shall contain those terms and conditions usual for recently committed,   similarly sized, unsecured facilities and transactions of this type as may be   reasonably agreed by the Bridge Lead Arranger and the Borrower.
    
	
 
    	
 
    	
 
    
	
Representations and Warranties:
    	
 
    	
Usual for facilities and transactions of this type,   and others as reasonably agreed by the Bridge Lead Arranger and the Borrower   and consistent, to the extent applicable, with those in the Existing Credit   Agreement.
    
	
 
    	
 
    	
 
    
	
Covenants:
    	
 
    	
The Bridge Credit Documentation will contain   (a) affirmative covenants substantially consistent with the affirmative   covenants included in the Existing Credit Agreement and (b) negative   covenants that are substantially consistent with those of the Borrower’s   existing 7.75% Senior Notes due 2022 (the “Existing Notes”) with such   changes to be agreed to take account of the Acquisition, it being understood   and agreed that the covenants of the Initial Bridge Loans (and the Extended   Term Loans and the Exchange Notes) shall in no event contain restrictions   that would violate the terms of (x) if the Amendment has not occurred,   the Existing Credit Agreement or (y) if the Amendment has occurred, the   Amended Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Usual for facilities and transactions of this type,   and others as reasonably agreed by the Bridge Lead Arranger and the Borrower.   Following the Initial Bridge Loan Maturity Date, the events of default   relevant to the Initial Bridge Loans will automatically be modified so as to   be consistent with the Exchange Notes.
    
	
 
    	
 
    	
 
    
	
Voting:
    	
 
    	
Amendments and waivers of the Bridge Credit   Documentation will require the approval of Lenders holding more than 50% of   the outstanding Initial Bridge Loans, except that (a) the consent of   each affected Lender will be required for (i) reductions of principal,   interest rate or spreads, (ii) except as provided under “Maturity/Exchange”   above, extensions of the Initial Bridge Loan Maturity Date and (iii) additional   restrictions on the right to exchange Extended Term Loans for Exchange Notes   or any amendment of the rate of such exchange and (b) the consent of   100% of the Lenders shall be required with respect to (i) reductions of   any of the voting percentages set forth in the definition of “required   lenders” or any similar defined term, (ii) modifications to the   mandatory prepayment provisions and (iii) releases of any material Guarantor.
    

 

C-4

 

	
Assignment and Participation:
    	
 
    	
Subject to the prior approval of the Administrative   Agent, the Lenders will have the right to assign Initial Bridge Loans and   commitments without the consent of the Borrower; provided that the consent of   the Borrower shall be required with respect to any assignment (such consent   not to be unreasonably withheld or delayed) if, subsequent thereto, the   Initial Bridge Lenders (together with their affiliates) would hold, in the   aggregate, less than 51% of the outstanding Bridge Loans. Assignments will be   by novation that will release the obligation of the assigning Lender.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Lenders will have the right to participate their   Initial Bridge Loans to other financial institutions without restriction, other   than customary voting limitations. Participants will have the same benefits   as the selling Lenders would have (and will be limited to the amount of such   benefits) with regard to yield protection and increased costs, subject to   customary limitations and restrictions.
    
	
 
    	
 
    	
 
    
	
Yield Protection:
    	
 
    	
Substantially similar to those contained in the   Revolving Facility.
    
	
 
    	
 
    	
 
    
	
Bail-in Provisions:
    	
 
    	
Substantially similar to those contained in the   Revolving Facility.
    
	
 
    	
 
    	
 
    
	
Expenses and Indemnification:
    	
 
    	
Regardless of whether the Closing Date occurs, the   Borrower shall pay (a) all reasonable and documented out-of-pocket   expenses of the Administrative Agent and the Bridge Lead Arranger associated   with the syndication of the Bridge Facility and the preparation, execution,   delivery and administration of the Bridge Credit Documentation and any   amendment or waiver with respect thereto (including the reasonable and   documented fees, disbursements and other charges of counsel) and (b) all   reasonable and documented out-of-pocket expenses of the Administrative Agent   and the Lenders (including the reasonable and documented fees, disbursements   and other charges of counsel) in connection with the enforcement of the   Bridge Credit Documentation.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Administrative Agent, the Bridge Lead Arranger   and the Lenders (and their affiliates and their respective officers,   directors, employees, advisors and agents) will have no liability for, and   will be indemnified and held harmless against, any losses, claims, damages,   liabilities or expenses (including the reasonable and documented fees,   disbursements and other charges of counsel) incurred in respect of the   financing contemplated hereby or the use or the proposed use of proceeds   thereof, except (i) to the extent they arise from the bad faith, gross   negligence or willful misconduct of the relevant indemnified person (or its   related parties), in each case as determined by a final, nonappealable   judgment by a court of
    

 

C-5

 

	
 
    	
 
    	
competent jurisdiction and (ii) to the extent   they arise out of, or in connection with, any proceeding that does not   involve any act or omission by the Borrower or any of its affiliates and that   is brought by an indemnified person against any other indemnified person.
    
	
 
    	
 
    	
 
    
	
Governing Law and Forum:
    	
 
    	
New York.
    
	
 
    	
 
    	
 
    
	
Counsel to the Administrative Agent and the   Commitment Party:
    	
 
    	
Simpson Thacher & Bartlett LLP.
    

 

C-6

 

Annex I to Exhibit C

 

Summary of Terms and Conditions

of Exchange Notes and Extended Term Loans

 

Capitalized terms used but not defined herein have the meanings set forth or referred to in the Exhibit C to which this Annex I is attached.

 

	
Issuer:
    	
 
    	
The Borrower (in its capacity as issuer, the “Issuer”)   will issue Exchange Notes under an indenture that complies with the Trust   Indenture Act (the “Indenture”).
    
	
 
    	
 
    	
 
    
	
Guarantors:
    	
 
    	
Same as the Initial Bridge Loans.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The guarantees of the Exchange Notes shall rank pari   passu with all senior unsecured indebtedness and shall rank senior to all   subordinated unsecured indebtedness of such Guarantors, and shall rank junior   to all secured indebtedness of such Guarantors.
    
	
 
    	
 
    	
 
    
	
Principal Amount:
    	
 
    	
The Exchange Notes will be available only in   exchange for the Extended Term Loans on or after the Initial Bridge Loan   Maturity Date. The principal amount of any Exchange Note will equal 100% of   the aggregate principal amount of the Extended Term Loan for which it is   exchanged, and any accrued interest then not due will be carried over. In the   case of the initial exchange by Lenders, the minimum amount of Extended Term   Loans to be exchanged for Exchange Notes shall not be less than $25.0   million.
    
	
 
    	
 
    	
 
    
	
Maturity:
    	
 
    	
The Exchange Notes and the Extended Term Loans will   mature on the 8th anniversary of the Closing Date.
    
	
 
    	
 
    	
 
    
	
Interest Rate:
    	
 
    	
The Exchange Notes and the Extended Term Loans will   bear interest at the Weighted Average Bridge Cap (as defined in the Fee   Letter).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
At any time when the Borrower is in default in the   payment of any amount under the Exchange Notes or Extended Term Loans, such   overdue amount shall bear interest at 2.00% per annum above the rate   otherwise applicable thereto.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest will be payable in arrears semi-annually commencing   on the date that is six months following the Initial Bridge Loan Maturity   Date and on the final maturity date.
    
	
 
    	
 
    	
 
    
	
Optional Redemption:
    	
 
    	
The Extended Term Loans may be prepaid, in whole or   in part, at the option of the Issuer, without premium or penalty, at any time   at par plus accrued and unpaid interest to the prepayment date.
    

 

 

	
 
    	
 
    	
The Exchange Notes will be (a) non-callable for   the first three years from the Closing Date (subject to a 35% equity clawback   within the first three years after the Initial Bridge Loan Maturity Date and   make-whole provisions); and (b) thereafter, callable or prepayable at   par plus accrued interest plus a premium equal to 75% of the coupon in effect   on the Exchange Notes, which premium shall decline ratably on each yearly   anniversary of the date of such sale to zero two years prior to the maturity   of the Exchange Notes.
    
	
 
    	
 
    	
 
    
	
Mandatory Offer to Purchase:
    	
 
    	
The Issuer will be required to offer to repurchase   the Exchange Notes and repay the Extended Term Loans upon the occurrence of a   change of control (which offer shall be at (x) 101% of the principal   amount of such Exchange Notes (or, so long as no Demand Failure Event (as   defined in the Fee Letter) has occurred and is continuing, 100% in the case   of Exchange Notes held by the Commitment Party or is affiliates (for so long   as held by the Commitment Party or its affiliates but other than bona fide   investment funds and asset management affiliates and Exchange Notes purchased   in open market transactions from third parties or in connection with market   making activities) or (y) 100% of the principal amount of the Extended   Term Loans, as applicable, in each case plus accrued and unpaid   interest).
    
	
 
    	
 
    	
 
    
	
Registration Rights:
    	
 
    	
The Issuer will use commercially reasonable efforts   to file within 30 days after the date of the first issuance of the Exchange   Notes (the “Issue Date”), and will use its commercially reasonable   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”) and/or a registration statement relating to a   Registered Exchange Offer (as described below). If a Shelf Registration   Statement is filed, the Issuer will keep such registration statement   effective and available (subject to customary exceptions) until it is no   longer needed to permit unrestricted resales of Exchange Notes but in no   event longer than 1 year from the issuance of any Exchange Note.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If within 180 days from the Issue Date, a Shelf   Registration Statement for the Exchange Notes has not been declared effective   or the Issuer has not effected an exchange offer (a “Registered Exchange   Offer”) whereby the Issuer has offered registered notes having terms   identical to the Exchange Notes (the “Substitute Notes”) in exchange   for all outstanding Exchange Notes (it being understood that a Shelf   Registration Statement is required to be made available in respect of   Exchange Notes the holders of which could not receive Substitute Notes   through the Registered Exchange Offer that, in the opinion of counsel, would   be freely saleable by such holders without registration or requirement for   delivery of a current prospectus under the Securities Act of 1933, as amended   (other
    

 

C-I-2

 

	
 
    	
 
    	
than a prospectus delivery requirement imposed on a   broker-dealer who is exchanging Exchange Notes acquired for its own account   as a result of a market making or other trading activities)), then the Issuer   will pay liquidated damages of 0.25% per annum on the principal amount of   Exchange Notes and Extended Term Loans outstanding to holders thereof who   are, or would be, unable freely to transfer Exchange Notes from and including   the 181st day after the Issue Date (the “Default   Registration Date”) to but excluding the earlier of the effective date of   such Shelf Registration Statement or the date of consummation of such   Registered Exchange Offer (such damages may be payable, at the option of the   Borrower, in the form of additional Exchange Notes). Such liquidated damages   shall increase by 0.25% per annum on the date that is 3 months after the   Default Registration Date to a maximum of 1.00% per annum. The Issuer will   also pay such liquidated damages for any period of time (subject to customary   exceptions) following the effectiveness of a Shelf Registration Statement   that such Shelf Registration Statement is not available for resales   thereunder. In addition, unless and until the Issuer has consummated the   Registered Exchange Offer and, if required, 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 Issuer (other than on a Form S-4) unless all the Exchange Notes   and Extended Term Loans will be redeemed or repaid from the proceeds of such   securities.
    
	
 
    	
 
    	
 
    
	
Right to Transfer Exchange Notes:
    	
 
    	
The holders of the Exchange Notes shall have the   absolute and unconditional right to transfer such Exchange Notes in   compliance with applicable law to any third parties.
    
	
 
    	
 
    	
 
    
	
Covenants:
    	
 
    	
Substantially consistent with those of the Borrower’s   Existing Notes with such changes to be agreed to take account of the   Acquisition, but in no event containing restrictions that would violate the   terms of (x) if the Amendment has not occurred, the Existing Credit   Agreement or (y) if the Amendment has occurred, the Amended Credit   Agreement.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Substantially consistent with those of the   Borrower’s Existing Notes with such changes to be agreed to take account of   the Acquisition.
    
	
 
    	
 
    	
 
    
	
Governing Law and Forum:
    	
 
    	
New York.
    

 

C-I-3

 

EXHIBIT D

 

PROJECT A-BASIN

Conditions

 

The availability of the Credit Facilities shall be subject solely to the satisfaction of the following conditions (subject to the Limited Conditionality Provision) and the conditions expressly set forth in Section 6 of the Commitment Letter.  Capitalized terms used but not defined herein have the meanings set forth in the Commitment Letter to which this Exhibit D is attached and in Exhibits A, B and C thereto.

 

1.                                      Each party thereto shall have executed and delivered the Amendment and, if applicable, the Bridge Credit Documentation (collectively, the “Credit Facilities Documentation”) on terms consistent with the Commitment Letter and otherwise reasonably satisfactory to both the Borrower and the Commitment Party, and the Commitment Party shall have received:

 

a.                                      customary closing certificates and legal opinions; and

 

b.                                      a certificate from the principal financial officer of the Borrower, in form and substance reasonably acceptable to the Commitment Party, certifying that the Borrower and its subsidiaries, on a consolidated basis after giving effect to the Transactions and the other transactions contemplated hereby, are solvent.

 

2.                                      As a condition to any funding under the Revolving Facility (other than any such funding that would be available thereunder in the absence of the Amendment), the Borrower shall have received $600.0 million in aggregate gross cash proceeds from (i) the issuance of the Securities, (ii) the borrowing of the Initial Bridge Loans under the Bridge Facility and (iii) any asset sales for cash between the date of signing the Commitment Letter and the Closing Date exceeding, individually or in the aggregate, $5.0 million.

 

3.                                      As partial consideration for the Acquisition, the Borrower shall have issued the amount of equity contemplated to be issued by it under the Purchase Agreements to the Investors (as defined in the Investment Agreement).

 

4.                                      On the Closing Date, after giving effect to the Transactions, neither the Borrower nor any of its subsidiaries shall have any material indebtedness for borrowed money other than (i) the Revolving Facility and the Bridge Facility (or the Securities issued in lieu of the Bridge Facility), (ii) indebtedness permitted under the Amended Credit Agreement and (iii) the Existing Senior Notes.

 

5.                                      The terms of the Purchase Agreements (including all exhibits, schedules, annexes and other attachments thereto and other agreements related thereto) shall be reasonably satisfactory to the Lead Arrangers, it being agreed that the draft Asset Purchase Agreement dated August 23, 2016, the draft Stock Purchase Agreement dated August 23, 2016, and the draft Investment Agreement dated August 23, 2016 (in each case including all exhibits, schedules, annexes and other attachments thereto), in each case are reasonably satisfactory to the Lead Arrangers.  The Acquisition shall be consummated pursuant to the Purchase Agreements, substantially concurrently with the initial funding of the Credit Facilities, and no provision thereof shall have been amended or waived, and no consent shall have been given thereunder by the Borrower or its affiliates in any manner materially adverse to the interests of the Commitment Party or the Lenders without the prior written consent of the Commitment Party, not to be unreasonably withheld, conditioned or delayed (it being understood that (a) any amendment to the definition of “Company Material Adverse Effect” in the Stock Purchase Agreement (as in effect on the date hereof) or “Seller Material Adverse Effect” in the Asset Purchase Agreement (as in effect on the date hereof) shall be

 

 

deemed material and adverse to the interests of the Commitment Party and Lenders, (b)  any increase or decrease in the purchase price in respect of the Acquisition pursuant to any purchase price or similar adjustment provisions (including with respect to New Leases (as defined in each M&A Agreement), title defects, environmental defects, required consents, preferential purchase rights, and uncured casualty losses) set forth in the M&A Agreements (as in effect on the date hereof) shall not constitute an alteration, amendment, change, supplement, waiver, consent or other modification to the Purchase Agreements, and shall not be deemed to be materially adverse to the interests of the Commitment Party and Lenders, unless and until the aggregate value of such adjustments would cause Borrower’s closing condition set forth in Section 7.2(f) of the Asset Purchase Agreement and Section 7.2(g) of the Stock Purchase Agreement not to be satisfied).

 

6.                                      The Commitment Party shall have received such production and accounting monthly LOS statements with respect to the Target Assets that are received by the Borrower pursuant to the Asset Purchase Agreement.

 

7.                                      The Expiration Date shall not have occurred.

 

8.                                      The Commitment Party shall have received (a) audited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Borrower and its subsidiaries, for the three most recently completed fiscal years ended at least 90 days before the Closing Date, (b) unaudited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Borrower and its subsidiaries, for each subsequent fiscal quarter (other than the fourth fiscal quarter of any fiscal year) ended at least 45 days before the Closing Date (in each case, together with the corresponding comparative period from the prior fiscal year), (c) audited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Target for the two most recently completed fiscal years ended at least 90 days before the Closing Date, (d) unaudited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Target, for each subsequent fiscal quarter (other than the fourth fiscal quarter of any fiscal year) ended at least 45 days before the Closing Date (in each case, together with the corresponding comparative period from the prior fiscal year), (e) with respect to the Target Assets, such financial statements to the extent required for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act, and (f) the reserve reports for the proved oil and gas properties of the Borrower and its subsidiaries and, to the extent required for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act, the Target and the Target Assets, in each case for the most recently completed fiscal year ended at least 90 days before the Closing Date (which reports shall be prepared according to SEC guidelines by one or more reputable third party engineers); provided that filing of the required financial statements in clauses (a) and (b) above on form 10-K and form 10-Q by the Borrower with the Securities and Exchange Commission through the “Electronic Data Gathering, Analysis and Retrieval” system will satisfy the foregoing requirements.

 

9.                                      The Commitment Party shall have received a pro forma consolidated balance sheet and related pro forma consolidated statement of income of the Borrower and its subsidiaries as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days prior to the Closing Date, in each case, prepared in accordance with Regulation S-X after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of income), in each case to the extent necessary for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act.

 

10.                               As a condition to the availability of the Bridge Facility, (a) the Investment Bank (as defined in the Fee Letter referred to in the Commitment Letter) shall have received, (i) prior to the

 

D-2

 

Marketing Period Commencement Date (as defined below), a completed preliminary prospectus, preliminary offering memorandum or similar document (a “Notes Offering Document”) suitable for use in a customary offering registered under the Securities Act of 1933, as amended (the “Securities Act”) or pursuant to Rule 144A thereunder, as applicable, including audited and unaudited financial statements of the Borrower, the Target and the Target Assets to the extent necessary for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act (and all other recent, probable pending acquisitions and dispositions to the extent required under Regulation S-X), as applicable, pro forma financial statements, business and other financial data and all other information of the type and form customarily included in a Notes Offering Document of such type, prepared in accordance with Regulation S-X and Regulation S-K under the Securities Act for the offering of the Senior Notes (including summary reserve data prepared according to SEC guidelines including Rule 4-10 of Regulation S-X and Item 302(b) of Regulation S-K except in the case of an offering pursuant to Rule 144A where such preparation is not customary) and (ii) drafts of customary comfort letters (including customary “negative assurances”) by the auditors and independent reserve engineers of the Borrower, the Target and the Target Assets, in each case with respect to the Target and Target Assets to the extent the financial statements of the Target and Target Assets and/or reserve reports for the proved oil and gas properties of the Target and Target Assets are required for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act, that such auditors and independent reserve engineers are prepared to issue upon completion of customary procedures in connection with the offering of the Senior Notes, in each case to the extent necessary for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act, (b) the Investment Bank shall have received, prior to the Marketing Period Commencement Date, (i) a completed customary preliminary prospectus, prospectus supplement, preliminary offering memorandum or similar document (an “Equity Offering Document”) suitable for use in a customary common equity offering registered under the Securities Act and/or a convertible notes offering registered under the Securities Act or pursuant to Rule 144A thereunder, as applicable, in each case (as applicable) including audited and unaudited financial statements of the Borrower and the Target Assets (and all other recent, probable pending acquisitions and dispositions to the extent required under Regulation S-X), as applicable, pro forma financial statements, business and other financial data, in each case to the extent necessary for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act, and all other information of the type and form customarily included in an Equity Offering Document of such type, prepared in accordance with Regulation S-X and Regulation S-K under the Securities Act for the offering of the Common Equity (including summary reserve data prepared according to SEC guidelines including Rule 4-10 of Regulation S-X and Item 302(b) of Regulation S-K except in the case of an offering pursuant to Rule 144A where such preparation is not customary) and (ii) drafts of customary comfort letters (including customary “negative assurances”) by the auditors and independent reserve engineer letters of the independent reserve engineers of the Borrower, the Target and the Target Assets, in each case with respect to the Target and Target Assets to the extent the financial statements of the Target and Target Assets and/or reserve reports for the proved oil and gas properties of the Target and Target Assets are required for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act, that such auditors and independent reserve engineers are prepared to issue upon completion of customary procedures in connection with the offering of the common equity or convertible notes, in each case to the extent necessary for a shelf takedown from Borrower’s existing registration statement on Form S-3 under the Securities Act, and (c) such Investment Bank shall have been afforded a period (the “Marketing Period”) of at least 20 consecutive business days following the receipt of the information described in clauses (a) and (b), to seek to place the Securities with qualified purchasers thereof, provided that (a) if the Marketing Period has not ended on or prior to November 22, 2016 and would otherwise include November 23, 2015, November 24, 2015 or November 25, 2015, it shall not be required to be consecutive solely to the extent it would include November 23, 2015, November 24, 2015 or November 25, 2015 and the Marketing Period will be extended by the number of days in such period that would otherwise be included in the Marketing Period and (b) the Marketing Period shall commence

 

D-3

 

on a date such that, after taking into account the foregoing, the Marketing Period does not end later than December 20, 2016 (the first day of such period, the “Marketing Period Commencement Date”).

 

11.                               The Administrative Agent shall have received, at least 3 days prior to the Closing Date, to the extent requested by the Administrative Agent or its counsel at least 10 days prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act.

 

12.                               The Borrower and the Senior Notes shall have received a rating from Moody’s Investors Service, Inc. and Standard & Poor’s Financial Services LLC no later than the Marketing Period Commencement Date.

 

13.                               All fees and expenses due to the Commitment Party and the Lenders shall have been paid or shall have been authorized to be deducted from the proceeds of the initial fundings under the Credit Facilities.

 

14.                               With respect to the Incremental Facility, (a) all actions necessary to establish that the Administrative Agent will have a perfected first priority lien (subject to liens permitted under the Amended Credit Agreement) in the Collateral under the Revolving Facility shall have been taken, including, without limitation, a mortgage lien (and receipt of title information) on 85% of the Engineered Value (as defined in the Existing Credit Agreement) of the Direct Interests (as defined in the Existing Credit Agreement) of the Borrower (prior to giving effect to the Acquisition), provided, that the Borrower shall use commercially reasonable efforts to grant and perfect liens in oil and gas properties with mortgages representing 50% of the Engineered Value of the Direct Interests of the Target and the Target Assets and shall, in any case, grant and perfect such liens with mortgages representing 85% of the Engineered Value of the Direct Interests of the Borrower after giving effect to the Acquisition no later than January 15, 2017, and (b) (i) all prior material indebtedness for borrowed money secured by a lien in the Target Assets (other than indebtedness permitted under the Amended Credit Agreement) shall have been paid, redeemed, defeased and discharged in full, (ii) the Administrative Agent shall have received a customary payoff letter in connection with the same, and (iii) all prior liens in the Target Assets (other than liens permitted under the Amended Credit Agreement) shall have been released.

 

15.                               As a condition to the availability of the Credit Facilities, the Lead Arrangers (a) shall have received one or more customary confidential information memoranda and other marketing material customarily used for the syndication of the Credit Facilities and (b) shall have been afforded a reasonable period of time to syndicate the Credit Facilities, which in no event shall be less than 20 consecutive business days from the date of delivery of the confidential information memorandum to the Lenders, which period shall exclude certain market holiday related “blackout” periods as reasonably determined by the Lead Arrangers (including Friday, November 25, 2016, and the period from December 19, 2016, through December 31, 2016).

 

D-4Nobilis Health Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1 

EXECUTION VERSION 

SEVENTH AMENDMENT TO CREDIT AGREEMENT 

This SEVENTH AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”), is made and entered into as of August 19, 2016 (the
“Seventh Amendment Closing Date”), among NORTHSTAR HEALTHCARE
ACQUISITIONS, L.L.C., a Delaware limited liability company (the
“Borrower”), the other Credit Parties party hereto, the financial
institutions party hereto (collectively, the “Lenders” and individually
each a “Lender”), and HEALTHCARE FINANCIAL SOLUTIONS, LLC, a
Delaware limited liability company (as the successor in interest to GENERAL
ELECTRIC CAPITAL CORPORATION), as administrative agent for the Secured
Parties (in such capacity, “Agent”), and as a Lender, and Swingline
Lender.

W I T
N E S
S E T
H: 

WHEREAS, the Borrower, the other Credit Parties
party thereto, the Lenders party thereto and Agent are parties to that certain
Credit Agreement, dated as of March 31, 2015 (as amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”),
pursuant to which the Lenders committed to make certain loans and other
financial accommodations to the Borrower upon the terms and conditions set forth
therein; 

 WHEREAS,
the Borrower and the other Credit Parties have requested that Agent and the
Lenders (a) amend the Credit Agreement to increase the Aggregate Revolving Loan
Commitment and make additional Term Loans to the Borrower in order to, among
other things, repay the Plano Debt, (b) add a Consolidated Leverage Ratio test
and a Consolidated Fixed Charge Coverage Ratio test to the financial covenants
set forth in the Credit Agreement and amend and restate the form of Compliance
Certificate, and (c) amend the Credit Agreement in certain other respects, as
set forth herein; and 

 WHEREAS,
Agent and the Lenders are willing to amend certain provisions of the Credit
Agreement, all subject to and in accordance with the terms and conditions
specified herein. 

 NOW,
THEREFORE, in consideration of the foregoing, and the respective agreements,
warranties and covenants contained herein, the parties hereto agree, covenant,
and warrant as follows: 

SECTION 1     DEFINITIONS.

1.1    
Interpretation. All capitalized terms used herein (including the
recitals hereto) shall have the respective meanings assigned thereto in the
Credit Agreement unless otherwise defined herein. 

SECTION 2     AMENDMENTS.

Subject to the terms and
conditions of this Amendment, including, without limitation, the
representations, warranties, and covenants in Section 4 hereof and the
conditions precedent to the effectiveness of this Amendment in Section 5
hereof: 

2.1     Sections 1.1(a)
and 1.1(b) . Effective as of the Seventh Amendment Closing Date, Sections
1.1(a) and 1.1(b) of the Credit Agreement are hereby amended and
restated in their entirety as follows: 

“(a)     The
Term Loan. 

(i)     Immediately prior to the Seventh
Amendment Effective Date, the outstanding principal balance of the “Term Loan”
under the Credit Agreement is $18,560,126.60. Subject to the terms and
conditions of this Agreement and in reliance upon the representations and
warranties of the Credit Parties contained herein, each Lender with a Term Loan
Commitment severally and not jointly agrees to lend to the Borrower on the
Seventh Amendment Effective Date, the amount set forth opposite such Lender’s
name in Schedule 1.1(a) under the heading “New Term Loan
Commitment” (each, a “New Term Loan Commitment”; collectively with the
amount set forth opposite such Lender’s name in Schedule 1.1(a) under the
heading “Outstanding Term Loan”, and as amended to reflect Assignments permitted
hereunder and as such amount may be reduced pursuant to this Agreement, such
amount being referred to herein as such Lender’s “Term Loan Commitment”).
Amounts borrowed under this subsection 1.1(a)(i) are collectively referred to as
the “Term Loan”. 

(ii)     Amounts borrowed as a Term Loan
which are repaid or prepaid may not be reborrowed. 

(b)   
 The Revolving Credit. Subject to the terms and conditions of this
Agreement and in reliance upon the representations and warranties of the Credit
Parties contained herein, each Revolving Lender severally and not jointly agrees
to make Loans to the Borrower (each such Loan, a “Revolving Loan”) from
time to time on any Business Day during the period from the Seventh Amendment
Effective Date through the Final Availability Date, in an aggregate amount not
to exceed at any time outstanding such Lender’s Revolving Loan Commitment, which
Revolving Loan Commitments are set forth opposite such Lender’s name in
Schedule 1.1(b) under the heading “Revolving Loan Commitments” (as such
amount may be reduced from time to time in accordance with this Agreement, being
referred to herein as such Lender’s “Revolving Loan Commitment”); provided,
however, that, after giving effect to any Borrowing of Revolving Loans, the
aggregate principal amount of all outstanding Revolving Loans shall not exceed
the Maximum Revolving Loan Balance. Subject to the other terms and conditions
hereof, amounts borrowed under this Section 1.1(b) may be repaid and
reborrowed from time to time. 

The “Maximum Revolving Loan
Balance” from time to time will be the Aggregate Revolving Loan Commitment
then in effect less, in either case, the sum of (I) the aggregate amount
of Letter of Credit Obligations plus (II) the aggregate principal amount
of outstanding Swing Loans. If at any time the then outstanding principal
balance of Revolving Loans exceeds the Maximum Revolving Loan Balance, then the
Borrower shall immediately prepay outstanding Revolving Loans in an amount
sufficient to eliminate such excess.” 

2.2     Section 1.8(a) . Effective as of
the Seventh Amendment Closing Date, the table set forth in Section 1.8(a)
of the Credit Agreement is hereby amended and restated in its entirety as
follows: 

	Date of Payment 	Amount of Term 

      Loan Payment 
	September 30, 2016 	$312,500 
	December 31, 2016 	$312,500 
	March 31, 2017 	$312,500 
	June 30, 2017 	$312,500 
	September 30, 2017 	$312,500 

-2- 

	December 31, 2017 	$312,500 
	March 31, 2018 	$312,500 
	June 30, 2018 	$312,500 
	September 30, 2018 	$312,500 
	December 31, 2018 	$312,500 
	March 31, 2019 	$312,500 
	June 30, 2019 	$312,500 
	September 30, 2019 	$312,500 
	December 31, 2019 	$312,500 
	March 31, 2020 	The amount equal to the entire
      remaining principal balance of the Term Loan 

2.3    
Section 3.9; Section 3.27(b) . Effective as of the Seventh Amendment
Closing Date, each instance of the phrase “as of the Closing Date” set forth in
Section 3.9 and Section 3.27(b) of the Credit Agreement is hereby deleted and
replaced with the phrase “as of the Seventh Amendment Effective Date”. 

2.4   
 Section 3.19; Section 3.21; Section 5.1. Effective as of
the Seventh Amendment Closing Date, each instance of the phrase “as of August 1,
2016” set forth in Section 3.19, Section 3.21, and Section 5.1 of the Credit
Agreement is hereby deleted and replaced with the phrase “as of the Seventh
Amendment Effective Date”. 

2.5   
 Section 3.20. Effective as of the Seventh Amendment
Closing Date, Section 3.20 of the Credit Agreement is hereby amended and
restated in its entirety as follows: 

“3.20     Jurisdiction of Organization; Chief Executive
Office. Schedule 3.20 lists each Credit Party’s jurisdiction of
organization, legal name and organizational identification number, if any, and
the location of such Credit Party’s chief executive office or sole place of
business, in each case as of the Seventh Amendment Effective Date, and such
Schedule 3.20 also lists all jurisdictions of organization and legal
names of such Credit Party for the five years preceding the Seventh Amendment
Effective Date.” 

2.6    
Section 4.10. Effective as of the Seventh Amendment Closing Date,
Section 4.10 of the Credit Agreement is hereby amended and restated in
its entirety as follows: 

“4.10     Use of Proceeds. The Borrower shall use the
proceeds of the Loans solely as follows: (a) to refinance on the Closing Date,
Prior Indebtedness, (b) to repay on the Seventh Amendment Closing Date, the
Plano Debt, (c) to pay fees, costs and expenses required to be paid pursuant to
Section 2.1 and pursuant to the Fee Letter and pursuant to the Seventh
Amendment to Credit Agreement, dated as of August 19, 2016, among the Borrower,
the other Credit Parties party thereto, the Lenders party thereto, Agent and the
Swingline Lender, and (d) for working capital, capital expenditures and other
general corporate purposes not in contravention of any Requirement of Law and
not in violation of this Agreement; provided, however, that in no
event may proceeds of Revolving Loans be used, directly or indirectly, to make
an optional prepayment of the Term Loan.” 

2.7   
 Section 5.4(l) . Effective as of the Seventh Amendment
Closing Date, Section 5.4(l) of the Credit Agreement is hereby amended by
deleting clause (l) and replacing it with “[Reserved.].” 

-3- 

2.8    
Schedule 5.5(c) . Effective as of the Seventh Amendment Closing Date,
the phrase “on the Closing Date” set forth in clause (c) of Section
5.5 of the Credit Agreement is hereby deleted and replaced with the phrase
“on the Seventh Amendment Effective Date”. 

2.9    
Section 5.5(d) . Effective as of the Seventh Amendment Closing Date,
clause (d) of Section 5.5 of the Credit Agreement is hereby
amended and restated in its entirety as follows: 

“(d)     Indebtedness not to exceed $6,100,000 in the aggregate at
any time outstanding, consisting of Capital Lease Obligations or secured by
Liens permitted by Section 5.1(h) and Permitted Refinancings thereof,
provided that, solely for purposes of determining compliance with this
clause (d), the obligations under that certain Sublease Agreement by and
between SH Operating, LLC and Perimeter Road Surgical Hospital, LLC effective as
of November 1, 2015 shall not be considered Capital Lease Obligations;” 

2.10    
Section 5.5(h) . Effective as of the Seventh Amendment Closing Date,
Section 5.5(h) of the Credit Agreement is hereby amended by deleting
clause (h) and replacing it with “[Reserved.].” 

2.11   
 Section 5.9(c) . Effective as of the Seventh Amendment
Closing Date, Section 5.9(c) is hereby amended and restated in its
entirety as follows: 

“(c)     (i) Contingent Obligations of the
Credit Parties and their Subsidiaries existing as of the Seventh Amendment
Effective Date and listed in Schedule 5.9(c)(i), including extensions and
renewals thereof which do not increase the amount of such Contingent Obligations
or impose materially more restrictive or adverse terms on the Credit Parties or
their Subsidiaries as compared to the terms of the Contingent Obligation being
renewed or extended and (ii) Contingent Obligations of First Nobilis, LLC and
its Subsidiaries existing as of the Seventh Amendment Effective Date and listed
in Schedule 5.9(c)(ii); provided that clause (c)(ii) shall
not be construed or deemed to be Indebtedness for purposes of any financial
covenant;” 

2.12   
 Section 5.9(j) . Effective as of the Seventh Amendment
Closing Date, clause (j) of Section 5.9 of the Credit Agreement is
hereby amended and restated in its entirety as follows: 

“(j)     Contingent Obligations arising
under guaranties in an aggregate amount not to exceed $500,000.” 

2.13    
Section 5.11. Effective as of the Seventh Amendment Closing Date, the
portion of Section 5.11 of the Credit Agreement preceding clause
(a) of such section is hereby amended and restated in its entirety as
follows: 

“5.11     Restricted Payments. No
Credit Party shall, and no Credit Party shall suffer or permit any of its
Subsidiaries to, (i) declare or make any dividend payment or other distribution
of assets, properties, cash, rights, obligations or securities on account of any
Stock or Stock Equivalent, (ii) purchase, redeem or otherwise acquire for value
any Stock or Stock Equivalent now or hereafter outstanding, (iii) make
any payment or prepayment of principal of, premium, if any, interest, fees,
redemption, exchange, purchase, retirement, defeasance, sinking fund or similar
payment with respect to, Subordinated Indebtedness, or (iv) make any payment or
prepayment of any earnouts or other similar contingent acquisition consideration
(the items described in clauses (i), (ii), (iii), and
(iv) above are referred to as “Restricted Payments”); except that
any Wholly-Owned Subsidiary of the Borrower may declare and pay dividends to the
Borrower or any Wholly-Owned Subsidiary of the Borrower; provided that
each of First Nobilis Hospital Management, LLC, in accordance with its Company
Agreement dated as of May, 2015, as in effect on the Seventh Amendment Effective
Date, and First Nobilis, LLC, in accordance with its Company Agreement dated as of September 29, 2014, as
in effect on the Seventh Amendment Effective Date, may declare and pay dividends
or make other distributions ratably to the Persons holding its Stock, and except
that:” 

-4- 

2.14    
Section 5.16. Effective as of the Seventh Amendment Closing Date,
Section 5.16 of the Credit Agreement is hereby amended and restated in
its entirety as follows: 

“5.16     No Negative Pledges. Except as set forth on
Schedule 5.16, no Credit Party shall, and no Credit Party shall permit any of
its Subsidiaries to, directly or indirectly, create or otherwise cause or suffer
to exist or become effective any consensual restriction or encumbrance of any
kind on the ability of any Credit Party or Subsidiary to pay dividends or make
any other distribution on any of such Credit Party’s or Subsidiary’s Stock or
Stock Equivalents or to pay fees, including management fees, or make other
payments and distributions to the Borrower or any other Credit Party. Except as
set forth on Schedule 5.16, no Credit Party shall, and no Credit Party
shall permit any of its Subsidiaries to, directly or indirectly, enter into,
assume or become subject to any Contractual Obligation prohibiting or otherwise
restricting the existence of any Lien upon any of its assets in favor of Agent,
whether now owned or hereafter acquired except in connection with any document
or instrument governing Liens permitted pursuant to Section 5.1(h)
and Section 5.1(i) provided that any such restriction contained
therein relates only to the asset or assets subject to such permitted Liens.”

2.15   
 Section 6.1. Effective as of the Seventh Amendment
Closing Date, the table set forth in Section 6.1 of the Credit Agreement
is hereby amended by replacing the words “December 31, 2016 and thereafter”
contained therein with the words “December 31, 2016 and the last date of each
March, June, September and December of each year thereafter.” 

2.16   
 Section 6.3. Effective as of the Seventh Amendment
Closing Date, Section 6 of the Credit Agreement is hereby amended by
inserting the following new Section 6.3: 

“6.3     Consolidated Leverage Ratio. The Credit Parties
shall not permit the Consolidated Leverage Ratio as of any date set forth below
to be greater than the maximum ratio set forth in the table below opposite such
date: 

	 	Date 	Maximum Consolidated Leverage
      Ratio 
	 	September 30, 2016 and the 	2.00 to 1.00 
	 	last date of each December, 	  
	 	March, June, and 	  
	 	September of each year 	  
	 	thereafter 	  

‘Consolidated Leverage Ratio’ shall be calculated in the
manner set forth in Exhibit 4.2(b).” 

2.17     Section 6.4.
Effective as of the Seventh Amendment Closing Date, Section 6 of the
Credit Agreement is hereby amended by inserting the following new Section
6.4: 

“6.4     Consolidated Fixed Charge Coverage Ratio. The
Credit Parties shall not permit the Consolidated Fixed Charge Coverage Ratio for
the twelve fiscal month period ending on any date to be less than 3.00 to 1.00.

“Consolidated Fixed Charge Coverage Ratio” shall be
calculated in the manner set forth in Exhibit 4.2(b).” 

-5- 

2.18    
Section 7.1(l) . Effective as of the Seventh Amendment Closing Date,
clause (l) of Section 7.1 of the Credit Agreement is hereby
amended and restated in its entirety as follows: 

“(l)     Invalidity of Subordination Provisions. The
subordination provisions of any agreement or instrument governing any
Subordinated Indebtedness shall for any reason be revoked or invalidated, or
otherwise cease to be in full force and effect, or any Person shall contest in
any manner the validity or enforceability thereof or deny that it has any
further liability or obligation thereunder, or the Obligations, for any reason
shall not have the priority contemplated by this Agreement or such subordination
provisions; or” 

2.19    
Section 7.1(o) . Effective as of the Seventh Amendment Closing Date,
clause (o) of Section 7.1 of the Credit Agreement is hereby
amended and restated in its entirety as follows: 

“(o)     Subordinated Indebtedness. Any default, event of
default or other breach by any Credit Party under any Subordinated Indebtedness
Documents.” 

2.20   
 Section 11.1. Effective as of the Seventh Amendment Closing Date,
Section 11.1 of the Credit Agreement is hereby amended by adding the
definition of “Seventh Amendment Effective Date” (in appropriate alphabetical
order), and amending and restating each of the definitions of “Aggregate
Revolving Loan Commitment,” “Aggregate Term Loan Commitment,” “Fee Letter,”
“Lead Arranger,” “LIBOR,” “Loan Documents,” “Required Lenders,” “Subordinated
Indebtedness Documents,” and “Subsidiary” in their entirety as follows: 

“Aggregate Revolving Loan Commitment” means the combined
Revolving Loan Commitments of the Lenders, which, as of the Seventh Amendment
Effective Date, shall be in the amount of $11,600,000.00 as such amount may be
reduced from time to time pursuant to this Agreement. 

“Aggregate Term Loan Commitment” means the combined Term
Loan Commitments of the Lenders, which, as of the Seventh Amendment Effective
Date, shall be in the amount of $25,000,000.00, as such amount may be reduced
from time to time pursuant to this Agreement. 

“Fee Letter” means that certain Amended and Restated Fee
Letter Agreement dated as of the Seventh Amendment Effective Date between the
Borrower and Agent. 

“Lead Arranger” means Capital One, National Association.

“LIBOR” means, for each Interest Period, the offered
rate per annum (but not less than 0.00%) for deposits of Dollars for the
applicable Interest Period that appears on Reuters Screen LIBOR01 Page as of
11:00 A.M. (London, England time) two (2) Business Days prior to the first day
in such Interest Period. If no such offered rate exists, such rate will be the
rate of interest per annum (but not less than 0.00%), as determined by Agent at
which deposits of Dollars in immediately available funds are offered at 11:00
A.M. (London, England time) two (2) Business Days prior to the first day in such
Interest Period by major financial institutions reasonably satisfactory to Agent
in the London interbank market for such Interest Period for the applicable
principal amount on such date of determination. 

“Loan Documents” means this Agreement, the Notes, the
Fee Letter, the Collateral Documents, and all documents delivered to Agent
and/or any Lender in connection with any of the foregoing. 

-6- 

“Required Lenders” means at any time (a) Lenders then
holding more than fifty percent (50%) of the sum of the Aggregate Revolving Loan
Commitment then in effect plus the aggregate unpaid principal balance of
the Term Loan then outstanding, or (b) if the Aggregate Revolving Loan
Commitments have terminated, Lenders then holding more than fifty percent
(50%) of the sum of the aggregate unpaid principal amount of Loans (other
than Swing Loans) then outstanding, outstanding Letter of Credit
Obligations, amounts of participations in Swing Loans and the principal amount
of unparticipated portions of Swing Loans; provided that, in each case,
if there are two or more Lenders that are not Affiliates, then Required Lenders
requires at least two such Lenders (Lenders that are Affiliates of one another
being considered as one Lender for purposes of this proviso). 

“Seventh Amendment Effective Date” means August 19,
2016. 

“Subordinated Indebtedness Documents” means the
documents governing the Subordinated Indebtedness, including any notes or note
agreements, in each case, in form and substance satisfactory to Agent. 

“Subsidiary” means, with respect to any Person, any
corporation, partnership, joint venture, limited liability company, association
or other entity, the management of which is, directly or indirectly, controlled
by, or of which an aggregate of more than fifty percent (50%) of the voting
Stock is, at the time, owned or controlled directly or indirectly by, such
Person or one or more Subsidiaries of such Person; provided that none of
Athelite Holdings LLC, a Texas limited liability company, Dallas Metro Surgery
Center LLC, a Texas limited liability company, and Nobilis Health Networks,
Inc., a Texas nonprofit corporation, or any of their respective subsidiaries
shall be considered a Subsidiary of any Credit Party. 

2.21    
Form of Compliance Certificate. Exhibit 4.2(b) is hereby
amended and restated in its entirety in the form attached hereto as Annex
1. 

2.22    
Schedules to Credit Agreement and Guaranty and Security Agreement.
The information set forth in Annex 2 hereby amends and restates in
its entirety the information set forth in Schedules 1 through 5 to
the Guaranty and Security Agreement and Schedule 3.5 (Litigation),
Schedule 3.9 (Real Estate), Schedule 3.19 (Ventures,
Subsidiaries, and Affiliates; Outstanding Stock), Schedule 3.20
(Jurisdiction of Organization; Chief Executive Office), Schedule 3.21
(Deposit Accounts and Other Accounts), Schedule 3.27 (Healthcare
Matters), Schedule 5.1 (Liens), Schedule 5.5 (Indebtedness),
Schedules 5.9(c)(i) and (ii) (Contingent Obligations) and
Schedule 5.16 (Negative Pledge Covenants) of the Credit Agreement. The
information set forth in Annex 2 hereby supplements the information set forth in
Schedule 11.1(c) (Material Agreements) of the Credit Agreement. By
acknowledging and agreeing to this Amendment, each of the undersigned hereby
agrees that the information set forth in Annex 2 may be attached to the
Guaranty and Security Agreement and the Credit Agreement, as applicable, and
that the Collateral listed on Annex 2 to this Amendment shall be and
become part of the Collateral referred to in the Guaranty and Security Agreement
and shall secure all Secured Obligations (as defined in the Guaranty and
Security Agreement). 

2.23    
Schedule 1.1(a) . Schedule 1.1(a) (Term Loan Commitments) is
hereby amended and restated in its entirety in the form attached hereto as
Schedule 1.1(a). 

2.24    
Schedule 1.1(b) . Schedule 1.1(b) (Revolving Loan Commitments)
is hereby amended and restated in its entirety in the form attached hereto as
Schedule 1.1(b). 

-7- 

SECTION 3     ACKNOWLEDGMENTS

3.1    
Acknowledgment of Obligations. All Obligations, together with
interest accrued and accruing thereon, and fees, costs, expenses and other
charges now or hereafter payable by the Credit Parties to the Lenders under any
of the Loan Documents, are unconditionally owing by the Credit Parties, all
without offset, defense or counterclaim of any kind, nature or description
whatsoever. 

3.2    
Acknowledgment and Ratification of Guarantees, Liens and Loan Documents.
To secure and guarantee the payment and performance of the Obligations, and
to otherwise induce the Lenders to make loans and other extensions of credit
under the Credit Agreement, the Borrower and the other Credit Parties executed
and delivered prior to the date hereof the Credit Agreement and one or more of
the Loan Documents, including, without limitation, the Loan Documents identified
in Annex 3. Each Credit Party party hereto hereby reaffirms, ratifies and
confirms that all of the guarantees, pledges, grants, security interests, and
Liens provided or granted to the Agent pursuant to the Loan Documents and any
other documents or instruments executed, filed or recorded in connection
therewith, shall remain outstanding and in full force and effect, without
interruption or impairment of any kind, in accordance with the terms of such
document, and (notwithstanding the effectiveness of this Amendment) such
guarantees, pledges, grants, security interests, and Liens shall continue on and
at all times after the Seventh Amendment Effective Date to support and secure
(as applicable) the “Obligations” as defined in the Credit Agreement and the
“Obligations”, “Guaranteed Obligations” and “Secured Obligations” as those terms
are defined in the Loan Documents, in each case as modified by this Amendment,
in favor of the Agent for itself and the Secured Parties. This Amendment shall
not release, limit or impair in any way any of the guarantees, pledges, grants,
security interests, or Liens granted by the Borrower and the other Credit
Parties in favor of the Agent (for itself and the Secured Parties) pursuant to
the Loan Documents and any other documents or instruments executed, filed or
recorded in connection therewith.

3.3    
Binding Effect of Documents. Each of the Credit Parties hereby
acknowledges, confirms and agrees that: (a) each of the Loan Documents to which
it is a party has been duly executed and delivered to Agent, and each is in full
force and effect as of the date hereof, (b) the agreements and obligations of
each Credit Party contained in the Loan Documents and in this Amendment
constitute the legal, valid and binding obligations of such Credit Party,
enforceable against it in accordance with their respective terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to
enforceability, and no Credit Party has a valid defense to the enforcement of
such obligations and (c) Agent and the Lenders are and shall be entitled to the
rights, remedies and benefits provided for them in the Loan Documents and
applicable law. 

SECTION 4    
REPRESENTATIONS, WARRANTIES AND COVENANTS 

Borrower and each of the other
Credit Parties hereby further represent, warrant, and covenant with and to Agent
and the Lenders as follows: 

4.1    
Representations and Warranties. After giving effect to this
Amendment, each of the representations and warranties made by or on behalf of
the Credit Parties to Agent and the Lenders in all of the Loan Documents was
true and correct in all material respects when made and is true and correct in
all material respects on and as of the date of this Amendment with the same full
force and effect as if each of such representations and warranties had been made
by such Person on the date hereof and in this Amendment (without duplication of
any materiality qualifier contained therein), except to the extent that such
representation and warranty expressly relates to an earlier date (in which event
such representations and warranties were true and correct in all material
respects as of such earlier date (without duplication of any materiality
qualifier contained therein)) and except for changes therein expressly permitted
or expressly contemplated by the Credit Agreement or this Amendment; provided
that Agent and Lenders acknowledge that Hermann Drive Surgical Hospital, LP
is currently unable to obtain a statement of Franchise Tax Account Status, obtained through the website of
the Office of the Comptroller of Public Accounts of Texas showing that Hermann
Drive Surgical Hospital, LP’s right to transact business in Texas is “Active.” 

-8- 

4.2    
Binding Effect of Documents. This Amendment and the other Loan
Documents have been duly executed and delivered to Agent and the Lenders by the
Borrower and each of the other Credit Parties and are in full force and effect,
as modified hereby. 

4.3    
No Conflict, Etc. The execution and delivery and performance of this
Amendment by the Borrower and each of the other Credit Parties will not violate
any federal, state or any other material law, rule, regulation or order or
material contractual obligation of such Person in any material respect and will
not result in, or require, the creation or imposition of any Lien (other than
the Liens created by the Collateral Documents or any Permitted Liens) on any of
its Properties or revenues. 

4.4    
Events of Default. No Events of Default are continuing as of the date
hereof. The parties hereto acknowledge, confirm, and agree that any material
misrepresentation by any Credit Party or any failure of any Credit Party to
comply with the covenants, conditions and agreements contained in this Amendment
shall constitute an Event of Default under the Credit Agreement. 

4.5    
Post Seventh Amendment Effectiveness Covenants. On or prior to
October 3, 2016 in the case of clauses (a) and (b) below, and on
or prior to September 12, 2016 in the case of clauses (c) and (d)
below, or, in the case of clause (c) below, such later date agreed to in
writing, including by email, by Agent in its sole discretion, the Credit Parties
shall deliver to Agent, in form and substance satisfactory to Agent: 

(a)     evidence that the following UCC
financing statements have been terminated: (A) file no. 14-0028289165, naming
Victory Medical Center Houston, LP, as debtor, filed with the Texas Secretary of
State on September 4, 2014 in favor of Signature Financial LLC and Bank of the
West, (B) file no. 2016-000-6161-0, naming Perimeter Road Surgical Hospital,
LLC, as debtor, filed with the Arizona Secretary of State on February 10, 2016
in favor of Cardinal Health, (c) file no. 13-0037361367, naming Houston
Microsurgery Institute, LLC, as debtor, filed with the Texas Secretary of State
on November 26, 2013 in favor of Northstar Healthcare Acquisitions, L.L.C., (d)
file no. 13-0037362015, naming Houston Microsurgery Institute, LLC, as debtor,
filed with the Texas Secretary of State on November 26, 2013 in favor of The
Palladium for Surgery – Houston, Ltd., (e) file no. 13-0037362510, naming
Houston Microsurgery Institute, LLC, as debtor, filed with the Texas Secretary
of State on November 26, 2013 in favor of The Palladium for Surgery – Houston,
Ltd., (f) file no. 13-0037363026, naming Houston Microsurgery Institute, LLC, as
debtor, filed with the Texas Secretary of State on November 26, 2013 in favor of
Northstar Healthcare Management Company, LLC, and (g) file no. 13-0037363400,
naming Houston Microsurgery Institute, LLC, as debtor, filed with the Texas
Secretary of State on November 26, 2013 in favor of The Palladium for Surgery –
Houston, Ltd.; 

(b)     a duly executed Control Agreement
with regard to the Account maintained by The Palladium for Surgery – Dallas,
Ltd. with BBVA Compass; 

(c)     a statement of Franchise Tax
Account Status, obtained through the website of the Office of the Comptroller of
Public Accounts of Texas showing that Hermann Drive Surgical Hospital, LP’s
right to transact business in Texas is “Active”; and 

d)     endorsements naming the Agent as
additional insured under all liability insurance policies providing the
insurance coverage required to be maintained by Section 4.6 of the Credit
Agreement. 

-9- 

SECTION 5     CONDITIONS TO
EFFECTIVENESS

5.1    
Conditions Precedent. The effectiveness of the terms and provisions
of this Amendment shall be subject to each of the following conditions precedent
having been satisfied as determined in Agent’s sole discretion prior to, or
substantially contemporaneously with, the Seventh Amendment Closing Date: 

(a)     Agent shall have received one or
more counterparts of this Amendment, duly executed and delivered by the Credit
Parties and the Lenders; 

(b)     Agent shall have received, to the
extent requested by any Lender, new or amended and restated, as applicable, Term
Notes and Revolving Notes; 

(c)     Agent shall have received duly
executed favorable opinions of counsel to the Borrower, Parent, Holdings and
each other Credit Party, by Orrick, Herrington & Sutcliffe LLP, Milligan,
Lawless, P.C and W.L. Macdonald Law Corporation, each addressed to the Agent,
the L/C Issuer and the Lenders and addressing such matters as the Agent may
reasonably request; 

(d)     Agent shall have received an
Officer’s Certificate, in form and substance reasonably satisfactory to the
Agent, certifying that the conditions precedent set forth herein and in
Section 2.2 of the Credit Agreement have been satisfied; and 

(e)     Agent shall have received a duly
executed copy of that certain Joinder Agreement by and among Agent, LegacyTexas
Bank, and the Borrower dated as of the date hereof; 

(f)     Subject to the limited waiver set
forth in Section 6.12 of this Amendment, Agent shall have received a duly
executed joinder agreement with respect to Plano Hospital together with each
other document, instrument and agreement related thereto as required pursuant to
Section 4.13(b) of the Credit Agreement or as otherwise requested by
Agent in its reasonable discretion; 

(g)     Agent shall have received evidence
that the Plano Debt has been, or substantially contemporaneously with the
Seventh Amendment Closing Date will be, repaid in full, that all documents,
instruments and commitments related thereto, including the Subordinated
Guaranty, have been terminated and that all Liens related thereto have been
released; 

(h)     Agent shall have received, for
itself and the other Lenders, a non-refundable closing fee equal to $137,168.00
($89,299.05 to be retained by Agent and the remainder to be remitted to
LegacyTexas Bank); 

(i)     Agent shall have received the fees
set forth in the Fee Letter; and 

(j)     All reasonable out-of-pocket costs
and expenses referenced in Section 9.5 of the Credit Agreement that have
been invoiced to the Borrower shall have been paid or reimbursed by the
Borrower, including, without limitation, those relating to this Amendment. 

SECTION 6     ADDITIONAL
COVENANTS AND PROVISIONS OF GENERAL APPLICATION 

6.1     Effect of
  this Amendment; Ratification. Except for the amendments expressly set forth
  and referred to in Section 2, no other changes or modifications to the
  Loan Documents are intended or implied and in all other respects the Loan
  Documents, including, without limitation, each Credit Party’s payment and
  performance obligations set forth therein, are hereby specifically ratified and
  confirmed by all parties hereto as of the date hereof. In the event of any
  conflict between the terms of this Amendment and the other Loan Documents, the terms of this Amendment shall
control. Nothing in this Amendment is intended, or shall be construed, to
constitute a novation or an accord and satisfaction of any Credit Party’s
Obligations under or in connection with the Credit Agreement or any of the other
Loan Documents or to modify, affect or impair the perfection or continuity of
Agent’s security interests in, security titles to or other Liens on any
Collateral for the Obligations. The Credit Agreement and this Amendment shall be
read and construed as one agreement. Agent and Lenders hereby notify the Credit
Parties that, effective from and after the date of this Amendment, Agent, and
Lenders intend to enforce all of the provisions of the Loan Documents and that
Agent and Lenders expect that the Credit Parties will strictly comply with the
terms of the Loan Documents from and after this date. 

-10- 

6.2    
Costs and Expenses. The Credit Parties absolutely and unconditionally
agree to pay to Agent, on demand by Agent at any time and as often as the
occasion therefore may require, all reasonable and documented fees and
out-of-pocket disbursements of any counsel to Agent in connection with the
preparation, negotiation, execution, or delivery of this Amendment and any
agreements delivered in connection herewith and reasonable expenses which shall
at any time be incurred or sustained by Agent or any of its respective
directors, officers, employees or agents as a consequence of or in any way in
connection with the preparation, negotiation, execution, or delivery of this
Amendment and any agreements prepared, negotiated, executed or delivered in
connection herewith. 

6.3    
Further Assurances. The parties hereto shall execute and deliver such
additional documents and take such additional action as may be necessary or
reasonably desirable to effectuate the provisions and purposes of this
Amendment. 

6.4    
Binding Effect. This Amendment shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and
assigns. 

6.5    
Survival of Representations and Warranties. All representations and
warranties made in this Amendment or any other document furnished in connection
with this Amendment shall survive the execution and delivery of this Amendment
and the other documents delivered in connection therewith, and no investigation
by Agent or any Lender shall affect the representations and warranties or the
right of Agent or the Lenders to rely upon them. 

6.6    
Releases by Credit Parties. As a material inducement to Agent and the
Lenders to enter into this Amendment and to grant concessions to the Credit
Parties, all in accordance with and subject to the terms and conditions of this
Amendment, each Credit Party: 

(a)     Does hereby remise, release,
acquit, satisfy and forever discharge Agent and the Lenders and their
subsidiaries and affiliates, and all of their respective past, present and
future officers, directors, employees, agents, attorneys, representatives,
participants, heirs, successors and assigns (each a “Releasee” and
collectively, the “Releasees”) from any and all manner of debts,
accountings, bonds, warranties, representations, covenants, promises, contracts,
controversies, arguments, liabilities, obligations, expenses, damages,
judgments, executions, actions, claims, demands and causes of action of any
nature whatsoever, whether at law or in equity, either now accrued or hereafter
maturing or whether known or unknown, which any Credit Party now has or
hereafter can, shall or may have by reason of any manner, cause or things, from
the beginning of the world to and including the date of this Amendment, in each
case, with respect to matters arising out of, in connection with or related to:

(i)     any and all obligations owed or
owing to any Releasee under any document evidencing financial arrangements by,
among and between such Releasee and any Credit Party, relating to the Credit
Agreement, and including, but not limited to, the administration or funding
thereof; 

-11- 

(ii)     the Credit Agreement and
indebtedness evidenced and secured thereby; or 

(iii)     any other agreement or
transaction between any Credit Party and any Releasee entered into in connection
with the Credit Agreement. 

(b)     Does hereby covenant and
agree never to institute or cause to be instituted or continued prosecution of
any suit or other form of action or proceeding of any kind or nature whatsoever
against any Releasee by reason of or in connection with any of the foregoing
matters, claims or causes of action; provided, however, that the
foregoing release and covenant not to sue shall not apply to any claim arising
after the date of this Amendment with respect to acts, occurrences or events
after the date of this Amendment; and, further provided that the
foregoing release and covenant not to sue shall not apply to any rights or
claims, if any, of any third party creditors of any Credit Party. If any Credit
Party or any of its successors, assigns, or designees violates the foregoing
covenant, such Credit Party and its successors, assigns, and designees, jointly
and severally agree to pay, in addition to such other damages as any Releasee
may sustain as a result of such violation, all attorneys’ fees and costs
incurred by any Releasee as a result of such violation. 

(c)     Does hereby expressly
acknowledge and agree that the covenants and agreements of Agent and the Lenders
contained in this Amendment shall not be construed as an admission of any
wrongdoing, liability or culpability on the part of Agent or any Lender or as
any admission by Agent or any Lender of the existence of claims by any Credit
Party against Agent, the Lenders or any other Releasee. Each Credit Party, Agent
and the Lenders acknowledge and agree that the value to the Credit Parties of
the covenants, consents and agreements on the part of Agent and the Lenders
contained in this Amendment substantially and materially exceed any and all
value of any kind or nature whatsoever of any claims or other liabilities waived
or released by the Credit Parties. 

(d)     Notwithstanding anything
contained in this Amendment, the general release set forth in this Amendment
shall not extend to and shall not include any duties or obligations of Agent or
the Lenders in the Credit Agreement as modified by this Amendment or in any of
the other Loan Documents. 

6.7   
 Entire Agreement. This Amendment (together with the
other Loan Documents) expresses the entire understanding and agreement of the
parties hereto with respect to the subject matter hereof and supersedes all
prior understandings, negotiations, correspondence and agreements of the parties
regarding such subject matter. 

6.8   
 GOVERNING LAW. THE LAWS OF THE STATE OF NEW YORK SHALL
GOVERN ALL MATTERS ARISING OUT OF, IN CONNECTION WITH OR RELATING TO THIS
AMENDMENT, INCLUDING, ITS VALIDITY, INTERPRETATION, CONSTRUCTION, PERFORMANCE
AND ENFORCEMENT (INCLUDING, ANY CLAIMS SOUNDING IN CONTRACT OR TORT LAW ARISING
OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH RESPECT TO
POST-JUDGMENT INTEREST).

6.9   
 Incorporation of Credit Agreement Provisions. The
provisions contained in Sections 9.13, 9.14, 9.16, 9.18(b), 9.18(c), 9.18(d),
9.19, 9.23, and 9.24 of the Credit Agreement are incorporated herein by
reference to the same extent as if reproduced herein in their entirety.

6.10    
Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple separate counterparts and attached to a single counterpart. Delivery of
an executed signature page of this Amendment by facsimile transmission or
Electronic Transmission shall be as effective as delivery of a manually executed
counterpart hereof. 

-12- 

6.11   
 Limited Waiver of LIBOR Notice. The Agent and the
undersigned Lenders hereby waive the requirement set forth more fully in
Section 1.5 of the Credit Agreement that Borrower deliver a Notice of
Borrowing on the date which is three (3) Business Days prior to the requested
Borrowing date for a LIBOR Rate Loan. The aforesaid waiver relates solely to the
delivery of such Notice of Borrowing three (3) Business Days prior to the Loans
being made on the Seventh Amendment Effective Date and nothing in this Amendment
is intended or shall be construed to be a waiver by Agent or any Lender of the
notice requirements set forth more fully in Section 1.5 or any other
section of the Credit Agreement.

6.12   
 Limited Waiver of Pledge Amendment. The Agent and the
undersigned Lenders hereby waive the requirement set forth more fully in
Section 8.6 of the Guaranty and Security Agreement that a Pledge
Amendment be delivered in connection with the joinder of Plano Hospital. The
aforesaid waiver relates solely to the requirement that a Pledge Amendment be
delivered in respect of Plano Hospital and nothing in this Amendment is intended
or shall be construed to be a waiver by Agent or any Lender of the requirements
set forth more fully in Section 8.6 or any other section of the Guaranty
and Security Agreement. 

6.13    
Limited Waiver of UCC Terminations. The Agent and the undersigned
Lenders hereby waive the requirement set forth more fully in Section
7.2(b) of the Sixth Amendment to Credit Agreement, dated August 1, 2016
(“Sixth Amendment to Credit Agreement”), among Borrower, the other Credit
Parties party thereto, the lenders party thereto, and Agent, that Borrower
deliver evidence in form and substance reasonably satisfactory to Agent that the
following UCC financing statement file no. 14-0028289165, naming Victory Medical
Center Houston, LP, as debtor, filed with the Texas Secretary of State on
September 4, 2014 in favor of Signature Financial LLC and Bank of the West, has
been terminated. The aforesaid waiver relates solely to the delivery of such
evidence of termination prior to August 22, 2016 and nothing in this Amendment
is intended or shall be construed to be a waiver by Agent or any Lender of the
requirements set forth more fully in Section 7.2(b) of the Sixth
Amendment to Credit Agreement or any other section of the Sixth Amendment to
Credit Agreement. 

[Signature Pages to Follow] 

-13- 

IN WITNESS WHEREOF, the parties have caused this
Amendment to be duly executed by their respective duly authorized officers, as
of the date first above written. 

HEALTHCARE FINANCIAL SOLUTIONS,
LLC 
(as the successor in interest to GENERAL ELECTRIC

CAPITAL CORPORATION), 
as Administrative Agent, a Lender, and
Swingline 
Lender 

	 	By: 	/s/ R.
      Hanes Whiteley 
	 	Name: 	R. Hanes Whiteley 
	 	Title: 	Duly Authorized Signatory 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE

OTHER LENDERS: 

LEGACYTEXAS BANK 

	 	By: 	/s/
      Lindsey Burris 
	 	Name: 	Lindsey Burris 
	 	Title: 	AVP,
      Corporate Healthcare Banking 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE 

BORROWER:

NORTHSTAR HEALTHCARE

ACQUISITIONS, L.L.C. 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE 

CREDIT PARTIES: 

NORTHSTAR HEALTHCARE
HOLDINGS, INC. 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

	 	NOBILIS HEALTH CORP. 
	 	  	  
	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE

NORTHSTAR HEALTHCARE
NORTHWEST 
HOUSTON MANAGEMENT, LLC 

By: Northstar Healthcare Acquisitions,
L.L.C., 
its sole manager 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE
MANAGEMENT 
COMPANY, LLC 

By: Northstar Healthcare Acquisitions,
L.L.C., 
its sole member 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE SURGERY

CENTER – HOUSTON, LLC 

By: Northstar Healthcare Acquisitions,
L.L.C., 
its sole member 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE SURGERY

CENTER – SCOTTSDALE, LLC 

By: Northstar Healthcare Acquisitions,
L.L.C., 
its sole manager 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE SUBCO, L.L.C.

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE 

NORTHSTAR HEALTHCARE LIMITED

PARTNER, L.L.C. 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE GENERAL

PARTNER, L.L.C. 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

THE PALLADIUM FOR SURGERY – DALLAS,

LTD. 

By: Northstar Healthcare General
Partner, 
L.L.C., its sole general partner 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

ATHAS HEALTH LLC 

By: Northstar Healthcare Subco,
L.L.C., its sole 
member 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

ATHAS ADMINISTRATIVE LLC 

By: Athas Health LLC, its sole
member 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

ATHAS HOLDINGS LLC 

By: Athas Health LLC, its sole
member 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE 

FIRST NOBILIS HOSPITAL MANAGEMENT,

LLC 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NOBILIS HEALTH MARKETING, LLC

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

PEAK SURGEON INNOVATIONS, LLC

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

PEAK NEUROMONITORING ASSOCIATES –

TEXAS II, LLC 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NOBILIS SURGICAL ASSIST, LLC

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

SOUTHWEST HOUSTON SURGICAL ASSIST,
LLC 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

SOUTHWEST FREEWAY SURGERY CENTER,
    

LLC 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE 

CENTRAL MEDICAL SOLUTIONS LLC

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

PERIMETER ROAD SURGICAL HOSPITAL,
LLC 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 
SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE 

HERMANN DRIVE SURGICAL HOSPITAL,
LP

By: Northstar Healthcare General
Partner, 
L.L.C., its sole general partner 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

KUYKENDAHL ROAD SURGICAL HOSPITAL,

LLC 

	 	By: 	/s
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

PREMIER HEALTH SPECIALISTS, LLC

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

CONCERTIS, LLC 

	 	By: 	/s/
      Matthew K. Maruca 
	 	  	Name:
      Matthew K. Maruca 
	 	Title: 	General Counsel 

MARSH LANE SURGICAL HOSPITAL,
LLC 

	 	By: 	/s/
      Matthew K. Maruca 
	 	Name: 	Matthew K. Maruca 
	 	Title: 	General Counsel 

NORTHSTAR HEALTHCARE ACQUISITIONS, 
L.L.C. SEVENTH AMENDMENT
TO CREDIT AGREEMENT 
SIGNATURE PAGE 

Annex I 

EXHIBIT 4.2(b) 
FORM OF COMPLIANCE CERTIFICATE 

NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C. 

Date:  _______________ , 20__ 

This Compliance Certificate (this
“Certificate”) is given by NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C., a
Delaware limited liability company (the “Borrower”), pursuant to Section
4.2(b) of that certain Credit Agreement dated as of March 31, 2015, among the
Borrower, the other Credit Parties party thereto from time to time, HEALTHCARE
FINANCIAL SOLUTIONS, LLC, a Delaware limited liability company (as the successor
in interest to GENERAL ELECTRIC CAPITAL CORPORATION), as administrative agent
for the Secured Parties (in such capacity, the “Agent”), and the Lenders
party thereto (as such agreement may be amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”).
Capitalized terms used herein without definition shall have the meanings set
forth in the Credit Agreement. 

The officer executing this
Certificate is a Responsible Officer of the Borrower and Parent and as such is
duly authorized to execute and deliver this Certificate on behalf of the
Borrower. By executing this Certificate, such officer hereby certifies to Agent,
the Lenders and the L/C Issuers, on behalf of the Borrower and Parent, that:

(a)     the financial statements delivered
with this Certificate in accordance with Section 4.1(a) and/or Section 4.1(b) of
the Credit Agreement are correct and complete and fairly present, in all
material respects, in accordance with GAAP the financial position and the
results of operations of Parent and its Subsidiaries as of the dates of
and for the periods covered by such financial statements (subject, in the case
of interim financial statements, to normal year-end adjustments and the absence
of footnote disclosure); 

(b)     [Borrower Note: Include this
paragraph only with respect to Certificates delivered for the last fiscal month
of each Fiscal Quarter] Annex A hereto includes a correct
calculation of EBITDA, Adjusted EBITDA, Consolidated EBITDA, Consolidated
Adjusted EBITDA, Cash Flow, Consolidated Cash Flow and Net Interest Expense for
the relevant periods ended  _________ __, 20__; Annex B includes a
correct calculation of each of the financial covenants contained in Article
VI of the Credit Agreement for the relevant periods ended  _________
___, 20__] [Borrower Note: Include following re Excess Cash Flow only for
Certificate delivered for end of applicable Fiscal Years] [and Excess
Cash Flow (including a correct calculation of any required prepayment) for the
Fiscal Year ended [December 31, 20__];

(c)     [Borrower Note: Include this
paragraph only with respect to Certificates delivered for the last fiscal month
of each Fiscal Quarter] as of  ________ ___, 20__, no Credit Party
or any Subsidiary of any Credit Party owns any Margin Stock [, except as
specified on Annex C attached hereto]. 

(d)     to the best of such officer’s
knowledge, no Default or Event of Default exists [except as specified on
Annex C attached hereto]; and 

(f)     since the Closing Date and except
as disclosed in prior Certificates delivered to Agent, no Credit Party and no
Subsidiary of any Credit Party has: 

1 

(i)     changed its legal name, identity,
jurisdiction of incorporation, organization or formation or organizational
structure or formed or acquired any Subsidiary except as follows: 
____________________________________; 

(ii)     acquired all or substantially all
of the assets of, or merged or consolidated with or into, any Person, except as
follows: _____________________________________ ; or 

(iii)     changed its address or otherwise
relocated, acquired fee simple title to any real property or entered into any
real property leases, except as follows:  ____________________
 _______________________________ . 

IN WITNESS WHEREOF, the Borrower has caused this Certificate to
be executed by one of its Responsible Officers this  _____ day of 
_______________ , 20__. 

	 	 
	 	Name: 	 
	 	Title: 	 

Note: Unless otherwise specified, all financial covenants are
calculated for the Defined Financial Group in accordance with GAAP. All
calculations are without duplication. 

2 

ANNEX A
TO COMPLIANCE CERTIFICATE
Selected Financial
Definitions and Calculations 

I.     Definition/Calculation of
EBITDA/Adjusted EBITDA 

EBITDA is defined as follows: 

	A. 	Net income (or loss) for the applicable
      period of measurement of the
      Defined Financial Group determined in accordance with GAAP 	 	 

Less (or plus), to the extent included above in net income (or
loss) for such period: 

	 	
      (1) 
	
      the income (or loss) of any Person accrued prior to the
      date it becomes a member of the Defined Financial Group or is merged into
      or consolidated with the Borrower or any other member of the Defined
      Financial Group or that Person’s assets are acquired by the Borrower or
      any other member of the Defined Financial Group 
		 
	
       
	
       
		
       
	
       

	 	
      (2) 
	
      gains (or losses) from the sale, exchange, transfer or
      other disposition of Property or assets not in the Ordinary Course of
      Business of the Defined Financial Group, and related tax effects in
      accordance with GAAP 
		
	
       
	
       
		
       
	
       

	 	
      (3) 
	
      any other extraordinary gains (or losses) of the Defined
      Financial Group, and related tax effects in accordance with GAAP 
		
	
       
	
      
		
       
	
       

	 	
      (4) 
	
      income tax refunds received, in excess of income tax
      liabilities for such period 
		

	B. 	Total exclusions from (additions to) net income
      (sum of (1)-(4) above) 	 	 

Plus, without duplication, to the extent included in the
calculation of net income (or loss) for such period: 

	 	(1) 	
      Depreciation and amortization 
	 	 
	 	 	
       
	 	 
		(2) 	
      Interest expense (less interest income) (net of realized
      gains and losses under permitted Rate Contracts with respect thereto)
    
		
	 	 	
       
	 	 
		(3) 	
      All taxes on or measured by income (excluding income tax
      refunds) including, without duplication, Tax Distributions paid in cash in
      accordance with Section 5.11(d) of the Credit Agreement 
		
	 	 	
       
	 	 
	 	(4) 	
      All non-cash losses or expenses (or minus non-cash income
      or gain), including, without limitation, non-cash adjustments resulting
      from the application of purchase accounting, non-cash expenses arising
      from grants of stock appreciation rights, stock options or restricted
      stock, non-cash impairment of good will and other long term intangible
      assets, unrealized non-cash losses (or minus unrealized non-cash gains)
      under Rate Contracts, unrealized non-cash losses (or minus unrealized
      non-cash gains) in such period due solely to fluctuations in currency
      values, but excluding any non- cash loss or expense (a) that is an accrual
      of a reserve for a cash expenditure or payment to be made, or anticipated
      to be made, in a future period or (b) relating to a write-down, write off
      or reserve with respect to Accounts and Inventory 
	 	 
	 	  	
      
	 	 
	 	(5) 	
      Fees and reasonable and documented out-of-pocket expenses
      incurred in connection with any amendments or waivers to the Credit
      Agreement and the other Loan Documents to the extent such fees and
      expenses have been disclosed to Agent 
	 	 

A-1 

ANNEX A
TO COMPLIANCE CERTIFICATE
Selected Financial
Definitions and Calculations 

		(6) 	Fees and expenses incurred in connection with
      (i) a Permitted Acquisition (including any refinancing of (or amendment
      to) any Indebtedness acquired or assumed in connection therewith) or an
      Investment not in the ordinary course of business, (ii) a Disposition not
      in the ordinary course of business, (iii) Indebtedness incurred or Stock
      issued, in each instance in the foregoing clauses (i), (ii)
      and (iii), to the extent consummated and permitted under the
      Credit Agreement, and/or (iv) an Event of Loss, to the extent all such
      fees and expenses described in this clause (7) do not exceed
      $500,000 in the aggregate for any four consecutive Fiscal Quarter period
    		
	 	 	 	 	 
		(7) 	Fees and expenses (such fees and expenses
      described in this clause (8), collectively, “Unconsummated
      Transaction Fees”) incurred in connection with (i) a contemplated
      Permitted Acquisition or a contemplated Investment not in the ordinary
      course of business, (ii) a proposed incurrence of Indebtedness or proposed
      issuance of Stock, or (iii) a proposed Disposition not in the ordinary
      course of business, in each instance in the foregoing clauses (i),
      (ii) or (iii) which is not consummated and which is
      permitted under the Credit Agreement, to the extent all such Unconsummated
      Transaction Fees (a) do not exceed $250,000 in the aggregate for any four
      consecutive Fiscal Quarter period, and (b) are certified as such in a
      certificate of a Responsible Officer of the Borrower to Agent describing
      such fees and expenses in reasonable detail 		
	 	  	  	 	 
		(8) 	One-time non-recurring or unusual expenses
      including, without limitation, severance costs, lease termination costs,
      relocation costs, restructuring charges and other one-time expenses not
      otherwise added back to EBITDA and certified as such in a certificate of a
      Responsible Officer of the Borrower describing such expenses in reasonable
      detail (collectively, “Non- Recurring Expenses”) in an
      aggregate amount not to exceed ten percent (10%) of EBITDA (calculated
      before the addback for Non-Recurring Expenses) in the aggregate for any
      four consecutive Fiscal Quarter period 		
	 	 	 	 	 
		(9) 	Proceeds of business interruption insurance
      received in cash during such period to the extent not included in the
      calculation of net income (or loss) for such period 		
	 	 	 	 	 
	 	(10) 	Such other addbacks acceptable to Agent in its
      sole discretion 	 	 

	C. 	Total add backs to net income (sum of
      (1)-(10) above): 	 	 
	 	 	 	 
	D. 	EBITDA (result of A minus B plus
      C above) 	 	 

Adjusted EBITDA is defined as follows: 

	 	(i) 	
      EBITDA (per D above) 
	 	 
	 	 	
       
	 	 
		(ii) 	
      with respect to Targets owned by the Borrower for which
      the Agent has received financial statements pursuant to Section 4.1(b) for
      less than twelve (12) months, Pro Forma EBITDA allocated to each period
      prior to the acquisition thereof included in the trailing twelve (12)
      month period for which Adjusted EBITDA is being calculated;
      [Borrower Note: If more than one Target has been
      acquired, attach calculation of Pro Forma EBITDA for each
      Target] 
		

A-2 

ANNEX A
TO COMPLIANCE CERTIFICATE
Selected Financial
Definitions and Calculations 

	 	(iii) 	with respect to any Disposition consummated
      within the period in question, EBITDA attributable to the Subsidiary,
      profit centers, or other asset which is the subject of such Disposition
      from the beginning of such period until the date of consummation of such
      Disposition 	 	 

	Adjusted EBITDA (result of (i) plus (ii) minus
      (iii) above) 	 

“Pro Forma EBITDA” means, with respect to any Target,
EBITDA for such Target 
for the most recent twelve (12) month period
preceding the acquisition thereof.

A-3 

ANNEX A
TO COMPLIANCE CERTIFICATE 
Selected Financial
Definitions and Calculations 

II.     Definition/Calculation of Consolidated
EBITDA/Consolidated Adjusted EBITDA 

Consolidated EBITDA is defined as follows: 

	 	A. 	Net income (or loss) for the applicable
      period of measurement of the Parent and its Subsidiaries on
      a consolidated basis determined in accordance with GAAP 	 	 

Less (or plus), to the extent included above in net income (or
loss) for such period: 

	 	(1) the income (or loss) of any Person accrued prior to the
      date it becomes a Subsidiary of Borrower or is merged into or consolidated
      with the Borrower or a Subsidiary of Borrower or that Person’s assets are
      acquired by the Borrower or any Subsidiary of Borrower 	 	 
	 	 	 	 
	 	(2) gains (or losses) from the sale, exchange, transfer or
      other disposition of Property or assets not in the Ordinary Course of
      Business of the Parent and its Subsidiaries, and related tax effects in
      accordance with GAAP 		
	 	 	 	 
	 	(3) any other extraordinary gains (or losses) of the Parent
      and its Subsidiaries, and related tax effects in accordance with GAAP 		
	 	  	 	 
	  	(4) income tax refunds received, in excess of income tax
      liabilities for such period 		

	B. 	Total exclusions from (additions to) net income
      (sum of (1)-(4) above) 	 

Plus, without duplication, to the extent included in the
calculation of net income (or loss) for such period for Parent and its
Subsidiaries on a consolidated basis: 

	 	
      (1) Depreciation and amortization 
	 	 
	 	
       
	 	 
		
      (2) Interest expense (less interest income) (net of
      realized gains and losses under permitted Rate Contracts with respect
      thereto) 
		
	 	
       
	 	 
		
      (3) All taxes on or measured by income (excluding income
      tax refunds) including, without duplication, Tax Distributions paid in
      cash in accordance with Section 5.11(d) of the Credit Agreement 
		
	 	
      
	 	 
	 	
      (4) All non-cash losses or expenses (or minus non-cash
      income or gain), including, without limitation, non-cash adjustments
      resulting from the application of purchase accounting, non-cash expenses
      arising from grants of stock appreciation rights, stock options or
      restricted stock, non-cash impairment of good will and other long term
      intangible assets, unrealized non-cash losses (or minus unrealized
      non-cash gains) under Rate Contracts, unrealized non-cash losses (or minus
      unrealized non-cash gains) in such period due solely to fluctuations in
      currency values, but excluding any non-cash loss or expense (a) that is an
      accrual of a reserve for a cash expenditure or payment to be made, or
      anticipated to be made, in a future period or (b) relating to a
      write-down, write off or reserve with respect to Accounts and Inventory
      
		
	 	
      
	 	 
	 	
      (5) Fees and reasonable and documented out-of-pocket
      expenses incurred in connection with any amendments or waivers to the
      Credit Agreement and the other Loan Documents to the extent such fees and
      expenses have been disclosed  to Agent 
		

A-4 

ANNEX A
TO COMPLIANCE CERTIFICATE
Selected Financial
Definitions and Calculations 

	 	
      (6) Fees and expenses incurred in connection with (i) a
      Permitted Acquisition (including any refinancing of (or amendment to) any
      Indebtedness acquired or assumed in connection therewith) or an Investment
      not in the ordinary course of business, (ii) a Disposition not in the
      ordinary course of business, (iii) Indebtedness incurred or Stock issued,
      in each instance in the foregoing clauses (i), (ii)
      and (iii), to the extent consummated and permitted under the
      Credit Agreement, and/or (iv) an Event of Loss, to the extent all such
      fees and expenses described in this clause (7) do not exceed
      $500,000 in the aggregate for any four consecutive Fiscal Quarter period
      
		
	 	
       
	 	 
		
      (7) Fees and expenses (such fees and expenses described
      in this clause (8), collectively, “Unconsummated Transaction
      Fees”) incurred in connection with (i) a contemplated Permitted
      Acquisition or a contemplated Investment not in the ordinary course of
      business, (ii) a proposed incurrence of Indebtedness or proposed issuance
      of Stock, or (iii) a proposed Disposition not in the ordinary course of
      business, in each instance in the foregoing clauses (i), (ii)
      or (iii) which is not consummated and which is permitted under
      the Credit Agreement, to the extent all such Unconsummated Transaction
      Fees (a) do not exceed $250,000 in the aggregate for any four consecutive
      Fiscal Quarter period, and (b) are certified as such in a certificate of a
      Responsible Officer of the Borrower to Agent describing such fees and
      expenses in reasonable detail 
		
	 	
       
	 	 
		
      (8) One-time non-recurring or unusual expenses including,
      without limitation, severance costs, lease termination costs, relocation
      costs, restructuring charges and other one-time expenses not otherwise
      added back to Consolidated EBITDA and certified as such in a certificate
      of a Responsible Officer of the Borrower describing such expenses in
      reasonable detail (collectively, “Non-Recurring Expenses”) in an
      aggregate amount not to exceed ten percent (10%) of Consolidated EBITDA
      (calculated before the addback for Non-Recurring Expenses) in the
      aggregate for any four consecutive Fiscal Quarter period 
		
	 	
       
	 	 
		
      (9) Proceeds of business interruption insurance received
      in cash during such period to the extent not included in the calculation
      of net income (or loss) for such period 
		
	 	
       
	 	 
	 	
      (10) Such other addbacks acceptable to Agent in its sole
      discretion 
	 	 

	C. 	Total add backs to net income (sum of
      (1)-(10) above): 	 	 
	 	 	 	 
	D. 	Consolidated EBITDA (result of A minus B
      plus C above) 	 	 

Consolidated Adjusted EBITDA is defined as follows: 

	 	(i) 	Consolidated EBITDA (per D above) 	 	 
	 	 	 	 	 
		
      (ii) 
	
      with respect to Targets owned by the Borrower for which
      the Agent has received financial statements pursuant to Section 4.1(b) for
      less than twelve (12) months, Pro Forma EBITDA allocated to each period
      prior to the acquisition thereof included in the trailing twelve (12)
      month period for which Consolidated Adjusted EBITDA is being calculated;
      [Borrower Note: If more than one Target has been acquired, attach
      calculation of Pro Forma EBITDA for each Target] 
		

A-5 

ANNEX A
TO COMPLIANCE CERTIFICATE
Selected Financial
Definitions and Calculations 

	 	
      (iii) 
	
      with respect to any Disposition consummated within the
      period in question, EBITDA attributable to the Subsidiary, profit centers,
      or other asset which is the subject of such Disposition from the beginning
      of such period until the date of consummation of such Disposition 
	 	 

	Consolidated Adjusted EBITDA (result of (i) plus
      (ii) minus (iii) above) 	 

“Pro Forma EBITDA” means, with respect to any Target,
EBITDA for such Target 
for the most recent twelve (12) month period
preceding the acquisition thereof.

A-6 

ANNEX A
TO COMPLIANCE CERTIFICATE
Selected Financial
Definitions and Calculations 

III.     Definition/Calculation of Cash Flow Cash Flow (used
for calculating Excess Cash Flow and Fixed Charge Coverage Ratio) is defined as:

	A. 	EBITDA (per definition I above) 	 	 

Less unfinanced net capital expenditures: 

	 	(1) 	Gross capital expenditures: the aggregate of
      all expenditures and other obligations for the period of measurement which
      should be capitalized under GAAP 	 	 

Less, in each case, to the extent
included in (1) above: 

	 	(a) 	
      Net Proceeds from Dispositions 
	 	 
	 	 	
       
	 	 
	 	(b) 	
      Expenditures financed with cash proceeds from Stock
      issuances 
	 	 
	 	 	
       
	 	 
		(c) 	
      All insurance proceeds and condemnation awards received
      on account of any Event of Loss to the extent any such amounts are
      actually applied to replace, repair or reconstruct the damaged Property or
      Property affected by the condemnation or taking in connection with such
      Event of Loss 
		
	 	  		 	 
		(d) 	
      That portion of the purchase price of a Target in a
      Permitted Acquisition that constitutes a capital expenditure under GAAP
      
		

	 	(2) 	
      Total deductions from gross capital expenditures (sum of
      (a)-(d) above) 
	 	 
	 	 	
       
	 	 
	 	(3) 	
      Net capital expenditures (result of (1) minus (2)
      above) 
	 	 
	 	 	
       
	 	 
		(4) 	
      Less: Portion of capital expenditures financed under
      Capital Leases or other Indebtedness (Indebtedness, for this purpose, does
      not include drawings under the Revolving Loan Commitment) 
		

	B. 	Unfinanced capital expenditures
      (result of (3) minus (4) above) 	 	 
	 	 	 
	Cash Flow (result of A minus B above) 	 	 

A-7 

ANNEX A
TO COMPLIANCE CERTIFICATE
Selected Financial
Definitions and Calculations 

IV. Definition/Calculation of Consolidated Cash Flow
Consolidated Cash Flow (used for calculating Consolidated Fixed Charge Coverage
Ratio) is defined as: 

	A. 	Consolidated EBITDA (per definition II
      above) 	 	 

Less unfinanced net capital expenditures: 

	 	(1) 	Gross capital expenditures: the aggregate of
      all expenditures and other obligations for the period of measurement which
      should be capitalized under GAAP 	 	 

Less, in each case, to the extent
included in (1) above: 

	 	(a) 	
      Net Proceeds from Dispositions 
	 	 
	 	 		 	 
	 	(b) 	
      Expenditures financed with cash proceeds from Stock
      issuances 
	 	 
	 	 		 	 
		(c) 	
      All insurance proceeds and condemnation awards received
      on account of any Event of Loss to the extent any such amounts are
      actually applied to replace, repair or reconstruct the damaged Property or
      Property affected by the condemnation or taking in connection with such
      Event of Loss 
		
	 	  		 	 
		(d) 	
      That portion of the purchase price of a Target in a
      Permitted Acquisition that constitutes a capital expenditure under GAAP
      
		

	 	(2) 	
      Total deductions from gross capital expenditures (sum of
      (a)-(d) above) 
	 	 
	 	 	
       
	 	 
	 	(3) 	
      Net capital expenditures (result of (1) minus (2)
      above) 
	 	 
	 	 	
       
	 	 
		(4) 	
      Less: Portion of capital expenditures financed under
      Capital Leases or other Indebtedness (Indebtedness, for this purpose, does
      not include drawings under the Revolving Loan Commitment) 
		

	B. 	Unfinanced capital expenditures
      (result of (3) minus (4) above) 	 	 
	 	 	 
	Consolidated Cash Flow (result of A minus
      B above) 	 	 

A-8 

ANNEX A
TO COMPLIANCE CERTIFICATE
Selected Financial
Definitions and Calculations 

V.     Definition/Calculation of Net Interest Expense 

Net Interest Expense (used for calculating Fixed Charge
Coverage Ratio, Consolidated Fixed Charge Coverage Ratio and Excess Cash Flow)
is defined as: 

		A. 	
      Gross interest expense for such period paid or required
      to be paid in cash (including all commissions, discounts, fees and other
      charges in connection with letters of credit and similar instruments and
      net amounts paid or payable and/or received or receivable under permitted
      Rate Contracts in respect of interest rates) for Parent and its
      Subsidiaries on a consolidated basis 
		
	 	  		 	 
	 	B. 	
      Less: Interest income for such period 
	 	 

	Net Interest Expense (result of A minus B above) 	 

A-9 

ANNEX B 
TO COMPLIANCE CERTIFICATE
Financial Covenant and
Excess Cash Flow Calculations 

VI.     Section 6.1: Leverage Ratio 

Leverage Ratio is
  defined as follows: 

	A. 	The aggregate balance of outstanding Revolving
      Loans and Swing Loans as of the date of measurement 	 	 

Plus: 

	 	(1) 	
      L/C Reimbursement Obligations as of date of measurement
      then due and payable 
	 	 
	 	  		 	 
	 	(2) 	
      Outstanding principal balance of the Term Loan as of date
      of measurement 
	 	 
	 	  		 	 
	 	(3) 	
      Principal portion of Capital Lease Obligations and
      Indebtedness secured by purchase money Liens as of date of measurement
    
	 	 
	 	  		 	 
	 	(4) 	
      Subordinated Indebtedness as of date of measurement
    
	 	 
	 	 	
       
	 	 
		(5) 	
      Without duplication, all other Funded Indebtedness of the
      Defined Financial Group as of date of measurement 
		

	B. 	Consolidated Total Indebtedness (sum of A
      plus sum of (1)-(5) above) 	 	 
	 	 	 	 
	C. 	Adjusted EBITDA for the twelve month period
      ending on the date of measurement (per I of Annex A) 		

	Leverage Ratio (result of B divided by C above) 	  	 
	 	 	 
	Permitted maximum Leverage Ratio 	  	 
	 	 	 
	In Compliance 		Yes/No 

A-10 

ANNEX B 
TO COMPLIANCE CERTIFICATE
Financial Covenant and
Excess Cash Flow Calculations 

VII.     Section 6.2: Fixed Charge Coverage Ratio 

Fixed Charge Coverage Ratio is defined as follows: 

	A. 	
      Cash Flow (per III of Annex A) 
	 	 
	 	
       
	 	 
	B. 	
      Taxes on or measured by income paid or payable in cash
      with respect to such period including, without duplication, Tax
      Distributions paid in cash in accordance with Section 5.11(d) of the
      Credit Agreement 
		
	  		 	 
	C. 	
      Net Cash Flow (result of A minus B above) 
	 	 

Fixed Charges are defined as: 

	D. 	Net Interest Expense (per V of Annex
      A) 	 	 

Plus: 

	 	(1) 	Scheduled principal payments of Indebtedness
      during such period reduced by prepayments as permitted by the Credit
      Agreement 	 	 
	 	  		 	 
		(2) 	Restricted Payments paid in cash in accordance
      with Section 5.11(b) during such period 		

	E. 	Total fixed charges (result of D plus (1)
      and (2) above) 	 	 

	Fixed Charge Coverage Ratio (result of C divided by
      E above) 	 	 
    
	 	 	 
	Required minimum Fixed Charge Coverage Ratio 	 	 
    
	 	 	 
	In Compliance 	 	Yes/No 

For purposes of calculating Fixed Charge Coverage Ratio as of
any date on or prior to September 30, 2017, fixed charges shall be calculated as
follows: 

a. Scheduled principal payments of the Term Loans shall be
deemed to be $1,250,000 for each such measurement period. 

b. (i) Scheduled principal payments of all Indebtedness other
than the Term Loans and Prior Indebtedness, (ii) Taxes on or measured by income
paid or required to be paid in cash, and (iii) Restricted Payments described in
Section 5.11(b) of the Credit Agreement shall, in each case, be calculated in
each case using the actual amounts paid in cash in respect thereof during each
such measurement period. 

A-11 

ANNEX B 
TO COMPLIANCE CERTIFICATE 
Financial Covenant and
Excess Cash Flow Calculations 

VIII.     Section 6.3: Consolidated Leverage
Ratio1 

Consolidated Leverage Ratio is defined as follows: 

	A. 	The aggregate balance of outstanding Revolving
      Loans and Swing Loans as of the date of measurement 	 	 

Plus: 

	 	(1) 	
      L/C Reimbursement Obligations as of date of measurement
      then due and payable 
	 	 
	 	  		 	 
	 	(2) 	
      Outstanding principal balance of the Term Loan as of date
      of measurement 
	 	 
	 	  		 	 
	 	(3) 	
      Principal portion of Capital Lease Obligations and
      Indebtedness secured by purchase money Liens as of date of measurement
    
	 	 
	 	  		 	 
	 	(4) 	
      Subordinated Indebtedness as of date of measurement
    
	 	 
	 	 	
       
	 	 
		(5) 	
      Without duplication, all other Funded Indebtedness of
      Parent and its Subsidiaries on a consolidated basis as of date of
      measurement 
		

	B. 	Consolidated Total Indebtedness (sum of A
      plus sum of (1)-(5) above) 	 	 
	 	 	 	 
	C. 	Consolidated Adjusted EBITDA for the twelve
      month period ending on the date of measurement (per II of Annex
      A) 		

	Consolidated Leverage Ratio (result of B divided by
      C above) 	 	 
    
	 	 	 
	Permitted maximum Consolidated Leverage Ratio 	 	 
    
	 	 	 
	In Compliance 	 	Yes/No 

____________________________________________
1
For purposes of the calculation of Consolidated Leverage Ratio, each entry
should reflect the relevant sum for Parent and its Subsidiaries on a
consolidated basis. 

A-12 

ANNEX B 
TO COMPLIANCE CERTIFICATE
Financial Covenant and
Excess Cash Flow Calculations 

IX.     Section 6.4: Consolidated Fixed Charge Coverage
Ratio2 

Consolidated Fixed Charge Coverage Ratio is defined as follows:

	A. 	Consolidated Cash Flow (per IV of
      Annex A) 	 	 
	 	 	 	 
	B. 	Taxes on or measured by income paid or payable
      in cash with respect to such period including, without duplication, Tax
      Distributions paid in cash in accordance with Section 5.11(d) of the
      Credit Agreement 		
	  		 	 
	C. 	Net Consolidated Cash Flow (result of A
      minus B above) 	 	 
	 	 	 	 
	Consolidated Fixed Charges are defined as: 	 	 
	 	 	 
	D. 	Net Interest Expense (calculated in accordance
      with V of Annex A) 	 	 
	 	 	 	 
	  	Plus: 	 	 

	 	(1) 	Scheduled principal payments of Indebtedness
      during such period reduced by prepayments as permitted by the Credit
      Agreement 	 	 
	 	  		 	 
		(2) 	Restricted Payments paid in cash in accordance
      with Section 5.11(b) during such period 		

	E. 	Total fixed charges (result of D plus (1)
      and (2) above) 	 	 
    
	  	 	  
	Consolidated Fixed Charge Coverage Ratio (result
      of C divided by E above) 	 	 
    
	 	 	 
	Required minimum Consolidated Fixed Charge
      Coverage Ratio 	 	 
    
	 	 	 
	In Compliance 	 	Yes/No 

_______________________________________
2 For
purposes of the calculation of Consolidated Fixed Charge Coverage Ratio, each
entry should reflect the relevant sum for Parent and its Subsidiaries on a
consolidated basis. 

A-13 

ANNEX B 
TO COMPLIANCE CERTIFICATE
Financial Covenant and
Excess Cash Flow Calculations 

	X. 	
      Excess Cash Flow Calculation [Borrower Note:
      Include ECF calculation only for Certificate delivered for end of
      applicable Fiscal Years.]

Excess Cash Flow is defined as follows: 

	A. 	Cash Flow (per III of Annex A)
	 	 

Less, without duplication, and to the extent actually paid in
cash, in each case to the extent not financed with proceeds of Stock issuances
or Indebtedness (other than Revolving Loans): 

	 	(1) 	
      Scheduled principal payments with respect to Indebtedness
      
	 	 
	 	 	
       
	 	 
	 	(2) 	
      Net Interest Expense (per V of Annex A)
    
	 	 
	 	 	
       
	 	 
		(3) 	
      Taxes on or measured by income (including, without
      duplication, Tax Distributions permitted pursuant to Section 5.11(d) of
      the Credit Agreement) 
		
	 	  		 	 
	 	(4) 	
      Restricted payments permitted by Section 5.11(b) of the
      Credit Agreement 
	 	 
	 	 	
       
	 	 
	 	(5) 	
      Increase in working capital (if any) (see Working Capital
      Calculation below) 
	 	 
	 	  		 	 
		(6) 	
      The purchase price paid in cash for all Permitted
      Acquisitions and other Investments permitted pursuant to Section 5.4(j) of
      the Credit Agreement (other than any Investments in any Person which was
      already a Subsidiary or Investments in cash and Cash Equivalents) 
		
	 	  		 	 
		(7) 	
      Voluntary prepayments of the Term Loan during such
      period, to the extent such prepayments are applied in the same manner as
      mandatory prepayments 
		
	 	  		 	 
		(8) 	
      Voluntary prepayments of Revolving Loans during such
      period accompanied by a permanent reduction of the Revolving Loan
      Commitment 
		
	 	  		 	 
		(9) 	
      Cash addbacks to net income specified in clauses
      (6), (7), (8) and (9) in the calculation of
      EBITDA to the extent not reimbursed by a third person 
		

	B. 	Total deductions from Cash Flow (sum of
      (1)-(9) above) 	 	 
    
	 	 	 	 
	C. 	Decrease in working capital (if any) (see
      Working Capital Calculation below) 	 	 
    
	 	 	 	 
	D. 	Excess Cash Flow (result of A minus B
      plus C above) 	 	 
    
	 	 	 	 
	E. 	Required prepayment percentage (see Section
      1.8(e) of the Credit Agreement for percentage) 	 	[____%] 
	  		 	  
	F. 	Required prepayment amount (result of D
      multiplied by E above) 	 	 
    

A-14 

XI.     Working Capital Calculation 

Decrease (increase) in working capital, for the purposes of the
calculation of Excess Cash Flow, means the following: 

	  	 	Beg. of Period 	 	 	End of Period 	 
	Current assets: 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Less (to the extent included
      in current Assets): 	 	  	 	 	  	 
	 	 	 	 	 	 	 
	       
                 Cash 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Cash Equivalents 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Deferred tax assets 	$	
 	 	$		 
	 	 	 	 	 	 	 
	Adjusted current assets 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Current liabilities: 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Less (to the extent included
      in current liabilities): 	 	  	 	 	  	 
	 	 	 	 	 	 	 
	       
                 Revolving Loans 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Swing Loans 	$		 	$		 
	 	 	 	 	 	 	 
	       
                 Current portion of Indebtedness
    	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Deferred tax liabilities 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	       
                 Unearned revenue 	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Adjusted current liabilities
    	$	 	 	$	 	 
	 	 	 	 	 	 	 
	Working capital (adjusted
      current assets minus adjusted current liabilities) 	$ 			$ 		
	 	 	 	 	 	 	 
	Decrease (Increase) in
      working capital (beginning of period minus end of period working
      capital) 				$ 		

To the extent any of the Defined Financial Group consummates an
acquisition during such period, beginning of period working capital shall be
recalculated on a pro forma basis to include working capital acquired in such
acquisition. 

A-15 

Annex 2 

[See attached.] 

Annex 3 

Reaffirmed Loan Documents 

[See attached.] 

Schedule 1.1(a) 

TERM LOAN COMMITMENTS 

	Lender 	Outstanding Term Loan 	New Term Loan Commitment 
	Healthcare Financial Solutions, LLC 	$18,560,126.60 	$39,873.40 
	LegacyTexas Bank 	-0- 	$6,400,000.00 
	Total: 	$18,560,126.60 	$6,439,873.40 

	 	 	 	 
	Aggregate Term Loan
      Commitments 	$	25,000,000.00 	 

Schedule 1.1(b) 

REVOLVING LOAN COMMITMENTS 

	Healthcare Financial
      Solutions, LLC 	$	 8,000,000.00 	 
	 	 	 	 
	LegacyTexas Bank 	$	 3,600,000.00 	 
	 	 	 	 
	 	 	 	 
	Aggregate Revolving Loan Commitments
    	$	11,600,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}]]