Document:

Exhibit 10.1

 

Extension Agreement

 

This Extension Agreement
is made effective December 27, 2019, by and among WeConnect Tech International, Inc., a Nevada corporation having its place of
principal executive office at 1st Floor, Block A, Axis Business Campus, No. 13A & 13B, Jalan 225, Section 51A, 46100 Petaling
Jaya, Selangor, Malaysia (the "Company"), OZ Seventy Five Holdings (M) Berhad., a public limited company organized under
the laws of Malaysia (“OZ75”), and Ozairi Bin Othman (“Investor”).

 

WHEREAS, the Company,
OZ75 and the Investor are parties to that certain Share Exchange Agreement dated June 18, 2019 (the “Original Agreement”),
as amended by that certain Extension Agreement dated October 7, 2019 (the "”Extension Agreement”, and together
with the Original Agreement, the “Share Exchange Agreement"), pursuant to which the Company agreed to acquire up to
Five Hundred Ten Thousand (510,000) shares of the OZ75 Ordinary Stock (representing up to 51% of the total issued and outstanding
shares of OZ75 Ordinary Stock) held by the Investor (the “Acquisition”);

 

WHEREAS, in connection
with the Acquisition, the Company agreed to issue to the Investor up to Eighty Million (80,000,000) shares of its common stock,
par value $0.001, (the “WECT Shares”), at an agreed value of USD $0.10 per share;

 

WHEREAS, the parties
to the Share Exchange Agreement desire to extend the Closing Date of the Acquisition in accordance with the terms and conditions
set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing recitals and for good and valuable mutual consideration, the receipt of which is hereby acknowledged,
the parties, intending to be legally bound, do hereby agree to the following terms and conditions:

 

Agreement

 

1.            The
Closing Date shall be extended to occur on or prior to June 30, 2020.

2.            Except
as otherwise set forth herein, the terms of the Share Exchange Agreement shall remain in full force and effect without amendment,
modification or diminution.

3.            Undefined
capitalized terms used herein shall have the same meanings ascribed to them in the Share Exchange Agreement.

 

 

IN WITNESS WHEREOF,
the parties have executed this Extension Agreement as of the date first set forth above.

 

WECONNECT TECH INTERNATIONAL, INC.

 

 

By:  /s/ Shiong Han Wee                

       Shiong
Han Wee, Chief Executive Officer

 

 

OZ75 SEVENTY FIVE HOLDINGS (M) BERHAD.

 

 

By:  /s/ Ozairi Bin Othman               

       Ozairi
Bin Othman

Its: Chief Executive Officer

  

 

INVESTOR

 

 

 /s/ Ozairi Bin Othman                    

Ozairi Bin Othman

 

 

Address:

No 4, Lorong 78, Perkampungai Sungai ISAP

25150 Kuantan, Pahang

Malaysiaexhibit101passportcredit

                                            EXHIBIT 10.1                                                                                    CREDIT AGREEMENT               by and among         EVOLENT HEALTH LLC,              as Borrower,         EVOLENT HEALTH, INC.,                 as Parent                      Certain Subsidiaries thereof, as Guarantors,               The Lenders      from Time to Time Party Hereto,                   and      ARES CAPITAL CORPORATION,         as Administrative Agent,        Dated as of December 30, 2019  ___________________________________ 

 

                            TABLE OF CONTENTS                                                                                                                    Page    Article I   Definitions.............................................................................................................. 1        Section 1.01      Defined Terms ............................................................................... 1        Section 1.02      Other Interpretive Provisions ....................................................... 33        Section 1.03      Accounting Terms and Determination ......................................... 34        Section 1.04      Rounding ...................................................................................... 34        Section 1.05      References to Agreements, Laws, etc .......................................... 34        Section 1.06      Times of Day................................................................................ 34        Section 1.07      Timing of Payment of Performance ............................................. 34        Section 1.08      Corporate Terminology ................................................................ 35        Section 1.09      UCC Definitions .......................................................................... 35  Article II  Amount and Terms of Credit Facilities ............................................................... 35        Section 2.01      Loans ............................................................................................ 35        Section 2.02      Minimum Amount of Each Borrowing; Maximum Number                          of Borrowings .............................................................................. 37        Section 2.03      Notice of Borrowing .................................................................... 37        Section 2.04      Disbursement of Funds ................................................................ 38        Section 2.05      Payment of Loans; Evidence of Debt .......................................... 39        Section 2.06      Conversions and Continuations ................................................... 39        Section 2.07      Pro Rata Borrowings .................................................................... 40        Section 2.08      Interest.......................................................................................... 40        Section 2.09      Interest Periods............................................................................. 41        Section 2.10      Increased Costs, Illegality, etc ..................................................... 42        Section 2.11      Compensation .............................................................................. 44        Section 2.12      Change of Lending Office ........................................................... 45        Section 2.13      Notice of Certain Costs ................................................................ 45        Section 2.14      [Reserved] .................................................................................... 45        Section 2.15      Defaulting Lenders....................................................................... 45  Article III [RESERVED] ...................................................................................................... 46  Article IV  Fees and Commitment Terminations ................................................................... 47        Section 4.01      Fees .............................................................................................. 47        Section 4.02      Mandatory Termination of Commitments ................................... 47  Article V   Payments .............................................................................................................. 47        Section 5.01      Voluntary Prepayments ................................................................ 47        Section 5.02      Mandatory Prepayments .............................................................. 48        Section 5.03      Payment of Obligations; Method and Place of Payment ............. 51        Section 5.04      Net Payments ............................................................................... 51        Section 5.05      Computations of Interest and Fees ............................................... 54  Article VI  Conditions Precedent ........................................................................................... 54        Section 6.01      Conditions Precedent to Initial Credit Extension ......................... 54        Section 6.02      Conditions Precedent to all Credit Extensions............................. 59                                         i   

 

                            TABLE OF CONTENTS                                    (continued)                                                                           Page    Article VII Representations, Warranties and Agreements ..................................................... 59        Section 7.01      Corporate Status ........................................................................... 60        Section 7.02      Corporate Power and Authority ................................................... 60        Section 7.03      No Violation................................................................................. 60        Section 7.04      Litigation, Labor Controversies, etc ............................................ 60        Section 7.05      Use of Proceeds; Regulations U and X ........................................ 61        Section 7.06      Approvals, Consents, etc.............................................................. 61        Section 7.07      Investment Company Act ............................................................ 61        Section 7.08      Full Disclosure ............................................................................. 61        Section 7.09      Financial Condition; No Material Adverse Effect ....................... 62        Section 7.10      Tax Returns and Payments........................................................... 62        Section 7.11      Compliance with ERISA.............................................................. 62        Section 7.12      Capitalization and Subsidiaries .................................................... 63        Section 7.13      Intellectual Property; Licenses, etc .............................................. 64        Section 7.14      Environmental .............................................................................. 64        Section 7.15      Ownership of Properties .............................................................. 65        Section 7.16      No Default .................................................................................... 65        Section 7.17      Solvency ....................................................................................... 65        Section 7.18      Licensed Insurance Entities ......................................................... 65        Section 7.19      Compliance with Laws; Authorizations ....................................... 65        Section 7.20      Contractual or Other Restrictions ................................................ 66        Section 7.21      Transaction Documents ............................................................... 66        Section 7.22      Collective Bargaining Agreements .............................................. 66        Section 7.23      Insurance ...................................................................................... 66        Section 7.24      Evidence of Other Indebtedness .................................................. 66        Section 7.25      Deposit Accounts and Securities Accounts ................................. 67        Section 7.26      Foreign Assets Control Regulations; Anti-Money                          Laundering and Anti-Corruption Practices .................................. 67        Section 7.27      Patriot Act .................................................................................... 67        Section 7.28      Holding Company Status ............................................................. 68        Section 7.29      Flood Insurance ............................................................................ 68        Section 7.30      Location of Collateral; Equipment List ....................................... 68        Section 7.31      Health Care Matters ..................................................................... 68  Article VIII Affirmative Covenants ......................................................................................... 71        Section 8.01      Financial Information, Reports, Notices and Information ........... 71        Section 8.02      Books, Records and Inspections .................................................. 75        Section 8.03      Maintenance of Insurance ............................................................ 76        Section 8.04      Payment of Taxes ......................................................................... 76        Section 8.05      Maintenance of Existence; Compliance with Laws, etc .............. 76        Section 8.06      Environmental Compliance ......................................................... 77        Section 8.07      ERISA .......................................................................................... 78        Section 8.08      Maintenance of Property and Assets............................................ 79        Section 8.09      End of Fiscal Years; Fiscal Quarters ........................................... 79        Section 8.10      Use of Proceeds............................................................................ 79                                        ii     

 

                            TABLE OF CONTENTS                                    (continued)                                                                           Page          Section 8.11      Further Assurances; Additional Guarantors and Grantors ........... 80        Section 8.12      Bank Accounts ............................................................................. 81        Section 8.13      Compliance with Health Care Laws ............................................ 82        Section 8.14      Intellectual Property ..................................................................... 82        Section 8.15      Post-Closing ................................................................................. 82  Article IX  Negative Covenants ............................................................................................. 83        Section 9.01      Limitation on Indebtedness .......................................................... 83        Section 9.02      Limitation on Liens ...................................................................... 84        Section 9.03      Consolidation, Merger, etc ........................................................... 86        Section 9.04      Permitted Dispositions ................................................................. 86        Section 9.05      Investments .................................................................................. 87        Section 9.06      Restricted Payments, etc .............................................................. 89        Section 9.07      Modification of Certain Agreements ........................................... 89        Section 9.08      Sale and Leaseback ...................................................................... 89        Section 9.09      Transactions with Affiliates ......................................................... 90        Section 9.10      Restrictive Agreements, etc ......................................................... 90        Section 9.11      Hedging Transactions .................................................................. 90        Section 9.12      Changes in Business .................................................................... 91        Section 9.13      Financial Performance Covenant ................................................. 91        Section 9.14      Disqualified Capital Stock ........................................................... 91        Section 9.15      Removal of Collateral .................................................................. 92        Section 9.16      Holdings Covenant....................................................................... 92  Article X   Events of Default ................................................................................................. 93        Section 10.01     Listing of Events of Default ......................................................... 93        Section 10.02     Remedies Upon Event of Default ................................................ 96  Article XI  The Administrative Agent.................................................................................... 96        Section 11.01     Appointment ................................................................................ 96        Section 11.02     Delegation of Duties .................................................................... 97        Section 11.03     Exculpatory Provisions ................................................................ 97        Section 11.04     Reliance by Administrative Agent ............................................... 97        Section 11.05     Notice of Default.......................................................................... 98        Section 11.06     Non-Reliance on Administrative Agent and Other Lenders ........ 98        Section 11.07     Indemnification ............................................................................ 99        Section 11.08     Agent in Its Individual Capacity .................................................. 99        Section 11.09     Successor Agents ......................................................................... 99        Section 11.10     Agents Generally ....................................................................... 100        Section 11.11     Restrictions on Actions by Lenders; Sharing of Payments ........ 100        Section 11.12     Agency for Perfection ................................................................ 101        Section 11.13     Authorization to File Proof of Claim ......................................... 101        Section 11.14     Credit Bids ................................................................................. 101        Section 11.15     Binding Effect ............................................................................ 102                                         iii     

 

                            TABLE OF CONTENTS                                    (continued)                                                                           Page    Article XII Miscellaneous .................................................................................................... 102        Section 12.01     Amendments and Waivers ......................................................... 102        Section 12.02     Notices and Other Communications; Facsimile Copies ............ 104        Section 12.03     No Waiver; Cumulative Remedies ............................................ 105        Section 12.04     Survival of Representations and Warranties .............................. 105        Section 12.05     Payment of Expenses; Indemnification ..................................... 105        Section 12.06     Successors and Assigns; Participations and Assignments ......... 106        Section 12.07     Replacements of Lenders Under Certain Circumstances ........... 110        Section 12.08     Securitization ............................................................................. 110        Section 12.09     Adjustments; Set-off .................................................................. 111        Section 12.10     Counterparts ............................................................................... 112        Section 12.11     Severability ................................................................................ 112        Section 12.12     Integration .................................................................................. 112        Section 12.13     GOVERNING LAW .................................................................. 112        Section 12.14     Submission to Jurisdiction; Waivers .......................................... 112        Section 12.15     Acknowledgments...................................................................... 113        Section 12.16     WAIVERS OF JURY TRIAL ................................................... 114        Section 12.17     Confidentiality ........................................................................... 114        Section 12.18     Press Releases, etc ..................................................................... 115        Section 12.19     Releases of Guarantees and Liens .............................................. 116        Section 12.20     USA Patriot Act ......................................................................... 116        Section 12.21     No Fiduciary Duty ..................................................................... 117        Section 12.22     Authorized Officers ................................................................... 117        Section 12.23     Acknowledgement and Consent to Bail-In of EEA                          Financial Institutions .................................................................. 117        SCHEDULES   Schedule 1.01(a)  Commitments  Schedule 1.01(b)  Licensed Insurance Entities  Schedule 1.01(c)  Material Contracts  Schedule 7.04     Litigation  Schedule 7.12     Subsidiaries and Joint Ventures/Partnerships  Schedule 7.15     Real Property  Schedule 7.18     Licensed Insurance Entities   Schedule 7.22     Collective Bargaining Agreements  Schedule 7.23     Insurance  Schedule 7.24     Evidence of Indebtedness  Schedule 7.25     Deposit Accounts and Securities Accounts  Schedule 7.30     Location of Collateral; Equipment List  Schedule 7.31     Health Care Matters  Schedule 9.02     Liens                                        iv     

 

                            TABLE OF CONTENTS                                    (continued)                                                                           Page    Schedule 9.04     Dispositions  Schedule 9.05(g)  Investments  Schedule 9.09     Transactions with Affiliates  Schedule 9.10     Restrictive Agreements  Schedule 12.02    Addresses for Notices       EXHIBITS   Exhibit A-1 Form of Assignment and Acceptance  Exhibit C-1 Form of Compliance Certificate  Exhibit D-1 Form of DDTL Note   Exhibit N-1 Form of Notice of Borrowing  Exhibit N-2 Form of Notice of Conversion or Continuation  Exhibit T-1 Form of Term Loan Note                                            v     

 

                               CREDIT AGREEMENT         THIS CREDIT AGREEMENT, dated as of December 30, 2019, is among EVOLENT  HEALTH, INC., a Delaware corporation (“Parent”), EVOLENT HEALTH LLC, a Delaware  limited  liability  company (the “Borrower”),  its  Subsidiaries  signatory  hereto  as  guarantors  or  hereafter designated as Guarantors pursuant to Section 8.11, the lenders from time to time party  hereto  (each, a  “Lender”  and,  collectively,  the  “Lenders”), and ARES  CAPITAL  CORPORATION, a Maryland corporation (“Ares”), as administrative agent and collateral agent  for the Lenders (in such capacity, together with its successors and assigns in such capacity, the  “Administrative Agent”).                                    RECITALS         WHEREAS, the Borrower has requested that the Lenders extend credit to the Borrower in  the form of (a) an initial term loan in the aggregate principal amount of $75,000,000 on the Closing  Date (the “Initial Term Loan Facility”) and (b) a delayed draw term loan facility (the “DDTL  Facility”) in the aggregate principal amount of up to $50,000,000; and         WHEREAS, (a) the proceeds of the Initial Term Loan Facility will be used (i) to finance  the  Passport  Health  Acquisition  (as  defined  herein),  (ii)  to  pay  fees  and  expenses  incurred  in  connection with the transactions contemplated hereby (including the Passport Health Acquisition)  and (iii) fund ongoing working capital needs and other growth capital expenditure investments (to  the extent permitted hereunder) and (b) the proceeds of the DDTL Facility will be used solely (i)  to  finance the 2021 Convertible Notes  Repurchase, (ii) fund Permitted  Acquisitions  and other  growth capital expenditure investments (to the extent permitted hereunder) and (iii) to pay fees  and  expenses  incurred  in  connection  with  the  transactions  contemplated  thereby  and  the  2021  Convertible Notes Repurchase.                                   AGREEMENT         NOW, THEREFORE, in consideration of the premises and the agreements, provisions  and covenants herein contained, the parties hereto agree as follows:                                    ARTICLE I                                                                             Definitions         SECTION 1.01  Defined  Terms.   As  used  herein,  the  following  terms  shall  have  the  meanings specified in this Section 1.01, unless the context otherwise requires:         “2021  Convertible  Notes”  shall mean  Parent’s 2.00% Convertible  Senior  Notes due  December 1, 2021 in favor of U.S. Bank National Association, as trustee (the “Trustee”) and any  refinancing and extension thereof to the extent such refinancing or extension complies with clause  (y) of the definition of Additional Notes.          “2021 Convertible Notes Repurchase” shall mean Parent’s repurchase or redemption of  all or any portion of the 2021 Convertible Notes, whether by tender offer, open-market purchases  or otherwise.                                             

 

         “2025 Convertible  Notes”  shall  mean  Parent’s 1.50% Convertible  Senior  Notes  due  October 15, 2025, in favor of Trustee.         “ABR” shall mean, for any day, the highest of (a) the prime rate (as determined by reference  to the Wall Street Journal), (b) the federal funds rate plus 0.50%, (c) the sum of the Eurodollar  Rate for  an  interest  period  of  three (3) months plus the  excess  of the  Applicable  Margin for  Eurodollar Loans over the Applicable Margin for Base Rate Loans and (d) 2.00% per annum.   Changes in the rate of interest on that portion of any Loans maintained as ABR Loans will take  effect simultaneously with each change in the ABR.         “ABR Interest Payment Date” shall have the meaning set forth in Section 2.08(d).         “ABR Loan” shall mean each Loan bearing interest at ABR, as provided in Section 2.08.         “Additional Notes” shall mean unsecured convertible senior notes issued by Parent after  the  Closing  Date;  provided,  that,  (x)  such  Indebtedness  shall  not  mature,  amortize  or  be  mandatorily redeemable (other than solely for Qualified Capital Stock), pursuant to a sinking fund  obligation or otherwise (except as a result of a Change of Control or asset sale event so long as  any rights of the holders thereof upon the occurrence of a Change of Control or asset sale event  shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued  and payable and the termination of the Commitments) earlier than the date that is ninety-one (91)  days after the Maturity Date (as determined under clause (a) of the definition thereof) and (y) the  cash interest rate payable thereon does not exceed 4% per annum (it being agreed there shall be no  maximum rate with respect to paid-in-kind interest payments or on the conversion price of such  Additional Notes).          “Administrative  Agent”  shall  have  the  meaning  set  forth in  the  preamble  to  this  Agreement.         “Administrative Questionnaire” shall mean a questionnaire completed by each Lender, in  a form  approved by the Administrative Agent,  in which such Lender, among  other things,  (a)  designates one or more credit contacts to whom all syndicate-level information (which may contain  material nonpublic information about the Credit Parties and their Related Parties or their respective  securities) will be made available and who may receive such information in accordance with such  Lender’s compliance procedures and Applicable Laws, including federal and state securities laws  and (b) designates an address, facsimile number, electronic mail address and/or telephone number  for notices and communications with such Lender.         “Affiliate”  shall mean,  with  respect  to  any  Person,  any  other  Person  that, directly  or  indirectly, through one or more intermediaries, Controls or is Controlled by or is under common  Control with the Person specified; provided, that, no Secured Party shall be an Affiliate of any  Credit Party solely by reason of the provisions of the Credit Documents.  The term “Control”  means either (a) the power to vote, or the beneficial ownership of, ten (10%) or more of the Voting  Stock of such Person or (b) the possession, directly or indirectly, of the power to direct or cause  the direction of the management or policies of a Person, whether through the ability to exercise  voting power, by contract or otherwise.  The terms “Controlling” and “Controlled” have meanings  correlative thereto.                                         2   

 

         “Agreement” shall mean this Credit Agreement, as the same may be amended, amended  and restated, supplemented or otherwise modified from time to time.         “Anti-Corruption  Laws”  shall  mean  any  and  all  laws,  rules  or  regulations  relating  to  corruption or bribery, including, but not limited to, the FCPA and the U.K. Bribery Act 2010.         “Anti-Money Laundering Laws” shall mean any and all laws, rules or regulations relating  to money laundering or terrorism financing, including (a) 18 U.S.C. §§ 1956 and 1957; and (b) the  Bank  Secrecy  Act,  31  U.S.C.  §§  5311  et  seq.,  as  amended  by  the  PATRIOT  Act,  and  its  implementing regulations.         “Anti-Terrorism Laws” shall mean any laws relating to terrorism, trade sanctions programs  and  embargoes,  import/export  licensing,  money  laundering  or  bribery,  all  as  amended,  supplemented or replaced from time to time.         “Applicable  Laws” shall mean,  with  respect  to  any  Person,  the  common  law  and  any  federal, state, local, foreign, multinational or international laws, statutes, codes, treaties, standards,  rules  and  regulations,  guidelines,  ordinances,  orders,  judgments,  writs,  injunctions,  decrees  (including  administrative  or  judicial  precedents  or  authorities)  and  the  interpretation  or  administration thereof by, and other determinations, directives, requirements or requests of, any  Governmental  Authority,  in  each  case  whether  or  not  having  the  force  of  law  and  that  are  applicable to or binding upon such Person or any of its property or Products or to which such  Person or  any  of  its property  or  Products  is  subject.  For  the  avoidance  of  doubt,  the  term  “Applicable  Laws”  shall  include  FATCA  and any  intergovernmental  agreements  with  respect  thereto between the United States and another jurisdiction.         “Applicable Margin” shall mean a percentage per annum equal to, with respect to Loans,  (i) that are Eurodollar Loans, 8.00 percentage points and (ii) that are ABR Loans, 7.00 percentage  points.         “Approved Fund” shall mean any Person (other than a natural person) that is engaged in  making, purchasing, holding or investing in bank loans and similar extensions of credit in the  ordinary course and that is administered, advised or managed by (a) a Lender, (b) an Affiliate of a  Lender or (c) an entity or an Affiliate of an entity that administers, advises or manages a Lender.         “Ares” shall have the meaning set forth in the recitals to this Agreement.         “Assignment and Acceptance” shall mean an assignment and acceptance substantially in  the form of Exhibit A-1.         “Attributable Indebtedness” shall mean, on any date, in respect of any Capitalized Lease  of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person  prepared as of such date in accordance with GAAP.         “Authorized Officer” shall mean, with respect to any Credit Party, the Chief Executive  Officer, the Chief Financial Officer, secretary or any other senior financial officer (to the extent  that such senior financial officer is designated as such in writing to the Administrative Agent by  such Credit Party) of such Credit Party.                                         3   

 

         “Bail-In Action” shall mean the exercise of any Write-Down and Conversion Powers by  the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.         “Bail-In Legislation” shall mean, with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European  Union, the implementing law for such EEA Member Country from time to time which is described  in the EU Bail-In Legislation Schedule.         “Bankruptcy Code” shall mean the Federal Bankruptcy Reform Act of 1978.         “Benefited Lender” shall have the meaning set forth in Section 12.09.          “Board” shall mean the Board of Governors of the Federal Reserve System of the United  States (or any successor).         “Board of Directors” shall mean, as to any Person, the board of directors (or comparable  managers) of such Person, or any committee thereof duly authorized to act on behalf of the board  of directors (or comparable managers).         “Borrower” shall have the meaning set forth in the preamble to this Agreement.         “Borrowing” shall mean and include the incurrence of one Type of Loan on a given date  (or resulting from conversions on a given date) having, in the case of Eurodollar Loans, the same  Interest Period.         “Budget” shall have the meaning set forth in Section 8.01(f).         “Business Day” shall mean (a) any day excluding Saturday, Sunday and any day that shall  be in the City of New York a legal holiday or a day on which banking institutions are authorized  by law or other governmental actions to close, and (b) any day that is also a day for trading by and  between banks in Dollar deposits in the interbank Eurodollar market.         “Capital  Stock”  shall  mean  any  and  all  shares,  interests,  participations,  units  or  other  equivalents  (however  designated)  of  capital  stock  of  a  corporation,  membership  interests  in  a  limited liability company, partnership interests of a limited partnership, any and all equivalent  ownership interests in a Person and any and all warrants, rights or options to purchase any of the  foregoing.         “Capitalized Lease Obligations” shall mean, as applied to any Person, all obligations under  Capitalized Leases of such Person or any of its Subsidiaries, in each case taken at the amount  thereof accounted for as liabilities on the balance sheet (excluding the footnotes thereto) of such  Person in accordance with GAAP.          “Capitalized Leases” shall mean, as applied to any Person, all leases of property that have  been or should be, in accordance with GAAP, recorded as capitalized leases on the balance sheet  of such Person or any of its Subsidiaries, on a consolidated basis; provided, that for all purposes  hereunder  the  amount  of  obligations  under  any Capitalized  Lease  shall  be  the  amount  thereof  accounted for as a liability on the balance sheet (excluding the footnotes thereto) of such Person                                         4   

 

   in accordance with GAAP; provided, that, any lease classified as an operating lease on the Closing  Date shall continue to be treated as an operating lease regardless of its treatment under GAAP. For  the avoidance of doubt,  “Capitalized Leases” shall not include obligations or liabilities of any  Person to pay rent or other amounts under any lease of (or other arrangement conveying the right  to use) real or personal property, or a combination thereof, which obligations would be required to  be classified and accounted for as an operating lease under GAAP as existing on the Closing Date;  provided, that financial reporting obligations shall not be affected by this sentence.         “Cash Equivalents” shall mean:               (a)   any direct obligation of (or unconditional guarantee by) the United States  (or any agency or political subdivision thereof, to the extent such obligations are supported by the  full faith and credit of the United States) maturing not more than one (1) year after the date of  acquisition thereof;               (b)   commercial paper maturing not more than one hundred eighty (180) days  from the date of issue and issued by (i) a corporation (other than an Affiliate of any Credit Party)  organized under the laws of any state of the United States or of the District of Columbia and, at  the time of acquisition thereof, rated A-1 or higher by S&P or P-1 or higher by Moody’s, or (ii)  any Lender (or its holding company);               (c)   any certificate of deposit, time deposit or bankers’ acceptance, maturing not  more than one hundred eighty (180) days after its date of issuance, which is issued by either: (i) a  bank organized under the laws of the United States (or any state thereof) which has, at the time of  acquisition thereof, (A) a credit rating of P2 or higher from Moody’s or A or higher from S&P and  (B) a combined capital and surplus greater than $500,000,000, or (ii) a Lender;               (d)   any repurchase agreement having a term of thirty (30) days or less entered  into with any Lender or any commercial banking institution satisfying, at the time of acquisition  thereof, the criteria set forth in clause (c)(i) which (i) is secured by a fully perfected security interest  in any obligation of the type described in clause (a), and (ii) has a market value at the time such  repurchase agreement is entered into of not less than one hundred percent (100%) of the repurchase  obligation of such Lender or commercial banking institution thereunder;                (e)   Cash Equivalents set forth on Schedule 9.05(g); and               (f)   money market and mutual funds investing primarily in assets described in  clauses (a) through (d) of this definition.         “Casualty Event” shall mean the damage, destruction or condemnation, as the case may  be, of property of any Credit Party.         “CERCLA” shall mean the Comprehensive Environmental Response, Compensation and  Liability Act of 1980.         “Change of Control” shall mean an event or series of events by which: (a) (1) any Person  or group within the meaning of the Exchange Act and the rules of the SEC thereunder (other than  the Borrower and its wholly-owned Subsidiaries, the Warrant Holder and its affiliates and the                                         5   

 

   employee  benefit  plans  of  the  Borrower  and  its  wholly-owned  Subsidiaries) shall  acquire  ownership,  directly  or  indirectly,  beneficially  or  of  record,  of  Capital  Stock  of  the Parent  representing more than fifty percent (50%) or, in the case of the Permitted Holders collectively,  more than sixty percent (60%), of the aggregate ordinary voting power represented by the issued  and outstanding Capital Stock of Parent; provided, however, that a Person or group shall not be  deemed a beneficial owner of, or to own beneficially, (x) any securities tendered pursuant to a  tender or exchange offer made by or on behalf of such Person or group pursuant to a Schedule TO  (or  any  successor  form)  until  such  tendered  securities  are  accepted  for  purchase  or  exchange  thereunder or (y) any securities to the extent such beneficial ownership (i) arises solely as a result  of  a  revocable  proxy  delivered  to  such  Person  or  group  by  a  shareholder that  is  not,  for  the  avoidance of doubt, a member of such “group” in response to a proxy or consent solicitation made  pursuant  to,  and  disclosed  in accordance  with,  the  applicable  rules  and  regulations  under  the  Exchange  Act  and  (ii)  is  not  also  then  reportable  on  Schedule  13D  or  Schedule  13G  (or  any  successor schedule) under the Exchange Act; and (2) any Person or group (within the meaning of  the Exchange Act and the rules of the SEC thereunder) other than the Warrant Holder and its  affiliates  files,  or  the  Parent  files,  a  Schedule  TO  or  any  schedule,  form  or  report  under  the  Exchange Act disclosing that such an event described in the immediately preceding clause (1) has  occurred; (b) the consummation of (A) any recapitalization, reclassification or change of the Class  A common stock of the Parent (other than changes resulting from a subdivision or combination)  as a result of which the Class A common stock of the Parent would be converted into, or exchanged  for,  stock,  other  securities,  other  property  or  assets;  (B)  any  share  exchange,  consolidation  or  merger of Parent pursuant to which the Class A common stock of Parent will be converted into  cash, securities or other property or assets; or (C) any sale, lease or other transfer in one transaction  or a series of transactions of all or substantially all of the consolidated assets of Parent and its  Subsidiaries, taken as a whole, to any Person other than one of Parent’s Subsidiaries; provided,  however, that a transaction described in clause (B) in which the holders of all classes of Parent’s  Capital Stock immediately prior to such transaction hold, directly or indirectly, more than 50% of  the voting power of all  classes  of Capital  Stock of the continuing  or surviving  corporation or  transferee  or  the  parent  thereof  immediately  after  such  transaction  in  substantially  the  same  proportions as such holders held, directly or indirectly, immediately prior to such transaction shall  not be a Change of Control pursuant to this clause (b); (c) the Class A common stock (or other  common  stock)  of  the  Parent  ceases  to  be  listed  or  quoted  on  any  of  The  New  York  Stock  Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their  respective successors); (d) Parent ceases to own one hundred percent (100%) of the issued and  outstanding voting Capital Stock of Borrower; (e) Borrower ceases to own directly or indirectly  one hundred percent (100%) of the issued and outstanding Capital Stock of each Guarantor (other  than Parent), free and clear of all Liens, rights, options, warrants or other similar agreements or  understandings, other than Liens in favor of Administrative Agent or non-consensual Permitted  Liens arising by operation of applicable law; or (f) a “Fundamental Change” (as defined in the  Convertible Senior Notes) shall occur.         “Claims” shall have the meaning set forth in the definition of “Environmental Claims”.         “Closing Date” shall mean December 30, 2019.         “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and  the regulations promulgated and rulings issued thereunder.  Section references to the Code are to                                         6   

 

   the Code, as in effect at the date of this Agreement, and any subsequent provisions of the Code,  amendatory thereof, supplemental thereto or substituted therefor.         “Collateral”  shall  mean  any  assets  of  any  Credit  Party  or  other  collateral  upon  which  Administrative Agent has been granted a Lien in connection with this Agreement.         “Collateral Documents” shall mean the Security Agreement and each other document or  agreement that creates or perfects any security interests granted by any of the Credit Parties to the  Administrative Agent on behalf of the Secured Parties.          “Collateral Sale” shall have the meaning set forth in Section 11.14.         “Collections” shall mean all cash, checks, credit card slips or receipts, notes, instruments,  and other items of payment (including insurance proceeds, proceeds of cash sales, rental proceeds  and tax refunds) of the Credit Parties.         “Commitment”  shall  mean  any  of  the  Initial  Term  Loan  Commitment  or DDTL  Commitment.  The aggregate amount of the Commitments as of the Closing Date is $125,000,000,  as set forth on Schedule 1.01(a).         “Competitor” means any Person that is an operating company engaged in substantially  similar business operations as the Borrower.          “Compliance Certificate” shall mean a certificate duly  completed  and executed by  an  Authorized Officer of the Borrower substantially in the form of Exhibit C-1.         “Confidential Information” shall have the meaning set forth in Section 12.17.         “Connection Income Taxes” shall mean Other Connection Taxes that are imposed on or  measured by net  income (however denominated) or that are franchise Taxes  or branch profits  Taxes.         “Consolidated  Adjusted EBITDA”  shall  mean,  for  a  specified Test  Period,  an  amount  determined for Parent and its Subsidiaries on a consolidated basis equal to               (a)   Consolidated Net Income,   plus               (b)   to  the  extent  deducted  in  calculating  Consolidated  Net  Income  for  such  period (other than with respect to clause (b)(xiii) below), the sum of, without duplication, amounts  for:                     (i)   Consolidated Interest Expense (net of interest income);                     (ii)  (a) provisions  for  Taxes  based  on  income and  (b)  any  payments  actually made pursuant to the TRA;                     (iii) total depreciation expense;                                        7   

 

                     (iv)  total amortization expense;                     (v)   other  non-cash  charges reducing  Consolidated  Net  Income  (excluding any such non-cash item (x) to the extent that it represents an accrual or reserve for  potential cash items in any future period or amortization of a prepaid cash item that was paid in a  prior period or (y) relating to a write-down, write off or reserve with respect to receivables or  inventory);                     (vi)  losses, costs and expenses on asset sales, disposals or abandonments  (other than (i) of current assets and (ii) asset sales, disposals or abandonments in the ordinary  course of business);                      (vii) fees  and  expenses  incurred  in  connection  with  a  Permitted  Acquisition,  other  Investments  permitted  hereunder,  Dispositions  (other  than  in  the  ordinary  course  of  business)  permitted  hereunder,  Restricted  Payments  permitted  hereunder or  the  refinancing or redemption of Indebtedness permitted hereunder; provided, that, to the extent such  transactions have not been consummated, such costs, fees and expenses shall not exceed an amount  not greater than $1,500,000 in any Test Period;                      (viii) fees and expenses incurred in connection with the consummation of  the Transactions on the Closing Date in an aggregate amount not to exceed $5,200,000, and to the  extent disclosed to Administrative Agent;                      (ix)  non-cash adjustments pursuant to any management equity or equity- based plan or stock option plan or any other management or employee benefit plan or agreement  or any stock subscription or stockholders agreement;                      (x)   (1) the effects of adjustments in the Parent’s and its Subsidiaries’  consolidated financial statements pursuant to GAAP (including in the property and equipment,  software, goodwill, intangible assets, deferred revenue and debt line items thereof) resulting from  the  application  of  recapitalization  accounting  or  purchase  accounting,  as  the  case  may be,  in  relation to the Transactions or any consummated acquisition or the amortization of any amounts  thereof,  (2) any  non-cash  losses,  charges  or  adjustments  resulting  from  the  application  of  Accounting Standards Codification 606 and (3) earnout obligations and other similar contingent  consideration;                      (xi)  costs,  fees  and  expenses  relating  to restructuring, severance,  recruiting, retentions and relocations, signing and stay bonuses, payments made to employees or  producers  who  are  subject  to  non-compete  agreements, and curtailments  or  modifications  to  pension  and  post-retirement  employee  benefits  plans;  provided,  that,  the  aggregate  amount  included in this clause (xi) during any Test Period shall not exceed $7,500,000;                      (xii) charges,  losses  or  expenses  to  the  extent  paid  for,  reimbursed  or  indemnified by a Person other than Parent and its Subsidiaries or reimbursed through insurance by  a Person other than Parent and its Subsidiaries, in each case to the extent such expenses are actually  paid or refunded to Parent or any of its Subsidiaries (to the extent such payments or refunds are  included in Consolidated Net Income);                                          8   

 

                     (xiii) proceeds received from business interruption insurance;                      (xiv) to  the  extent  included  in  Consolidated  Net  Income,  losses  attributable to non-controlling interests; and                     (xv)  extraordinary, unusual and non-recurring costs, expenses and losses  in any Test Period; provided, that, the aggregate amount included in this clause (xv) during any  Test Period shall not exceed the greater of (x) $2,500,000 and (y) 20% of Consolidated Adjusted  EBITDA as of the end of the most recently ended Test Period as calculated before giving effect to  the add-back in this clause (xv);   minus               (c)   to  the  extent  included  in  calculating  Consolidated  Net  Income  for  such  period (other than with respect to clause (c)(iv)), the sum of, without duplication, amounts for:                      (i)   other non-cash gains increasing Consolidated Net Income for such  period (excluding any such non-cash item to the extent it represents the reversal of an accrual or  reserve for a potential cash item in any prior period),                      (ii)  extraordinary, unusual and non-recurring gains and income;                      (iii) gains on asset sales, disposals or abandonments (other than (A) of  current assets and (B) asset sales, disposals or abandonments in the ordinary course of business);  and                     (iv)  any software development costs to the extent capitalized during such  period.     provided; however, for purposes of determining the Total Secured Leverage Ratio, Consolidated  Adjusted EBITDA shall be determined on a Pro Forma Basis.          “Consolidated Interest Expense” shall mean, for any specified Test Period, for the Parent  and its Subsidiaries, determined on a consolidated basis in accordance with GAAP, the sum of:   (a) all interest in respect of Indebtedness (including, without limitation, the interest component of  any  payments  in  respect  of  Capitalized  Lease  Obligations)  accrued  or  capitalized  during  such  period (whether or not actually paid during such period) plus (b) the net amount payable (or minus  the net amount receivable) in respect of Hedging Obligations relating to interest during such period  (whether or not actually paid or received during such period).         “Consolidated Net Income” shall mean, for any specified Test Period, the consolidated net  income (or loss) of Parent and its Subsidiaries determined in accordance with GAAP; provided  that there  shall  be  excluded  (i)  the  income  (or  loss)  of  any  Person  (other  than  consolidated  Subsidiaries  of Parent)  in  which  any  Person  (other  than Parent or  any  of  its  consolidated  Subsidiaries)  has  a  joint ownership interest or  that  is  accounted  for  by  the  equity  method  of  accounting, except to the extent of the amount of dividends or other distributions actually paid to  Parent or any of its consolidated Subsidiaries by such Person during such specified Test Period,  (ii)  the income  (or  loss)  of  any  Person  accrued  prior  to  the  date  it  becomes  a  consolidated                                         9   

 

   Subsidiary  of Parent or  is  merged  into  or  consolidated  with Parent or  any  of  its  consolidated  Subsidiaries or such Person’s assets are acquired by Parent or any of its consolidated Subsidiaries,  and (iii) the income of any consolidated Subsidiary of Parent (other than a Credit Party) to the  extent that the declaration or payment of dividends or similar distributions by that consolidated  Subsidiary of that income is not at the time permitted by operation of the terms of its charter or  any  agreement,  instrument,  judgment,  decree,  order,  statute,  rule, governmental  regulation  applicable to that consolidated Subsidiary or would require governmental (including regulatory)  consent; provided, that, the income (or loss) of any consolidated Subsidiary of Parent (other than  a Credit Party) shall not be excluded from this definition to the extent governmental (including  regulatory)  consent  has  been  received  for  the declaration  or  payment of  dividends  or  similar  distributions by that consolidated Subsidiary of its income.         “Consolidated Secured Debt” shall mean, as of any date of determination, the outstanding  principal amount of all Funded Debt that is secured, in whole or part, by a Lien on any asset of  Parent or any of its Subsidiaries.         “Convertible  Senior  Notes”  shall  mean  (i)  the  2021  Convertible  Notes,  (ii)  the  2025  Convertible Notes and (iii) any Additional Notes.           “Contingent  Liability”  shall  mean,  for  any  Person,  any  agreement,  undertaking or  arrangement by which such Person guarantees, endorses or otherwise becomes or is contingently  liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment,  to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss)  the Indebtedness of any other Person (other than by endorsements of instruments in the course of  collection), or guarantees the payment of dividends or other distributions upon the Capital Stock  of any other Person.  The amount of any Person’s obligation under any Contingent Liability shall  (subject to any limitation set forth therein) be deemed to be the outstanding principal amount of  the debt, obligation or other liability guaranteed thereby.         “Control” shall have the meaning set forth in the definition of “Affiliate.”         “Controlling  and  Controlled”  shall  have  the  meaning  set  forth  in  the  definition  of  “Affiliate.”         “Control Agreement” shall mean a control agreement, in form and substance reasonably  satisfactory to  Administrative  Agent,  executed  and  delivered  by  the  applicable  Credit  Party,  Administrative  Agent,  and  the  applicable  securities  intermediary  or  bank,  which  agreement  is  sufficient to give the Administrative Agent “control” under the UCC over each of such Credit  Party’s securities accounts, deposit accounts or investment property, as the case may be.         “Credit Documents” shall mean this Agreement, the Control Agreements, the Fee Letter,  the Guarantee Agreement, the Security Documents, the Intercompany Subordination Agreement,  any Notes issued by the Borrower hereunder, any intercreditor or subordination agreements in  favor of the Administrative Agent with respect to this Agreement, and any other agreement entered  into now, or in the future, by any Credit Party, on the one hand, and the Administrative Agent or  Lender, on the other hand, in connection with this Agreement; provided, that, the Warrants shall  not be Credit Documents.                                         10   

 

         “Credit  Extension”  shall  mean  and  include  the  making  (but  not  the conversion  or  continuation) of a Loan.         “Credit Facility” shall mean any of the Initial Term Loan Facility or DDTL Facility, as  applicable, and, collectively, the Initial Term Loan Facility and DDTL Facility.         “Credit Party” shall mean the Borrower, each of the Guarantors and each other Person that  becomes a Credit Party hereafter pursuant to the execution of joinder documents.         “DDTL Commitment” shall mean, (a) in the case of each Lender that is a Lender on the  date  hereof,  the  amount  set  forth  opposite  such  Lender’s  name  on Schedule  1.01(a) as  such  Lender’s “DDTL Commitment” and (b) in the case of any Lender that becomes a Lender after the  date hereof, the amount specified as such Lender’s “DDTL Commitment” in the Assignment and  Acceptance pursuant to which such Lender assumed a portion of the DDTL Commitment, in each  case as, the same (x) shall be permanently reduced each time there is a Delayed Draw Term Loan  draw by the amount of such Delayed Draw Term Loan draw that such Lender funds and (y) may  be otherwise changed from time to time pursuant to the terms hereof.         “DDTL Commitment Expiration Date” shall mean December 30, 2021.         “DDTL Facility” shall have the meaning set forth in the recitals to this Agreement.         “DDTL Note” shall mean a promissory note substantially in the form of Exhibit D-1.         “Declined Proceeds” shall have the meaning set forth in Section 5.02(j).           “Default” shall mean any event, act or condition that with notice or lapse of time, or both,  would constitute an Event of Default.         “Default Rate” shall have the meaning set forth in Section 2.08(c).         “Defaulting Lender” shall mean, subject to Section 2.15, any Lender that, as determined  by the Administrative Agent, (a) has failed to (i) fund any portion of the Term Loans required to  be funded by it hereunder for three (3) or more Business Days unless such Lender notifies the  Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s  determination  that  one  or  more  conditions  precedent  to  funding  (each  of  which  conditions  precedent, together with any applicable default, shall be specifically identified in such writing) has  not been satisfied, or (ii) pay to the Administrative Agent, any other Lender any other amount  required to be paid by it hereunder, (b) has notified the Borrower, or the Administrative Agent in  writing that it does not intend to comply with its funding obligations or has made a public statement  to that effect with respect to its funding obligations hereunder or under other agreements in which  it commits  to  extend  credit  (unless  such  writing  or  public  statement  relates  to  such  Lender’s  obligation  to  fund  a  Loan  hereunder  and  states  that  such  position  is  based  on  such  Lender’s  determination that a condition precedent to funding (which condition precedent, together with any  applicable default, shall be specifically identified in such writing or public statement) cannot be  satisfied),  (c)  has  failed,  within three  (3)  or  more Business  Days after  written  request  by  the  Administrative  Agent  or  the  Borrower,  to  confirm  in  writing  in  a  manner  satisfactory  to  the  Administrative  Agent  that  it  will  comply  with  its  prospective  funding  obligations  hereunder                                         11   

 

   (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon  receipt of such written confirmation by the Administrative Agent), or (d) has, or has a direct or  indirect parent company that has, (i) become the subject of a bankruptcy or insolvency proceeding,  (ii)  had  a  receiver,  custodian,  conservator,  trustee,  administrator, assignee for  the  benefit  of  creditors or similar Person charged with reorganization or liquidation of its business or assets,  including  the  Federal  Deposit  Insurance  Corporation  or  any  other  state  or  federal  regulatory  authority acting in such capacity, (iii) taken any action in furtherance of, or indicated its consent  to, approval of or acquiescence in any such proceeding or appointment or (iv) become the subject  of a Bail-in Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the  ownership  or  acquisition  of  any  equity  interest  in  that  Lender  or  any  direct  or  indirect  parent  company thereof by a Governmental Authority so long as such ownership interest does not result  in or provide such Lender with immunity from the jurisdiction of courts within the United States  or from the enforcement of judgments or writs of attachment on its assets or permit such Lender  (or  such  Governmental  Authority)  to  reject,  repudiate,  disavow  or  disaffirm  any  contracts  or  agreements made with such Lender.  Any determination by the Administrative Agent that a Lender  is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive  and binding absent manifest error.         “Delayed Draw Term Loan” shall have the meaning set forth in Section 2.01(e).         “Disposition” shall mean, with respect to any Person, any sale, transfer, lease, contribution,  division or other conveyance (including by way of merger) of, or the granting of options, warrants  or  other  rights  to,  any  of  such  Person’s  or  their  respective  Subsidiaries’  assets  (including  receivables and Capital Stock of Subsidiaries) to any other Person in a single transaction or series  of transactions.         “Disqualified Capital Stock” shall mean any Capital Stock, other than the Warrants and  the 2021 Convertible Notes, that, by its terms (or by the terms of any security or other Capital  Stock into which it is convertible or for which it is exchangeable) or upon the happening of any  event  or  condition,  (a)  matures  or  is  mandatorily  redeemable  (other than  solely  for  Qualified  Capital Stock), pursuant to a sinking fund obligation or otherwise (except as a result of a Change  of Control or asset sale so long as any rights of the holders thereof upon the occurrence of a Change  of Control or asset sale event shall be subject to the prior repayment in full of the Loans and all  other Obligations that are accrued and payable and the termination of the Commitments), (b) is  redeemable  at  the  option  of  the  holder  thereof  (other  than  solely  for  Qualified  Capital  Stock)  (except as a result of a Change of Control or asset sale so long as any rights of the holders thereof  upon  the  occurrence  of  a  Change  of  Control  or  asset  sale  event  shall  be  subject  to  the  prior  repayment in full of the Loans and all other Obligations that are accrued and payable and the  termination of the Commitments), in whole or in part, (c) provides for the scheduled payment of  dividends in cash or (d) is or becomes convertible into or exchangeable for Indebtedness or any  other Capital Stock that would constitute Disqualified Capital Stock, in each case, prior to the date  that is ninety-one (91) days after the Maturity Date (as determined under clause (a) of the definition  thereof); provided,  that  if  such  Capital  Stock  is  issued  pursuant to  a  plan  for  the  benefit  of  employees of the Borrower or its Subsidiaries or by any such plan to such employees, such Capital  Stock  shall  not  constitute  Disqualified  Capital  Stock  solely  because  it  may  be  required  to  be  repurchased  by the  Borrower or  its Subsidiaries  in  order  to  satisfy  applicable  statutory  or  regulatory obligations.                                         12   

 

         “Disqualified Institution” means any Person that is (a) designated by the Borrower, by  written  notice  delivered  to  Administrative  Agent  on  or  prior  to  the Closing  Date,  as  a (i)  disqualified institution or (ii) Competitor or (b) clearly identifiable, solely on the basis of such  Person’s name, as an Affiliate of any Person referred to in clause (a)(i) or (a)(ii) above; provided,  however, Disqualified Institutions shall (A) exclude any Person that the Borrower Representative  has  designated as  no longer being  a Disqualified Institution  by written notice delivered to the  Administrative Agent from time to time, (B) exclude any bona fide debt fund, investment vehicle,  regulated bank entity or unregulated lending entity (other than any person separately identified as  a  Disqualified  Institution  in  accordance  with  clause  (a)(ii) above  or  any  Affiliate  of  a  Person  identified under clause (b) above) that is engaged in making, purchasing, holding or otherwise  investing in commercial loans or similar extensions of credit in the ordinary course of business  and (C) include (I) any Person that is added as a Competitor and (II) any Person that is clearly  identifiable, solely on the basis of such Person’s name, as an Affiliate of any Person referred to in  clause (C)(I), pursuant to a written supplement to the list of Competitors that are Disqualified  Institutions, that is delivered by the Borrower after the date hereof to the Administrative Agent.   Such supplement shall become effective two (2) Business Days after the date that such written  supplement  is  delivered  to  Administrative  Agent,  but  which  shall  not  apply  retroactively  to  disqualify any Persons that have previously acquired an assignment or participation interest in the  Loans and/or Commitments as permitted herein         “Distributable Cash” shall have the meaning set forth in Section 10.01(m).            “Dollars” and “$” shall mean dollars in lawful currency of the United States of America.         “Domestic Holding Company” shall mean a Domestic Subsidiary that  has  no material  assets  other  than  Capital  Stock  (or  Capital  Stock  and  indebtedness)  of  one  or  more  Foreign  Subsidiaries.         “Domestic Subsidiary” shall mean each Subsidiary of the Borrower that is organized under  the  Applicable  Laws  of  the  United  States,  any  state,  territory,  protectorate  or  commonwealth  thereof or the District of Columbia.         “EEA  Financial  Institution” shall  mean (a)  any  credit  institution  or  investment  firm  established in any EEA Member Country which is subject to the supervision of an EEA Resolution  Authority, (b) any entity established in an EEA Member Country which is a parent of an institution  described in  clause (a) of this definition or (c) any financial institution established in an EEA  Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this  definition and is subject to consolidated supervision with its parent;          “EEA Member Country” shall mean any of the member states of the European Union,  Iceland, Liechtenstein and Norway.         “EEA Resolution Authority” shall mean any public administrative authority or any Person  entrusted  with  public  administrative  authority  of  any  EEA  Member  Country  (including  any  delegee) having responsibility for the resolution of any EEA Financial Institution.         “Eligible Assignee” shall have meaning set forth in Section 12.06(b).                                         13   

 

          “Environmental Claims” shall mean any and all administrative, regulatory, adjudicatory  or  judicial  actions,  suits,  demands,  demand  letters,  claims,  liens,  fines,  penalties,  requests  for  information, inquiries, notices of noncompliance or violation, investigations (other than internal  reports  prepared  by  the  Credit  Parties  in  the  ordinary  course  of  such  Person’s  business)  or  proceedings relating in any way to any Environmental Law, any Hazardous Material (including  any exposure to any Hazardous Material), or any permit issued, or any approval given, under any  such  Environmental  Law  (“Claims”),  including  (i)  any  and  all  Claims  by  governmental  or  regulatory  authorities  for enforcement,  cleanup,  removal,  response,  remedial,  investigation,  monitoring or other actions or damages pursuant to any Environmental Law and (ii) any and all  Claims  by  any  Person  seeking  damages,  contribution,  indemnification,  cost  recovery,  compensation or injunctive relief resulting from the presence, Release of, or threat of Release of,  Hazardous Materials or arising from alleged injury or threat of injury to human health, public  safety or the environment, pursuant to any Environmental Law.         “Environmental  Law”  shall  mean  any  federal,  state,  foreign,  regional,  county  or  local  statute, law, rule, regulation, ordinance and code now or hereafter in effect and, in each case, as  amended, and any binding judicial or administrative interpretation thereof, including any binding  judicial or administrative order, decree or judgment, relating to the protection of human health,  safety or the environment or natural resources, including laws relating to the Release, threat of  Release,  manufacture,  processing,  distribution,  use,  presence,  production,  treatment,  storage,  disposal, transport, labeling or handling of, or exposure to, Hazardous Materials, including the  Federal  Water  Pollution  Control  Act,  the  Resource  Conservation  and  Recovery  Act,  the  Safe  Drinking Water Act, the Toxic Substances Control Act, the Clean Air Act and CERCLA, and other  similar state and local statutes and any regulations promulgated thereto.         “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended  from time to time, and the regulations promulgated thereunder.  Section references to ERISA are  to ERISA as in effect at the date of this Agreement and any subsequent  provisions of ERISA  amendatory thereof, supplemental thereto or substituted therefor.         “ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) that,  together with any Credit Party or a Subsidiary thereof, is, or within the last six (6) years was,  treated as a “single employer” within the meaning of Section 414(b), (c), (m) or (o) of the Code.         “ERISA Event” shall mean (a) the occurrence of any Reportable Event  with respect to a  Plan, (b) any failure by any Plan to satisfy the minimum funding standard (within the meaning of  Section 412 of the Code or Section 302 of ERISA) applicable to such Plan, in each case whether  or not waived, (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of  an  application  for  a  waiver  of  the  minimum  funding  standard  with  respect  to  any  Plan,  (d)  a  determination that any Plan is, or is reasonably expected to be, in “at-risk” status (as defined in  Section 303 of ERISA or Section 430 of the Code), (e) the incurrence by any Credit Party or any  ERISA  Affiliate  of  any  liability  under  Title  IV  of  ERISA  with  respect  to  the  non-standard  termination of any Pension Plan, (f) the receipt by any Credit Party from the PBGC of any notice  relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan  under Section 4042 of ERISA, (g) the incurrence by any Credit Party or any ERISA Affiliate of  any liability with respect to its withdrawal or partial withdrawal from any Multiemployer Plan or  (i) the receipt by any Credit Party or any ERISA Affiliate of any notice concerning the imposition                                         14   

 

   of Withdrawal Liability on it or a determination that a Multiemployer Plan is, or is reasonably  expected to be, insolvent, within the meaning of Title IV of ERISA or in “endangered” or “critical”  status, within the meaning of Section 305 of ERISA.         “EU  Bail-In Legislation  Schedule” shall mean the  EU  Bail-In  Legislation  Schedule  published by the Loan Market Association (or any successor person), as in effect from time to  time.         “Eurodollar Loan” shall mean any Loan bearing interest at a rate determined by reference  to the Eurodollar Rate.         “Eurodollar Rate” shall mean, with respect to any Eurodollar Loan for any Interest Period,  a rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the greater  of (a) 1.00% per annum and (b) an amount equal to (i) the rate per annum appearing on Bloomberg  Professional Service Page BBAM1 offered rate for deposits in Dollars at approximately 11:00 a.m.  (London time) two (2) business days prior to the first day of such interest period for a three (3)  month term; multiplied by (ii) the Statutory Reserve Rate.  If for any reason the rate referred to in  clause (b)(i) is not available, for any such interest period, such rate will be a comparable successor  or alternative interbank rate for deposits in Dollars that it, at such time, broadly accepted by the  loan market in lieu of the Eurodollar Rate and is reasonably acceptable to the Administrative Agent  in consultation with the Borrower; provided that, to the extent a successor or alternative index rate  cannot  be agreed  upon  within  five  (5) Business  Days  after  the  Eurodollar  Rate  becomes  unavailable,  all  Loans  hereunder  will  be  deemed  to  be  ABR  Loans  (and  shall  bear  interest  accordingly) for purposes of the definition of “Applicable Margin” and Section 2.08, until such  time as an alternative rate can be agreed upon in accordance with clause (x) or (y).         “Event of Default” shall have the meaning set forth in Article X.         “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules  and regulations promulgated thereunder.         “Excluded  Account”  means  each  deposit  or  securities  accounts  constituting  (a)  a  zero  balance account that sweeps on a daily basis into a deposit account subject to a Control Agreement,  (b) a deposit account used solely to fund payroll obligations, health benefit or employee benefit  obligations, Tax obligations, escrow arrangements, trust accounts or holding third-party insurance  funds or funds owned by (or held solely for the benefit of) Persons other than the Credit Parties or  holding any funds to be used for the purpose of paying claims to satisfy statutory or regulatory  requirements, (c) any other deposit or securities account so long as with respect to this clause (c),  the aggregate amount on deposit in all such accounts does not exceed $1,000,000 at any one time,  (d) a deposit account into which an Account Debtor makes payment under Medicare, Medicaid,  TRICARE or any other health program operated by or financed in whole or in part by any foreign  or domestic federal, state or local government so long as funds on deposit in such deposit account  are transferred within two (2) Business Days to an account subject to a Control Agreement or (e)  a deposit account holding solely funds pledged as cash collateral to the extent permitted under  Section 9.02(b) or Section 9.02(m).                                           15   

 

         “Excluded Subsidiary” shall mean any Subsidiary (1) for which guarantees at any time are  prohibited  or  restricted  by  Applicable  Laws  (including  financial  assistance,  fraudulent  conveyance,  preference,  capitalization  or  any  other  Applicable  Laws or  regulations) (or  contractually prohibited on the Closing Date (in the case of existing Subsidiaries) or on the date  of acquisition or formation thereof (in the case of acquired or formed Subsidiaries), so long as such  prohibition is not created in contemplation of such transaction) from guaranteeing the Obligations,  or if guaranteeing  the Obligations  would require governmental (including regulatory) consent,  non-disapproval, approval, filing, license or authorization (unless such consent, approval, license  or authorization has been received), (2) not-for-profit subsidiaries, captive insurance companies  and special purpose entities, (3) any non-wholly owned Subsidiary (x) in existence on the Closing  Date or (y) to the extent a guaranty by such Subsidiary is prohibited by the terms of such person’s  organizational or joint venture documents (to the extent the prohibition is existing on the Closing  Date or at the time any subsidiary is acquired, formed or established (and which prohibition is not  created in contemplation of such transaction)), (4) any Subsidiary where the cost of providing a  guarantee, taken as a whole, outweighs the benefit to the Lenders, as determined in the reasonable  discretion of the Administrative Agent and Borrower, (5) any subsidiary to the extent a guarantee  by such entity will result in material adverse tax or regulatory consequences, taken as a whole, to  Parent and  its Subsidiaries  and  (6)  any  Foreign  Subsidiary,  Domestic  Holding  Company  and  Licensed  Insurance  Entity  (solely,  in  the case  of  any  Licensed  Insurance  Entity,  to  the  extent  guaranteeing  the  Obligations  would  require  governmental  (including  regulatory)  consent,  notification,  non-disapproval,  approval,  filing,  license  or  authorization or  would  otherwise  be  prohibited or restricted by Applicable Laws).           “Excluded Taxes” shall mean with respect to the Administrative Agent, any Lender or any  other recipient of any payment to be made by or on account of any Obligation of the Borrower  hereunder, (a) income, franchise or similar Taxes imposed on (or measured by) its net income (i)  by the United States of America, or by the jurisdiction under the laws of which such recipient is  organized or in which its principal office is located or, in the case of any Lender, in which its  applicable lending office is located or (ii) that are Other Connection Taxes, (b) any branch profits  Taxes  imposed  by  the  United  States of  America  or  any  similar  tax  imposed  by  any  other  jurisdiction in which the Borrower is located, (c) in the case of a Non-U.S. Lender, any withholding  tax that is imposed on amounts payable to such Non-U.S. Lender at the time such Non-U.S. Lender  becomes a party to this Agreement (or designates a new lending office, unless such designation  was at the request of the Borrower), except to the extent that such Non-U.S. Lender (or its assignor,  if any) was entitled, at the time of designation of a new lending office (or assignment), to receive  additional amounts from the Borrower with respect to such withholding tax pursuant to Section  5.04(a),  (d) Taxes imposed by reason of the failure of the Administrative Agent or such Lender to  comply with its obligations under Section 5.04(b) and Section 5.04(c), or to the extent that such  documentation fails to establish a complete exemption from applicable withholding Taxes, other  than, in either case, due to a change in Applicable Laws after the Closing Date and (e) U.S. federal  withholding Taxes imposed under FATCA.         “Existing Earnouts” shall mean (a) the “Earnout  Consideration” as  defined under that  certain  Agreement  and  Plan  of  Merger,  dated  as  of  September  7,  2018,  by  and  among  NCIS  Holdings, Inc., Parent, Borrower, Element Merger Sub, Inc. and the representative named therein,  as amended, restated, supplemented or modified from time to time, in an amount not to exceed  $10,800,000  and  (b)  the  earn-out  obligations  set  forth  in  Section  1.9  of  that  certain  Strategic                                         16   

 

   Growth  Agreement,  dated  as  of  December  16,  2015,  by  and  among  Parent,  Borrower  and  University Health Care, Inc., as amended, restated, supplemented or modified from time to time,  in an amount not to exceed $3,700,000; provided, that, the aggregate amount of Existing Earnouts,  together with the amount of the Global Share Backstop, that may be paid in cash may not exceed  $12,000,000.         “FATCA”  shall  mean  Sections  1471  through  1474  of  the  Code,  as  of  the  date  of  this  Agreement  (or  any  amended  or  successor version  that  is  substantively  comparable  and  not  materially  more  onerous  to  comply  with),  any  current  or  future  regulations  or  official  interpretations thereof, and any agreement entered into pursuant to Section 1471(b)(1) of the Code.         “FCPA” shall mean the Foreign Corrupt Practices Act of 1977, as amended from time to  time, and the rules and regulations thereunder.         “Federal Funds Rate” shall mean, for any day, a fluctuating interest rate per annum equal  to: (a) the weighted average of the rates on overnight federal funds transactions with members of  the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if  such day is not a Business Day, for the next succeeding Business Day) by the Federal Reserve  Bank of New York; or (b) if such rate is not so published for any day which is a Business Day, the  average of the quotations for such day on such transactions received by the Administrative Agent  from three federal funds brokers of recognized standing selected by it.         “Fee Letter” shall mean the Fee Letter dated as of the date hereof by and between the  Borrower, Parent and the Administrative Agent, as amended, restated, supplemented or otherwise  modified from time to time.         “Fees” shall mean all amounts payable pursuant to, or referred to in, Section 4.01 or the  Fee Letter.         “Financial Performance Covenants” shall mean the covenants set forth in Section 9.12.         “Flood Hazard Property” shall have the meaning set forth in the definition of the term  “Flood Insurance Requirements.”         “Flood Insurance Laws” shall mean, collectively, (i) the National Flood Insurance Act of  1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection  Act of 1973 as now or hereafter in effect or any successor statute thereto, (iii) the National Flood  Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute thereto, (iv)  the Flood Insurance Reform Act of 2004 and (v) the Biggert –Waters Flood Insurance Reform Act  of 2012, as now or hereafter in effect of any successor statute thereto, in each case, together with  all  statutory  and  regulatory  provisions  consolidating,  amending,  replacing,  supplementing,  implementing  or interpreting any of the foregoing, as amended or modified from time to time.         “Flood  Insurance  Requirements” shall  mean  (i)  a  completed  “life  of  loan”  Federal  Emergency Management Standard Flood Hazard Determination as to whether such real property  is in an area designated by the Federal Emergency Management Agency as having special flood  or mud slide hazards (a “Flood Hazard Property”) and (ii) if such real property is a Flood Hazard  Property, evidence as to (A) whether the community in which such real property, or as applicable,                                        17   

 

   the leasehold interest of such Credit Party in such real property, is located is participating in the  National Flood Insurance Program, (B) the applicable Credit Party’s written acknowledgment of  receipt  of  written  notification  from  the  Administrative  Agent  (1)  as  to  the  fact  that  such  real  property is a Flood Hazard Property and (2) as to whether the community in which each such Flood  Hazard Property is located is participating in the National Flood Insurance Program and (C) copies  of  flood  insurance  policies  under  the  National  Flood  Insurance  Program  (or  private  insurance  endorsed to cause such private insurance to be fully compliant with the federal law as regards  private placement insurance applicable to the National Flood Insurance Program, with financially  sound and reputable insurance companies not Affiliates of the Borrower) or a declaration page,  application  accompanied  by  proof  of  premium  payment  for  such  policies,  or  such  other  documentation as is satisfactory to the Administrative Agent and each Lender, with confirmation  of  such  satisfaction  of  such  Lender  to  be  made  in  writing  (which,  for  purposes  of  such  confirmation, shall include email) and such confirmation shall not be unreasonably withheld or  delayed, in each case, for the Parent and its Subsidiaries evidencing such flood insurance coverage  in  such  amounts  and  with  such  deductibles  as  required  by  Flood  Insurance  Laws  or  as  the  Administrative Agent may request (but no less than required by applicable Flood Insurance Laws)  and naming the Administrative Agent and its successors and/or assigns as sole loss payee on behalf  of the Lenders.         “Foreign  Plan” shall  mean  any  plan,  fund  (including,  without  limitation,  any  superannuation fund) or other similar program established, contributed to (regardless of whether  through direct contributions or through employee withholding) or maintained outside the United  States by any Loan Party primarily for the benefit of employees of the Loan Parties residing outside  the United States, which plan, fund or other similar program provides, or results in, retirement  income,  a  deferral  of  income  in  contemplation  of  retirement  or  payments  to  be  made  upon  termination of employment, and which plan is not subject to ERISA or the Code.          “Foreign Subsidiary” shall mean each Subsidiary of a Credit Party that is not a Domestic  Subsidiary.         “Funded  Debt” shall  mean,  as  of  any  date  of  determination,  all  then  outstanding  Indebtedness of Parent and its Subsidiaries, on a consolidated basis, of the type described in clauses  (a), (b) (excluding the amount of any undrawn or cash collateralized letters of credit), (d) and (f)  of the defined term “Indebtedness.”         “GAAP”  shall  mean  generally  accepted  accounting  principles  in  the  United  States  of  America, as in effect from time to time; provided, that if the Borrower notifies the Administrative  Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of  any change occurring after the Closing Date in GAAP or in the application thereof on the operation  of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders  request an amendment to any provision hereof for such purpose), regardless of whether any such  notice  is given  before  or  after  such  change  in  GAAP  or  in  the  application  thereof,  then  the  Administrative Agent, the Lenders and the Credit Parties shall negotiate in good faith to effect  such amendment and such provision shall be interpreted on the basis of GAAP as in effect and  applied immediately before such change shall have become effective until such notice shall have  been withdrawn or such provision amended in accordance herewith.                                          18   

 

         “Global Share Backstop” shall mean the payment or issuance obligations of the Parent,  the Borrower and EH Holding Company, Inc. under that certain Post-Closing Agreement, dated as  of July 9, 2019, by and among Momentum Health Group, LLC, Momentum Health Acquisition,  Inc., Momentum Health Holdings, LLC, Parent, Borrower and EH Holding Company, Inc., as  amended, restated, supplemented or modified from time to time, in an aggregate amount not to  exceed $10,500,000; provided, that, the aggregate amount of the Global Share Backstop, together  with the amount of the Existing Earnouts, that may be paid in cash may not exceed $12,000,000.           “Governmental Authority” shall mean the government of the United States, any foreign  country  or  any  multinational  authority,  or  any  state,  commonwealth,  protectorate  or  political  subdivision thereof, and any entity, body or authority exercising executive, legislative, judicial,  regulatory or administrative functions of or pertaining to government, including the PBGC and  other quasi-governmental entities established to perform such functions.          “Guarantee Agreement” shall mean a Guarantee Agreement, executed and delivered by  each Guarantor in favor of the Administrative Agent for the benefit of the Secured Parties, in form  and substance satisfactory to Administrative Agent.         “Guarantee Obligations” shall mean, as to any Person, any Contingent Liability of such  Person or other obligation of such Person guaranteeing or intended to guarantee any Indebtedness  of  any  other  Person  (the  “primary  obligor”)  in  any  manner,  whether  directly  or  indirectly,  including  any  obligation  of  such  Person,  whether  or  not  contingent,  (a)  to  purchase  any  such  Indebtedness or any property constituting direct or indirect security therefor, (b) to advance or  supply funds (i) for the purchase or payment of any such Indebtedness or (ii) to maintain working  capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency  of the primary obligor, (c) to purchase property, securities or services primarily for the purpose of  assuring the owner of any such Indebtedness of the ability of the primary obligor to make payment  of such Indebtedness or (d) otherwise to assure or hold harmless the owner of such Indebtedness  against loss in respect thereof; provided, that the term “Guarantee Obligations” shall not include  endorsements  of  instruments  for  deposit  or  collection  in  the  ordinary  course  of  business  or  customary and reasonable indemnity obligations in effect on the Closing Date, entered into in  connection with any acquisition or disposition of assets permitted under this Agreement (other  than with respect to Indebtedness).  The amount of any Guarantee Obligation shall be deemed to  be an amount equal to the stated or determinable amount of the Indebtedness in respect of which  such Guarantee Obligation is made or, if not stated or determinable, the maximum reasonably  anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as  determined by such Person in good faith.         “Guarantors” shall mean (a) Parent, (b) each Person that is a Domestic Subsidiary on the  Closing Date, and (c) each Person that becomes a party to the Guarantee Agreement after the  Closing Date pursuant to Section 8.11, in each case, other than any Excluded Subsidiary.         “Hazardous Materials” shall mean (a) any petroleum or petroleum products, radioactive  materials, friable asbestos, urea formaldehyde foam insulation, transformers or other equipment  that contain dielectric fluid containing regulated levels of polychlorinated biphenyls, and radon  gas;  (b)  any  chemicals,  materials  or  substances  defined  as  or  included  in  the  definition of  “hazardous substances,” “hazardous waste,” “hazardous materials,” “extremely hazardous waste,”                                         19   

 

   “restricted  hazardous  waste,”  “toxic  substances,”  “toxic  pollutants,”  “contaminants,”  or  “pollutants,”  or  words  of  similar  import,  under  any  Environmental  Law;  and  (c)  any  other  chemical, material or substance, which is classified, prohibited, limited or regulated by, or forming  the basis of liability under, any Environmental Law.         “Health Care Laws” means (i) any and all federal, state and local fraud and abuse laws,  including,  without  limitation,  the  federal  Anti-Kickback  Statute  (42  U.S.C.  §  1320a-7(b)),  the  Stark  Law  (42  U.S.C.  §  1395nn),  the  civil  False  Claims  Act  (31  U.S.C.  §  3729  et  seq.),  the  administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the Anti-Inducement Law (42 U.S.C.  § 1320a-7a(a)(5)), the exclusion laws (42 U.S.C. § 1320a-7), the civil monetary penalty laws (42  U.S.C. § 1320a-7a), the regulations promulgated pursuant to such statutes and any comparable  state laws; (ii) the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d  et seq.), and the regulations promulgated thereunder and any comparable state laws, (iii) Medicare  (Title XVIII of the Social Security Act) and the regulations promulgated thereunder; (iv) Medicaid  (Title  XIX  of  the  Social  Security  Act)  and  the  regulations  promulgated  thereunder;  (v)  the  Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Pub. L. No. 108-173)  and the regulations promulgated thereunder; (vi) quality, safety and accreditation standards and  requirements  of  all  applicable  state  laws  or  Governmental  Authorities;  (vii)  State  and  Federal  Applicable Laws relating to the licensure, ownership or operation of a health care facility, health  maintenance  organization  (HMO),  Medicaid  managed  care  organization  (MCO),  Medicare  Advantage organization, provider service network (PSN) or insurance plan, including any assets  used  in  connection  therewith,  (viii)  Applicable  Laws  relating  to  the  preparation,  processing,  evaluation or payment of claims, collection of accounts receivable, underwriting the cost of, or  provision  of  management  or  administrative  services  in  connection  with,  any  and  all  of  the  foregoing, by any of Parent, its Subsidiaries or any Licensed Insurance Entity, including, but not  limited to, laws and regulations relating to the administration of health  benefit policies, patient or  program  charges,  recordkeeping,  referrals,  professional  fee  splitting, certificates  of  need,  certificates of operations and authority, (ix) any and all federal or state laws regulating third-party  administrators and pharmacy benefit managers, including those promulgated by state departments  of  insurance,  and  (x)  any  and  all  other  applicable  health  care  laws,  rules,  codes,  statutes,  ordinances,  regulations,  manual  provisions,  policies  and  administrative  guidance,  each  of  (i)  through (x) as may be amended from time to time.                “Hedge Termination  Value”  shall  mean, in  respect  of  any one  or  more  Hedging  Obligations,  after  taking  into  account  the  effect  of  any  legally  enforceable  netting  agreement  relating to such Hedging Obligations, (a) for any date on or after the date such Hedging Obligations  have  been  closed  out  and  termination  value(s)  determined  in  accordance  therewith,  such  termination value(s) and (b) for any date prior to the date referenced in clause (a), the amount(s)  determined as the mark-to-market value(s) for such Hedging Obligations, as determined based  upon one or more mid-market or other readily available quotations provided by any recognized  dealer in such Hedging Obligations (which may include any Lender or any Affiliate of a Lender).                “Hedging Obligations” shall mean, with respect to any Person, any and all obligations of  such  Person,  whether  absolute  or  contingent  and  howsoever  and  whensoever  created,  arising,  evidenced or acquired under (a) any and all Hedging Transactions (b) any and all cancellations,  buy backs, reversals, terminations or assignments of any Hedging Transactions and (c) any and all                                         20   

 

   renewals, extensions and modifications of any Hedging Transactions and any and all substitutions  for any Hedging Transactions.         “Hedging  Transaction”  of  any  Person  shall  mean  (a)  any  transaction  (including  an  agreement with respect to any such transaction) permitted under Section 9.11 now existing or  hereafter entered into by such Person that is a rate swap transaction, swap option, basis swap,  forward rate transaction, commodity swap, commodity option, equity or equity index swap or  option,  bond  option,  interest  rate  option,  foreign  exchange  transaction,  cap  transaction,  floor  transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction,  currency option, spot transaction, credit protection transaction, credit swap, credit default swap,  credit default option, total return swap, credit spread transaction, repurchase transaction, reverse  repurchase  transaction,  buy/sell-back  transaction,  securities  lending  transaction,  or  any  other  similar transaction  (including  any  option  with  respect  to  any  of  these  transactions)  or  any  combination thereof, whether or not any such transaction is governed by or subject to any master  agreement and (b) any and all transactions of any kind, and the related confirmations, which are  subject to the terms and conditions of, or governed by, any form of master agreement published  by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange  Master Agreement or any other master agreement (any such master agreement, together with any  related schedules, a “Master Agreement”), including any such obligations or liabilities under any  Master Agreement.         “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as the  same may be amended, modified or supplemented from time to time, any successor statute thereto,  any and all rules or regulations promulgated from time to time thereunder, and any comparable  state laws.         “Historical  Financial  Statements”  shall  mean  (a)  audited consolidated  financial  statements of Parent for the fiscal years ended December 31, 2017 and December 31, 2018 and (b)  unaudited  consolidated  financial  statements  of  Parent  for  the  fiscal  year  to  date  period  ended  September 30, 2019.          “Holding Company Guarantor”  shall mean any entity formed after the Closing Date and  joined as a Guarantor under this Agreement pursuant to the terms of Section 8.11 for the sole  purpose of holding the Capital Stock of any Licensed Insurance Entity or joint venture.           “Indebtedness” shall mean, as to any Person at a particular time, without duplication, all  of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:               (a)   all indebtedness of such Person for borrowed money and all indebtedness  of such  Person  evidenced  by  bonds,  debentures,  notes,  loan  agreements  or  other  similar  instruments;               (b)   the  maximum  amount  (after  giving  effect  to  any  prior  drawings  or  reductions  which  may  have  been  reimbursed)  available  under  all letters  of  credit  (including  standby  and  commercial),  bankers’  acceptances,  bank  guaranties,  surety  bonds,  performance  bonds and similar instruments issued or created by or for the account of such Person;               (c)   the Hedge Termination Value of all Hedging Obligations of such Person;                                        21   

 

               (d)   all obligations of such Person to pay the deferred purchase price of property  or services, including earn-out obligations (other than (i) trade accounts payable in the ordinary  course of business and (ii) to the extent such obligation is not due at any time prior to the date that  is six months after the Maturity Date (as determined under clause (a) of the definition thereof), any  earn-out obligation until such obligation becomes a liability on the balance sheet of such Person  in accordance with GAAP);               (e)   indebtedness  (excluding  prepaid  interest  thereon)  secured  by  a  Lien  on  property  owned  or  being  purchased  by  such  Person  (including  indebtedness  arising  under  conditional  sales  or  other  title  retention  agreements  and  mortgage,  industrial  revenue  bond,  industrial development bond and similar financings), whether or not such indebtedness shall have  been assumed by such Person or is limited in recourse;               (f)   all Attributable Indebtedness;               (g)   all obligations of such Person in respect of Disqualified Capital Stock; and               (h)   all Guarantee Obligations of such Person in respect of any of the foregoing,   provided, that Indebtedness shall not include (i) prepaid or deferred revenue arising in the ordinary  course of business,  (ii)  purchase price holdbacks  arising  in  the ordinary course of business  in  respect of a portion of the purchase price of an asset to satisfy warranties or other unperformed  obligations of the seller of such asset, (iii) endorsements of checks or drafts arising in the ordinary  course of business, (iv) trade accounts payable in the ordinary course of business, and (v) preferred  Capital Stock to the extent not constituting Disqualified Capital Stock.         The amount of any net Hedging Obligations on any date shall be deemed to be the Hedge  Termination Value thereof as of such date.  The amount of Indebtedness of any Person for purposes  of clause (e) above shall be deemed to be equal to the lesser of (x) the aggregate unpaid amount of  such Indebtedness and (y) the fair market value of the property of such Person encumbered thereby  as determined by such Person in good faith.         “Initial Term Loan Commitment” shall mean, (a) in the case of each Lender that is a  Lender on the date hereof, the amount set forth opposite such Lender’s name on Schedule 1.01(a)  as such Lender’s “Initial Term Loan Commitment” and (b) in the case of any Lender that becomes  a  Lender  after  the  date  hereof,  the  amount  specified as  such  Lender’s  “Initial  Term  Loan  Commitment” in the Assignment and Acceptance pursuant to which such Lender assumed all or a  portion of the Initial Term Loan Commitment, in each case, as the same (x) shall be permanently  reduced on the Closing Date upon the Initial Term Loan draw that such Lender funds and (y) may  be changed from time to time pursuant to the terms hereof.         “Initial Term  Loan  Facility”  shall  have  the  meaning  set  forth  in  the  recitals  to  this  Agreement.         “Initial Term Loan” shall have the meaning set forth in Section 2.01(a).          “Intellectual Property” shall have the meaning set forth in the Security Agreement.                                           22   

 

         “Intercompany  Service  Agreement”  shall  mean  that  certain Intercompany  Service  Agreement,  dated  as  of  January  31,  2018, by  and  between the  Borrower and  Evolent  Health  International Private Limited (formally known as Valence Health Solutions India Private Limited),  as amended, restated, supplemented or otherwise modified from time to time         “Intercompany Subordination Agreement” shall mean the Intercompany Subordination  Agreement dated as of the date hereof among the Credit Parties and the Administrative Agent.           “Interest  Period”  shall  mean,  with  respect  to  any  Eurodollar  Loan,  the  interest  period  applicable thereto, as determined pursuant to Section 2.09.         “Investment” shall mean, relative to any Person, (a) any loan, advance or extension of  credit made by such Person to any other Person, including the purchase by such first Person of any  bonds,  notes,  debentures  or  other  debt  securities  of  any  such  other  Person,  (b)  Contingent  Liabilities in favor of any other Person and (c) any Capital Stock or other investment held by such  Person  in any  other  Person.   The  amount  of  any  Investment  at  any  time  shall  be  the  original  principal or capital amount thereof less all returns of principal or equity thereon made on or before  such time and shall, if made by the transfer or exchange of property other than cash, be deemed to  have been made in an original principal or capital amount equal to the fair market value of such  property at the time of such Investment.         “Lender” shall have the meaning set forth in the preamble to this Agreement.         “Letter of Direction” shall mean that certain executed letter of direction from Borrower  addressed to Administrative Agent, on behalf of itself and Lenders, directing the disbursement on  the Closing Date of the proceeds of the Loans made on such date.         “Licensed  Insurance  Entity” shall  mean  any  Subsidiary  of  the  Borrower  listed  on  Schedule  1.01(b) to  this  Agreement,  any  other Subsidiary  of  the  Borrower  that  operates  as  a  licensed  insurance  company, is  otherwise  regulated  by  a  Governmental  Authority  performing  insurance regulatory functions or is a healthcare entity subject to regulatory capital requirements.         “Lien” shall mean any mortgage, pledge, security interest, hypothecation, assignment for  collateral purposes, lien (statutory or other) or similar encumbrance, and any easement, right-of- way, license, restriction (including zoning restrictions), defect, exception or irregularity in title or  similar charge or encumbrance (including any conditional sale or other title retention agreement  or any lease in the nature thereof); provided, that in no event shall an operating lease entered into  in the ordinary course of business or any precautionary UCC filings made pursuant thereto by an  applicable lessor or lessee, be deemed to be a Lien.         “Lighthouse”  shall  mean  Lighthouse  Health  Plan,  LLC,  a  Florida  limited  liability  company.          “Lighthouse Capital Contributions” shall mean any capital contribution, loan, advance or  other Investment made in Lighthouse in an aggregate amount not to exceed $4,000,000 after the  Closing Date pursuant to the terms of that certain Memorandum of Understanding, dated as of  September  30,  2019,  by  and  among  Baptist  Hospital,  Inc.,  Lighthouse  and  the  Borrower,  as  amended, restated, supplemented or modified from time to time.                                         23   

 

         “Liquidity” shall mean Qualified Cash of the Credit Parties, net of any checks written by  any Credit Party.         “Loan”  shall  mean,  individually,  any  Loan made  by  any  Lender  hereunder,  and  collectively, the Loans made by the Lenders hereunder. “Loan” shall include the Initial Term Loan  and each Delayed Draw Term Loan.           “Make-Whole Premium” shall mean, with respect to any prepayment of the Term Loans  at any time on or prior to the second anniversary of the Closing Date, the excess of (a) the sum of  the present value of (i) one hundred four percent (104%) of the outstanding principal amount of  the  Term  Loans being  prepaid as  of  such  date  of  prepayment, plus (ii)  all  required  interest  payments due on such Term Loans from the date of prepayment through and including the second  anniversary of the Closing Date, which such present value shall be computed using a discount rate  equal to the Treasury Rate plus fifty (50) basis points over (b) the principal amount of the Term  Loans being prepaid; provided that in no event shall the Make-Whole Premium be less than zero.         “Master  Agreement”  shall  have  the  meaning  set  forth  in  the  definition  of  the  term  “Hedging Transaction.”         “Material  Adverse  Effect” shall  mean  a  material  adverse  effect caused  by  a  material  adverse change in (a) the business, assets, properties, liabilities (actual or contingent), operations,  financial condition or results of operations of the Parent and its Subsidiaries, taken as a whole, (b)  the validity or enforceability of this Agreement or any of the other Credit Documents, (c) the  Secured Parties’ ability to enforce their rights or remedies hereunder or under any of the other  Credit Documents, or (d) the ability of the Parent and its Subsidiaries, taken as a whole, to perform  their payment and other material obligations under the Credit Documents to which they are parties.         “Material Contract” shall mean, as to any Person, (i) each contract or agreement to which  such Person or any of its Subsidiaries is a party involving aggregate annual consideration payable  to or by such Person or such Subsidiary of $10,000,000 or more, and (ii) all other contracts or  agreements, the loss of which could reasonably be expected to result in a Material Adverse Effect.   A reasonably detailed description of each Material Contract is set forth on Schedule 1.01(c) as of  the Closing Date.          “Material Joint Venture” shall mean Momentum Health Group, LLC, a Delaware limited  liability company.           “Material Real Property” shall mean any Real Property that has a fair market value in  excess of $2,000,000, as reasonably determined by the Borrower based on information available  to it.         “Maturity Date” shall mean the date that is the earliest of (a) December 30, 2024, (b) the  date on which the Commitments are voluntarily terminated pursuant to the terms hereof, (c) the  date  on which  all  amounts  outstanding  under  this  Agreement  have  been  declared  or  have  automatically become due and payable (whether by acceleration or otherwise) in accordance with  the terms hereof and (d) the date that is ninety-one (91) days prior to the maturity date of the 2021  Convertible  Notes; provided,  that,  clause  (d)  of  this  definition  shall  not  apply  to  any  2021  Convertible Notes, as applicable, if the Liquidity at all times within the four (4) months prior to                                        24   

 

   the maturity of such 2021 Convertible Notes exceeds the sum of (i) the principal amount of such  maturing 2021 Convertible Notes, plus (ii) $40,000,000.           “Minimum DDTL  Borrowing Amount” shall mean $12,500,000.         “Moody’s”  shall  mean  Moody’s  Investors  Service,  Inc.  or any  successor  by  merger  or  consolidation to its business.         “Mortgage” shall mean a mortgage or a deed of trust, deed to secure debt, trust deed or  other security document entered into by any applicable Credit Party and the Administrative Agent  for the benefit of the Secured Parties in respect of any Real Property owned by such Credit Party,  in such form as agreed between such Credit Party and the Administrative Agent, as amended,  restated, supplemented or otherwise modified from time to time.         “Mortgaged Property” shall mean each parcel of Real Property and improvements thereto  with respect to which a Mortgage is granted pursuant to Section 8.11(d).         “Multiemployer Plan” shall mean a “multiemployer plan” within the meaning of Section  3(37) of ERISA to which any Credit Party or any ERISA Affiliate makes, is making, is obligated,  or within the last six (6) years has been obligated, to make contributions, or with respect to which  any Credit Party has any liability, actual or contingent.         “Net Proceeds” shall mean (a) in respect of a Disposition or Casualty Event, cash proceeds  as  and when  received by the Person making a  Disposition, as  well as  insurance proceeds  and  condemnation and similar awards received on account of a Casualty Event, net of:  (i) in the event  of a Disposition (w) the direct costs and expenses relating to such Disposition, (x) sales, use or  other transaction Taxes actually paid, assessed or estimated by such Person (in good faith) to be  payable in cash within the next twelve (12) months in connection with such proceeds provided,  that if, after the expiration of the twelve (12) month period, the amount of estimated or assessed  Taxes,  if  any,  exceeded  the  Taxes  actually  paid  in  cash  in  respect  of  proceeds  from  such  Disposition, the aggregate amount of such excess shall constitute Net Proceeds under Section 5.02  and, subject to Section 5.02(k), be immediately applied to the prepayment of the Obligations in  accordance with Section 5.02(f), (y) amounts required to be applied to pay principal, interest and  prepayment premiums and penalties on Indebtedness (other than the Obligations) secured by a  Lien on the asset which is the subject of such Disposition and (z) with respect to a Disposition,  any  escrow  or  reserve  for  any  indemnification  payments  (fixed  or contingent)  attributable  to  seller’s indemnities and representations and warranties to purchaser in respect of the applicable  Disposition undertaken by any Credit Party or other liabilities in connection with such Disposition  (provided that upon release of any such escrow or reserve, the amount released shall be considered  Net Proceeds) and (ii) in the event of a Casualty Event, (x) all money actually applied to repair or  reconstruct the damaged property affected thereby or otherwise reinvested in replacement property  in  accordance  with  this  Agreement,  (y)  all  of  the  costs  and  expenses  reasonably  incurred  in  connection with the collection of such proceeds, award or other payments, and (z) any amounts  retained by or paid to parties having superior rights to such proceeds, awards or other payments  and (b) in respect of any incurrence of Indebtedness, cash proceeds, net of underwriting discounts  and out-of-pocket costs and expenses paid or incurred in connection therewith in favor of any  Person not an Affiliate of a Borrower.  in respect of any incurrence of Indebtedness, cash proceeds,                                         25   

 

   net of underwriting discounts and reasonable out-of-pocket costs and expenses paid or incurred in  connection therewith in favor of any Person not an Affiliate of a Borrower.         “Net Revenue” means, for any period, (a) the gross revenues during such period of the  Credit Parties and their Subsidiaries, less (b)(i) service level adjustments, liquidated damages and  claims interest arising from service arrangements, (ii) discounts, refunds, rebates, charge backs,  retroactive price adjustments and any other allowances which effectively reduce net selling price  and (iii) any other similar and customary deductions used by any Credit Party in determining net  revenues, all, in respect of (a) and (b), as determined in accordance with GAAP and in the ordinary  course of business (and not, for the avoidance of doubt, revenues from extraordinary, nonrecurring  or unusual events).         “Non-Consenting Lender” shall have the meaning set forth in Section 12.07(b).         “Non-Excluded Taxes” shall have the meaning set forth in Section 5.04(a).         “Non-U.S. Lender” shall have the meaning set forth in Section 5.04(b).         “Note” shall mean, as the context may require, a DDTL Note or a Term Loan Note.         “Notice of Borrowing” shall have the meaning set forth in Section 2.03(a).         “Notice of Conversion or Continuation” shall have the meaning set forth in Section 2.06.         “Obligations” shall mean all Loans, advances, debts, liabilities, obligations, covenants and  duties  owing by  any  Credit  Party  to  any  Lender,  Agent,  or any  other  Person  required  to  be  indemnified hereunder, in each case, that arise under any Credit Document, whether or not for the  payment  of  money,  whether arising  by  reason  of  an  extension  of  credit,  loan,  guaranty,  indemnification or in any other manner, whether direct or indirect (including those acquired by  assignment), absolute or contingent, due or to become due, now existing or hereafter arising and  however acquired, including all fees, expenses and other amounts accruing during the pendency  of  any  proceeding  of  the  type  described  in Section  10.01(h),  whether  or  not  allowed  in  such  proceeding.         “OFAC” shall have the meaning set forth in Section 7.26.         “Organization Documents” shall mean: (a) with respect to any corporation, the certificate  or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents  with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the  certificate or articles of formation or organization and operating agreement; and (c) with respect  to  any  partnership,  joint  venture,  trust  or  other  form  of  business  entity,  the  partnership,  joint  venture  or  other  applicable  agreement  of  formation  or  organization  and,  if  applicable,  any  agreement, instrument, filing or notice with respect thereto filed in connection with its formation  or organization with the applicable Governmental Authority in the jurisdiction of its formation or  organization and, if applicable, any certificate or articles of formation  or organization of such  entity.                                          26   

 

         “Other Connection Taxes” shall mean, with respect to any recipient, Taxes imposed as a  result of a present or former connection between such recipient and the jurisdiction imposing such  Tax (other than connections arising from such recipient having executed, delivered, become a party  to,  performed its  obligations  under, received payments  under,  received or perfected a security  interest  under,  engaged  in  any  other  transaction  pursuant  to  or  enforced  any  Loan,  or  sold  or  assigned an interest in any Loan).         “Other  Taxes” shall  mean  any  and  all  present  or  future  stamp,  court,  documentary,  intangible recording, filing or similar Taxes or any other excise or property Taxes, charges or  similar levies (but excluding any Tax, charge or levy that constitutes an Excluded Tax) arising  from any payment made hereunder or from the execution, delivery or enforcement of, from the  receipt or perfection of a security interest under, or otherwise with respect to, this Agreement,  except any such Taxes that are Other Connection Taxes imposed with respect to an assignment  (other than an assignment made pursuant to Section 12.07).         “Parent” shall have the meaning set forth in the recitals to this Agreement.            “Participant” shall have the meaning set forth in Section 12.06(c)(i).         “Participant Register” shall have the meaning set forth in Section 12.06(c)(iii).         “Passport  Health  Acquisition”  shall  mean  the acquisition  by Justify  Holdings,  Inc.  of   substantially all the assets of University Health Care, Inc., d/b/a Passport Health Plan and  Passport  Health Solutions, LLC.          “Passport  Health  Acquisition  Agreement”  shall  mean  the  Asset  Purchase  Agreement  dated as of May 28, 2019, as amended on December 30, 2019, by and between University Health  Care, Inc., Passport Health Solutions, LLC, Justify Holdings, Inc. and Parent.             “Passport Health Note” shall mean that certain Surplus Note issued by University Health  Care, Inc. in favor of Parent in an aggregate amount equal to $40,000,000.           “Passport Shareholder Payment” shall mean any payment to the Sponsor Stockholders  required to be made by any Credit Party pursuant to Section 4(b) of the Passport Stockholders  Agreement.           “Passport  Stockholders  Agreement” shall  mean  that  certain  Stockholders  Agreement  dated  as  of  December  30,  2019,  made by  and  among  Justify  Holdings,  Inc.,  University  of  Louisville  Physicians,  Inc., Family  Health  Centers,  Inc.,  University  of  Louisville  Research  Foundation,  Inc.,  Louisville  Metro  Department  of  Public  Health  and  Wellness,  Park  DuValle  Community Health Center, Inc., University Norton Healthcare, Inc., University Medical Center,  Inc., EH Holding Company, Inc., Parent, the Jewish Heritage Fund for Excellence, Inc. and each  other Person who executes a joinder attached thereto.           “Patriot Act” shall have the meaning set forth in Section 12.20.         “PBGC” shall mean the Pension Benefit  Guaranty  Corporation established pursuant to  Section 4002 of ERISA, or any successor thereto.                                         27   

 

         “Pension Plan” shall mean any single-employer plan, as defined in Section 4001(a)(15) of  ERISA, and subject to Title IV of ERISA, Section 412 of the Code or Sections 302 or 303 of  ERISA,  that  is  or  was  within  any  of  the  preceding  six  plan  years  sponsored,  maintained  or  contributed to (or to which there is or was an obligation to contribute) by any Credit Party or any  ERISA Affiliate thereof, or respect  of which any Credit Party or any ERISA Affiliate thereof  otherwise has any obligation or liability, contingent or otherwise.         “Permits” shall  mean,  with  respect  to  any  Person,  any  permit,  approval,  clearance,  authorization, enrollment, license, registration, certificate, concession, grant, franchise, variance  or permission from, and any other contractual obligations with, any Governmental Authority, in  each case, whether or not having the force of law and applicable to or binding upon such Person  or any of its property or Products or to which such Person or any of its property or Products is  subject.         “Permitted Acquisition” shall mean any acquisition by a Credit Party or a Subsidiary of (i)  all or substantially all of the assets of a target, which assets are located in the United States or (ii)  one hundred percent (100%) of the Capital Stock of a target organized under the laws of any State  in  the  United  States  or  the  District  of  Columbia,  in  each  case, to  the  extent  that  each  of  the  following conditions shall have been satisfied:               (a)   the Parent and its Subsidiaries (including any new Subsidiary) shall execute  and deliver the agreements, instruments and other documents required by Section 8.11; provided,  that, the Parent and its Subsidiaries may acquire Persons that do not become Credit Parties and  assets  that  do  not  become  Collateral  in  an  amount  not  to  exceed  a  total  consideration  of  $25,000,000 after the Closing Date;               (b)   such acquisition shall not be hostile and shall have been approved by the  board of directors (or other similar body) and/or the stockholders or other equityholders of the  target;               (c)   no  Event  of  Default  shall  then  exist  or would  exist  after  giving  effect  thereto;               (d)   pro forma Liquidity as  of the date of  consummation  of such acquisition  (after giving effect to the funding of all Loans and use of cash as of such date) of not less than  $40,000,000);                (e)   Parent  and  its  Subsidiaries  shall  be  in  pro  forma  compliance  with  the  covenants set forth in Section 9.12 and 9.13;                 (f)   the total consideration paid or payable for Permitted Acquisitions shall be  funded solely with (x) net proceeds from an issuance of Qualified Capital Stock or cash on hand  and from operations and (y) proceeds from a DDTL Facility; and               (g)   the total consideration paid with respect to target Persons with pro forma  Target Consolidated Adjusted EBITDA that is less than $0 shall not exceed $10,000,000 in the  aggregate after the Closing Date.                                          28   

 

         “Permitted Holders” shall mean TPG Growth II Advisors, Inc., TPG Growth II BDH, L.P.  and TPG Eagle Holdings L.P. and each of their Affiliates and any funds or partnerships managed  by any of them (but not including any portfolio companies or operating companies of any of the  foregoing, notwithstanding the form of ownership of any such portfolio or operating companies),  The Advisory Board Company and University of Pittsburgh Medical Center.          “Permitted Liens” shall have the meaning set forth in Section 9.02.         “Permitted  Refinancing  Indebtedness”  shall  mean  Indebtedness issued  or  incurred  (including by means of the extension or renewal of existing Indebtedness) to refinance, refund,  extend,  renew  or  replace  existing  Indebtedness  of  any  Credit  Party  or  any  of  its  Subsidiaries  permitted  hereunder  (the  “Refinanced  Indebtedness”); provided, that  the original principal  amount of such refinancing, refunding, extending, renewing or replacing Indebtedness does not  exceed the principal amount of such Refinanced Indebtedness plus the amount of any interest,  premiums or penalties required to be paid thereon plus fees and expenses associated therewith.         “Person” shall mean any individual, partnership, joint venture, firm, corporation, limited  liability company, association, trust or other enterprise or any Governmental Authority.         “Plan” shall mean a Pension Plan or a Multiemployer Plan.         “Prepayment Premium” shall have the meaning set forth in Section 5.01(a).         “Primary  Obligator”  shall  have  the meaning  set  forth  in  the  definition  of  “Guarantee  Obligations.”         “Prime Rate” shall mean a variable per annum rate, as of any date of determination, equal  to the rate as of such date published in The Wall Street Journal as being the “Prime Rate” (or, if  more than one rate is published as the Prime Rate, then the highest of such rates).  The Prime Rate  will change as of the date of publication in The Wall Street Journal of a Prime Rate that is different  from that published on the preceding Business Day.  In the event that The Wall Street Journal  shall, for any reason, fail or cease to publish the Prime Rate, the Administrative Agent shall choose  a reasonably comparable index or source to use as the basis for the Prime Rate.         “Privacy and Security Rules” shall have the meaning set forth in Section 7.31(i).         “Products” shall mean any item or any service that is researched or developed, created,  tested,  packaged,  labeled,  distributed, manufactured,  managed,  performed,  or  otherwise  used,  offered, marketed, sold, or handled by or on behalf of the Credit Parties or any of their Subsidiaries,  whether marketed or in development.          “Pro Forma Basis” shall mean, for purposes of calculating the Total Secured Leverage  Ratio:               (a)   Investments, acquisitions, mergers, consolidations and dispositions of any  Subsidiary, line of business or division, that have been made by the specified Person or any of its  Subsidiaries, or any Person or any of its Subsidiaries acquired by, merged or consolidated with the  specified Person or any of its Subsidiaries, and including any related financing transactions and                                         29   

 

   incurrences  of  Indebtedness,  and  including  increases  in  ownership  of  Subsidiaries,  during  the  applicable reference period or subsequent to such reference period and on or prior to the date of  determination  will  be  given  pro  forma  effect,  as  if  they  had  occurred  on  the  first  day  of  the  applicable reference period;               (b)   any Person that is a Subsidiary on the date of determination will be deemed  to have been a Subsidiary at all times during such reference period; and               (c)   any Person that is  not a Subsidiary on the date of determination will be  deemed not to have been a Subsidiary at any time during such reference period;         For purposes of this definition, whenever pro forma effect is given to a transaction, the pro  forma calculations shall be made in good faith by an Authorized Officer of the Borrower and shall  be  reasonably  satisfactory  to  the Administrative Agent.   Any  such  pro  forma  calculation  may  include adjustments appropriate, in the good faith determination of the Borrower as set forth in an  officers’ certificate, to reflect operating expense reductions (but not revenue increases) expected  to result from the applicable pro forma event if such adjustments are reasonably satisfactory to the  Administrative Agent.          “Pro Rata Share” shall mean (a) with respect to the Initial Term Loan Commitment of any  Lender  at  any  time,  a  percentage,  the  numerator  of  which  shall  be  the  sum  of  such  Lender’s  unfunded Initial Term Loan Commitment, plus such Lender’s funded Initial Term Loans, and the  denominator  of  which  shall  be  the  sum  of  the  unused  Initial  Term  Loan Commitments  of  all  Lenders,  plus  all  funded  Initial  Term  Loans  of  all  Lenders  or  (b)  with  respect  to  the  DDTL   Commitment  of  any  Lender  at  any  time,  a  percentage,  the  numerator  of  be  the  sum  of  such  Lender’s unfunded DDTL Commitment, plus such Lender’s funded Delayed Draw Term Loan,  and the denominator of which shall be the sum of the DDTL Commitment of all Lenders, plus all  funded Delayed Draw Term Loan of all Lenders.         “Qualified Capital Stock” shall mean any Capital Stock that is not Disqualified Capital  Stock.         “Qualified Cash” shall mean, as of any date of determination, the amount of unrestricted  cash  and  Cash  Equivalents  of  the  Credit Parties that are in  deposit  accounts  or  in  securities  accounts,  or  any  combination  thereof,  which  deposit  accounts  and  securities  accounts  are  the  subject of Control Agreements and are maintained by a branch office of the applicable bank or  securities intermediary located within the United States of America; provided, that, for the first  sixty  (60)  days  (or  such  longer  period  as  reasonably  agreed  to  by  the  Administrative  Agent)  following the Closing Date there shall be no requirement that cash and Cash Equivalents of the  Credit Parties be held in accounts subject to Control Agreements in order for such cash and Cash  Equivalents to be Qualified Cash.         “Real Property” shall mean, with respect to any Person, all right, title and interest of such  Person (including, without  limitation,  any leasehold  estate) in  and to  a parcel  of real  property  owned,  leased  or  operated  by  such  Person  together  with,  in  each  case,  all  improvements  and  appurtenant  fixtures,  equipment,  personal  property,  easements  and  other  property  and  rights  incidental to the ownership, lease or operation thereof.                                         30   

 

         “Refinanced Indebtedness” shall have the meaning set forth in the definition of “Permitted  Refinancing Indebtedness.”         “Register” shall have the meaning set forth in Section 12.06(b)(iv).         “Regulatory Matters” shall mean, collectively, activities that are subject to Health Care  Laws.         “Regulation D” shall mean Regulation D of the Board as from time to time in effect and  any successor to all or a portion thereof establishing reserve requirements.         “Regulation U” shall mean Regulation U of the Board as from time to time in effect and  any successor to all or a portion thereof establishing margin requirements.         “Regulation X” shall mean Regulation X of the Board as from time to time in effect and  any successor to all or a portion thereof establishing margin requirements.         “Regulation Notice” shall have the meaning set forth in Section 5.02(k).         “Related Parties” shall mean, with respect to any specified Person, such Person’s Affiliates  and the directors, officers, employees, agents, trustees, advisors of such Person and any Person  that possesses, directly or indirectly, the power to direct or cause the direction of the management  or policies of such Person, whether through the ability to exercise voting power, by contract or  otherwise.         “Release” shall mean a “release,” as such term has the meaning set forth in CERCLA.         “Reportable  Event”  shall  mean  an  event  described  in  Section  4043  of  ERISA  and  the  regulations  thereunder  (excluding  any  such event  for  which  the  notice  requirement  has  been  waived by the PBGC).         “Required Lenders” shall mean, at any date, Lenders having or holding a majority of (a)  unused Commitments of Lenders plus (b) the aggregate outstanding principal amount of the Loans;  provided that the Commitment of, and the portion of the outstanding principal amount of the Loans  held  or  deemed  held  by,  any  Defaulting  Lender  shall  be  excluded  for  purposes  of  making  a  determination of Required Lenders.         “Restricted  Payment”  shall  mean,  with respect  to  any  Person,  (a)  the  declaration  or  payment of any dividend on, or the making of any payment or distribution on account of, or setting  apart  assets  for  a  sinking  or  other  analogous  fund  for  the  purchase,  redemption,  defeasance,  retirement or other acquisition of, any class of Capital Stock of such Person or any warrants or  options to purchase any such Capital Stock, whether now or hereafter outstanding, or the making  of any other distribution in respect thereof, either directly or indirectly, whether in cash or property  (it  being  understood,  for  the  avoidance  of  doubt,  that  payments  in  the  form  of  Capital  Stock  pursuant to an employee benefit plan shall not constitute Restricted Payments), (b) the payment or  prepayment  of  principal  of,  or  premium or  interest  or  any  other  amount  in  respect  of,  any  Indebtedness that is contractually subordinate to the Obligations unless such payment is permitted                                         31   

 

   under the terms of the subordination agreement applicable thereto, (c) any payment in respect of  earn-out obligations and (d) any payment with respect to the Convertible Senior Notes.          “Sanctions” shall have the meaning set forth in Section 7.26.         “SEC” means the Securities and Exchange Commission.          “S&P” shall mean Standard &  Poor’s  Ratings  Services  or  any successor by merger or  consolidation to its business.         “Secured Parties” shall mean, collectively, (a) the Lenders, (b) the Administrative Agent,  (c) the beneficiaries of each indemnification obligation undertaken by any Credit Party under the  Credit Documents and (d) any successors, endorsees, transferees and permitted assigns of each of  the foregoing.         “Securitization” shall have the meaning set forth in Section 12.08.         “Security Agreement” shall mean a Security Agreement, by and among each Credit Party  and  the Administrative Agent  for  the  benefit  of  the  Secured  Parties,  in  form  and  substance  reasonably satisfactory  to  the Administrative Agent, as  amended,  restated,  supplemented  or  otherwise modified from time to time.         “Security Documents” shall mean, collectively, the Security Agreement, any Mortgage  and  each  other  security  agreement  or  other  instrument  or  document  executed  and  delivered  pursuant  to Section  8.11 or  pursuant  to  any  of  the  Security  Documents  to secure  any  of  the  Obligations.         “Significant Subsidiary” means a Subsidiary of the Borrower that meets the definition of  “significant subsidiary” in Article 1, Rule 1-02 of Regulation S-X under the Exchange Act.          “Solvency Certificate” shall mean a solvency certificate dated as of the Closing Date, duly  executed and delivered by an Authorized Officer of the Borrower to the Administrative Agent, in  form and substance reasonably satisfactory to the Administrative Agent.         “Solvent” shall mean, with respect to any Person, at any date, that (a) the sum of such  Person’s debt (including Contingent Liabilities) does not exceed the present fair saleable value of  such Person’s present assets, (b) such Person’s capital is not unreasonably small in relation to its  business as contemplated on such date, (c) such Person has not incurred and does not intend to  incur debts including current obligations beyond its ability to pay such debts as they become due  (whether at maturity or otherwise) and (d) such Person is “solvent” within the meaning given that  term and similar terms under Applicable Laws relating to fraudulent transfers and conveyances.   For  purposes  of  this definition,  the  amount  of  any  Contingent Liability  at  any  time  shall  be  computed as the amount that, in light of all of the facts and circumstances existing at such time,  represents the amount that can reasonably be expected to become an actual or matured liability  (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of  Financial Accounting Standard No. 5).         “Somos” shall mean Somos Innovation, LLC, a Delaware limited liability company.                                          32   

 

         “Somos Capital Contributions” shall mean any capital contribution, loan, advance or other  Investment  made  in  Somos  in  an  aggregate  amount  not  to  exceed  $8,000,000,  no  more  than  $4,000,000 of which such amount may be paid in cash, after the Closing Date pursuant to the terms  of that certain Amended and Restated Operating Agreement, dated as of May 21, 2019, by and  among Somos, Borrower and the other members of Somos, as amended, restated, supplemented  or modified from time to time.         “Sponsor  Stockholder”  shall  have  the  meaning  set  forth  in  the  Passport  Stockholders  Agreement.           “Statutory Reserve Rate” shall mean, for any day as applied to any Eurodollar Loan, a  fraction (expressed as a decimal), the numerator of which is the number one and the denominator  of which is the number one minus the aggregate of the maximum reserve percentages that are in  effect  on  that  day  (including  any  marginal,  special,  emergency  or  supplemental  reserves),  expressed  as  a decimal,  as  prescribed by the Board and to  which the Administrative Agent  is  subject,  for  Eurocurrency  funding  (currently  referred to  as  “Eurocurrency  Liabilities”  in  Regulation D).  Such reserve percentages shall include those imposed pursuant to such Regulation  D.  Eurodollar Loans shall be deemed to constitute Eurocurrency funding and to be subject to such  reserve requirements without benefit of or credit for proration, exemptions or offsets that may be  available from time to time to any Lender under such Regulation D or any comparable regulation.   The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any  change in any reserve percentage.          “Subsidiary” of any Person shall mean and include (a) any corporation more than fifty  percent (50%) of whose Voting Stock having by the terms thereof power to elect a majority of the  directors of such corporation (irrespective of whether or not at the time stock of any class or classes  of such corporation shall have or might have voting power by reason of the happening of any  contingency) is at the time owned by such Person, directly or indirectly, through Subsidiaries and  (b) any partnership, association, joint venture or other entity in which such Person, directly or  indirectly, through Subsidiaries, has more than a fifty percent (50%) voting equity interest at the  time.  Unless otherwise expressly provided, all references herein to a “Subsidiary” shall mean a  Subsidiary of a Credit Party.  Notwithstanding the foregoing, solely to the extent the Securities  Exchange  Commission  has  permitted  the  Parent  to  treat  Justify  Holdings,  Inc.  as  being  an  unconsolidated entity, then for the purposes of the definition of “Consolidated Adjusted EBITDA,”  “Consolidated Net Income,” “Consolidated Secured Debt,” “Funded Debt” and Section 8.01(a)- (c), Section 8.01(f) and Section 9.13 Justify Holdings, Inc. shall not be considered a “Subsidiary.”           “Target Consolidated Adjusted EBITDA” shall mean, for any specified trailing 12 month  period, an amount determined for any Person equal to (a) the consolidated net income (or deficit)  of such Person in accordance with GAAP after eliminating all extraordinary nonrecurring items of  income, plus (b) without duplication and to the extent deducted in arriving at the consolidated net  income of such Person, the sum of, without duplication, amounts for (i) total interest expense,  (ii) provisions for Taxes based on income, (iii) total depreciation expense, (iv) total amortization  expense, and (v) any other non-cash charges and expenses deducted in arriving at the consolidated  net income of such Person (excluding any such non-cash item to the extent that it represents an  accrual or reserve for potential cash items in any future period or amortization of an item that was  paid in a prior period), minus (c) without duplication and to the extent included in arriving at the                                         33   

 

   consolidated net income of such Person, amounts for non-cash gains (excluding any such non-cash  item to the extent it represents the reversal of an accrual or reserve for potential cash items in any  prior period).         “Taxes”  shall  mean  all  income,  stamp  or  other  taxes,  duties,  levies,  imposts,  charges,  assessments,  fees,  deductions  or  withholdings,  now  or  hereafter  imposed,  enacted,  levied,  collected,  withheld  or  assessed  by  any  Governmental  Authority,  and  all  interest,  penalties,  additions to tax or similar liabilities with respect thereto.         “Term Loan” shall mean the Initial Term Loan or Delayed Draw Term Loan.         “Term Loan Note” shall mean a promissory note substantially in the form of Exhibit T-1.         “Test Period” shall mean, for any date of determination under this Agreement, the four (4)  consecutive fiscal quarters of Borrower most recently ended as of such date of determination.          “Total Secured Leverage Ratio” shall mean, as of the last day of any Test Period, the ratio  of (a) Consolidated Secured Debt as of such date to (b) Consolidated Adjusted EBITDA for such  Test Period.         “TRA” shall mean that certain Income Tax Receivables Agreement, dated as of June 4,  2015, by and among Parent, Borrower, TPG Eagle Holdings, L.P., Ptolemy Capital, LLC, The  Advisory Board Company, UPMC, TPG Growth II BDH, L.P., Premier Health Partners, Oxeon  Partners,  LLC  and  Medstar  Health,  Inc.,  as  amended,  restated,  supplemented  or  otherwise  modified from time to time.          “Transaction Documents” shall mean each of the documents executed and/or delivered in  connection  with  the  Transactions,  including, without  limitation, the  Credit  Documents  but  excluding the Warrants.         “Transactions”  shall  mean, collectively, the  transactions  contemplated  by  the  Credit  Documents, including the Passport Health Acquisition and the transactions contemplated by the  Passport Health Acquisition Agreement.         “Transactions Rule” shall have the meaning set forth in Section 7.31(i).         “Treasury Rate” shall mean as of any prepayment date, shall mean the yield to maturity at  the time of computation of United States Treasury Securities with a constant maturity (as compiled  and published in the most recent Federal Reserve Statistical Release H.15 (519), which has become  publicly available at least (2) two Business Days prior such prepayment (or, if such Statistical  Release is no longer published, any publicly available source or similar market data) most nearly  equal to the period from such prepayment date to the second anniversary of the Closing Date;  provided, however, that if the period from such prepayment date to the second anniversary of the  Closing Date, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest  one twelfth of a year) from the weekly average yields of United States Treasury Securities for  which such yields are given.         “Trustee” shall have the meaning set forth in the definition “2021 Convertible Notes.”                                         34   

 

         “Type” shall mean, as to any Loan, its nature as an ABR Loan or Eurodollar Loan.         “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the  State of New York.         “Unasserted Contingent Obligations” shall have the meaning given to such term in the  Security Agreement.         “Unfunded Current Liability” of any Pension Plan shall mean the amount, if any, by which  the present value of all accumulated benefit obligations under such Pension Plan as of the close of  its most recent plan year, determined in accordance with FASB Accounting Standards Codification  715: Compensation - Retirement Benefits, as in effect on the date hereof, exceeds the fair market  value of the assets of such Pension Plan allocable to such accrued benefits.         “Unused DDTL Commitment Fee” shall have the meaning set forth in Section 4.01(b).         “U.S.” and “United States” shall mean the United States of America.         “Voting Stock” shall mean, with respect to any Person, shares of such Person’s Capital  Stock having the right to vote for the election of directors (or Persons acting in a comparable  capacity) of such Person under ordinary circumstances.         “Warrant Holder” shall mean Ares.          “Warrants” shall  mean  the  warrants  and  related  documentation issued  to the  Warrant  Holder equal to 1.75% of the fully diluted shares outstanding of  Class A common stock of Parent  with a strike price equal to the amount set forth in the Warrants.         “Write-Down and Conversion Powers” shall mean, with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write-down  and conversion powers are described in the EU Bail-In Legislation Schedule.         SECTION 1.02  Other  Interpretive  Provisions.   With  reference  to  this  Agreement  and  each other Credit Document, unless otherwise specified herein or in such other Credit Document:               (a)   The meanings of defined terms are equally applicable to the singular and  plural forms of the defined terms.               (b)   The  words  “herein,”  “hereto,”  “hereof”  and  “hereunder”  and  words  of  similar import when used in any Credit Document shall refer to such Credit Document as a whole  and not to any particular provision thereof.               (c)   Article,  Section,  Exhibit  and  Schedule  references  are  to  the  Credit  Document in which such reference appears.               (d)   The term “including” is by way of example and not limitation.                                         35   

 

               (e)   The  term  “documents”  includes  any  and  all  instruments,  documents,  agreements,  certificates,  notices,  reports,  financial  statements  and  other  writings,  however  evidenced, whether in physical or electronic form.               (f)   In  the  computation  of  periods  of  time  from  a  specified  date  to  a  later  specified date, the word “from” means “from and including”; the words “to” and “until” each mean  “to but excluding”; and the word “through” means “to and including.”               (g)   Section headings herein and in the other Credit Documents are included for  convenience of reference only and shall not affect the interpretation of this Agreement or any other  Credit Document.         SECTION 1.03  Accounting  Terms  and  Determination.  All  accounting  terms  not  specifically or completely defined herein shall be construed in conformity with, and all financial  data (including financial ratios and other financial calculations) required to be submitted pursuant  to this Agreement shall be prepared in conformity with, GAAP, applied in a manner consistent  with  that  used  in  preparing  the  Historical  Financial  Statements set  forth  in  clause  (a)  of  such  definition, except as otherwise specifically prescribed herein. Notwithstanding any other provision  contained herein, all terms of an accounting or financial nature used herein shall be construed, and  all computations of amounts and ratios referred to in Article IX shall be made, without giving  effect to any election under  Accounting Standards Codification 825-10 or 470-20 (or any other  Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other  liabilities of any Credit Party or any Subsidiary of any Credit Party at “fair value.” A breach of  any Financial Performance Covenant shall be deemed to have occurred as of the last day of the  relevant specified measurement period, regardless of when the financial statements reflecting such  breach are delivered to the Administrative Agent.         SECTION 1.04  Rounding.  Any financial ratios required to be maintained or complied  with by the Borrower pursuant to this Agreement (or required to be satisfied in order for a specific  action  to  be  permitted  under  this  Agreement)  shall  be  calculated  by  dividing  the  appropriate  component by the other component, carrying the result to one place more than the number of places  by which such ratio is expressed herein and rounding the result up or down to the nearest number  (with a rounding-up if there is no nearest number).         SECTION 1.05  References  to  Agreements,  Laws,  etc.  Unless  otherwise  expressly  provided  herein,  (a)  references  to  Organization  Documents,  agreements  (including  the  Credit  Documents) and other Material Contracts shall be deemed to include all subsequent amendments,  restatements,  amendment  and  restatements,  extensions,  supplements  and  other  modifications  thereto, but only to the extent that such amendments, restatements, amendment and restatements,  extensions, supplements and other modifications are permitted by any Credit Document; and (b)  references  to any  Applicable  Law  shall  include  all  statutory  and  regulatory  provisions  consolidating, amending, replacing, supplementing or interpreting such Applicable Law.         SECTION 1.06  Times of Day.  Unless otherwise specified, all references herein to times  of day shall be references to Eastern time (daylight or standard, as applicable).                                          36   

 

         SECTION 1.07  Timing  of  Payment  of  Performance.   When  the  payment  of  any  obligation  or  the performance  of  any  covenant,  duty  or  obligation  is  stated  to  be  due  or  performance required on a day which is not a Business Day, the date of such payment (other than  as described in the definition of Interest Period) or performance shall extend to the immediately  succeeding Business Day.         SECTION 1.08  Corporate Terminology.  Any reference to officers, shareholders, stock,  shares, directors, boards of directors, corporate authority, articles of incorporation, bylaws or any  other  such  references  to  matters  relating  to  a corporation  made  herein  or  in  any  other  Credit  Document with respect to a Person that is not a corporation shall mean and be references to the  comparable terms used with respect to such Person.         SECTION 1.09  UCC Definitions.  When used in this Agreement, the following terms  have  the  same  definitions  as  provided  in  Article  9  of  the  UCC,  but  for  convenience  in  this  Agreement  the  first letter  of  all  such  terms  shall  be  capitalized: “Accession,” “Account,”  “Account Debtor,” “Authenticate” (and all derivations thereof), “Certificate Of Title”, “Chattel  Paper,” “Commercial Tort Claim,” “Deposit Account,” “Document,” “Equipment,” “General  Intangible,” “Goods,” “Health-Care-Insurance  Receivable,” “Instrument,” “Inventory,”  “Investment  Property,” “Letter-Of-Credit  Right,” “Obligor,” “Proceeds” (as  specifically  defined in Section 9-102(64) of the UCC), “Record,” “Secondary Obligor,” “Secured Party,”  “Software” and “Supporting Obligation.”         SECTION 1.10  Divisions; Series. For all purposes under the Credit Documents, if, in  connection with any division or plan of division with respect to a limited liability company under  Delaware law (or any comparable event under a different jurisdiction’s laws) or an allocation of  assets to a series of a limited liability company under Delaware law (or any comparable event  under a different  jurisdiction’s laws), (a) any asset,  right,  obligation or liability  of any Person  becomes the asset, right, obligation or liability of a different Person, then such transaction shall  constitute  a “transfer”  (as  used  in  the  definition  of  “Disposition”  contained  herein) from  the  original Person to the subsequent Person, and (b) any new Person comes into existence, such new  Person shall be deemed to have been organized by the holders of its Capital Stock on the first date  of its existence.                                    ARTICLE II                                                                 Amount and Terms of Credit Facilities         SECTION 2.01  Loans.                 (a)   Subject to and upon the terms and conditions herein set forth:                     (x) Each Lender having an Initial Term Loan Commitment, severally agrees        to make a term loan (collectively, the “Initial Term Loan”) to the Borrower on the Closing        Date in the amount of the Initial Term Loan Commitment of such Lender.                       (y) Each Lender having a DDTL Commitment, severally agrees to make a        term loan or loans (collectively, the “Delayed Draw Term Loan”) to the Borrower on or                                         37   

 

         before the DDTL Commitment  Expiration Date in  the aggregate amount  of the DDTL        Commitment of such Lender.               (b)   Each of the Term Loans made pursuant to Section 2.01(a) may, at the option  of  the  Borrower,  (i)  be  incurred  and  maintained  as,  and/or  converted into, ABR  Loans  or  Eurodollar Loans; provided, that all such Term Loans made by each of the Lenders pursuant to the  same  Borrowing  shall,  unless  otherwise  specifically  provided  herein,  consist  entirely  of  Term  Loans of the same Type and (ii) may be repaid or prepaid in accordance with the provisions hereof,  but once repaid or prepaid may not be reborrowed.               (c)   Each Lender, may at its option, make any Eurodollar Loan by causing any  domestic or foreign branch or Affiliate of such Lender to make such Eurodollar Loan; provided,  that (i) any exercise of such option shall not affect the obligation of the Borrower to repay such  Eurodollar Loan and (ii) in exercising such option, such Lender shall use its reasonable efforts to  minimize any increased costs to the Borrower resulting therefrom.               (d)   Reductions in DDTL Commitments.  Borrower may at any time upon at  least two (2) Business Days' (or such shorter period as is acceptable to Administrative Agent) prior  written  notice  by  the  Borrower  to  the  Administrative  Agent  permanently reduce  any  DDTL  Commitment;  provided  that  such  reductions  shall  be  in  an  amount  greater  than  or  equal  to  $1,000,000 or, if less, the remaining amount of such DDTL Commitment.  All reductions of a  DDTL  Commitment  shall  be  allocated  pro  rata  among  all  Lenders  holding  such  DDTL  Commitment.               (e)   Delayed Draw Term Loan Conditions:                     (i)   Delayed Draw Term Loan Conditions.  No Lender with a DDTL  Commitment shall be obligated to fund any Delayed Draw Term Loan, unless each of the following  conditions have been satisfied or waived in accordance with this Agreement (in addition to all  other conditions to the funding of Delayed Draw Term Loan set forth in this Agreement):                             a. no  Default  or  Event  of  Default  shall  have  occurred  or  be                             continuing prior to and immediately after giving effect to such                             Delayed Draw Term Loan;                            b. proceeds of the Delayed Draw Term Loan shall be used by the                             Borrower solely for the purposes set forth in Section 8.10;                           c. to the extent the Delayed Draw Term Loans are to be used for                             the 2021 Convertible Notes Repurchase, Administrative Agent                             shall have received a notice from Parent specifying (i) the date                             of  redemption  and  (ii)  the  principal  amount  of  the  2021                             Convertible  Notes  being  redeemed,  together  with  interest                             thereon payable on such date and evidence satisfactory to the                             Administrative  Agent  that  after  giving  effect  to  such                             redemption,  no  2021  Convertible  Notes  shall  remain                             outstanding;                                         38   

 

                           d. Administrative Agent shall have received a Notice of Borrowing                             in  form  and  substance  reasonably  satisfactory  to  the                             Administrative Agent;                            e. Administrative Agent shall have received a pro forma balance                             sheet of Parent and its Subsidiaries giving effect to the Delayed                             Draw Term Loan;                            f. immediately  after  giving  effect  to  such  Delayed  Draw  Term                             Loan, no more than four (4) Delayed Draw Term Loans have                             been made;                           g. Liquidity  on  a  pro  forma  basis  shall  not  be  less  than                             $40,000,000;                            h. Administrative Agent shall have received evidence, in form and                             substance  satisfactory  to  the  Administrative  Agent,  that  the                             Borrower  has  achieved a  minimum  Net  Revenue  of  (i)  on  or                             before March 31, 2020, $850,000,000 or (i) after April 1, 2020,                             $800,000, in each case, for the twelve-month period ending as                             of the last day of the fiscal quarter for which financial statements                             were  delivered  in  accordance  with  Section  8.01(b); provided,                             that,  to  the  extent  True  Health  New  Mexico,  Inc.  is  sold,                             transferred  or  otherwise  disposed  of  for  Net  Proceeds  of                             $12,500,000 or  more  during  any  fiscal  quarter  pursuant  to  a                             transaction  permitted  hereunder,  then  the  minimum  Net                             Revenue required by this subclause shall thereafter be reduced                             by an amount equal to the lesser of (x) $150,000,000 and (y) the                             Net Revenue contributed by True Health New Mexico, Inc. for                             the twelve (12) month period ended as of last fiscal quarter for                             which such Net Revenue was calculated immediately prior to the                             consummation of such sale, transfer or disposition; and                           i. each of the conditions set forth in Section 6.02 shall have been                             satisfied (it being understood that all references to “the date of                             such Credit Extension” or similar language in Section 6.02 shall                             be deemed to refer to date of funding of the Delayed Draw Term                             Loan).                     (ii)  Terms.  Each Delayed Draw Term Loan shall have the same pricing  and maturity as the Initial Term Loan.                     (iii) Required Amendments.  The Loans and Commitments established  pursuant to this Section 2.01 shall constitute Term Loans and Commitments hereunder and shall  be entitled to all the benefits afforded by, this Agreement and the other Credit Documents, and  shall, without limiting the foregoing, benefit equally and ratably from the guarantees and security  interests created by the applicable Collateral Documents.  The Credit Parties shall take any actions                                         39   

 

   reasonably required by the Administrative Agent to ensure that the Liens and security interests  granted  by  the  applicable  Collateral  Documents  continue  to  be  perfected  under  the  UCC  or  otherwise after giving effect to the establishment of any such new Loans and Commitments to the  extent provided in any Collateral Documents.  Each of the parties hereto, hereby agrees that the  Administrative Agent may, in consultation with the Borrower, take any and all action as may be  reasonably necessary to ensure that all Delayed Draw Term Loans, which are not separate tranches,  when originally made, are included in each Borrowing of outstanding Term Loans on a pro rata  basis. This may be accomplished by requiring each outstanding Borrowing of Term Loans that are  Eurodollar Loans to be converted into a Borrowing of Term Loans that are ABR Loans on the date  of each such Delayed Draw Term Loan, or by allocating a portion of each such Delayed Draw  Term Loan to each outstanding Borrowing of Term Loans that are Eurodollar Loans on a pro rata  basis.  Any conversion of Eurodollar Loans to ABR Loans required by the preceding sentence  shall be subject to Section 2.11.         SECTION 2.02  Minimum  Amount  of  Each  Borrowing;  Maximum  Number  of  Borrowings.  The aggregate principal amount of each Borrowing of Delayed Draw Term Loan  shall not be less than the Minimum DDTL Borrowing Amount.  More than one (1) Borrowing may  be incurred on any date; provided, that at no time shall there be outstanding more than five (5)  Borrowings of Eurodollar Loans under this Agreement.         SECTION 2.03  Notice of Borrowing.                 (a)   The Borrower shall give the Administrative Agent prior written notice in  the form of Exhibit N-1 (a “Notice of Borrowing”) (or telephonic notice promptly confirmed in  writing) (i) prior to 1:00 p.m. (New York time) at least three (3) Business Days’ prior to each  Borrowing of Term Loans, which are to be initially Eurodollar Loans and (ii) prior to 12:00 noon  (New York time) on the date of each Borrowing of Term Loans which are to be ABR Loans.   Except as  otherwise  expressly  provided  in  Section  2.10,  each  Notice  of  Borrowing  shall  be  irrevocable and shall specify (A) the aggregate principal amount of the Term Loans to be made,  (B) the date of the Borrowing (which shall be, in the case of Term Loans, the Closing Date) and  (C) whether the Term Loans shall consist of ABR Loans and/or Eurodollar Loans and, if the Term  Loans are to include Eurodollar Loans, the Interest Period to be initially applicable thereto.  The  Administrative  Agent  shall  promptly  give  each  Lender  written  notice  (or  telephonic  notice  promptly confirmed in writing) of each proposed Borrowing of Term Loans, of such Lender’s Pro  Rata Share thereof and of the other matters covered by the related Notice of Borrowing.               (b)   [Reserved].                 (c)   Without in any way limiting the obligation of the Borrower to confirm in  writing any notice it may give hereunder by telephone, the Administrative Agent may act prior to  receipt of written confirmation without liability upon the basis of such telephonic notice believed  by the Administrative Agent in good faith to be from an Authorized Officer of the Borrower.  In  each such case, the Borrower hereby waives the right to dispute the Administrative Agent’s record  of the terms of any such telephonic notice.         SECTION 2.04  Disbursement of Funds.                                           40   

 

               (a)   No later than (i) 2:00 p.m. (New York time), in the case of each Borrowing  of  Delayed  Draw  Term  Loans  for  which  a  Notice  of  Borrowing  has  been  timely  delivered  in  accordance with Section 2.03 (other than for Borrowings on the Closing Date), each Lender will  make available its Pro Rata Share, if any, of the Borrowing requested to be made on such date in  the manner provided below, and (ii) 5:00 p.m. (New York time), in the case of the making of the  Initial Term Loan, if the conditions set forth in Article VI to the effectiveness of this Agreement  are met prior to 4:00 p.m. (New York time) on the Closing Date, each Lender will make available  its Pro Rata Share of the Initial Term Loan in the manner provided below.               (b)   Each Lender shall make available all amounts it is to fund to the Borrower,  under  any  Borrowing,  in  immediately  available  funds  to  the  Administrative  Agent,  and  the  Administrative Agent will make available to the Borrower, the aggregate of the amounts so made  available in Dollars.  Unless the Administrative Agent shall have been notified by any Lender prior  to  the  date  of  any  Borrowing  that  such  Lender  does  not  intend  to  make  available  to  the  Administrative Agent its portion of the Borrowing or Borrowings to be made on such date, the  Administrative  Agent  may  assume  that  such Lender  has  made  such  amount  available  to  the  Administrative Agent on such date of Borrowing, and the Administrative Agent, in reliance upon  such assumption, may (in its sole discretion and without any obligation to do so) make available  to  the  Borrower  a corresponding  amount.   If  such  corresponding  amount  is  not  in  fact  made  available to the Administrative Agent by such Lender and the Administrative Agent has made  available the same to the Borrower, the Administrative Agent shall be entitled to recover such  corresponding amount from such Lender.  If such Lender does not pay such corresponding amount  forthwith  upon  the  Administrative  Agent’s  demand  therefor,  the  Administrative  Agent  shall  promptly notify the Borrower and the Borrower shall promptly pay such corresponding amount to  the Administrative Agent.  The Administrative Agent shall also be entitled to recover from such  Lender or the Borrower, as the case may be, interest on such corresponding amount in respect of  each day from the date such corresponding amount was made available by the Administrative  Agent to the Borrower, to the date such corresponding amount is recovered by the Administrative  Agent, at a rate per annum equal to (i) if paid by such Lender, the Federal Funds Rate or (ii) if paid  by the Borrower, the then-applicable rate of interest, calculated in accordance with Section 2.08,  applicable to ABR Loans.  If the Borrower and such Lender shall pay interest to the Administrative  Agent for the same (or a portion of the same) period, the Administrative Agent shall promptly  remit to the Borrower the amount of such interest paid by the Borrower for such period.               (c)   Nothing in this Section 2.04 shall be deemed to relieve any Lender from its  obligation to fulfill its commitments hereunder or to prejudice any rights that the Borrower may  have against any Lender as a result of any default by such Lender hereunder (it being understood,  however,  that  no  Lender  shall  be  responsible  for  the  failure  of  any  other  Lender  to  fulfill  its  commitments hereunder).         SECTION 2.05  Payment of Loans; Evidence of Debt.                 (a)   Borrower agrees to pay to the Administrative Agent, for the benefit of the  Lenders, on the Maturity Date, the aggregate amount of all outstanding Term Loans.                 (b)   Each Lender shall maintain in accordance with its usual practice an account  or accounts evidencing the Indebtedness of the Borrower to the appropriate lending office of such                                         41   

 

   Lender resulting from each Loan made by such lending office of such Lender from time to time,  including the amounts of principal and interest payable and paid to such lending office of such  Lender from time to time under this Agreement.               (c)   The Borrower agrees that from time to time on and after the Closing Date,  upon  the  request  to  Administrative  Agent  by  any  Lender,  at  Borrower’s  own  expense,  the  Borrower will execute and deliver to such Lender a Note, evidencing the Loans made by, and  payable  to  such  Lender  or  registered  assigns  in  a  maximum  principal  amount  equal  to  such  Lender’s applicable Initial Term Loan Commitment, DDTL Commitment.  The Administrative  Agent  shall maintain the Register pursuant  to  Section 12.06(b)(iv), and a subaccount for each  Lender, in which Register and subaccounts (taken together) shall be recorded (i) the amount of  each Loan made hereunder, the Type of each Loan made and the Interest Period applicable thereto,  (ii) the amount of any principal or interest due and payable or to become due and payable from the  Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative  Agent from the Borrower and each Lender’s share thereof.               (d)   The entries made in the Register and accounts and subaccounts maintained  pursuant to paragraphs (c) and (d) of this Section 2.05 shall, to the extent permitted by Applicable  Law, be prima facie evidence of the existence and amounts of the obligations of the Borrower  therein recorded; provided, that the failure of any Lender or Administrative Agent to maintain such  account, such Register or such subaccount, as applicable, or any error therein, shall not in any  manner affect the obligation of the Borrower to repay (with applicable interest) the Loans made to  the Borrower by such Lender in accordance with the terms of this Agreement.         SECTION 2.06  Conversions and Continuations.  (a) The Borrower shall have the option  on any Business Day to convert all or a portion of the outstanding principal amount of Term Loans  of one Type into a Borrowing or Borrowings of another Type and the Borrower shall have the  option on any Business Day to continue the outstanding principal amount of any Eurodollar Loans  as Eurodollar Loans for an additional Interest Period; provided, that (i) no partial conversion of  Eurodollar  Loans shall  reduce  the  outstanding  principal  amount  of  Eurodollar  Loans made  pursuant to a single Borrowing to less than the Minimum DDTL Borrowing Amount, (ii) ABR  Loans may not be converted into Eurodollar Loans if an Event of Default is in existence on the  date of the proposed conversion and the Administrative Agent has, or the Required Lenders in  respect of the Credit Facility that is the subject of such conversion have, determined in its or their  sole discretion not  to  permit  such conversion, (iii) Eurodollar  Loans  may not  be  continued as  Eurodollar Loans if an Event of Default is in existence on the date of the proposed continuation  and the Administrative Agent has, or the Required Lenders in respect of the Credit Facility that is  the subject of such conversion have, determined in its or their sole discretion not to permit such  continuation and (iv) Borrowings resulting from conversions pursuant to this Section 2.06 shall be  limited in number as provided in Section 2.02.  Each such conversion or continuation shall be  effected by the Borrower by giving the Administrative Agent written notice (or telephonic notice  promptly confirmed in writing) prior to 1:00 p.m. (New York time) at least three Business Days  (or one (1) Business Day in the case of a conversion into ABR Loans) (and in either case on not  more than five (5) Business Days) prior to such proposed conversion or continuation, in the form  of Exhibit N-2 (each, a “Notice of Conversion or Continuation”) specifying the Loans to be so  converted or continued, the Type of Loans to be converted or continued into and, if such Loans  are  to  be  converted  into  or  continued  as  Eurodollar  Loans, the  Interest  Period  to  be  initially                                         42   

 

   applicable  thereto.   The  Administrative  Agent  shall  give  each Lender  notice  as  promptly  as  practicable of any such proposed conversion or continuation affecting any of its Loans.               (b)   If  any  Event  of  Default  is  in  existence  at  the  time  of  any  proposed  continuation of any Eurodollar Loans and the Administrative Agent has, or the Required Lenders  in respect of the Credit Facility that is subject of such continuation have, determined in its or their  sole  discretion  not  to  permit  such  continuation,  such  Eurodollar  Loans  shall  be  automatically  converted into a Borrowing of ABR Loans effective as of the expiration date of such Interest  Period.  If, upon the expiration of any Interest Period in respect of Eurodollar Loans, the Borrower  has failed to elect a new Interest Period to be applicable thereto as provided in Section 2.06(a),  Borrower shall be deemed to have elected to convert such Borrowing of Eurodollar Loans into a  Borrowing of ABR Loans effective as of the expiration date of such current Interest Period.         SECTION 2.07  Pro Rata Borrowings.  Borrowing of the Initial Term Loan funded on the  Closing  Date  under  this  Agreement  shall  be  made  by  each  Lender  with  an  Initial  Term  Loan  Commitment on the basis of its then-applicable Initial Term Loan Commitment.  Each Borrowing  of Delayed Draw Term Loan under this Agreement shall be made by each Lender with a DDTL  Commitment on the basis of its then-applicable DDTL Commitment.  It is understood that no  Lender shall be responsible for any default by any other Lender in its obligation to make Loans  hereunder and that each Lender shall be obligated to make the Loans provided to be made by it  hereunder, regardless of the failure of any other Lender to fulfill its commitments hereunder.         SECTION 2.08  Interest.  (a) The unpaid principal amount of each ABR Loan shall bear  interest from the date of the Borrowing thereof until repayment or prepayment thereof at a rate per  annum that shall at all times be the Applicable Margin plus the ABR in effect from time to time.               (a)   The unpaid principal amount of each Eurodollar Loan shall bear interest  from the date of the Borrowing thereof until repayment or prepayment thereof at a rate per annum  that  shall  at  all  times  be  the  Applicable  Margin  in  effect  from  time  to  time plus the  relevant  Eurodollar Rate.               (b)   From and after the occurrence and during the continuance of any Event of  Default, upon notice by the Administrative Agent or the Required Lenders to the Borrower (or  automatically while any Event of Default under Section 10.01(a) or Section 10.01(h) exists), the  Borrower shall pay interest on the principal amount of all Loans and all other due and unpaid  Obligations, to the extent permitted by Applicable Law, at the rate described in Section 2.08(a) or  Section 2.08(b), as applicable, plus two (2) percentage points per annum (the “Default Rate”).  All  such interest at the Default Rate shall be payable on demand of the Administrative Agent or the  Required Lenders and in cash.               (c)   Interest  on  each  Loan  shall accrue  from  and  including  the  date  of  any  Borrowing to but excluding the date of any repayment thereof and shall be payable (i) in respect  of  each  ABR  Loan,  quarterly  in  arrears  on  the  last  day  of  each  March,  June,  September  and  December, beginning with the fiscal quarter ending March 31, 2020 (the “ABR Interest Payment  Date”), (ii) in respect of each Eurodollar Loan, quarterly in arrears on the last day of each March,  June,  September  and  December,  commencing  on  March  31,  2020 (the  “Eurodollar  Interest                                         43   

 

   Payment Date”) and (iii) in respect of each Loan, on any prepayment (on the amount prepaid), at  maturity (whether by acceleration or otherwise) and, after such maturity, on demand.                 (d)   [Reserved].                  (e)   On each of the ABR Interest Payment Date or Eurodollar Interest Payment  Date, as applicable, Borrower shall pay all accrued and unpaid interest on the Term Loans by  paying all such accrued interest in cash.  All accrued, but unpaid Interest shall be payable in cash  on the Maturity Date.                 (f)   The  Administrative  Agent,  upon  determining  the  interest  rate  for  any  Borrowing  of  Eurodollar  Loans,  shall  promptly  notify  the Borrower and  the  relevant  Lenders  thereof.  Each such determination shall, absent clearly demonstrable error, be final and conclusive  and binding on all parties hereto.         SECTION 2.09  Interest Periods.  At the time the Borrower gives a Notice of Borrowing  or  a  Notice  of  Conversion  or  Continuation  in  respect  of the  making  of,  or  conversion  into  or  continuation  as,  a  Borrowing  of  Eurodollar  Loans  (in  the  case  of  the  initial  Interest  Period  applicable thereto) or prior to 1:00 p.m. (New York time) on the third Business Day (and in any  event, on not more than five Business Days’ notice) prior to the expiration of an Interest Period  applicable  to  a  Borrowing  of  Eurodollar  Loans,  the Borrower shall  have,  by  giving  the  Administrative Agent written notice (or telephonic notice promptly confirmed in writing) elected  the Interest Period applicable to such Borrowing, which Interest Period shall be a three (3)-month  period (subject to clause (a) below):               (a)   the  initial  Interest  Period  for  any  Borrowing  of  Eurodollar  Loans  shall  commence on the date of such Borrowing (including the date of any conversion from a Borrowing  of ABR Loans), and each Interest Period occurring thereafter in respect of such Borrowing shall  commence on the day on which the immediately preceding Interest Period expires; provided, that,  (i) the initial Interest Period commencing on the Closing Date shall expire on March 31, 2020 and  (ii) subject to clause (b) below, each Interest Period thereafter shall expire on the last day of each  June, September, December and March, regardless of the commencement date of such Interest  Period; and               (b)   if any Interest Period would otherwise expire on a day that is not a Business  Day, such Interest Period shall expire on the next succeeding Business Day; and               (c)   the Borrower shall not be entitled to elect any Interest Period in respect of  any Eurodollar Loan if such Interest Period would extend beyond the Maturity Date.         SECTION 2.10  Increased Costs, Illegality, etc.  (a)  In the event that (x) in the case of  clause (i) below, the Administrative Agent or (y) in the case of clauses (ii) and (iii) below, any  Lender, in each case, shall have reasonably determined (which determination shall, absent clearly  demonstrable error, be final and conclusive and binding upon all parties hereto):                     (i)   on  any  date  for  determining  the  Eurodollar  Rate  for  any  Interest  Period that (A) deposits in the principal amounts of the Loans comprising any Eurodollar Loan are  not generally available in the relevant market or (B) by reason of any changes arising on or after                                        44   

 

   the Closing Date affecting the interbank Eurodollar market, adequate and fair means do not exist  for ascertaining the applicable interest rate on the basis provided for in the definition of Eurodollar  Rate; or                     (ii)  at any time, after the later of the Closing Date and the date such  entity became a Lender hereunder, that such Lender shall incur increased costs or reductions in the  amounts received or receivable hereunder with respect to any Eurodollar Loans (excluding all  Taxes except any Other Connection Taxes that are not Connection Income Taxes) because of (A)  any change since the date hereof in any Applicable Law (or in the interpretation or administration  thereof and including the introduction of any new Applicable Law), such as, for example, without  limitation, a change in official reserve requirements (but excluding changes in the rate of tax on  the overall net income of such Lender), and/or (B) other circumstances affecting the interbank  Eurodollar market or the position of such Lender in such market; or                     (iii) at any time, that the making or continuance of any Eurodollar Loan  has become unlawful by compliance by such Lender in good faith with any Applicable Law (or  would conflict with any such Applicable Law not having the force of law even though the failure  to  comply  therewith  would  not  be  unlawful),  or  has  become  impracticable  as  a  result  of  a  contingency occurring after the date hereof that materially and adversely affects  the interbank  Eurodollar market,   then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i)  above) shall promptly give notice (if by telephone, confirmed in writing) to the Borrower and the  Administrative  Agent  of  such  determination  (which  notice  the Administrative  Agent  shall  promptly transmit to each of the other Lenders).  Thereafter (A) in the case of clause (i) above,  Eurodollar Loans shall no longer be available until such time as the Administrative Agent notifies  the Borrower and  the  Lenders  that  the  circumstances  giving  rise  to  such  notice  by  the  Administrative Agent no longer exist (which notice the Administrative Agent agrees to give at  such time when such circumstances no longer exist), and any Notice of Borrowing or Notice of  Conversion or Continuation given by the Borrower with respect to Eurodollar Loans that have not  yet been incurred shall be deemed rescinded by the Borrower, (B) in the case of clause (ii) above,  the Borrower shall,  pay  to  such  Lender,  within five  (5) days  after  receipt  of  written  demand  therefor, such additional amounts (in the form of an increased rate of, or a different method of  calculating, interest or otherwise as such Lender in its reasonable discretion shall determine) as  shall be required to compensate such Lender for such increased costs or reductions in amounts  receivable hereunder (it being agreed that a written notice as to the additional amounts owed to  such Lender, showing in reasonable detail the basis for the calculation thereof, submitted to the  Borrower by such Lender shall, absent clearly demonstrable error, be final and conclusive and  binding upon all parties hereto) and (C) in the case of clause (iii) above, the Borrower shall take  one of the actions specified in Section 2.10(b) as promptly as possible and, in any event, within  the time period required by law.   Notwithstanding the other provisions of this Agreement, if the Administrative Agent shall have  determined (which determination shall be conclusive absent manifest error), or the Borrower and  Required Lenders shall collectively notify the Administrative Agent in writing, that either (i) the  circumstances set forth in Section 2.10(a)(i) have arisen and such circumstances are unlikely to be  temporary, (ii) syndicated or comparable loans are currently being executed and/or amended to                                         45   

 

   include or adopt a new benchmark rate or rates (including, without limitation, credit or similar  adjustments,  in  each  case,  to  such  rate  or  rates)  or  (iii)  the  circumstances  set  forth  in Section  2.10(a)(i) have not arisen but the supervisor for the administrator of LIBOR (or any component  thereof) or a Governmental Authority having jurisdiction over the Administrative Agent has made  a public statement identifying a specific date after which LIBOR (or any component thereof) shall  no longer be published for use in determining interest rates for loans (in the case of either such  clause (i), (ii) or (iii), an “Alternative Interest Rate Election Event”), then reasonably promptly  thereafter the Administrative Agent and Borrower may endeavor to establish an alternate rate of  interest  to  LIBOR  that  gives  due  consideration  to  the  then  prevailing  market  convention  for  determining a rate of interest for leveraged comparable loans in the United States at such time  (which may include such credit adjustments or other adjustments, in each case, to such rate as are  present in the market for leveraged comparable loans in the United States at such time), and shall  enter into an amendment to this Agreement to reflect such alternate rate of interest and such other  related changes to this Agreement as may be applicable (including, without limitation operational,  term,  conforming  and  other  changes  as  may  be  reasonably  determined  by  the Administrative  Agent).  Notwithstanding  anything  to  the  contrary  in  this  Agreement,  such  amendment  shall  become effective without any further action or consent of any other party to this Agreement so  long as the Administrative Agent shall not have received, within five (5) Business Days after the  date notice of such  alternate rate of interest  is  provided to  the Lenders,  a written notice  from  Required Lenders stating that they object  to such amendment  (which amendment  shall not  be  effective prior to the end of such five (5) Business Day notice period).  To the extent an alternate  rate of interest is adopted as contemplated hereby, the approved rate shall be applied in a manner  consistent with  prevailing  market  convention.  From such time as  an Alternative  Interest  Rate  Election Event has occurred and continuing until an alternate rate of interest has been determined  in accordance with the terms and conditions of this paragraph, (A) any Notice of Borrowing that  requests the conversion of any Loan to, or continuation of any Loan as, a Eurodollar Loan shall be  ineffective, and (B) if any Notice of Borrowing requests a Eurodollar Loan, such Loan shall be  made as a ABR Loan; provided that, to the extent such Alternative Interest Rate Election Event is  as a result of clause (ii) above, then clauses (A) and (B) of this sentence shall apply during such  period only if LIBOR for such Interest Period is not available or published at such time on a current  basis.               (b)   At  any  time  that  any  Eurodollar  Loan  is  affected  by  the  circumstances  described in (i) Section 2.10(a)(ii), the Borrower may either (A) if the affected Eurodollar Loan is  then being made pursuant to a Borrowing, cancel said Borrowing by giving the Administrative  Agent  telephonic  notice  (confirmed  promptly  in  writing)  thereof  on  the  same  date  that  the  Borrower was notified by a Lender pursuant to Section 2.10(a)(ii) or (B) if the affected Eurodollar  Loan is then outstanding, upon at least three (3) Business Days’ notice to the Administrative Agent,  require the affected Lender to convert each such Eurodollar Loan into an ABR Loan; provided,  that if more than one Lender is so affected at any time, then all affected Lenders must be treated  in the same manner pursuant to this Section 2.10(b) or (ii) Section 2.10(a)(iii), (A) if the affected  Eurodollar Loan is then being made pursuant to a Borrowing, such Borrowing shall automatically  be deemed cancelled and rescinded and (B) if the affected Eurodollar Loan is then outstanding,  each such Eurodollar Loan shall automatically be converted into an ABR Loan; provided, that if  more than one Lender is affected at any time, then all affected Lenders must be treated in the same  manner pursuant to this Section 2.10(b).                                         46   

 

               (c)   If, after the later of the date hereof, and that date such entity becomes a  Lender hereunder, the adoption of any Applicable Law regarding capital adequacy, or any change  therein,  or  any  change  in  the  interpretation  or  administration  thereof  by  any  Governmental  Authority, central bank or comparable agency charged with the interpretation or administration  thereof, or compliance by a Lender or its parent with any request or directive made or adopted  after such date regarding capital adequacy (whether or not having the force of law) of any such  authority, association, central bank or comparable agency, has the effect of reducing the rate of  return  on  such  Lender’s  or  its  parent’s  capital  or  assets  as  a  consequence  of  such  Lender’s  commitments or obligations hereunder to a level below that which such Lender or its parent could  have  achieved  but  for  such  adoption,  effectiveness,  change  or  compliance  (taking  into  consideration such Lender’s or its parent’s policies with respect to capital adequacy), then within  five (5) days after written demand by such Lender (with a copy to the Administrative Agent), the  Borrower shall pay to such Lender such additional amount or amounts as will compensate such  Lender or its parent for such reduction, it being understood and agreed, however, that a Lender  shall not be entitled to such compensation as a result of such Lender’s compliance with, or pursuant  to any request or directive to comply with, any such Applicable Law as in effect on the date hereof.   Each Lender (on its own behalf), upon determining in good faith that any additional amounts will  be payable pursuant to this Section 2.10(c), will, as promptly as practicable upon ascertaining  knowledge thereof, give written notice thereof to the Borrower, which notice shall set forth in  reasonable detail the basis of the calculation of such additional amounts.  The failure to give any  such notice, with respect to a particular event, within the time frame specified in Section 2.13,  shall not release or diminish any of the Borrower’s obligations to pay additional amounts pursuant  to this Section 2.10(c) for amounts accrued or incurred after the date of such notice with respect  to such event.               (d)   Notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall  Street  Reform  and Consumer  Protection  Act  and  all  requests,  rules,  guidelines  or  directives  thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives  promulgated  by  the  Bank  for  International  Settlements,  the  Basel  Committee  on  Banking  Supervision  (or  any  successor  or  similar  authority)  or  the  United  States  or  foreign  regulatory  authorities, in each case pursuant to Basel III, shall in each case be deemed to be a change in  Applicable Law, regardless of the date enacted, adopted or issued.               (e)   This Section  2.10 shall  not  apply  to  Taxes  to  the  extent  duplicative  of  Section 5.04.         SECTION 2.11  Compensation.  If (a) any payment of principal of a Eurodollar Loan is  made by the Borrower to or for the account of a Lender other than on the last day of the Interest  Period for such Eurodollar Loan as a result of a payment or conversion pursuant to Section 2.05,  2.06, 2.10, 5.01 or 5.01(d), as a result of acceleration of the maturity of the Loans pursuant to  Article X or for any other reason, (b) any Borrowing of Eurodollar Loans is not made as a result  of a withdrawn Notice of Borrowing (except with respect to a revocation as provided in Section  2.10 or by reason of a Lender being a Defaulting Lender), (c) any ABR Loan is not converted into  a  Eurodollar  Loan  as  a result  of  a  withdrawn  Notice  of  Conversion  or  Continuation,  (d)  any  Eurodollar  Loan  is  not  continued  as  a  Eurodollar  Loan  as  a  result  of  a  withdrawn  Notice  of  Conversion or Continuation or (e) any prepayment of principal of a Eurodollar Loan is not made  as a result of a withdrawn notice of prepayment pursuant to Section 5.01 or 5.01(d), the Borrower                                         47   

 

   shall, after receipt of a written request by such Lender (which request shall set forth in reasonable  detail the basis for requesting such amount), pay to the Administrative Agent for the account of  such Lender any amounts required to compensate such Lender for any additional losses, costs or  expenses that such Lender may reasonably incur as a result of such payment, failure to convert,  failure to continue, failure to prepay, reduction or failure to reduce, including any loss, cost or  expense (excluding loss of anticipated profits) actually incurred by reason of the liquidation or  reemployment  of  deposits  or  other  funds  acquired  by  such  Lender  to  fund  or  maintain such  Eurodollar Loan.         SECTION 2.12  Change  of  Lending  Office.   Each  Lender  agrees  that,  upon  the  occurrence of any event giving rise to the operation of Section 2.10(a)(ii), 2.10(a)(iii), 2.10(b) or  5.04 with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts  (subject to overall policy considerations of such Lender) to designate another lending office for  any Loans affected by such event; provided, that such designation is made on such terms that such  Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object  of avoiding the consequence of the event giving rise to the operation of any such Section.  Nothing  in this Section 2.12 shall affect or postpone any of the obligations of the Borrower or the rights of  any Lender provided in Section 2.10 or 5.04.         SECTION 2.13  Notice of Certain Costs.  Notwithstanding anything in this Agreement to  the contrary, to the extent any notice required by Section 2.10, 2.11 or 5.04 is given by any Lender  more than one hundred twenty (120) days after such Lender has knowledge (or should have had  knowledge) of the occurrence of the event giving rise to the additional cost, reduction in amounts,  loss, tax or other additional amounts described in such Sections, such Lender shall not be entitled  to  compensation  under Section  2.10, 2.11 or 5.04,  as  the  case  may  be,  for  any  such  amounts  incurred or accruing prior to the giving of such notice to the Borrower.         SECTION 2.14  [Reserved].          SECTION 2.15  Defaulting Lenders.               (a)   Adjustments.  Notwithstanding anything to the contrary contained in this  Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no  longer a Defaulting Lender, to the extent permitted by Applicable Law:                     (i)   Waivers  and  Amendments.   That  Defaulting  Lender’s  right  to  approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be  restricted as set forth in Section 12.01.                     (ii)  Reallocation of Payments.  Any payment of principal, interest, fees  or other amounts received by the Administrative Agent for the account of that Defaulting Lender  (whether voluntary or mandatory, at maturity, pursuant to Section 5.02(j) or Article X or otherwise,  and including any amounts made available to the Administrative Agent by that Defaulting Lender  pursuant to Section 12.09), shall be applied at such time or times as may be determined by the  Administrative Agent as follows:  first, to the payment of any amounts owing by that Defaulting  Lender to the Administrative Agent hereunder; second, as the Borrower may request (so long as  no Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender                                         48   

 

   has  failed  to  fund  its  portion  thereof  as  required  by  this  Agreement,  as  determined  by  the  Administrative Agent; third, if so determined by the Administrative Agent and the Borrower, to  be held in a noninterest bearing deposit account and released in order to satisfy such Defaulting  Lender’s  potential  future  funding  with  respect  to  Loans  under  this  Agreement; fourth,  to  the  payment of any amounts owing to the Lenders as a result of any judgment of a court of competent  jurisdiction obtained by any Lender against that Defaulting Lender as a result of that Defaulting  Lender’s breach of its obligations under this Agreement; fifth, so long as no Event of Default  exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court  of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of  that  Defaulting  Lender’s  breach  of  its  obligations  under  this  Agreement;  and sixth,  to that  Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if  such  payment  is  a  payment  of  the  principal  amount  of  any  Loans  in  respect  of  which  that  Defaulting Lender has not fully funded its appropriate share.  Any payments, prepayments or other  amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by  a Defaulting Lender shall be deemed paid to and redirected by that Defaulting Lender, and each  Lender irrevocably consents hereto.                     (iii) Certain  Fees.  A Lender that is  a Defaulting  Lender shall not  be  entitled to receive any Unused DDTL Commitment, for any period during which that Lender is a  Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise  would have been required to have been paid to that Defaulting Lender).               (b)   Defaulting Lender Cure.  If the Borrower and the Administrative Agent  agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be  a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of  the effective date specified in  such notice and subject  to  any conditions  set  forth  therein,  that  Lender  will,  to  the  extent  applicable,  purchase  that  portion  of  outstanding Loans  of  the  other  Lenders or take such other actions as the Administrative Agent may determine to be necessary to  cause the Lenders to hold their respective Pro Rata Share of Loans, whereupon that Lender will  cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with  respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was  a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by  the  affected parties,  no  change  hereunder  from  Defaulting  Lender  to  a  Lender  that  is  not  a  Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising  from that Lender’s having been a Defaulting Lender.                                    ARTICLE III                                                                           [RESERVED]                                             49   

 

                                    ARTICLE IV                                                                  Fees and Commitment Terminations         SECTION 4.01  Fees.                (a)   The Borrower agrees to pay to the Administrative Agent, all the Fees set  forth in the Fee Letter.               (b)   The Borrower agrees to pay to each Lender having a DDTL Commitment a  commitment fee (the “Unused DDTL Commitment Fee”) calculated at the rate of one percent  (1.00%) on the daily balance of the DDTL Commitment of such Lender during each fiscal quarter  or portion thereof from the Closing Date to the DDTL Commitment Expiration Date.  The Unused  DDTL Commitment Fee shall be payable quarterly in arrears on the last day of each March, June,  September and December, beginning with the fiscal quarter ending March 31, 2020, and on the  DDTL Commitment Expiration Date or any earlier date on which the DDTL Commitments shall  terminate.         SECTION 4.02  Mandatory Termination of Commitments.                 (a)   The Initial Term Loan Commitment shall terminate at 5:00 p.m. (New York  time) on the Closing Date.               (b)   The DDTL Commitment shall terminate at 5:00 p.m. (New York time) on  the DDTL Commitment Expiration Date.                                    ARTICLE V                                                                             Payments         SECTION 5.01  Prepayments Premium; Voluntary Prepayments.                 (a)   Subject  to the  terms  and  conditions  set  forth  in  this Section  5.01,  the  Borrower shall have the right to prepay the Loans, in whole or in part, from time to time subject  to  payment  of  the following  Make-Whole  Premium  or prepayment  premium  (expressed  as  a  percentage  of  the  principal  amount  of  the  Term  Loans  being  prepaid)  (the “Prepayment  Premium”), as applicable, plus accrued and unpaid interest on the principal amount being prepaid  to the prepayment date.  Each prepayment (x) made on or prior to the second anniversary of the  Closing Date shall be made subject to payment of the Make-Whole Premium and (y) made after  the  second  anniversary  of  the  Closing  Date  shall  be  subject  to  payment  of  the  applicable  Prepayment Premium set forth below (which shall be calculated as the percentage set forth below  multiplied by the amount being prepaid):                   Time Period             Prepayment    Premium                                                            After    the     second 4.0%                  anniversary, but on or prior                                         50   

 

                   to  the  third anniversary  of                  the Closing Date                  After the third  anniversary, 3.0%                  but on or prior to the fourth                  anniversary  of  the  Closing                  Date                  After    the     fourth 2.0%                  anniversary, but prior to the                  fifth  anniversary  of  the                  Closing Date                  On  or  after  the  fifth 0.0%                  anniversary  of  the  Closing                  Date                (b)   When making a voluntary partial prepayment, the Borrower shall give the  Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of (i) its  intent  to  make  such  prepayment,  (ii)  the  amount  of  such  prepayment and  (iii)  in  the  case  of  Eurodollar Loans, the specific Borrowing(s) pursuant to which such prepayment will be made, no  later than (A) in the case of Eurodollar Loans, 1:00 p.m. (New York time) three (3) Business Days  prior  to,  and  (B) in  the  case  of  ABR Loans,  1:00  p.m.  (New  York  time)  on  the  date  of  such  prepayment, and such prepayment shall promptly be transmitted by the Administrative Agent to  each of the relevant Lenders, as the case may be.               (c)   Each voluntary partial prepayment of any Loans shall be in a multiple of  $500,000 and  in  aggregate  principal  amount  of  at  least  $100,000; provided,  that  no  partial  prepayment  of  Eurodollar  Loans  outstanding  under  a  single  Borrowing  shall  reduce  the  outstanding Eurodollar Loans outstanding under such Borrowing to an amount less than $500,000.               (d)   With respect to each prepayment of Term Loans pursuant to this Section  5.01,  the  Borrower  may  designate  the  Types  of  Loans  that  are  to  be  prepaid  and  the  specific  Borrowing(s) pursuant  to which made; provided, that the Borrower pays any amounts,  if any,  required to be paid pursuant to Section 2.11 with respect to prepayments of Eurodollar Loans made  on any date other than the last day of the applicable Interest Period.  In the absence of a designation  by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to  the above, make such designation in its reasonable discretion with a view, but no obligation, to  minimize breakage costs owing under Section 2.11.  Each such prepayment shall be accompanied  by all accrued interest on the Loans so prepaid, through the date of such prepayment.               (e)   Each prepayment in respect of any Term Loans pursuant to this Section 5.01  shall be applied ratably to Term Loans.           SECTION 5.02  Mandatory Prepayments.                 (a)   Within five (5) Business Days of the receipt by any Credit Party of any Net  Proceeds from any Disposition (other than a Disposition under Section 9.04(b)-(k), (m),  (p), (q)  or (r)), the Borrower shall prepay the Loans in an amount equal to one hundred percent (100%) of  the Net Proceeds from such Disposition in excess of $3,000,000 in any fiscal year (when combined                                         51   

 

   with Net Proceeds from other Dispositions and Casualty Events received in such fiscal year), to  be applied as set forth in Section 5.02(g); provided, that, except with respect to a Disposition of  True  Health  New  Mexico,  Inc., the  Borrower  may,  at  its  option by  notice  in  writing  to  the  Administrative Agent, which such notice shall be received within thirty (30) days of the receipt of  the Net Proceeds from such Disposition, within one hundred eighty (180) days after such event  (or, if such Credit Party shall have entered into a binding commitment for the use of such Net  Proceeds within such one hundred eighty (180) days, three hundred sixty (360) days after such  event), instead reinvest such Net Proceeds in assets to be used in the business of the Borrower so  long as no Event of Default shall have occurred and be continuing at such time, in each case as  certified by the Borrower in writing to the Administrative Agent.  Nothing in this Section 5.02(a)  shall be construed to permit or waive any Default or Event of Default arising from any Disposition  not permitted under the terms of this Agreement.               (b)   Within five (5) Business Days of the receipt by any Credit Party of any Net  Proceeds from any Casualty Event, the Borrower shall prepay the Loans in an amount equal to one  hundred percent (100%) of such Net Proceeds in excess of $3,000,000 in any fiscal year (when  combined with Net Proceeds from Dispositions and other Casualty Events received in such fiscal  year), to be applied as set forth in Section 5.02(g); provided, that so long as no Event of Default  shall have occurred and be continuing, the Borrower may, at its option by notice in writing to the  Administrative Agent, which such notice shall be received within thirty (30) days of the receipt of  the  Net  Proceeds  from  such  Casualty  Event,  apply  such  Net  Proceeds  to  the  rebuilding  or  replacement of such damaged, destroyed or condemned assets or property, or otherwise reinvest  such Net Proceeds in assets to be used in the business, so long as such Net Proceeds are in fact  used to rebuild or replace the damaged, destroyed or condemned assets or property, or otherwise  so reinvested, within one hundred eighty (180) days following the receipt of such Net Proceeds  (or, if such Credit Party shall have entered into a binding commitment for the use of such Net  Proceeds within such one hundred eighty (180) days, three hundred sixty (360) days after such  event), with the amount of Net Proceeds unused after such period to be applied as set forth in  Section 5.02(g).                 (c)   [Reserved].               (d)   Concurrently with the incurrence of any Indebtedness by any Credit Party  (other than Indebtedness permitted under Section 9.01), the Borrower shall prepay the Loans in an  amount equal to one hundred percent (100%) of such Net Proceeds, to be applied as set forth in  Section 5.02(g).  Nothing in this Section 5.02(d) shall be construed to permit or waive any Default  or Event of Default arising from any incurrence of Indebtedness not permitted under the terms of  this Agreement.               (e)   Substantially concurrently with any Change of Control, the Borrower shall  prepay the Loans in full, to be applied as set forth in Section 5.02(g).                 (f)   Immediately upon any acceleration of any Loans pursuant to Section 10.02,  the Borrower shall repay all the Loans and other Obligations, unless only a portion of all the Loans  and other Obligations is so accelerated (in which case the portion so accelerated shall be so repaid).                                          52   

 

               (g)   Subject  to  Section  5.02(k),  amounts  to  be  applied  in  connection  with  prepayments and Commitment reductions made pursuant to this Section 5.02 shall be applied, first,  to the prepayment of the Term Loans, together with any accrued and unpaid interest thereon, until  such  Term  Loans  are  repaid  in  full  and, second, to  the  prepayment  of  any  other  outstanding  Obligations.                 (h)   Each prepayment of the Loans under Section 5.02 shall be accompanied by  accrued  interest  to  the  date  of  such  prepayment  on  the  principal  amount  prepaid and  the  Prepayment Premium or Make-Whole Premium, as applicable.                 (i)   Application to Loans.  With respect  to  each prepayment of Term Loans  required by this Section 5.02, the Borrower may designate the Types of Loans that are to be prepaid  and  the  specific  Borrowing(s)  pursuant  to which  made; provided,  that  the  Borrower  pays  any  amounts, if  any,  required  to  be  paid  pursuant  to Section  2.11 with  respect  to  prepayments  of  Eurodollar Loans made on any date other than the last day of the applicable Interest Period.  In the  absence  of  a designation  by  the  Borrower  as  described  in  the  preceding sentence,  the  Administrative  Agent  shall,  subject  to  the  above,  make  such  designation  in  its  reasonable  discretion with a view, but no obligation, to minimize breakage costs owing under Section 2.11.  Subject to clause (g), each prepayment in respect of any Term Loans pursuant to this Section 5.02  shall be applied ratably to the outstanding Term Loans.                 (j)   Application  of  Collateral  Proceeds and  Payments.   Notwithstanding  anything  to  the  contrary  in Section  5.01, Section  5.02  or  any  other  provision  of  any  Credit  Document, (x)  all  payments  (including,  without  limitation,  prepayments)  in  respect  of  the  Obligations after acceleration and (y) all proceeds of Collateral and other payments received by  the Administrative Agent pursuant to the exercise of remedies against the Collateral, applied as set  forth in this clause (j), as follows:                     (i)   first, ratably to pay any fees then due to the Administrative Agent  under the Credit Documents and any costs or expense reimbursements of the Administrative Agent  and any indemnities then due to the Administrative Agent under the Credit Documents, until paid  in full,                     (ii)  second, ratably, to pay any fees or premiums (including Prepayment  Premiums and Make-Whole Premiums, if applicable) then due to any of the Lenders of any Term  Loans until paid in full,                     (iii) third, ratably to pay any costs or expense reimbursements of Lenders  of any Term Loans and indemnities then due to any of the Lenders of any Term Loans until paid  in full,                     (iv)  fourth, ratably to pay interest due in respect of the outstanding the  Term Loans until paid in full,                     (v)   fifth, ratably to pay the outstanding principal balance of the Term  Loans (in the inverse order of the maturity of the installments due thereunder) until the Term Loans  are paid in full,                                          53   

 

                     (vi)  sixth, to pay any other Obligations in respect of Term Loans,                      (vii) seventh,  to  Borrower  or  such  other  Person  entitled  thereto  under  Applicable Law.   Prepayment  Premium  and/or  Make-Whole  Premium,  if  any,  shall  constitute  part  of  the  Obligations, in view of the impracticability and extreme difficulty of ascertaining actual damages  and by mutual agreement of the parties as to a reasonable calculation of each Lender’s lost profits  as  a  result  thereof.  Any  Prepayment  Premiums  and/or  Make-Whole  Premiums  payable  in  accordance with this Section 5.02(j) shall be presumed to be the liquidated damages sustained by  each Lender as the result of any of the events described in this Section 5.02 and the Credit Parties  agree  that  such  Prepayment  Premium  and/or Make-Whole  Premium  are  reasonable  under  the  circumstances  currently  existing.  THE  CREDIT  PARTIES  EXPRESSLY  WAIVE  THE  PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR  MAY  PROHIBIT  THE  COLLECTION  OF  THE  FOREGOING  PREPAYMENT  PREMIUM  AND/OR  MAKE-WHOLE  PREMIUM  IN  CONNECTION  WITH  ANY        OF  THE  EVENTS  DESCRIBED  IN  CLAUSE  (i)  ABOVE  INCLUDING  IN  CONNECTION  WITH  ANY  VOLUNTARY  OR  INVOLUNTARY  ACCELERATION  OF  THE  OBLIGATIONS  PURSUANT  TO  ANY  INSOLVENCY  PROCEEDING  OR  OTHER  PROCEEDING  PURSUANT  TO  ANY  DEBTOR  RELIEF  LAWS  OR  PURSUANT  TO  A  PLAN  OF  REORGANIZATION.  The  Credit  Parties  expressly  agree  that:  (w)  each  of  the  Prepayment  Premium  and  Make-Whole  Premium  is  reasonable  and  are  the  product  of  an  arm’s  length  transaction between sophisticated business people, ably represented by counsel; (x) each of the  Prepayment  Premium  and  Make-Whole  Premium  shall  be  payable  notwithstanding  the  then  prevailing market rates at the time payment is made; (y) there has been a course of conduct between  Lenders and the Credit Parties giving specific consideration in this transaction for such agreement  to pay each of the Prepayment Premium and/or Make-Whole Premium; and (z) the Credit Parties  shall be estopped hereafter from claiming differently than as agreed to in this paragraph.  The  Credit Parties expressly acknowledge that their agreement to pay each of the Prepayment Premium  and/or Make-Whole Premium to the Lenders is a material inducement to Lenders to make the  Loans.               (k)   Notwithstanding the foregoing, each Lender may reject all or a portion of  its  Pro  Rata  Share  of  any mandatory  prepayment (such  declined  amounts,  the  “Declined  Proceeds”) of any class of Term Loans required to be made pursuant to clauses (a), (b), or (c) of  this Section 5.02 by providing written notice (each, a “Rejection Notice”) to the Administrative  Agent  and  the  Borrower  no  later  than  1:00  p.m.  one  (1)  Business  Day  after  the  date  of  such  Lender’s receipt of notice from the Administrative Agent regarding such prepayment (subject to  extension by Administrative Agent in its sole discretion).  Each Rejection Notice from a Lender  shall specify the principal amount of the mandatory prepayment of Term Loans to be rejected by  such Lender. If a Lender fails to deliver a Rejection Notice to Administrative Agent within the  time frame specified above or such Rejection Notice fails to specify the principal amount of the  Term Loans to be rejected, any such failure will be deemed an acceptance of the total amount of  such mandatory prepayment of such Term Loans. Any Declined Proceeds may be retained by the  Borrower.           SECTION 5.03  Payment of Obligations; Method and Place of Payment.                                           54   

 

               (a)   The  obligations  of the Borrower  hereunder  and  under  each  other  Credit  Document  are  not  subject  to  counterclaim,  set-off,  rights  of  rescission  or  any  other  defense.   Subject to Section 5.02, and except as otherwise specifically provided herein, all payments under  this Agreement shall be made by the Borrower, without set-off, rights of rescission, counterclaim  or deduction of any kind, to the Administrative Agent for the ratable account of the Secured Parties  entitled thereto, as the case may be, not later than 2:00 p.m. (New York time) on the date when  due and shall be made in immediately available funds in Dollars to the Administrative Agent.  The  Administrative Agent  will thereafter  cause to  be  distributed on the same day (if payment was  actually received by the Administrative Agent prior to 2:00 p.m. (New York time), on such day)  like funds relating to the payment of principal or interest or Fees ratably to the Secured Parties  entitled thereto.               (b)   For purposes  of  computing  interest  or  fees,  any  payments  under  this  Agreement that are made later than 2:00 p.m. (New York time), shall be deemed to have been  made on the next succeeding Business Day.  Whenever any payment to be made hereunder shall  be stated to be due on a day that is not a Business Day, the due date thereof shall be extended to  the  next  succeeding  Business  Day  and,  with  respect  to  payments  of  principal,  interest  shall  continue to accrue during such extension at the applicable rate in effect immediately prior to such  extension.         SECTION 5.04  Net Payments.                 (a)   Subject to the following sentence, all payments made by or on behalf of the  Borrower under this Agreement or any other Credit Document shall be made free and clear of, and  without deduction or withholding for or on account of, any current or future Taxes (including Other  Taxes)  other  than  Excluded  Taxes.   If  any  such  non-excluded  taxes,  levies,  imposts,  duties,  charges, fees, deductions or withholdings (“Non-Excluded Taxes”) are required to be withheld  from any amounts payable under this Agreement, the Borrower shall increase the amounts payable  to the Administrative Agent or such Lender to the extent necessary to yield to the Administrative  Agent or  such  Lender  (after  payment  of  all  Non-Excluded Taxes,  including  any  such  Non- Excluded Taxes payable in respect of additional amounts paid pursuant to this Section 5.04(a))  interest or any such other amounts payable hereunder at the rates or in the amounts specified in  this Agreement.  Whenever any Non-Excluded Taxes are payable by the Borrower, as promptly as  possible thereafter, the Borrower shall send to the Administrative Agent for its own account or for  the account of such Secured Party, as the case may be, a certified copy of an original official receipt  (or  other  evidence  acceptable  to  such  Lender,  acting  reasonably)  received  by  the  Borrower  showing payment thereof.  If the Borrower fails to pay any Non-Excluded Taxes when due to the  appropriate taxing authority or fails to remit to the Administrative Agent the required receipts or  other required documentary evidence, the Borrower shall indemnify the Administrative Agent and  the Lenders for any incremental Taxes, interest, costs or penalties that may become payable by the  Administrative Agent or any Lender as a result of any such failure.  In addition, the Borrower shall  pay any Other Taxes to the relevant Governmental Authority in accordance with Applicable Law.   The agreements in this Section 5.04(a) shall survive the termination of this Agreement and the  payment of the Loans and all other amounts payable hereunder.               (b)   Each Lender that is not organized under the laws of the United States of  America or any state thereof (a “Non-U.S. Lender”) shall:                                         55   

 

                     (i)   deliver to the Borrower and the Administrative Agent (2) two copies  of either (A) in the case of Non-U.S. Lender claiming exemption from U.S. federal withholding  tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest,”  United States Internal Revenue Service Form W-8BEN or W-8BEN-E (together with a certificate  representing that such Non-U.S. Lender is not a bank for purposes of Section 881(c) of the Code,  is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of the  Borrower and is not a controlled foreign corporation related to the Borrower (within the meaning  of Section 864(d)(4) of the Code)),  (B) Internal Revenue Service Form W-8BEN, W-8BEN-E or  Form  W-8ECI,  or  (C)  to  the  extent  a  Non-U.S.  Lender  is  not  the  beneficial  owner,  executed  originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS  Form W-8BEN-E, IRS Form W-9, the certificate described in (A) above, if applicable, and/or  other certification documents from each beneficial owner, as applicable; provided, that if the Non- U.S. Lender is a partnership and one or more direct or indirect partners of such Non-U.S. Lender  are claiming the portfolio interest exemption, such Non-U.S. Lender will provide the documents  set forth in (A) above on behalf of each such direct and indirect partner, in each case, properly  completed and duly executed by such Non-U.S. Lender claiming complete exemption from, or  reduced rate of, U.S. federal withholding tax on payments by the Borrower under this Agreement;                     (ii)  deliver to the Borrower and the Administrative Agent two (2) further  copies of any such form or certification (or any applicable successor form) promptly upon the  obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender; and                     (iii) obtain such extensions of time for filing and complete such forms or  certifications as may reasonably be requested by the Borrower or the Administrative Agent, unless  in any such case any change in treaty, law or regulation has occurred prior to the date on which  any such delivery would otherwise be required that renders any such form inapplicable or would  prevent such Lender from duly completing and delivering any such form with respect to it and  such Lender so advises the Borrower and the Administrative Agent, in which case such Lender  shall not be required to provide any form under subparagraphs (i) or (ii) above.  Each Person that  shall become a Participant pursuant to Section 12.06 or a Lender pursuant to Section 12.06 shall,  upon the effectiveness of the related transfer, be required to provide all the forms and statements  required pursuant to this Section 5.04(b) or Section 5.04(c), as applicable; provided, that in the  case of a Participant such Participant shall furnish all such required forms and statements to the  Lender from which the related participation shall have been purchased.  Notwithstanding any other  provision of this paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant  to this paragraph that such Non-U.S. Lender is not legally able to deliver.               (c)   Each Lender that is entitled to an exemption from or reduction of non-U.S.  withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to  which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to  the  Borrower  (with  a  copy  to  the  Administrative  Agent),  at  the  time  or  times  prescribed  by  Applicable Law or reasonably requested by the Borrower, such properly completed and executed  documentation prescribed by Applicable Law as will permit such payments to be made without  withholding or at a reduced rate; provided, that such Lender is legally entitled to complete, execute  and  deliver  such  documentation  and  in  such  Lender’s reasonable judgment  such  completion,  execution or submission would not materially prejudice the legal position of such Lender.                                         56   

 

               (d)   The Borrower shall indemnify the Administrative Agent and each Lender  within ten (10) days after written demand therefor, for the full amount of any Non-Excluded Taxes  or Other Taxes paid by the Administrative Agent or such Lender, as the case may be, on or with  respect to any payment by or on account of any obligation of the Borrower hereunder (including  Non-Excluded Taxes or Other Taxes imposed or asserted on or attributable to amounts payable  under this Section) and any penalties, interest, additions to tax and reasonable expenses arising  therefrom or with respect thereto, whether or not such Non-Excluded Taxes or Other Taxes were  correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as  to  the  amount  of  such  payment  or  liability  delivered  to  the  Borrower  by  a  Lender  or  by the  Administrative  Agent on  its  own  behalf  or  on  behalf  of  a  Lender  shall  be  conclusive  absent  manifest error.               (e)   If a payment made to a Lender would be subject to U.S. federal withholding  Tax  imposed  by  FATCA  if  such  Lender  were  to  fail  to  comply  with  the  applicable  reporting  requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as  applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or  times prescribed by law and at such time or times reasonably requested by the Borrower or the  Administrative Agent such documentation prescribed by applicable law (including as prescribed  by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested  by  the  Borrower  or  the  Administrative  Agent  as  may  be  necessary  for  the  Borrower  and  the  Administrative Agent to comply with their obligations under FATCA and to determine that such  Lender has complied with such Lender’s obligations under FATCA or to determine the amount to  deduct and withhold from such payment. Solely for purposes of this clause (e), “FATCA” shall  include any amendments made to FATCA after the date of this Agreement.               (f)   If any Lender or the Administrative Agent determines, in its sole discretion  exercised in good faith, that it has received a refund of a Tax for which an additional payment has  been made by the Borrower pursuant to this Section 5.04 or Section 12.05 of this Agreement, then  such Lender or the Administrative Agent, as the case may be, shall reimburse the Borrower for  such amount (but only to the extent of indemnity payments made, or additional amounts paid, by  the Borrower under this Section 5.04 and Section 12.05 with respect to the Tax giving rise to such  refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender (including  any Taxes imposed on the receipt of such refund) and without interest (other than any interest paid  by the relevant Governmental Authority with respect to such refund); provided, that the Borrower,  upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over  to  the  Borrower  (plus any  penalties,  interest  or  other  charges  imposed  by  the  relevant  Governmental  Authority)  to  the  Administrative  Agent  or  such  Lender  in  the  event  the  Administrative  Agent  or  such  Lender  is  required  to  repay  such  refund  to  such  Governmental  Authority.   This  paragraph  shall  not  be  construed  to  require  the  Administrative  Agent  or  any  Lender to make available its tax returns (or any other information relating to its taxes which it  deems confidential) to the Borrower or any other Person.               (g)   Any  Lender  claiming  any additional  amounts  payable  pursuant  to  this  Section 5.04 shall use its reasonable efforts (consistent with its internal policies and requirements  under Applicable Laws) to change the jurisdiction of its lending office if such a change would  reduce any such additional amounts (or any similar amount that may thereafter accrue) and would  not, in the reasonable determination of such Lender, be otherwise disadvantageous to such Lender.                                         57   

 

               (h)   Each  party’s  obligations  under  this Section  5.04 shall  survive  the  resignation or replacement of the Administrative Agent or any assignment of rights by, or the  replacement of, a Lender, the termination of the Loans  and Commitments  and the repayment,  satisfaction or discharge of all obligations under any Credit Document.         SECTION 5.05  Computations  of  Interest  and  Fees.   All  interest  and  fees  shall  be  computed on the basis of the actual number of days (including the first day but excluding the last  day) occurring during the period for which such interest or fee is payable over a year comprised  of (a) three hundred and sixty five (365) (or three hundred and sixty six (366) as appropriate) days  in the case of ABR Loans and (b) three hundred and sixty (360) days in all other cases.  Payments  due on a day that is not a Business Day shall (except as otherwise required by Section 2.09(c)) be  made  on  the  next  succeeding  Business  Day  and  such  extension  of  time  shall  be  included  in  computing interest and fees in connection with that payment.                                    ARTICLE VI                                                                        Conditions Precedent         SECTION 6.01  Conditions  Precedent  to  Initial  Credit  Extension.  The making of  the  initial  Credit  Extension  is  subject  to  the  satisfaction (or  waiver) of  the  following  conditions  precedent on or before the Closing Date:               (a)   Credit  Documents.   The Administrative Agent  shall  have  received  the  following documents, duly executed by an Authorized Officer of each Credit Party and each other  relevant party:                     (i)   this Agreement;                     (ii)  the Fee Letter;                     (iii) the  Intercompany Subordination Agreement;                      (iv)  the Guarantee Agreement;                     (v)   the Security Agreement;                     (vi)  each Note requested by any Lender;                      (vii) the  Notice  of  Borrowing,  reasonably  satisfactory  to  the  Administrative Agent; and                     (viii) the Letter of Direction and flow of funds, reasonably satisfactory to  the Administrative Agent.               (b)   Collateral.                                            58   

 

                     (i)   To the extent required under the Security  Documents, all Capital  Stock of each Subsidiary (other than Excluded Subsidiaries) of each Credit Party shall have been  pledged to the Administrative Agent.                     (ii)  For all Indebtedness for borrowed money owed to any of the Credit  Parties in excess of $2,000,000 that is evidenced by one or more promissory notes, such promissory  notes shall have been pledged pursuant to the Security Agreement, and the Administrative Agent  shall have received all such promissory notes, together with instruments of transfer with respect  thereto endorsed in blank.                     (iii) The Administrative Agent shall have received the results of a search  of the UCC filings (or equivalent filings), in addition to tax Lien, judgment Lien, bankruptcy and  litigation searches made with respect to each Credit Party, together with copies of the financing  statements and other filings (or similar documents) disclosed by such searches, and accompanied  by evidence satisfactory to the Administrative Agent that the Liens indicated in any such financing  statement and other filings (or similar document) are Permitted Liens or have been released or will  be released substantially simultaneously with the initial Credit Extensions hereunder.                     (iv)  The Administrative Agent  shall  have  received,  in  form  and  substance satisfactory to the Administrative Agent, the appropriate UCC (or equivalent) financing  statements  for  filing  in  such  office  or  offices  as  may  be  necessary  or,  in  the  opinion  of  Administrative Agent,  desirable,  to  perfect  the Administrative Agent’s  Liens  in  and  to  the  Collateral.               (c)   Legal Opinions.  The Administrative Agent shall have received executed  legal opinions of King & Spalding LLP, counsel to the Borrower and the other Credit Parties,  which opinion shall be addressed to the Administrative Agent and the Lenders and shall be in form  and substance reasonably satisfactory to the Administrative Agent.               (d)   Warrants.   The  Administrative  Agent shall  have  received,  in  form  and  substance satisfactory to the Administrative Agent, the Warrants executed by Parent.                 (e)   Legal and Collateral Due Diligence. The Administrative Agent shall have  completed its legal and collateral due diligence, including a satisfactory review of regulatory due  diligence and a satisfactory review of the terms of the Convertible Senior Notes.               (f)   Officer’s Certificates.   The Administrative Agent  shall  have  received  a  certificate for each Credit Party, dated the Closing Date, duly executed and delivered by such  Credit  Party’s General  Counsel,  secretary,  other  duly  authorized  officer,  sole  shareholder,  managing member or general partner, as applicable, as to:                     (i)   resolutions of each such Person’s board of managers/directors (or  other managing body, in the case of a Person that is not a corporation) or shareholder(s) then in  full force and effect expressly and specifically authorizing, to the extent relevant, all aspects of the  Credit  Documents  and  the  other  Transaction  Documents  applicable  to  such  Person  and  the  execution,  delivery  and  performance  of  each  Credit  Document  and each  other Transaction  Document, in each case, to be executed by such Person;                                         59   

 

                     (ii)  the  incumbency  and  signatures  of  its certain  of  its Authorized  Officers  and  any  other  of  its  officers,  managing  member  or  general  partner,  as  applicable,  authorized to act with respect to each Credit Document to be executed by such Person;                     (iii) each such Person’s Organization Documents, as amended, modified  or supplemented as of Closing Date, with the certificate or articles of incorporation or formation  certified  by  the  appropriate  officer  or  official  body  of  the  jurisdiction  of  organization  of such  Person;                     (iv)  certificates of good standing with respect to each Credit Party from  its relevant jurisdiction of incorporation or formation, each dated within a recent date prior to the  Closing  Date,  such  certificates  to  be  issued by  the  appropriate  officer  or  official  body  of  the  jurisdiction of organization of such Credit Party, which certificate shall indicate that such Credit  Party is in good standing in such jurisdiction.               (g)   Other Documents and Certificates.  The Administrative Agent shall have  received the following documents and certificates, each of which shall be dated the Closing Date  and  properly  executed  by  an  Authorized  Officer  of  each  applicable  Credit  Party,  in  form  and  substance reasonably satisfactory to the Administrative Agent and its legal counsel a certificate of  an Authorized Officer of the Borrower, certifying as to such items as reasonably requested by the  Administrative Agent, including, without limitation:                           (A)   the  consummation  of  the  Transactions,  all  in  accordance  with Applicable Laws and the Transaction Documents;                           (B)   the  receipt  of  all  required  approvals  and  consents  of  all  Governmental  Authorities  and  other  third  parties  with  respect  to  the  consummation  of  the  Transactions (if any) and the transactions contemplated by the Transaction Documents; and                           (C)   the names of each of the officers and directors of each Credit  Party as of the Closing Date.               (h)   Solvency  Certificate.   The Administrative Agent shall  have  received  a  Solvency Certificate of the chief financial officer of the Borrower, on behalf of the Credit Parties,  confirming  the  Solvency  of  the  Credit  Parties  and  their  Subsidiaries  after  giving  effect  to  the  Transactions.               (i)   Passport Health Note.  The Administrative Agent shall have received the  Passport Health Note, together with an instrument of transfer with respect thereto endorsed in  blank.                 (j)   Minimum Liquidity.  Liquidity shall not be less than $25,000,000.                 (k)   Financial Information.  The Administrative Agent shall have received (or in  the case of clause (i) below, made available to the Administrative Agent through the materials filed  with  the SEC)  the  following  documents  and  reports  (each  in  form  and  substance  reasonably  satisfactory to the Administrative Agent):                                         60   

 

                     (i)   the Historical Financial Statements;                     (ii)  the forecasted financial projections of the Credit Parties (including  Liquidity calculations) for the fiscal years 2020-2022 as of the Closing Date along with a pro forma  balance sheet of the Parent and its Subsidiaries as of September 30, 2019 after giving effect to the  Transactions; and                       (iii) a detailed sources and uses statement which reflects (A) the sources  of  all  funds  to  be  used  by  the  Credit  Parties  to  consummate  the  Transactions  and  to  pay  all  transaction expenses incurred in connection therewith (including the fees, costs and expenses due  and payable pursuant to the Fee Letter, Sections 4.01 and 12.05) and (B) all uses of such funds,  which  sources  and  uses  shall  be  attached  as  an  exhibit  to  the  Notice  of  Borrowing  delivered  pursuant to Section 6.01(a).               (l)   Insurance.  The Administrative Agent shall have received a certificate of  insurance, in  each  case,  as  to  the  insurance  required  by Section  8.03,  in  form  and  substance  reasonably satisfactory to Administrative Agent.               (m)   Payment of Outstanding Indebtedness.  (A) On the Closing Date, the Credit  Parties  and each  of  their  respective  Subsidiaries  shall  have  no  outstanding  Indebtedness for  borrowed money other than the Loans hereunder and the Indebtedness (if any) listed on Schedule  7.24,  and  the Administrative Agent  shall  have  received  copies  of  all  documentation  and  instruments  evidencing  the discharge of  all such Indebtedness  paid  off in connection with  the  Transactions on the Closing Date, and (B) all Liens (other than Permitted Liens) securing payment  of  any  such  Indebtedness  shall  have  been  released  and  the Administrative Agent  shall  have  received pay-off letters and all form UCC-3 termination statements and other instruments as may  be reasonably requested by Administrative Agent in connection therewith. The terms, maturity  and  subordination  of  any  indebtedness  listed  on Schedule 7.24 shall  be  satisfactory  to  the  Administrative Agent.               (n)   Material Adverse Effect.  There has been no Material Adverse Effect, since  December 31, 2018.               (o)   Fees and Expenses.  Each of the Administrative Agent and each Lender  shall have received, for its own respective account, (i) all fees and expenses due and payable to  such Person under the Fee Letter and (ii) the reasonable fees, costs and expenses due and payable  to such Person pursuant Sections 4.01 and 12.05 (including the reasonable and documented fees,  disbursements and other charges of counsel) for which invoices have been presented at least one  (1) Business Day prior to the Closing Date.               (p)   Patriot Act Compliance.  The Administrative Agent shall have received, at  least three (3) Business Days prior to the Closing Date, all documentation and other information  required  by  banking  regulatory  authorities  under  applicable  “know  your  customer”  and  Anti-Money Laundering Laws, rules and regulations, and any required Patriot Act compliance, the  results of which are satisfactory to Administrative Agent in its sole discretion.               (q)   No  Adverse  Actions.  The Administrative Agent  shall  be  reasonably  satisfied  that  there is  no  action  or  proceeding  before  any  court  or  Governmental  Authority,                                        61   

 

   litigation  or  investigation,  pending  or  threatened  in  writing  against the Borrower or  any other  Credit Party, or any of their respective Subsidiaries wherein an unfavorable judgment, decree or  order would (w) prevent the consummation of any of the Transactions, (x) declare unlawful any  of the Transactions, (y) reasonably be expected to cause any of the Transactions to be rescinded  or (z) result in damages owing by Ares in connection with the consummation of the Transactions.               (r)   Passport  Health  Acquisition.  Substantially  concurrently  with the  initial  funding of the Loans hereunder, the Passport Health Acquisition shall have been consummated in  all material respects in accordance with the terms of the Passport Health Acquisition Agreement.         SECTION 6.02  Conditions Precedent to all Credit Extensions.               (a)   No  Default;  Representations  and  Warranties.   The  agreement  of  each  Lender to make any Loan requested to be made by it on any date is subject to the satisfaction of  the condition precedent that at the time of each such Credit Extension and also after giving effect  thereto, and in the case of the Credit Extensions on the Closing Date, both before and after giving  effect  to  the consummation  of the Transactions: (i) no Default or Event  of Default shall have  occurred  and  be  continuing,  (ii)  all  representations  and  warranties  made  by  each  Credit  Party  contained herein or in the other Credit Documents shall be true and correct in all material respects  (except in the case of the initial Credit Extensions to occur on the Closing Date, in which case all  representations and warranties made by each Credit Party contained herein or in the other Credit  Documents shall be true and correct in all respects), in each case, with the same effect as though  such representations and warranties had been made on and as of the date of such Credit Extension  (except where such representations and warranties expressly relate to an earlier date, in which case  such representations and warranties shall have been true and correct in all material respects as of  such earlier date); provided, that any representation or warranty that is qualified as to “materiality,”  “Material Adverse Effect” or similar language shall be true and correct in all respects on such  respective  dates,  and  (iii) no  injunction,  writ,  restraining  order,  or  other order  of  any  nature  restricting or prohibiting, directly or indirectly, such Credit Extension shall have been issued and  remain in force by any Governmental Authority against the Borrower, the Administrative Agent,  any  Lender.   The  acceptance  of  the  benefits  of  each  Credit  Extension  shall  constitute  a  representation and warranty by each Credit Party to each of the Lenders that all the applicable  conditions specified above are satisfied as of that time.               (b)   Notice of Borrowing.  Prior to the making of each Loan, the Administrative  Agent shall have received a Notice of Borrowing (whether in writing or by telephone) meeting the  requirements of Section 2.03.                                   ARTICLE VII                                                              Representations, Warranties and Agreements         In order to induce the Lenders to enter into this Agreement, make the Loans as provided  for herein, the Credit Parties make the following representations and warranties as of the Closing  Date and as of the date of making of each Loan thereafter, all of which shall survive the execution  and delivery of this Agreement:                                         62   

 

         SECTION 7.01  Corporate Status.  Each Credit Party and each of their Subsidiaries (a) is  a duly organized or formed and validly existing corporation, limited liability company or other  registered entity in good standing under the laws of the jurisdiction of its organization and has the  corporate or other organizational power and authority to own its property and assets and to transact  the business in which it is engaged and (b) has duly qualified and is authorized to do business and  is in good standing in all jurisdictions where it does business or owns assets, except where the  failure to be so qualified, authorized or in good standing could not reasonably be expected to result  in a Material Adverse Effect.         SECTION 7.02  Corporate Power and Authority.  Each Credit Party has the corporate or  other organizational power and authority to execute, deliver and carry out the terms and provisions  of the Credit Documents  to  which it is  a party and has  taken  all necessary corporate or other  organizational  action  to  authorize  the  execution,  delivery  and  performance  of  the  Credit  Documents to which it is a party.  Each Credit Party has duly executed and delivered the Credit  Documents  and each other Transaction Document  to  which it is  a party and such Transaction  Documents constitute the legal, valid and binding obligation of such Credit Party enforceable in  accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,  moratorium,  reorganization  and  other  similar  laws  relating  to  or  affecting  creditors’  rights  generally and general principles of equity (whether considered in a proceeding in equity or law).         SECTION 7.03  No Violation.  None of (a) the execution, delivery and performance by  any Credit Party of the Credit Documents to which it is a party and compliance with the terms and  provisions thereof, (b) the consummation of the Transactions, or (c) the consummation of the other  transactions contemplated hereby or thereby on the relevant dates therefor will (i) contravene in  any  material  respect any  applicable  provision  of any  material  Applicable  Law  of  any  Governmental Authority, (ii) result in any breach of any of the terms, covenants, conditions or  provisions  of,  or  constitute  a  default  under,  or  result  in  the  creation  or  imposition  of  (or  the  obligation to create or impose) any Lien upon any of the property or assets of any Credit Party  (other than Permitted Liens and Liens created under the Credit Documents) pursuant to, (A) the  terms of any material indenture, loan agreement, lease agreement, mortgage or deed of trust or (B)  any other Material Contracts, in the case, of either clause (A) and (B) to which any Credit Party is  a party or by which it or any of its property or assets is bound or (iii) violate any provision of the  Organization  Documents  any  Credit  Party,  except with  respect  to  any  conflict,  breach  or  contravention or default (but not the creation of Liens other than Permitted Liens) referred to in  clauses (ii)(A) or (ii)(B), to the extent that such conflict, breach, contravention or default could not  reasonably be expected to have a Material Adverse Effect.         SECTION 7.04  Litigation,  Labor  Controversies,  etc.  There  is  no  litigation,  action,  proceeding or labor controversy (including, without limitation, strikes, lockouts or slowdowns)  against  the  Credit  Parties  or  any  of  their  respective  Subsidiaries  that  is  pending  or,  to  the  knowledge of any Credit Party, threatened in writing (a) except as disclosed in Schedule 7.04 and  other matters that could not reasonably be expected to (x) have a Material Adverse Effect, or (y)  result in monetary judgments or relief, individually or in the aggregate, in excess of $5,000,000 or  (b) which purports to affect the legality, validity or enforceability of any Credit Document, any  Transaction Document or the Transactions.                                          63   

 

         SECTION 7.05  Use of Proceeds; Regulations U and X.  The proceeds of the Loans are  intended to be and shall be used solely for the purposes set forth in and permitted by Section 8.10.   No Credit Party is engaged in the business of extending credit for the purpose of purchasing or  carrying margin stock, and no proceeds of any Credit Extension will be used to purchase or carry  margin  stock  or  otherwise  for  a  purpose  which  violates,  or  would  be  inconsistent  with  Regulation U or Regulation X.  No Credit Party and no Subsidiary of any Credit Party owns any  margin stock.         SECTION 7.06  Approvals, Consents, etc.  No authorization or approval or other action  by, and no notice to or filing with, any Governmental Authority or other Person, and no consent  or approval under any contract or instrument (other than (a) those that have been duly obtained or  made and which are in full force and effect, or if not obtained or made, individually or in the  aggregate, could not reasonably be expected to have a Material Adverse Effect, (b) the filing of  UCC financing statements and other equivalent filings for foreign jurisdictions and (c) to the extent  the Capital Stock of any Licensed Insurance Entity is subject to any Applicable Laws affecting  any future rights or remedies of a Secured Party with respect to such Capital Stock) is required for  the consummation of the Transactions or the due execution, delivery or performance by any Credit  Party  of  any  Credit  Document  to  which  it  is  a  party,  or  for  the  due  execution,  delivery  or  performance of the other Transaction Documents, in each case by any of the parties thereto.  There  does not exist any judgment, order, injunction or other restraint issued or filed with respect to the  transactions contemplated by the Transaction Documents, the consummation of the Transactions,  the  making  of any  Credit  Extension  or  the  performance  by  the  Credit  Parties  or  any  of  their  respective Subsidiaries of their Obligations under the Credit Documents.         SECTION 7.07  Investment Company Act.  No Credit Party is required to be registered,  or will be required to be registered after giving effect to the Transactions and the transactions  contemplated  under  the  Credit  Documents, as an  “investment  company”  or  a  company  “controlled” by an “investment company,” within the meaning of the Investment Company Act of  1940.         SECTION 7.08  Full Disclosure.                 (a)   In connection with the execution of this Agreement and the Transactions,  Credit  Parties  have  disclosed  to  the Administrative  Agent and  the  Lenders  all  agreements,  instruments and corporate or other restrictions to which any Credit Party or any of its Subsidiaries  is  subject,  and  all  other  matters  known  to  them,  that,  individually  or  in  the  aggregate,  could  reasonably be expected to have Material Adverse Effect.  None of the factual written information  and data (taken as a whole) at any time furnished by any Credit Party, any of their respective  Subsidiaries or any of their respective authorized representatives in writing to the Administrative  Agent or any Lender (including all information contained in the representations and warranties,  reports, exhibits or otherwise in the Credit Documents but excluding the Budget, any pro forma  financial information or projections, which are subject to the requirements of clause (b) below) for  purposes of or in connection with this Agreement or any of the Transactions contains any untrue  statement of a material fact or omits to state any material fact necessary to make such information  and data (taken as a whole) not materially misleading, in each case, at the time such information  was provided in light of the circumstances under which such information or data was furnished.                                         64   

 

               (b)   The  Budget,  pro  forma  financial  information,  Liquidity  calculations and  projections  provided  pursuant  to  this  Agreement  were  prepared  in good  faith  based  upon  assumptions believed by the Credit Parties to be reasonable at the time made in light of then current  market conditions, it being recognized by the Administrative Agent and the Lenders that such  projections  as  to  future  events  are  not  to  be  viewed  as  facts,  are  subject  to  uncertainties  and  contingencies, and that actual results during the period or periods covered by any such projections  are not guaranties of financial performance and may differ from the projected results and such  differences may be material.         SECTION 7.09  Financial Condition; No Material Adverse Effect.                 (a)   The Historical Financial Statements present fairly in all material respects  the financial position and results of operations of the Credit Parties at the respective dates of such  information  and  for  the  respective  periods  covered  thereby,  subject  in  the  case  of  unaudited  financial information, to changes resulting from  normal year end audit adjustments and to the  absence  of  footnotes.   The  Historical  Financial  Statements  and  all  of  the  balance  sheets,  all  statements of income and of cash flow and all other financial information furnished pursuant to  Section  8.01 have  been  and  will  for  all  periods  following  the  Closing  Date  be  prepared  in  accordance with GAAP consistently applied.  All of the financial information furnished pursuant  to Section  8.01 presents  fairly  in  all  material  respects  the  financial  position  and  results  of  operations of the Credit Parties at the respective dates of such information and for the respective  periods  covered  thereby,  subject  in  the  case  of  unaudited  financial information,  to  changes  resulting from normal year end audit adjustments and to the absence of footnotes.               (b)   There are no material liabilities of any Credit Party of any kind whatsoever,  whether  accrued,  contingent,  absolute,  determined,  determinable  or  otherwise,  and  there  is  no  existing condition, situation or set of circumstances which could reasonably be expected to result  in any such liabilities, other than those liabilities provided for or disclosed in the most recently  delivered financial statements pursuant to Section 8.01 or otherwise disclosed hereunder.               (c)   Since December 31,  2018,  there  has  been  no  circumstance,  event  or  occurrence, and no fact is known to the Credit Parties that has resulted in or could reasonably be  expected to result in a Material Adverse Effect.         SECTION 7.10  Tax Returns and Payments.  Each Credit Party has filed all applicable  federal and state income Tax returns and all other material Tax returns, domestic and foreign,  required to be filed by them and has paid all material Taxes and assessments payable by them that  have become due, other than those not yet delinquent or being diligently contested in good faith  by appropriate proceedings and by proper proceedings which stay the enforcement of any Lien as  to which such Credit Party has maintained adequate reserves in accordance with GAAP.         SECTION 7.11  Compliance with ERISA.  Except as could not reasonably be expected,  individually or in the aggregate, to have a Material Adverse Effect:  (a) each Pension Plan is in  compliance with ERISA, the Code and any Applicable Law; (b) no ERISA Event has occurred (or  is reasonably likely to occur); (c) each Pension Plan that is intended to qualify under Section 401(a)  of the Code has received a favorable determination or opinion letter from the Internal Revenue  Service, and nothing has occurred subsequent to the issuance of such determination letter which                                         65   

 

   would reasonably be expected to prevent, or cause the loss of, such qualification; (d) no failure by  any Credit Party or any ERISA Affiliate to make any required contribution to a Multiemployer  Plan when due has occurred; (e) none of the Credit Parties or any ERISA Affiliate has incurred (or  is reasonably expected to incur) any liability to or on account of a Plan pursuant to Section 409,  502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of  the Code; and (f) no Lien imposed under the Code or ERISA on the assets of any of the Credit  Parties  or  any  ERISA  Affiliate  exists (or  is  reasonably  likely  to  exist).   Except  as  could  not  reasonably be expected to have a Material Adverse Effect, no employee welfare benefit plan within  the  meaning  of  §  3(1)  or  §  3(2)(B)  of  ERISA  of  any  Credit  Party  provides  benefit  coverage  subsequent to termination of employment except as required by Title I, Subtitle B, Part 6 of ERISA  or  applicable  state  insurance  laws.   With  respect  to  any  Foreign  Plan,  except  as  could  not  reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect: (a) all  employer and employee contributions required by applicable law or by the terms of such Foreign  Plan have been made or, if applicable, accrued in accordance with normal accounting practices;  (b) the accrued benefit obligations of each Foreign Plan (based on those assumptions used to fund  such Foreign Plan) with respect to all current and former participants do not exceed the assets of  such Foreign Plan; (c) each Foreign Plan that is required to be registered has been registered and  has been maintained in good standing and applicable regulatory authorities; and (d) each Foreign  Plan is in compliance in all material respects with applicable law and regulations and with the  terms of such Foreign Plan.         SECTION 7.12  Capitalization and Subsidiaries.  Except as set forth on Schedule 7.12 as  of the Closing Date, no Credit Party and no Subsidiary of any Credit Party (a) has any Subsidiaries  or (b) is engaged in any joint venture or partnership with any other Person.  All of the issued and  outstanding Capital Stock of each of the Credit Parties and their Subsidiaries is validly issued,  fully paid and nonassessable, free and clear of all Liens, except those created under the Credit  Documents.  All such securities were issued in compliance with all Applicable Laws concerning  the issuance of securities.  Except as set forth in Schedule 7.12, on the Closing Date there are no  pre-emptive  or  other  outstanding  rights  to  purchase,  options,  warrants  or  similar  rights  or  agreements (other than stock options granted to employees) pursuant to which any Credit Party  may be required to issue, sell, repurchase or redeem any of its Capital Stock or any Capital Stock  of its Subsidiaries.         SECTION 7.13  Intellectual  Property.  Each  Credit  Party  and  each  of  its  Subsidiaries  owns, or possesses the right to use, all of the material trademarks, service marks, trade names,  copyrights, patents, patent rights, licenses and other intellectual property rights that are reasonably  necessary for the operation of their respective businesses.  To the knowledge of each Credit Party,  the use of such material intellectual property does not infringe upon any intellectual property rights  held by any other Person, except as could not reasonably be expected to have a Material Adverse  Effect.  Except as specifically set forth on Schedule 7.04 and as could not reasonably be expected  to have a Material Adverse Effect, no claim or litigation regarding any of the foregoing is pending  or, to the knowledge of such Credit Party threatened in writing.         SECTION 7.14  Environmental.                 (a)   Except as would not reasonably be expected to result in a Material Adverse  Effect: (i) the Credit Parties and each of their respective Subsidiaries are in compliance with all                                         66   

 

   material Environmental Laws in all jurisdictions in which the Credit Parties or such Subsidiary, as  the case may be, are currently doing business (including obtaining, maintaining in full force and  effect, and complying with all Permits required under Environmental Laws to operate the business  of the Credit Parties and their respective Subsidiaries as currently conducted); (ii) none of the  Credit Parties or any of their respective Subsidiaries is  subject  to  any  material  Environmental  Claim  or  any  other  material  liability  under any  Environmental  Law  that  is  pending  or,  to  the  knowledge of such Credit Party, threatened in writing; (iii) to the knowledge of the Credit Parties,  there are no conditions relating to the formerly owned Real Property that could reasonably be  expected to give rise to any material Environmental Claim against any of the Credit Parties or any  of their Subsidiaries and (iv) no Lien in favor of any Governmental Authority securing, in whole  or in part, material Environmental Claims has attached to any Real Property of any of the Credit  Parties or any of their Subsidiaries.               (b)   None of the Credit Parties or any of their respective Subsidiaries has treated,  stored,  transported,  Released  or  disposed  of  Hazardous  Materials  at,  from,  on  or  under  any  currently or formerly owned Real Property, facility relating to its business, or, to the knowledge  of any Credit Party, any other location, in each case, in a manner that could reasonably be expected  to give rise to an Environmental Claim that could result in a Material Adverse Effect.               (c)   Each Credit Party has made available to the Administrative Agent copies of  all  existing  material  environmental  assessment reports,  assessments,  reviews,  audits,  correspondence and other documents and data that have a material bearing on actual or potential  Environmental Claims or compliance with Environmental Laws, in each case to the extent such  reports, assessments, reviews, audits and documents and data are in their possession or reasonable  control.                (d)   This  Section  7.14  contains  the  sole  and  exclusive  representations  and  warranties of the Credit Parties with respect to matters arising under or relating to Environmental  Laws, Environmental Claims, Hazardous Materials, Releases, or any other environmental, health  or safety matters.          SECTION 7.15  Ownership of Properties.  Set forth on Schedule 7.15 is a list of all of the  Real Property owned or leased by any of the Credit Parties or their respective Subsidiaries as of  the Closing Date, indicating, in each case, whether the respective property is owned or leased, the  identity of the owner or lessor and the location of the respective property.  Each Credit Party owns  (a) in the case of owned Real Property, good, indefeasible and marketable fee simple title to such  Real Property, (b) in the case of owned personal property, good and valid title to such personal  property  and  (c)  in  the  case  of  leased  Real  Property  or  personal  property,  valid,  subsisting,  marketable,  insurable  and  enforceable  (except  as  may  be  limited  by  bankruptcy,  insolvency,  moratorium, fraudulent conveyance or other laws applicable to creditors’ rights generally and by  generally  applicable equitable principles,  whether considered in  an action at  law or in  equity)  leasehold interests (as the case may be) in such leased property, in each case, free and clear in each  case of all Liens, except for Permitted Liens.         SECTION 7.16  No  Default.  None  of  the  Credit  Parties  or  any  of  their  respective  Subsidiaries is in default under or with respect to, or a party to, any Material Contract (copies of  which have been received by the Administrative Agent) (other than any such Material Contract in                                         67   

 

   respect of Indebtedness) that could, either individually or in the aggregate, reasonably be expected  to have a Material Adverse Effect.  Upon the effectiveness of this Agreement and the other Credit  Documents, none of the Credit Parties or any of their respective Subsidiaries is in default under or  with  respect  to  any  Material  Contract  in  respect  of  Indebtedness  the  breach  of  which  could  reasonably be expected to have a Material Adverse Effect.  No Default has occurred and is continue  or would result from the consummation of the transactions contemplated by this Agreement or any  other Credit Document.         SECTION 7.17  Solvency.  On the Closing Date after giving effect to the Transactions,  Parent and its Subsidiaries, on a consolidated basis, are Solvent.         SECTION 7.18  Licensed Insurance Entities.  Except as set forth on Schedule 7.18 or as  otherwise permitted under this Agreement, no Licensed Insurance Entity is (i) party to any credit  agreement, loan agreement, indenture, guarantee, letter of credit, note, bond or other arrangement  providing  for  or  otherwise  relating  to  any  Indebtedness  owed  to  any  third  party for  borrowed  money or any extension of credit (or commitment for any extension of credit), or (ii) subject to  any Lien upon any property or assets of any kind (real or personal, tangible or intangible) of any  such Licensed Insurance Entities (including its Capital Stock).  Notwithstanding anything in this  Agreement to the contrary, the existence of restrictions or requirements under Applicable Laws  with respect to Licensed Insurance Entities shall not be deemed to constitute a Lien or contravene  any provision hereof, including this Section 7.18.         SECTION 7.19  Compliance with Laws; Authorizations.  Each Credit Party and each of  its Subsidiaries (a) has complied and is complying with all Applicable Laws, (b) is in possession  of and has all requisite Permits, governmental licenses, authorizations, consents and approvals  required under Applicable Laws and (c) to the extent due and owing has fully paid all applicable  user fees, to operate its business and relating to the Credit Party’s Products as currently conducted  except, in each case, to the extent that failure to do so could not, in the aggregate, reasonably be  expected to have a Material Adverse Effect.         SECTION 7.20  Contractual or Other Restrictions.  Other than the Credit Documents and  to the extent permitted by Section 9.10, no Credit Party or any of its Subsidiaries, other than the  Licensed  Insurance  Entities, is  a  party  to  any  agreement  or  arrangement  or  subject  to  any  Applicable Law that limits its ability to pay dividends to, or otherwise make Investments in or  other  payments  to  any  Credit  Party,  that  limits  its  ability  to  grant  Liens  in  favor  of  the  Administrative Agent  or  that  otherwise  limits  its  ability  to  perform  the  terms  of  the  Credit  Documents.         SECTION 7.21  Transaction Documents.  All representations and warranties of (a) the  Credit Parties set forth in the Transaction Documents and (b) to the best knowledge of the Credit  Parties, of each other Person (other than Lenders) party to the Transaction Documents, were true  and correct in all material respects as of the time as of which such representations and warranties  were made and shall be true and correct in all material respects as of the Closing Date as if such  representations and warranties were made on and as of such date (unless such representation or  warranty  is  given  as  of  a  specific  date).   No  default  or  event  of  default  has  occurred  and  is  continuing under any Transaction Document.  Each Transaction Document is in full force and  effect, enforceable against each of the parties thereto (except as may be limited by bankruptcy,                                         68   

 

   insolvency,  moratorium,  fraudulent  conveyance  or  other  laws  applicable  to  creditors’  rights  generally and by generally applicable equitable principles, whether considered in an action at law  or in equity), no Transaction Document has been amended or modified except as disclosed to the  Administrative Agent on or prior to the Closing Date or otherwise in accordance with Section 9.07,  and no waiver or consent has been granted under any such document, except in accordance with  Section 9.07.  There are no agreements, contracts or other arrangements entered into by any Credit  Party or Subsidiary of any Credit Party for the payment of fees, compensation or other similar  amounts to any employee or member of the management of any Credit Party.         SECTION 7.22  Collective Bargaining Agreements.  Set forth on Schedule 7.22 is a list  (including  dates  of expiration)  of  all  collective  bargaining  or  similar  agreements  between  or  applicable to any Credit Party or any of its Subsidiaries and any union, labor organization or other  bargaining agent in respect of the employees of any Credit Party or any of its Subsidiaries as of  the date hereof.         SECTION 7.23  Insurance.   The  properties  of  each  Credit  Party  are  insured  with  financially sound and reputable insurance companies which are not Affiliates of any Credit Party  against loss and damage in such amounts, with such deductibles and covering such risks as are  customarily carried by Persons of comparable size and of established reputation engaged in the  same  or  similar  businesses  and  owning  similar properties  in  the  general  locations  where  such  Credit Party operates, in each case as described on Schedule 7.23 as in effect on the Closing Date.           SECTION 7.24  Evidence of Other Indebtedness.  Schedule 7.24 is a complete and correct  list of each credit agreement, loan agreement, indenture, purchase agreement, guarantee, letter of  credit  or  other  arrangement  providing  for  or  otherwise  relating  to  any  Indebtedness  or  any  extension of credit (or commitment for any extension of credit) to, any Credit Party outstanding  on the  Closing  Date  which  will  remain  outstanding  after  the  Closing  Date  (other  than  this  Agreement  and  the  other  Credit  Documents),  and  the  aggregate  principal  or  face amount  outstanding or that may become outstanding under each such arrangement as of the Closing Date  is correctly described in Schedule 7.24.         SECTION 7.25  Deposit Accounts and Securities Accounts.  Set forth in Schedule 7.25  is a list of all of the deposit accounts and securities accounts of each Credit Party, including, with  respect to each bank or securities intermediary at which such accounts are maintained by such  Credit Party (a) the name and location of such Person and (b) the account numbers of the deposit  accounts or securities accounts maintained with such Person, in each case, as of the Closing Date.         SECTION 7.26  Foreign  Assets  Control  Regulations;  Anti-Money  Laundering  and  Anti-Corruption Practices.  Each Credit Party and each Subsidiary of each Credit Party is (x) in  compliance in all material respects with all U.S. economic sanctions laws, executive orders and  implementing regulations (“Sanctions”) as promulgated by the U.S. Treasury Department’s Office  of  Foreign  Assets  Control  (“OFAC”),  and (y)  in  compliance  in  all  material  respects  with all  applicable anti-money laundering and counter-terrorism financing provisions of the Bank Secrecy  Act and all regulations issued pursuant to it.  No Credit Party and no Subsidiary or Affiliate of a  Credit  Party  (i)  is  a  Person  designated  by  the  U.S.  government  on  the  list  of  the  Specially  Designated Nationals and Blocked Persons (the “SDN List”) with which a U.S. Person cannot deal  with or otherwise engage in business transactions, (ii) is a Person who is otherwise the target of                                         69   

 

   U.S. economic sanctions laws such that a U.S. Person cannot deal or otherwise engage in business  transactions with such Person or (iii) is controlled by (including without limitation, by virtue of  such Person being a director or owning voting shares or interests), or acts, directly or indirectly,  for or on behalf of, any Person or entity on the SDN List or a foreign government that is the target  of  U.S.  economic  sanctions  prohibitions  such  that  the  entry  into,  or  performance  under,  this  Agreement or any other Credit Document would be prohibited under U.S. law.  Each Credit Party  and  each  Subsidiary of  each  Credit  Party  is  in  compliance  in  all  material  respects  with  all  applicable Anti-Corruption Laws.  None of the Credit Parties or any Subsidiary thereof, nor to the  knowledge of the Borrower, any director, officer, agent, employee, or other person acting on behalf  of a Credit Party or any Subsidiary, has taken any action, directly or indirectly, that would result  in a violation in any material respect of applicable Anti-Corruption Laws.  Each Credit Party and  each  Subsidiary  of  a  Credit  Party  has  instituted  and  will  continue  to  maintain  policies  and  procedures reasonably designed to promote compliance with Applicable Anti-Corruption laws.         SECTION 7.27  Patriot Act.  The Credit Parties, each of their Subsidiaries and each of  their controlled Affiliates are in compliance in all material respects with (a) the Trading with the  Enemy  Act,  and  each  of  the  foreign  assets  control  regulations  of  the  United  States  Treasury  Department (31 CFR, Subtitle B Chapter V, as amended) and any other enabling legislation or  executive order relating thereto, (b) the Patriot Act and (c) other federal or state laws relating to  “know your customer” and Anti-Money Laundering Laws, rules and regulations.  No part of the  proceeds of any Loan will be used directly or indirectly for any payments to any government  official or employee, political party, official of a political party, candidate for political office or  anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any  improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977.          SECTION 7.28  [Reserved].           SECTION 7.29  Flood Insurance.  Parent and its Subsidiaries maintain, if available, fully  paid flood hazard insurance on all Real Property that is located in a special flood hazard area and  that constitutes Collateral, on such terms and in such amounts as required by Flood Insurance Laws  or as otherwise reasonably required by the Administrative Agent.         SECTION 7.30  Location of Collateral; Equipment List.  Schedule 7.30 lists:               (a)   all places at  which Records relating to  the Collateral,  including, but  not  limited to, all Documents and Instruments relating to receivables and Inventory, are maintained by  Borrower or by any other Person; and               (b)   subject to Section 9.15, all places where the Credit Parties’ Collateral is  located and whether the premises are owned or leased by Credit Parties or whether the premises  are the premises of a warehouseman, bailee or other third party, and if owned by a third party, the  name and address of such third party.         SECTION 7.31  Health Care Matters.               (a)   Compliance  with  Health  Care  Laws;  Permits.   Parent,  each  of  its  Subsidiaries and each Licensed Insurance Entity is and has been in compliance in all material  respects with all Health Care Laws applicable to it, its products and its properties or other assets                                        70   

 

   or its business or operation. Parent, each of its Subsidiaries and each Licensed Insurance Entity  and,  any  Person  acting  on  their  behalf,  has  in  effect  all  material  Permits,  including,  without  limitation, all Permits necessary for it to own, lease or operate its properties and other assets and  to carry on its business and operations, as presently conducted. All such Permits are in full force  and effect and there exists no default under, or material violation of, any such Permit and none of  Parent, any of its Subsidiaries or any Licensed Insurance Entity has received notice of any current  or proposed limitation, suspension, termination or revocation of any such Permit.  Except as set  forth on Schedule 7.31, no action, demand, requirement or investigation by any Governmental  Authority and no suit, action or proceeding by any other person, in each case with respect to any  of Parent, any Subsidiary or any Licensed Insurance Entity is pending or, to the knowledge of such  Person, threatened.               (b)     Filings.   Except  as set  forth  on Schedule  7.31,  all  material  reports,  documents, claims, notices or approvals required to be filed, obtained, maintained or furnished  pursuant to any Health Care Law to any Governmental Authority have been so filed, obtained,  maintained  or  furnished,  and  all  such  material  reports,  documents,  claims  and  notices  were  complete and correct in all material respects on the date filed (or were corrected in or supplemented  by a subsequent filing).               (c)   Material  Statements.   None  of  Parent,  its  Subsidiaries or  any  Licensed  Insurance Entity has made an untrue statement of a material fact or fraudulent statement to any  Governmental Authority, or, to the knowledge of any of Parent, its Subsidiaries or any Licensed  Insurance Entity, failed to disclose a material fact required to any Governmental Authority, or  committed an act, or made a statement that, at the time such statement was made, would reasonably  be expected to constitute a violation of any Health Care Law. None of Parent, its Subsidiaries or  any Licensed Insurance Entity, officer, nor to the knowledge of any of Parent, its Subsidiaries or  any Licensed Insurance Entity, any affiliate, employee or agent of any of Parent, its Subsidiaries  or any Licensed Insurance Entity, has made any untrue statement of fact regarding material claims  incurred but not reported.               (d)   Contracts.   Each  Licensed  Insurance  Entity  has  the  requisite  contract,  license,  enrollment,  or  other  Permit  to  fulfill  its  obligations  as  (i)  a  MA  organization  in  the  Medicare program, (ii) a managed care organization in the respective Medicaid program in the  state or states in which such Licensed Insurance Entity operates, (iii) a provider service network  in  the  state  or  states  in  which  such  Licensed  Insurance  Entity  operates,  or  (iv)  as  a  health  maintenance  organization,  managed  care  organization,  or  health  insurance  plan  providing  commercial  health  insurance  in  the  state  or  states  in  which  such  Licensed  Insurance  Entity  operates. Except as set forth on Schedule 7.31 there is no investigation, audit, claim, or other action  pending, or to the knowledge of any of Parent, its Subsidiaries or any Licensed Insurance Entity,  threatened  which  could  result  in  a  revocation,  suspension,  termination,  probation,  restriction,  limitation, or non-renewal of the contract or other Permit necessary for a Licensed Insurance Entity  to operate as a managed care organization under the Medicare program, the respective Medicaid  program in the state or states in which such entity operates, or as a managed care organization  providing commercial health insurance in the state or states in which such Licensed Insurance  Entity operates.                                          71   

 

               (e)   Accreditation.  Each of Parent, its Subsidiaries and any Licensed Insurance  Entity  has  received  and  maintains  accreditation  in  good  standing  and  without  limitation  or  impairment by all applicable accrediting organizations, to the extent required by law (including  any foreign law or equivalent regulation).               (f)   Proceedings.  Except as set forth on Schedule 7.31, to the knowledge of any  Credit Party, there are no facts, circumstances or conditions that would reasonably be expected to  form  the basis for any  material  investigation, suit, claim,  audit, action (legal  or regulatory) or  proceeding (legal or regulatory) by a Governmental Authority against or affecting any of Parent,  its Subsidiaries or any Licensed Insurance Entity relating to any of the Health Care Laws. As of  the Closing Date, none of Parent, its Subsidiaries or any Licensed Insurance Entity (1) is a party  to a corporate integrity agreement or (2) has any reporting obligations pursuant to a settlement  agreement,  plan  of  correction  or  other  remedial  measure  entered  into  with  any  Governmental  Authority.               (g)   Prohibited Transactions.  None of Parent, its Subsidiaries or any Licensed  Insurance Entity has, directly or indirectly: (1) given or agreed to give, or is aware that there has  been made or that there is any illegal agreement to make, any illegal gift or gratuitous payment of  any kind, nature or description (whether in money, property or services) to any past, present or  potential patient, supplier, contractor, or any other person in material violation in any material  respect of any Health Care Law; (2) made or agreed to make, or is aware that there has been made  or that there is any agreement to make, any contribution, payment or gift of funds or property to,  or  for  the  private  use  of,  any  governmental  official,  employee  or  agent  where  either  the  contribution, payment or gift or the purpose of such contribution, payment or gift is or was illegal  in any material respect under the laws of any Governmental Authority having jurisdiction over  such payment, contribution or gift; (3) established or maintained any unrecorded fund or asset for  any purpose or made any misleading, false or artificial entries on any of its books or records for  any reason to the extent any such action would reasonably be expected to result in a Material  Adverse Effect; or (4) made, or agreed to make, or is aware that there has been made or that there  is any agreement to make, any payment to any person with the intention or understanding that any  part of such payment would be in material violation in any material respect of any Health Care  Law.               (h)   Exclusion.   None  of  Parent,  its  Subsidiaries  or  any  Licensed  Insurance  Entity is or has been threatened to be, (i) excluded from any federal health care program pursuant  to  42  U.S.C.  §  1320a-7b  and  related  regulations,  (ii)  “suspended”  or  “debarred”  from  selling  products to the U. S. government or its agencies pursuant to the Federal Acquisition Regulation,  relating  to  debarment  and suspension  applicable  to  federal  government  agencies generally (42  C.F.R. Subpart 9.4), or other Applicable Laws, or (iii) made a party to any other action by any  Governmental Authority that may prohibit it from selling products to any governmental or other  purchaser pursuant to any federal, state or local laws or regulations.               (i)   HIPAA  Compliance.   To  the  extent  applicable  to  any  of  Parent,  its  Subsidiaries or any Licensed Insurance Entity and for so long as (1) any of Parent, its Subsidiaries  or any Licensed Insurance Entity is a “covered entity” as defined in 45 C.F.R. § 160.103, (2) any  of Parent, its Subsidiaries or any Licensed Insurance Entity is a “business associate” as defined in  45 C.F.R. § 160.103, (3) any of Parent, its Subsidiaries or any Licensed Insurance Entity is subject                                         72   

 

   to or covered by the HIPAA Administrative Requirements codified at 45 C.F.R. Parts 160 & 162  (the “Transactions Rule”) and/or the HIPAA Security and Privacy Requirements codified at 45  C.F.R.  Parts  160  &  164  (the  “Privacy  and  Security  Rules”),  and/or  (4)  any  of  Parent,  its  Subsidiaries or any Licensed Insurance Entity sponsors any “group health plans” as defined in 45  C.F.R.  §  160.103,  such  Person  has:  (i)  developed  and  implemented  appropriate  safeguards  to  comply with HIPAA and (ii) is and has been in material compliance with HIPAA.               (j)   Corporate  Integrity  Agreement.   None  of  Parent,  its  Subsidiaries  or  any  Licensed  Insurance  entity,  nor  any  officer,  director,  partner,  agent,  or  managing  employee  of  Parent, its Subsidiaries, or any Licensed Insurance Entity, is party to or bound by any individual  integrity  agreement,  corporate  integrity  agreement,  corporate  compliance  agreement,  deferred  prosecution agreement, or other formal or informal agreement with any Governmental Authority  concerning compliance any Applicable Laws.                                    ARTICLE VIII                                                                        Affirmative Covenants         The Credit Parties hereby covenant and agree that on the Closing Date and thereafter, until  the Commitments have been terminated and the Loans and all other Obligations incurred hereunder  (other than Unasserted Contingent Obligations) are paid in full in accordance with the terms of  this Agreement:         SECTION 8.01  Financial  Information,  Reports,  Notices  and  Information.  The  Credit  Parties will furnish the Administrative Agent for further distribution to each Lender copies of the  following  financial  statements,  reports,  notices  and  information provided,  that  as  to  any  information contained in materials filed with the SEC, Parent shall not be separately required to  furnish such information under Sections 8.01(b) and (c) below):               (a)   Liquidity Certificate.  Within thirty (30) days after the end of each month,  a  monthly  Liquidity  report  based  upon  (and  including) Parent’s and  its  Subsidiaries’ account  statements, together with a certification from an Authorized Officer of Parent, that Parent is in  compliance  with  the minimum  Liquidity  requirement  set  forth  in  Section  9.13(b)  in  a  form  reasonably acceptable to Administrative Agent.               (b)   Quarterly Financial Statements.  Within forty-five (45) days after the end of  each fiscal quarter of Parent and its Subsidiaries, (i) unaudited consolidated balance sheets of the  Parent and  its  Subsidiaries  as  of  the  end  of  such  fiscal  quarter and (i) unaudited  consolidated  statements  of  income  and  cash  flow  of the Parent and  its  Subsidiaries  for  such  fiscal  quarter,  including,  in  comparative  form  (both  in  Dollar  and  percentage  terms)  the  figures  for  the  corresponding fiscal quarter in, and year-to-date portion of, the immediately preceding fiscal year  of Parent, certified as complete and correct by an Authorized Officer of the Borrower.               (c)   Annual Financial Statements.  Within ninety (90) days after the end of each  fiscal year of Parent, copies of the consolidated balance sheets of Parent and its Subsidiaries, and  the related consolidated statements of income and cash flows of Parent and its Subsidiaries for  such fiscal year, setting forth in comparative form the figures for the immediately preceding fiscal                                         73   

 

   year,  such  consolidated  statements  to  be  audited  and  certified  accompanied  by  a  report  and  unqualified  opinion  of Deloitte or  another  independent  firm  of  certified  public  accountants  of  nationally recognized standing (or regionally recognized standing if reasonably acceptable to the  Administrative Agent) (which  report  and  opinion  shall  (x)  state  that  such  financial  statements  present fairly in all material respects the financial position for the periods indicated in conformity  with GAAP applied on a basis consistent with prior years and (y) not be subject to any “going  concern” or like qualifications or exceptions or any qualifications or exception as to the scope of  the audit (other than as may be required as a result of (A) an actual or prospective default or event  of default with respect to any financial covenant (including the financial covenant set forth in  Section 9.13) or (y) the impending maturity of any Indebtedness)).               (d)   Compliance Certificates.  Concurrently with the delivery of the financial  information  pursuant  to  clauses  (b)  and  (c)  above,  a  Compliance  Certificate,  executed  by  an  Authorized  Officer  of  the  Borrower,  (i)  showing  compliance  with  the  Financial  Performance  Covenants and stating that no Default or Event of Default has occurred and is continuing (or, if a  Default or an Event of Default has occurred, specifying the details of such Default or Event of  Default and the actions taken or to be taken with respect thereto) and (ii) specifying any change in  the identity of the Subsidiaries as at the end of such fiscal year or period, as the case may be, from  the Subsidiaries identified to the Lenders on the Closing Date or the most recent fiscal quarter or  period, as the case may be.               (e)   Other Entity Reporting.  To the extent not  delivered in  accordance with  clause (b) above, concurrently with the delivery of the financial information pursuant to clause (b)  above, the Credit Parties shall deliver to the Administrative Agent statutory reporting provided in  the ordinary course of business and consistent with past practices with respect to Justify Holdings,  Inc. and Momentum Health Group, LLC and quarterly summaries of operations provided to the  respective board of directors (or equivalent governing body) of each of Justify Holdings, Inc. and  Momentum Health Group, LLC.               (f)   Budget.  Within sixty (60) days after to the commencement of each fiscal  year of Parent, commencing with its fiscal year 2020, the forecasted financial projections for the  then  current  fiscal  year (on  a month-by-month basis),  in  each  case  (including  projected  consolidated balance sheet of Parent and its Subsidiaries as of the end of the following fiscal year,  the related consolidated statements of projected cash flow, and projected income and a description  or  discussion of  the  underlying  assumptions  applicable  thereto),  in  each  case,  as  customarily  prepared by management of the Credit Parties for their internal use consistent in scope with the  financial statements provided pursuant to Section 8.01(b), setting forth (or offering a discussion  of) the principal assumptions on which such projections are based (such projections, collectively,  the “Budget”).               (g)   Defaults.  As soon as possible and in any event within five (5) Business  Days after an Authorized Officer of the Borrower or any of its Subsidiaries obtains knowledge  thereof, notice from an Authorized Officer of the Borrower of (i) the occurrence of any event that  constitutes a Default or an Event of Default, which notice shall specify the nature thereof, the  period of existence thereof and what  action the applicable Credit Parties propose to  take with  respect thereto or (ii) the occurrence of a breach or nonperformance of, or any default under, any  other Material Contracts of any Credit Party or any Subsidiary of a Credit Party, or any violation                                         74   

 

   of, or noncompliance with any Applicable Laws (including Health Care Laws), in each case, which  would  reasonably  be  expected  to  result,  either  individually  or  in  the  aggregate,  in  a  Material  Adverse Effect.               (h)   Other  Litigation.   As  soon  as  possible  and  in  any  event  within five (5)  Business  Days  after  an  Authorized  Officer of  the  Borrower  or  any  of  its  Subsidiaries  obtains  knowledge thereof, notice from an Authorized Officer of the Borrower of (i) the commencement  of,  or  any  material  development  in,  any  litigation,  action,  proceeding  or  labor  controversy  or  proceeding  affecting  any  Credit  Party  or  any  Subsidiary  of  any  Credit  Party  or  its  respective  property (A) in which the amount of damages claimed is $5,000,000 or more, (B) which would  reasonably be expected to have a Material Adverse Effect, (C) which purports to affect the legality,  validity or enforceability of any Credit Document,  any other Transaction Document or (D) in  which the relief sought is an injunction or other stay of the performance of this Agreement, any  other Credit Document or any Transaction Document or any other document or instrument referred  to in Section 9.07, or (ii) the occurrence of any development with respect to any litigation, action,  proceeding or labor controversy described in Schedule 7.04 that would reasonably be expected to  result in a Material Adverse Effect, and, in each case, together with a statement of an Authorized  Officer  of  the  Borrower,  which  notice  shall  specify  the  nature  thereof,  and what  actions  the  applicable Credit Parties propose to take with respect thereto, and, to the extent the Administrative  Agent requests, copies of all documentation related thereto.               (i)   Transaction Documents.  As soon as possible and in any event within five  (5) Business Days after any Credit Party obtains knowledge of the occurrence of a breach or default  or notice of termination by any party under, or material amendment entered into by any party to,  any Transaction Document or any other document or instrument referred to in Section 9.07, a  statement of an Authorized Officer of the Borrower setting forth details of such breach or default  or notice of termination and the actions taken or to be taken with respect thereto and, if applicable,  a copy of such amendment.               (j)   Management  Letters.   Promptly  upon,  and  in  any  event  within five (5)  Business Days after, receipt thereof, copies of all “management letters” submitted to any Credit  Party by the independent public accountants referred to in Section 8.01(b) in connection with each  audit made by such accountants.               (k)   [Reserved].               (l)   Other Information.  With reasonable promptness, such other information  (financial or otherwise) as the Administrative Agent on its own behalf or on behalf of any Lender  may reasonably request in writing from time to time, including with respect to any wind down  process or release of statutory capital or other capital reserves; provided, that, notwithstanding  anything herein to the contrary, none of the Parent nor any Subsidiary will be required to disclose  or permit the inspection or discussion of, any document, information or other matter (i) in respect  of which disclosure to the Administrative Agent or any Lender (or their respective contractors) is  prohibited  by  law  or  any  binding  agreement  (or  would  otherwise  cause  a  breach  or  default  thereunder) or (ii) that is subject to attorney-client or similar privilege or constitutes attorney work  product.                                         75   

 

               (m)   Insurance Report.  Within ten (10) Business days (or such longer prior as  reasonably  agreed  to  by the  Administrative  Agent) of the  delivery  of  the  financial  statements  provided for in Section 8.01(c), a report of a reputable insurance broker with respect to insurance  policies maintained by the Credit Parties.               (n)   Convertible Senior Notes.  No event later than five (5) days after delivery  thereof, copies of all material statements, reports and notices made available  to or from the Trustee  with respect to any Convertible Senior Notes.                 (o)   Health Care Reporting.                      (i)   In no event later than five (5) Business Days after delivery thereof,  of  any notice  from  any  Governmental  Authority  of  any  investigation  or  audit,  or  pending  or  threatened  proceedings  relating  to,  any  violation  by  Parent,  any  Subsidiary,  or  any  Licensed  Insurance Entity of any Applicable Laws, including or Health Care Laws, in each case, solely to  the extent the same would reasonably be expected to result in a Material Adverse Effect.                        (ii)  No  later  than  five  (5)  Business  Days  after  delivery  thereof,  the  receipt  of  notice from  any  Governmental Authority  threatening  to  limit,  revoke,  suspend  or  materially  modify  any  Permit or contract  held  by  any  Licensed  Insurance  Entity that  would  reasonably be expected to result in a Material Adverse Effect.                     (iii) Promptly  notify,  in  the  event  that  Parent,  any  Subsidiary,  or  any  Licensed Insurance Entity experiences any (I) Breach of Unsecured Protected Health Information  as “Breach,” “Unsecured Protected Health Information” and “Protected Health Information” are  defined by HIPAA, or (II)  a Security Incident as "Security Incident" is defined by HIPAA, in each  case which materially impacts the security or integrity of Parent, any Subsidiary, or any Licensed  Insurance Entity.                     (iv)  In no event later than five (5) Business Days after execution thereof,  in the event that Parent, any Subsidiary, or any Licensed Insurance Entity becomes a party to or  becomes bound by any corporate integrity agreement, corporate compliance agreement, deferred  prosecution agreement, or other formal agreement with any Governmental Authority concerning  compliance with Health Care Laws.               (p)   [Reserved].               (q)   Wind Down Process.  With respect to Justify Holdings, Inc., promptly upon  any material development relating to any wind down process, provide the Administrative Agent  with a written notification setting forth the details of such material development, along with copies  of any relevant documentation relating to such material development, including any notices or  written  communications  from  any  Governmental  Authority  with  respect  to  such  material  development   Notwithstanding the foregoing, the obligations in clauses (b) and (c) of this Section 8.01 may be  satisfied with respect to financial information of the Parent and the Subsidiaries by furnishing the  Form  10-K,  10-Q  or  8-K,  as  applicable,  of the Parent filed  with  the Securities  Exchange  Commission.                                        76   

 

   Documents required to be delivered pursuant to clauses (b) and (c) of this Section 8.01 may be  delivered electronically and if so delivered, shall be deemed to have been delivered on the earliest  date on which (i) the Borrower posts such documents, or provides a link thereto on the Borrower’s  website on the Internet and (ii) such financial statements and/or other documents are posted on the  Securities Exchange Commission’s website on the internet at www.sec.gov; provided, that, (A)  the Borrower shall, at the request of the Administrative Agent, continue to deliver copies (which  delivery may be by electronic transmission) of such documents to the Administrative Agent and  (B) the Borrower shall notify (which notification may be by facsimile or electronic transmission)  the Administrative Agent of the posting of any such documents on any website described in this  paragraph.  Each  Lender  shall  be  solely  responsible  for  timely  accessing  posted  documents  or  requesting  delivery  of  paper  copies  of  such  documents  from  the  Administrative  Agent  and  maintaining its copies of such documents.         SECTION 8.02  Books, Records and Inspections.  Parent will, and will cause each of its  Subsidiaries to, maintain proper books of record and account, in which entries that are full, true  and correct in all material respects and are in conformity with GAAP shall be made of all material  financial transactions and matters involving the assets and business of the Credit Parties or such  Subsidiary, as the case may be.  Parent will, and will cause each of its Subsidiaries to, permit  representatives and independent contractors of the Administrative Agent to visit and inspect any  of its properties (to the extent authorized pursuant to any leases for such properties), to examine  its  corporate,  financial  and  operating  records,  and  make  copies  thereof  or  abstracts  therefrom  (subject  to  applicable  confidentiality  agreements  or  undertakings  and  copyright  laws),  and  to  discuss  its  affairs,  finances  and  accounts  with  its  directors  and  officers  (provided,  that  an  authorized representative of the Credit Parties shall be allowed to be present and that any such  inspection  of  properties  shall  not  include  any  invasive  or  physically  intrusive  environmental  sampling), all at the expense of the Credit Parties and (unless an Event of Default then exists) as  often  as  the  Administrative  Agent  may  reasonably request, at  reasonable  times  during  normal  business hours, upon reasonable advance notice to the Credit Parties; provided that during any  calendar year, absent the continuation of an Event of Default, reasonable expenses of a reasonable  number of people in connection with only one (1) inspection by Administrative Agent shall be at  the Borrower’s expense and reimbursable under this Agreement.  Any information obtained by the  Administrative Agent pursuant to this Section 8.02 may be shared with the Administrative Agent  or any Lender upon the request of such Secured Party; provided, further, that, notwithstanding  anything herein to the contrary, none of the Parent nor any Subsidiary will be required to disclose  or permit the inspection or discussion of, any document, information or other matter (i) in respect  of which disclosure to the Administrative Agent or any Lender (or their respective contractors) is  prohibited  by  law  or  any  binding  agreement  (or  would  otherwise  cause  a  breach  or  default  thereunder) or (ii) that is subject to attorney-client or similar privilege or constitutes attorney work  product.         SECTION 8.03  Maintenance of Insurance.                 (a)   Parent will, and will cause each of its Subsidiaries to, at all times maintain  in full force and effect, with insurance companies that Parent believes (in its reasonable business  judgment)  are  financially  sound  and  reputable  at  the  time  the  relevant  coverage  is  placed  or  renewed, insurance in at least such amounts and against at least such risks (and with such risk  retentions)  as  are usually  insured  against  in  the  same  general  area  by  companies  engaged  in                                         77   

 

   businesses similar to those engaged in by the Credit Parties; and will furnish to the Administrative  Agent for further delivery to the Lenders, upon written request from the Administrative Agent,  information  presented  in  reasonable  detail  as  to  the  insurance  so  carried, including  (i)  endorsements to (A) all casualty policies of the Credit Parties naming the Administrative Agent,  on behalf of the Secured Parties, as loss payee and (B) all property policies of the Credit Parties  naming the Administrative Agent, on behalf of the Secured Parties, as additional insured and (ii)  legends  providing  that  no  cancellation,  material  reduction  in  amount  or  material  change  in  insurance coverage thereof shall be effective until at least thirty (30) days after receipt by the  Administrative Agent of written notice thereof.                 (b)   Within thirty  (30)  days  after  the  Closing  Date, the  Borrower shall  have  delivered  to  the Administrative Agent  copies  of  each  insurance policy  (or  binders  in  respect  thereof).               (c)   Without  limiting  the  foregoing,  Parent  will, and  will  cause  each  of  its  Subsidiaries to, (i) maintain, if available, fully paid flood hazard insurance on all owned or leased  Real Property that is located in a special flood hazard area and that constitutes Collateral, on such  terms  and  in  such  amounts  as  required  by  Flood  Insurance  Laws  or  as  otherwise  reasonably  required  by  the  Administrative  Agent  or  any  Lender,  (ii)  furnish  to  the  Administrative  Agent  evidence of the renewal (and payment of renewal premiums therefor) of all such policies prior to  the expiration or lapse thereof and (iii) furnish to the Administrative Agent prompt written notice  of any redesignation of any such owned or leased improved Real Property into or out of a special  flood hazard area.         SECTION 8.04  Payment of Taxes.  The Credit Parties will pay and discharge, and will  cause each of their respective Subsidiaries to pay and discharge, all material Taxes payable by  them that have become due, other than those not yet delinquent or being diligently contested in  good faith and by proper proceedings, which stay the enforcement of any Lien as to which such  Credit Party has maintained adequate reserves in accordance with GAAP.         SECTION 8.05  Maintenance of Existence; Compliance with Laws, etc.                 (a)   Each Credit Party will, and will cause its Subsidiaries to, (i) preserve and  maintain in full force and effect its organizational existence and good standing under the laws of  its jurisdiction of incorporation, organization or formation as applicable, except as permitted by  Section 9.03 or Section 9.04 and (ii) preserve and maintain its good standing under the laws of  each state or other jurisdiction where such Person is required to be so qualified, to do business as  a foreign entity, except in the case of this clause (ii) where the failure to do so would not reasonably  be expected to have a Material Adverse Effect.               (b)   Each Credit Party shall, and shall cause each of its Subsidiaries to, comply  with  all Applicable  Laws and  Permits  (including without  limitation,  all  Registrations)  of  any  Governmental Authority having jurisdiction over it, its business or its Products, except where such  failures  to  comply  would  not  reasonably  be  expected  to  have,  either  individually  or  in  the  aggregate, a Material Adverse Effect. Without limiting the generality of the foregoing, each Credit  Party  and  its  Subsidiaries  shall  comply  with  all  material  Health Care Laws  and  their                                         78   

 

   implementation  by  any  applicable  Governmental  Authority  and  all  lawful  requests  of  any  Governmental Authority applicable to its operations.          SECTION 8.06  Environmental Compliance.               (a)   Each Credit Party will, and will cause its Subsidiaries to, use and operate  all of its and their facilities and Real Property in compliance with all Environmental Laws, keep  all necessary  permits,  approvals,  certificates,  licenses  and  other  authorizations  relating  to  environmental matters in effect and remain in compliance therewith, and handle all Hazardous  Materials in compliance with all Environmental Laws, and keep its and their Real Property free of  any Lien imposed by any Environmental Law, in each case, except where the failure to do so could  not reasonably be expected to have a Material Adverse Effect.               (b)   The Borrower will promptly give notice to the Administrative Agent upon  any Credit Party or Subsidiary thereof becoming aware of:  (i) any violation by any Credit Party  or any of its Subsidiaries of any Environmental Law which could reasonably be expected to result  in a Material Adverse Effect, (ii) any proceeding against or investigation of any Credit Party under  any Environmental Law, including a written request for information or a written notice of violation  or potential environmental liability from any Governmental Authority or any other Person, which  could  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect,  (iii)  the  occurrence  or  discovery of a new Release or new threat of a Release (or discovery of any Release or threat of a  Release previously undisclosed by any Credit Party to Administrative Agent) at, on, under or from  any of the Real Property of any Credit Party or any facility or assets therein in excess of reportable  or allowable standards or levels under any Environmental Law, or under circumstances, or in a  manner or amount which could reasonably be expected to result in a Material Adverse Effect or  (iv)  any  Environmental  Claim  arising  or  existing  on  or  after  the  Closing  Date  which  could  reasonably be expected to result in a Material Adverse Effect.               (c)   In the event of a Release of any Hazardous Material on any Real Property  of any Credit Party which could reasonably be expected to result in material liability on the part  of any Credit Party under any Environmental Law, such Credit Party, upon discovery thereof, shall  take all necessary steps to initiate and expeditiously complete all response, corrective and other  action to mitigate and resolve any such violation or potential liability in accordance with and to  the  extent  required  of  such  Credit  Party  under  Environmental  Law,  and  shall  keep  the  Administrative Agent informed on a regular basis of their actions and the results of such actions;  provided,  however,  that  no  Credit  Party  (or  its  respective  Subsidiaries)  shall  be  required  to  undertake any such response, corrective action or other action to the extent that its obligation to  do so is being contested in good faith and by proper proceedings and appropriate reserves are being  maintained with respect to such circumstances in accordance with GAAP.               (d)   Each Credit Party shall provide the Administrative Agent with copies of any  material  demand,  request for  information,  notice,  submittal,  documentation  or  correspondence  received or provided by any Credit Party or any of its Subsidiaries from or to any Governmental  Authority or other Person under any Environmental Law to the extent the same would reasonably  be expected to result in a Material Adverse Effect.  Such notice, submittal or documentation shall  be provided to the Administrative Agent promptly and, in any event, within five (5) Business Days  after such material is provided to any Governmental Authority or third party.                                         79   

 

               (e)   At the reasonable written request of the Administrative Agent, the Borrower  shall obtain and provide, at its sole expense, an environmental site assessment (including, without  limitation, the results of any groundwater or other testing, conducted at the Administrative Agent’s  reasonable request) concerning any Real Property now or hereafter owned by any Credit Party or  any  of  its  Subsidiaries,  conducted  by  an  environmental  consulting  firm  approved  by  the  Administrative Agent indicating, to the reasonable satisfaction of the Administrative Agent, the  likely presence or absence of Hazardous Materials and the potential cost of any required action in  connection with any Hazardous Materials on, at, under or emanating from such Real Property;  provided, that such request may be made only if (i) there has occurred and is continuing an Event  of Default, or (ii) circumstances exist that in the reasonable judgment of the Administrative Agent  could be expected to result in a material violation of or material liability under any Environmental  Law on the part of any Credit Party or its respective Subsidiaries; provided further, if the Borrower  fails to provide the same within ninety (90) days after such request was made, the Administrative  Agent may but is under no obligation to conduct the same, and the Credit Parties shall grant and  hereby  do  grant  to  the Administrative Agent  and  its  agents  access  to  such  Real  Property  and  specifically grants the Administrative Agent an irrevocable nonexclusive license, subject to the  rights of tenants, to undertake such an assessment, all at the Borrower’s sole cost and expense.         SECTION 8.07  ERISA.  (a) Promptly after any Credit Party or any Subsidiary of any  Credit  Party  knows  or  has  reason  to  know  of  the  occurrence  of  any  of  the  following  events  (including such events previously disclosed or exempt from disclosure hereunder, to the extent the  liability therefor remains outstanding), the Borrower will deliver to the Administrative Agent and  each Lender a certificate of an Authorized Officer of the Borrower setting forth details as to such  occurrence and the action, if any, that such Credit Party, such Subsidiary or such ERISA Affiliate  is required or proposes to take, together with any notices (required, proposed or otherwise) given  to or filed with or by such Credit Party, such Subsidiary, such ERISA Affiliate, the PBGC, a Plan  participant  (other  than  notices  relating  to  an  individual  participant’s  benefits)  or  the  Plan  administrator and all documentation with respect thereto:  that a Reportable Event has occurred;  that a failure to satisfy the minimum funding standard of Section 412 of the Code or Section 302  of ERISA (whether or not waived in accordance with Section 412(c) of the Code or Section 302(c)  of ERISA) has occurred (or is reasonably likely to occur) or an application is to be made to the  Secretary of the Treasury for a waiver or modification of the minimum funding standard (including  any required installment payments) or an extension of any amortization period under Section 412,  430 or 431 of the Code with respect to a Plan; the failure to make a required contribution to any  Plan if such failure is sufficient to give rise to a Lien under Section 303(k) or 4068 of ERISA or  under Section 430(k) of the Code; that a Pension Plan having an Unfunded Current Liability has  been or is to be terminated, reorganized or partitioned under Title IV of ERISA (including the  giving of written notice thereof); the taking of any action with respect to a Plan which would  reasonably be expected to result in the requirement that any Credit Party furnish a bond or other  security to the PBGC or such Plan; that a proceeding has been instituted against a Credit Party, a  Subsidiary thereof or an ERISA Affiliate pursuant to Section 515 of ERISA to collect a delinquent  contribution  to  a  Multiemployer  Plan;  or  that  the  PBGC  has  notified  any  Credit  Party,  any  Subsidiary thereof or any ERISA Affiliate of its intention to appoint a trustee to administer any  Plan; or the occurrence of any event with respect to any Plan which could result in the incurrence  by any Credit Party or any Subsidiary of any Credit Party of any material liability (including any  contingent or secondary liability), fine or penalty.                                         80   

 

               (b)   Promptly  following any  request  therefor,  copies  of  any  documents  or  notices described in Sections 101(f), 101(k) or 101(l) of ERISA that any Credit Party or any ERISA  Affiliate may reasonably request with respect to any Plan; provided, that if any Credit Party or any  ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of  the applicable Plan, the applicable Credit Party or the ERISA Affiliate(s) shall promptly make a  request for such documents or notices from such administrator or sponsor and shall provide copies  of such documents and notices promptly after receipt thereof.         SECTION 8.08  Maintenance of Property and Assets.  Each Credit Party will, and will  cause its Subsidiaries to, maintain, preserve, protect and keep its properties and assets in good  repair,  working  order  and  condition  (ordinary  wear  and  tear and  casualty excepted in the  commercially reasonably business judgment of the Borrower and subject to dispositions permitted  pursuant to Section 9.04), and make necessary repairs, renewals and replacements thereof and will  maintain and renew as necessary all licenses, permits and other clearances necessary to use and  occupy such properties and assets, in each case, so that the business carried on by such Person may  be properly conducted  at  all times, except  where the failure to  do so  could  not  reasonably  be  expected to have a Material Adverse Effect.         SECTION 8.09  End  of  Fiscal  Years;  Fiscal  Quarters.  The  Credit  Parties will,  for  financial reporting purposes, cause (a) each of their, and each of their Subsidiaries’, fiscal years to  end on December 31 of each year and (b) each of their and each of their Subsidiaries’, fiscal  quarters to end on dates consistent with such fiscal year-end; provided, that the Credit Parties may  change their, and each of their respective Subsidiaries’, fiscal year-end (and change the end of the  fiscal  quarters  in  a  corresponding  manner)  upon fifteen (15)  days’  prior  written  notice  to  the  Administrative Agent.         SECTION 8.10  Use of Proceeds.  The proceeds of the Initial Term Loan shall be used (i)  to finance the Passport Health Acquisition, (ii) to pay fees and expenses incurred in connection  with the transactions contemplated hereby and the Passport Health Acquisition and (iii) to fund  ongoing working capital needs and other growth capital expenditure investments, to the extent not  prohibited by this Agreement.  The proceeds of the DDTL Facility shall be used (i) to finance the  2021 Convertible Notes Repurchase, (ii) to pay fees and expenses incurred in connection with the  transactions contemplated hereby and the 2021 Convertible Notes Repurchase and (iii) to fund  Permitted  Acquisitions  and  growth  capital  expenditures.  The  Credit  Parties  shall  not  use  the  proceeds of any Credit Extension made hereunder, or use or allow its respective directors, officers,  employees and agents to use, the proceeds of any extension of credit (i) in furtherance of an offer,  payment, promise to pay, or authorization of the payment or giving of money, or anything else of  value, to  any Person in violation of any Anti-Corruption  Laws, Anti-Terrorism  Laws or Anti- Money Laundering Laws, (ii) for the purpose of funding, financing or facilitating any activities,  business or transaction of or with any Person on the SDN List or (iii) in any manner that would  result in the violation of any Sanctions applicable to any party.         SECTION 8.11  Further Assurances; Additional Guarantors and Grantors.                 (a)   The  Credit  Parties  will and  will  cause  their  Subsidiaries  (other  than  Excluded Subsidiaries) to execute any and all further documents, financing statements, agreements  and instruments, and take all such further actions (including the filing and recording of financing                                         81   

 

   statements, fixture filings, mortgages, deeds of trust (excluding leasehold deeds of trust) and other  documents), which may be required under any Applicable Law, or which the Administrative Agent  may reasonably request, in order to grant, preserve, protect and perfect the validity and priority of  the security interests created or intended to be created by the Security Agreement, any Mortgage  or any other Security Document, all at the sole cost and expense of the Borrower.               (b)   Subject to any applicable limitations set forth in the Guarantee Agreement  and the Security Agreement, as applicable, the Credit Parties will promptly upon the formation or  acquisition  thereof  (and  in  any  event within thirty  (30) days after  the  formation,  division or  acquisition thereof (or such later date as agreed by the Administrative Agent)) cause any direct or  indirect Subsidiary formed or otherwise purchased or acquired after the Closing Date to execute  (i) a supplement to the Guarantee Agreement in the form of Annex I to the Guarantee Agreement  or a guarantee in form and substance reasonably satisfactory to Administrative Agent, and (ii) a  supplement to the Security Agreement in the form of Annex I to the Security Agreement or a  security  agreement  in  form  and  substance reasonably satisfactory  to Administrative Agent;  provided, however, that no Excluded Subsidiary shall be required to execute the documentation  described in clauses (i) and (ii) above for so long as it is an Excluded Subsidiary.               (c)   Subject to any applicable limitations set forth in the Security Agreement  and, in the case of the Licensed Insurance Entities, subject to Applicable Laws, the Credit Parties  (i) will promptly upon the formation or acquisition thereof (and in any event within thirty (30)  days after the formation or acquisition thereof (or such later date as agreed by the Administrative  Agent)) pledge to the Administrative Agent for the benefit of the Secured Parties, all the Capital  Stock of each Subsidiary (other than Excluded Subsidiaries) held by such Credit Party in each  case, formed or otherwise purchased or acquired after the Closing Date; provided, however, that,  with respect to any pledge of the Capital Stock of any Foreign Subsidiary or Domestic Holding  Company, such pledge shall be limited to sixty five percent (65%) of the issued and outstanding  Voting Stock and one hundred percent (100%) of the outstanding nonvoting Capital Stock of each  Foreign  Subsidiary  and  Domestic  Holding  Company,  and  (ii)  will  promptly  deliver  to  the  Administrative  Agent  any  promissory  notes  executed  after  the  Closing  Date  evidencing  Indebtedness of any Credit Party or Subsidiary of any Credit Party that is owing to any other Credit  Party or any other promissory notes executed after the Closing Date evidencing Indebtedness in  excess of $2,000,000 owing to the Credit Parties.               (d)   Subject to any applicable limitations set forth in any applicable Security  Document, if any fee simple interest in Material Real Property is acquired by any Credit Party  after the Closing Date, the Borrower will notify the Administrative Agent and the Lenders thereof  and will cause such assets to be subjected to a Lien securing the applicable Obligations and will  take, and cause the other Credit Parties to take, such actions as shall be necessary or reasonably  requested  by  the Administrative Agent  to  grant  and/or  perfect  such  Liens  consistent  with  the  applicable requirements of the Security Documents, including actions described in this Section  8.11(d), all at the sole cost and expense of the Borrower within sixty (60) days after the acquisition  of such Material Real Property (or such longer period as the Administrative Agent may agree).   Any Mortgage delivered to the Administrative Agent in accordance with the preceding sentence  shall be accompanied by (A) a policy or policies (or unconditional binding commitment thereof)  of title insurance issued by a nationally recognized title insurance company insuring the Lien of  each Mortgage as a valid Lien (with the priority described therein) on the Mortgaged Property                                         82   

 

   described therein, free of any other Liens except as expressly permitted by Section 9.02, together  with such endorsements as the Administrative Agent may reasonably request and (B) if requested  by the Administrative Agent, an opinion of local counsel to the applicable Credit Party(ies) in form  and substance reasonably satisfactory to the Administrative Agent.  In addition to the obligations  set  forth in Section  8.03(a),  the  Credit  Parties  shall,  in  connection  with  the  grant  to  the  Administrative Agent for the benefit of the Secured Parties of any Mortgage with respect to any  Real Property, (X) provide at least twenty (20) days’ prior written notice to the Administrative  Agent of the contemplated pledge of such Real  Property as Collateral, (Y) the Borrower shall  provide each of the documents and determinations required by the Real Property Flood Insurance  Requirements and (Z) notwithstanding anything to the contrary contained herein or in any other  Credit Document, the Administrative Agent shall not enter into, accept or record (and no Credit  Party  shall  be  required  to  grant)  any  mortgage  in  respect  of  such  Real  Property  until  the  Administrative  Agent  shall  have  received  written  confirmation  (which  shall,  for  purposes  hereunder, include email) from each Lender that flood insurance compliance has been completed  by  such  Lender  with  respect  to  such  Real  Property  (such  written  confirmation  not  to  be  unreasonably withheld or delayed).  Any increase, extension or renewal of this Agreement shall  be subject to flood insurance due diligence and flood insurance compliance reasonably satisfactory  to the Administrative Agent and each Lender.               (e)   Notwithstanding  anything  herein  to  the  contrary,  if  the Administrative  Agent determines that the cost of creating or perfecting any Lien on any property is excessive in  relation  to  the  practical  benefits  afforded  to  the  Lenders  thereby,  then  such  property  may  be  excluded from the Collateral for all purposes of the Credit Documents.               (f)   For the avoidance of doubt, for all purposes under this Section 8.11, the  formation and acquisition of a Person shall be deemed to include any formations and acquisitions  by division; provided that compliance with the requirements of this Section 8.11 shall not cure any  Default or Event of Default for the occurrence of such division.         SECTION 8.12  Bank Accounts.               (a)   Within sixty (60) days after the Closing Date (or such longer period as the  Administrative Agent  may  agree),  the  Borrower  shall  establish  and  deliver  to Administrative  Agent  a  Control  Agreement  with  respect  to  each  of  the  Credit  Parties’  respective securities  accounts,  deposit  accounts  and  investment  property  set forth  on Schedule  7.25 (other than  Excluded Accounts); provided, that, so long as no Event of Default has occurred and is continuing,  the Credit Parties may establish new deposit accounts or securities accounts so long as, no longer  than  thirty  (30)  days  following the  time  such  account  is  established the  Credit  Parties  have  delivered to Administrative Agent a Control Agreement with respect to such account (other than  any Excluded Account).               (b)   If, after the occurrence and during the continuance of an Event of Default,  any of the Credit Parties receive or otherwise have dominion over or control of any Collections or  other amounts,  the Borrower shall hold,  and shall cause each other Credit Party to hold,  such  Collections  and  amounts  in  trust  for  the Administrative Agent, and  shall  not  commingle  such  Collections with any other funds of any Credit Party or other Person or deposit such Collections                                         83   

 

   in any account other than those accounts set forth on Schedule 7.25 (unless otherwise instructed  by the Administrative Agent).          SECTION 8.13  Compliance with Health Care Laws.                 (a)   Without  limiting  or  qualifying  any  other  provision  of  this  Agreement,  Parent will comply, and will cause each other Credit Party, each Subsidiary and each Licensed  Insurance Entity, to comply in all material respects, with all applicable Health Care Laws relating  to the operation of such Person’s business.               (b)   Parent will maintain, and will cause each other Credit Party, each Subsidiary  and each Licensed Insurance Entity, to maintain, all records required to be maintained by any  Governmental Authority or otherwise required under any Health Care Law except where failure  could not reasonably be expected to have a Material Adverse Effect.               (c)   Parent will, and will cause each other Credit Party, each Subsidiary and each  Licensed Insurance Entity, to keep in full force and effect all material Permits required to operate  such the business of Parent each other Credit Party, each Subsidiary, and each Licensed Insurance  Entity under applicable Health Care Laws.               (d)   Parent will maintain, and will cause each other Credit Party, Subsidiary and  Licensed  Insurance Entity,  to  maintain  on  its  behalf,  a  corporate  compliance  program  that  is  reasonably designed to promote compliance with applicable Health Care Laws. Parent will permit  and will cause such other Credit Parties, Subsidiaries and Licensed Insurance Entities to permit,  Administrative Agent and/or any of its outside consultants to review such corporate compliance  program(s) from time to time.      Notwithstanding  anything  to  the  contrary  in  this  Agreement,  no  Credit  Party,  Subsidiary,  or  Licensed  Insurance Entity shall be required to  furnish to  Administrative Agent  or Lender  any  protected health information or any patient related information, to the extent such disclosure to  Administrative Agent or Lender is prohibited by Health Care Laws.         SECTION 8.14  Intellectual Property.               (a)   Each Credit Party will (i) maintain its ownership of all Intellectual Property  owned by such Credit Party, and shall not do any act knowingly or omit to do any act whereby any  owned Intellectual Property may lapse, expire, become abandoned or cancelled, dedicated to the  public, or unenforceable, or which would adversely affect the validity, grant, or enforceability of  the security interest granted hereunder and (ii) take all reasonable steps in the United States Patent  and  Trademark  Office  and  the  United  States  Copyright  Office  and  any  other  applicable  Governmental  Authority  to  pursue  any  application  and  maintain  any  registration  of  each  trademark, patent, and copyright owned by such Credit Party, in each of (i) and (ii) except as could  not reasonably be expected to have, either individually or in the aggregate, a Material Adverse  Effect.               (b)   Each Credit Party will (i) maintain all licenses for third party Intellectual  Property (including commercial software) licensed to such Credit Party and (ii) not violate any  such licenses and not cause any such license to cease to be legal, valid, binding, enforceable and                                        84   

 

   in full force and effect following the Closing Date, except for licenses that expire or are terminated  in accordance with their terms and in the ordinary course of business (other than a termination  resulting from a default or breach by the applicable Credit Party), in each of (i) and (ii), except as  could not reasonably be expected to have a Material Adverse Effect.         SECTION 8.15  Distributable Cash.  At least once in each fiscal year the Credit Parties  shall evaluate (a) whether any Licensed Insurance Entity (or any Person that was previously a  Licensed Insurance Entity) holds any cash or Cash Equivalents that were previously subject to  risk-based capital requirements or other statutory capital reserve requirements under Applicable  Laws or pursuant to the discretion of any Governmental Authority and (b) whether it is reasonably  likely  (in  the  reasonable  business  judgment  of  the  Credit  Parties)  that  the cash  and  Cash  Equivalents described in clause (a) are no longer required to be restricted by such Applicable Laws  or  would  be  released  with  the  consent  of  such  Governmental  Authority,  as  applicable,  (collectively, “Subject Cash”). To the extent that the Credit Parties determine in their reasonable  business judgment during such evaluation period that any Subject Cash is likely to be permitted to  be  distributed  to  the  Credit  Parties,  then  the  Credit  Parties  shall  use  commercially reasonable  efforts to promptly cause such Subject Cash to be so distributed.          SECTION 8.16  Post-Closing.  Notwithstanding anything to the contrary set forth in this  Agreement and the Loan Documents:               (a)   Reorganization.  Within (i) one hundred eighty (180) days following the  Closing Date (or such later date approved by Administrative Agent), in the case of any Licensed  Insurance Entity and (ii) sixty (60) days following the Closing Date (or such later date approved  by Administrative Agent), in the case of any joint venture, the Administrative Agent shall have  received evidence that such Person and any Credit Party’s interest in such Person is wholly-owned  by EH Holding Company, Inc. or such other Holding Company Guarantor, as determined by the  Administrative Agent in its reasonable discretion.               (b)   Stock Certificates.  Within forty-five (45) days following the Closing Date  (or  such  later  date  approved  by  Administrative  Agent),  the  Administrative  Agent  shall  have  received all existing certificates representing securities (if such securities are certificated securities  for purposes of Article 8 of the UCC) pledged under the Security Agreement, accompanied by  instruments of transfer and undated stock powers endorsed in blank.                (c)   Joinder.  Within thirty (30) days after the date hereof (or such later date  approved by Administrative Agent), The Accountable Care Organization Ltd. shall be joined as a  Guarantor and deliver and execute all documents required to be delivered pursuant to Section 8.11  of the Credit Agreement.                 (d)   Endorsements.  Within thirty (30) days after the date hereof (or such later  date approved by Administrative Agent), the Borrower shall deliver to the Administrative Agent,  in  form  and  substance reasonably satisfactory  to  the  Administrative  Agent,  such  insurance  endorsements as required to be delivered pursuant to Section 8.03 of the Credit Agreement.                 (e)   Control Agreements.  Within sixty (60) days after the date hereof (or such  later date approved by Administrative Agent), the Borrower shall deliver to the Administrative                                         85   

 

   Agent all Control Agreements required to be delivered under this Agreement, in each case in a  form and substance reasonably satisfactory to the Administrative Agent and duly executed by the  parties thereto.                                    ARTICLE IX                                                                         Negative Covenants         Each Credit Party hereby covenants and agrees that on the Closing Date and thereafter,  until the Commitments have been terminated and the Loans and all other Obligations incurred  hereunder (other than Unasserted Contingent Obligations) are paid in full in accordance with the  terms of this Agreement:         SECTION 9.01  Limitation on Indebtedness.  No Credit Party shall, and no Credit Party  shall permit any of its Subsidiaries or any Licensed Insurance Entity to, directly or indirectly,  create, incur, issue, assume, guarantee, suffer to exist or otherwise become directly or indirectly  liable, contingently or otherwise with respect to any Indebtedness, except for:               (a)   Indebtedness in respect of the Obligations;               (b)   Indebtedness existing as of the Closing Date (other than the Convertible  Senior Notes) which is identified in Schedule 7.24 and which is not otherwise permitted by this  Section 9.01, and, Permitted Refinancing Indebtedness thereof;               (c)   unsecured Indebtedness (i) incurred in the ordinary course of business of  such Credit Party and its Subsidiaries in respect of open accounts extended by suppliers on normal  trade terms in connection with purchases of goods and services, which are not overdue for a period  of more than ninety (90) days or, if overdue for more than ninety (90) days, as to which a dispute  exists and adequate reserves in conformity with GAAP have been established on the books of such  Credit Party or Subsidiary and (ii) in respect of performance, surety or appeal bonds, bid bonds  and similar obligations provided in the ordinary course of business, but excluding (in each case)  Indebtedness incurred through the borrowing of money or Contingent Liabilities in respect thereof;               (d)   Indebtedness (i) evidencing the deferred purchase price of newly acquired  property  or incurred  to  finance  the  acquisition  of  equipment  of  such  Credit  Party  and  its  Subsidiaries (pursuant to purchase money mortgages or otherwise, whether owed to the seller or a  third  party), provided,  that  such  Indebtedness  is  incurred  within ninety (90)  days  after  such  acquisition of such equipment, and (ii) Capitalized Lease Obligations, and, with respect to each of  clause  (i)  and  (ii),  Permitted  Refinancing  Indebtedness  thereof; provided,  that  the aggregate  amount of all Indebtedness outstanding pursuant to this clause (d) shall not at any time exceed  $2,000,000;               (e)   intercompany Indebtedness permitted pursuant to Section 9.05;                (f)   Contingent Liabilities of the Credit Parties and their Subsidiaries arising in  the ordinary course of business with respect to surety and appeals bonds, bid bonds, performance  bonds and other similar obligations;                                         86   

 

               (g)   Hedging Obligations not prohibited by Section 9.11;                (h)   Indebtedness  incurred  in  the  ordinary  course  of  business  to  finance  insurance policy premiums;               (i)   Indebtedness  incurred  in  the  ordinary  course  of  business  in  respect  of  netting services, overdraft protection, returned items, employee credit card programs and other  similar services in connection with cash management and deposit accounts;                (j)   2021  Convertible  Senior  Notes  and  any  Additional  Notes  exchanged  therefor;                (k)   2025  Convertible  Senior  Notes  and  any  Additional  Notes  exchanged  therefor;                (l)   Additional Notes issued after the Closing Date;                (m)   Letters of credit and reimbursement obligations in respect thereof in favor  of  suppliers,  landlords  and  other  counterparties  at  any  one  time  outstanding  not  to  exceed  $15,000,000 in the aggregate after taking into account any outstanding letters of credit and similar  reimbursement  obligations  scheduled  pursuant  to  Section  9.01(b), and  Permitted  Refinancings  thereof;                (n)   Guarantee Obligations of any Credit Party and its Subsidiaries in respect of  Indebtedness  otherwise  permitted  hereunder or  other  obligations  not  prohibited  hereunder;  provided that if such Indebtedness is subordinated to the Obligations, such Guarantee Obligation  shall be subordinated to the same extent; and                (o)   other  unsecured  Indebtedness  not  to  exceed  $5,000,000 at  any  time  outstanding;                (p)   the Existing Earnouts and the Global Share Backstop;                (q)   Indebtedness of  the  type  set  forth  in  Section  9.01(d) of  a  Person  whose  assets or Capital Stock are acquired by a Credit Party or any of its Subsidiaries in a Permitted  Acquisition so long as (i) such Indebtedness was in existence prior to the date of such acquisition  and was not incurred in connection with, or in contemplation of, such acquisition, (ii) no Credit  Party (other than such Person so acquired in such acquisition or any other Person that such Person  merges with or that acquires the assets of such Person in connection with such acquisition) shall  have any liability or other obligation with respect to such Indebtedness, (iii) if such Indebtedness  is secured, no Lien thereon shall extend to or cover any other assets other than the property or  equipment acquired in such acquisition (other than the proceeds or products thereof, accessions or  additions thereto and improvements thereon) or attach to any other property of any Credit Party  and  (iv)  the  aggregate  outstanding  principal  amount  of  such Indebtedness does  not  exceed  $2,500,000 at any time;                (r)   Indebtedness consisting of promissory notes issued by any Credit Party or  Subsidiary to former employees, officers, former officers, directors, and former directors (or any                                         87   

 

   spouses, ex-spouses, beneficiaries, or estates of any of the foregoing) of any Credit Party or any  Subsidiary  issued  to  purchase  or  redeem Capital Stock  of Parent (“Shareholder  Redemption  Notes”) issued in lieu of Restricted Payments permitted under Section 9.06(k);                (s)   Indebtedness (x) arising  from  the  honoring  by  a  bank  or  other  financial  institution of a check, draft or similar instrument  inadvertently  (except  in  the case of daylight  overdrafts) drawn against insufficient funds in the ordinary course of business, (y) in respect of  netting services, overdraft protection and other similar arrangements in connection with deposit or  securities accounts in the ordinary course of business and (z) incurred in respect of credit cards,  credit card processing services, debit cards, stored value cards, purchase cards (including so-called  “procurement cards” or “P-cards”), or cash management services, in each case, incurred in the  ordinary course of business;                (t)   endorsement of negotiable instruments for deposit in the ordinary course of  business;                (u)   unsecured  contingent  liabilities  arising  with  respect  to  customary  indemnification  provisions  or  deferred  purchase  price adjustments  in  connection  with  any  Investment permitted hereunder or in connection with any asset sale or other dispositions permitted  hereunder;                (v)   Indebtedness  in  respect  of  (x)  workers’  compensation  claims  and  self- insurance  obligations  (in  each  case  other  than  for  or  constituting  an  obligation  for  money  borrowed), including guarantees or obligations of Parent, the Borrower and Restricted Subsidiaries  with  respect  to  letters  of  credit  supporting  such  workers’  compensation  claims  and/or  self- insurance  obligations  and  (y)  bankers’  acceptances,  bank  guarantees,  letters  of  credit  and  bid,  performance, surety bonds or similar instruments issued for the account of Parent, the Borrowers  and their Subsidiaries in the ordinary course of business, including guarantees or obligations of  any such Person with respect to bankers’ acceptances and bid, performance or surety and appeals  obligations;                (w)   to  the  extent  constituting  Indebtedness,  deferred  compensation  to  employees, former employees, officers, former officers, directors, former directors, consultants (or  any spouses, ex-spouses, or estates of any of the foregoing) incurred in the ordinary course of  business  or  in  connection  with  the  Transactions,  Permitted  Acquisitions or  other  Investments  permitted hereunder; and               (x)   unsecured  earn-outs, seller  notes,  deferred  purchase  price  obligations,  holdbacks or similar obligations of any Credit Party, to the extent subordinated to the Obligations  on terms and conditions reasonably satisfactory to the Administrative Agent.         SECTION 9.02  Limitation on Liens.  No Credit Party shall, and no Credit Party shall  permit any of its Subsidiaries or any Licensed Insurance Entity to, directly or indirectly, create,  incur, assume or suffer to exist any Lien upon any property or assets of any kind (real or personal,  tangible or intangible) of any such Person (including its Capital Stock), whether now owned or  hereafter acquired, except for the following (collectively, the “Permitted Liens”):               (a)   Liens securing the Obligations;                                        88   

 

               (b)   Liens  existing  as  of  the  Closing  Date  and  disclosed  in Schedule  9.02  securing Indebtedness permitted under Section 9.01(b) (other than the Convertible Senior Notes)  and any renewals or extensions thereof; provided, that no such Lien shall (1) secure Indebtedness  under any Convertible Senior Notes or (2) encumber any additional property and the principal  amount of Indebtedness secured by such Lien shall not be increased (as such Indebtedness may be  permanently reduced subsequent to the Closing Date), except to the extent permitted by Section  9.01(b);               (c)   Liens  securing  Capitalized  Lease  Liabilities  and  Liens  securing  Indebtedness of the type permitted under Section 9.01(d)(i); provided, that (i) the principal amount  of the Indebtedness secured thereby does not exceed the cost of the applicable property at the time  of such  acquisition,  replacement  or  construction and  any  fees,  costs  and  expenses  incurred  in  connection with the incurrence of such Indebtedness and (ii) such Lien secures only the assets that  are the subject of the Indebtedness referred to in such clause and proceeds thereof;               (d)   Liens  arising  by  operation  of  law  in  favor  of  carriers,  warehousemen,  mechanics, materialmen, suppliers, laborers and landlords and other similar Liens incurred in the  ordinary course of business for amounts not overdue or being diligently contested in good faith by  appropriate proceedings and for which adequate reserves in accordance with GAAP shall have  been established on its books;               (e)   Liens  incurred  or  deposits  made  in  the  ordinary  course  of  business  in  connection with worker’s compensation, unemployment insurance or other forms of governmental  insurance or benefits, or to secure performance of tenders, statutory obligations, bids, leases or  other similar obligations (other than for borrowed money) entered into in the ordinary course of  business or to secure obligations on surety, bid, appeal or performance bonds;               (f)   judgment Liens not constituting an Event of Default under Section 10.01(f);               (g)   easements, rights-of-way, zoning restrictions, minor defects or irregularities  in title and other similar encumbrances not interfering in any material respect with the value or use  of the property to which such Lien is attached and other Liens on any Real Property subject to a  Mortgage that are identified in any title insurance policy issued in favor of the Administrative  Agent;               (h)   Liens for Taxes, assessments or other governmental charges or levies not  yet due and payable or the non-payment of which is permitted by Section 7.10;               (i)   Liens arising in the ordinary course of business by virtue of any contractual,  statutory or common law provision relating to banker’s Liens, rights of set-off or similar rights  and  remedies  covering  deposit  or  securities  accounts  (including  funds  or  other  assets  credited  thereto) or other funds maintained with a depository institution or securities intermediary, so long  as the applicable provisions of Section 8.12 have been complied with, in respect of such deposit  accounts (other than Excluded Accounts);               (j)   Nonexclusive licenses, leases and sublicenses, and subleases granted by any  Credit Party or any Subsidiary of a Credit Party or leases or subleases by any Credit Party or any                                         89   

 

   Subsidiary of a Credit Party, in the ordinary course of its business and covering only the assets so  licensed, sublicensed, leased or subleased;                (k)   Liens that are customary rights of set-off relating to the establishment of  depository relations with banks not given in connection with the issuance of Indebtedness;                (l)   Liens  arising  from  precautionary Uniform  Commercial  Code financing  statements  (or  similar  filings  under other  applicable  law)  regarding  operating  leases  or  consignment or bailee arrangements in the ordinary course of business;                (m)   Cash collateral securing Indebtedness permitted under Section 9.01(m) in  an amount not to exceed one hundred and ten percent (110%) of the amount of such Indebtedness;                (n)   the put and call arrangements and any payment obligations set forth in the  Passport Stockholders Agreement;                (o)   Liens  in  favor  of  the  Borrower  or  any other Credit  Party  securing  intercompany Indebtedness permitted under the Credit Documents so long as any such Liens on  the Collateral are subject to the Intercompany Subordination Agreement;                (p)   statutory and common law landlords’ liens under leases to which Parent or  any of its Subsidiaries is a party;                (q)   Liens  of  counterparties attaching  solely  to  cash  earnest  money  deposits  made by Credit Parties or their Subsidiaries in connection with any letter of intent or purchase  agreement entered into with respect to Permitted Acquisitions or capital expenditures permitted  hereunder; and               (r)   other  Liens  securing  Indebtedness  or  other  obligations  in  an  aggregate  principal  amount  at  the  time  of  incurrence  of  any  such  Indebtedness  or  other  obligations  not  exceeding $2,500,000.          SECTION 9.03  Consolidation, Merger, etc.  No Credit Party shall, and no Credit Party  shall permit any of its Subsidiaries to, liquidate or dissolve, consolidate with, or merge into or  with, any other Person or purchase or otherwise acquire all or substantially all of the assets of any  Person (or any division thereof), except Permitted Acquisitions and other Investments permitted  hereunder, provided, that (a) any Credit Party or Subsidiary of any Credit Party may liquidate or  dissolve voluntarily into, and may merge with and into, the Borrower (so long as the Borrower is  the surviving entity), (b) any Guarantor may liquidate or dissolve voluntarily into, and may merge  with  and into any Credit  Party, (c)  any Subsidiary that is  not a Credit Party may liquidate or  dissolve voluntarily into, and may merge with and into any other Subsidiary, (d) the assets or  Capital Stock of any Credit Party may be purchased or otherwise acquired by any other Credit  Party, (e) the assets or Capital Stock of any Subsidiary that is not a Credit Party may be purchased  or otherwise acquired by the Borrower or any Subsidiary and (f) any Subsidiary of any Credit  Party may file a certificate of division, adopt a plan of division or otherwise take any action to  effectuate a division pursuant to Section 18-217 of the Delaware Limited Liability Company Act  (or any analogous action taken pursuant to Applicable Law with respect to any corporation, limited                                         90   

 

   liability  company,  partnership  or  other  entity), so  long  as  such  surviving  Person  shall  have  complied with the requirements of Section 8.11 within the time periods set forth therein.           SECTION 9.04  Permitted Dispositions.  No Credit Party shall, and no Credit Party shall  permit  any  of  its  Subsidiaries  to,  make  a  Disposition,  or  enter  into  any  agreement  to  make  a  Disposition, of such Credit Party’s or such other Person’s assets (including receivables and Capital  Stock of Subsidiaries) to any Person in one transaction or a series of transactions, unless such  Disposition:               (a)   is in the ordinary course of its business and is of surplus, used, obsolete or  worn-out property or property no longer used or useful in its business;                (b)   is a sale of Inventory in the ordinary course of business;               (c)   is the leasing, subleasing or licensing, as lessor, of real or personal property  no longer used or useful in such Person’s business or otherwise in the ordinary course of business;               (d)   is a sale or disposition of equipment to the extent that such equipment is  exchanged for credit against the purchase price of similar replacement equipment, or the proceeds  of such Dispositions are reasonably promptly applied to the purchase price of similar replacement  equipment, all in the ordinary course of business;               (e)   is otherwise permitted by Section 9.02(j), 9.03, 9.05 (other than 9.05(l)) and  9.06 (other than 9.06(s));               (f)   is a Disposition of property by one Credit Party to another Credit Party;  provided, that no Credit Party shall consummate a Disposition of the Capital Stock of a Licensed  Insurance Entity to another Credit Party, unless such Credit Party is subject to and in compliance  with Section 9.16;                  (g)   is a Disposition of property by a non-Credit Party to a Credit Party if the  purchase price of said property is not higher than its fair market value;                (h)   is a Disposition of property by a non-Credit Party to a non-Credit Party;               (i)   is a Disposition of accounts receivable in connection with the collection or  compromise thereof in the ordinary course of business or consistent with past practice (and not for  financing purposes);                 (j)   is the lapse or abandonment of Intellectual Property that is in the reasonable  judgment  of the Borrower or its  Subsidiaries no longer commercially  desirable to  maintain or  necessary or material for the conduct of the business of the Borrower or its Subsidiaries;                (k)   so  long  as  no  Event  of  Default  has occurred  and  is  continuing,  is  a  Disposition of Lighthouse;                                           91   

 

               (l)   so long as (i) no Event of Default has occurred and is continuing and (ii) the  Credit Parties will be in pro forma compliance with Section 9.13, is a Disposition of (x) True  Health New Mexico, Inc. or (y) Dispositions set forth on Schedule 9.04;                (m)   is a Disposition of cash or Cash Equivalents;                (n)   is  a  Disposition  of assets acquired  in  connection  with  a  Permitted  Acquisition which is made to obtain the approval of an anti-trust authority;                (o)   is a Disposition constituting a taking by condemnation or eminent domain  or transfer in lieu thereof, or a Disposition consisting of or subsequent to a total loss or constructive  total loss of property;                (p)   is the surrender or waiver of contractual rights and settlement or waiver of  contractual or litigation claims;                (q)   is the unwinding of any Hedging Transaction pursuant to its terms;               (r)   is, to  the  extent  required  by  applicable  law and with  respect  to  any  Subsidiary that is a Foreign Subsidiary, the sale or other disposition of a nominal amount of Capital  Stock in  any  Subsidiary  in  order  to  qualify members  of  the  board  of  directors  or  equivalent  governing body of such Subsidiary; or               (s)   so  long  as  no  Event  of  Default  has  occurred  and  is  continuing, is  a  Disposition the purchase price of which is paid with not less than 75% of cash and the seller thereof  receives not less than fair market value for such assets, not to exceed a value of $2,500,000 in the  aggregate for all Credit Parties and their Subsidiaries in any fiscal year;    provided, that, notwithstanding the foregoing, in no event shall any Credit Party, nor shall any  Credit Party permit any of its Subsidiaries to, directly or indirectly, sell or otherwise dispose of  any  Capital  Stock  of  any  of  its  Subsidiaries,  except  (1)  to  qualify  directors  if  required  by  Applicable Law or (2) pursuant to clause (e), (f), (g), (h), (k) or (l) above;    provided, further, that notwithstanding the foregoing, in no event shall any Credit Party, nor shall  any Credit Party permit any of its Subsidiaries to, directly or indirectly, sell or otherwise dispose  of any Intellectual Property, except in accordance with (j) above.          SECTION 9.05  Investments.  No Credit Party shall, and no Credit Party shall permit any  of its Subsidiaries to, purchase, make, incur, assume or permit to exist any Investment in any other  Person, except:               (a)   Investments existing on the Closing Date and identified in Schedule 7.12;               (b)   Investments in cash and Cash Equivalents;               (c)   Investments received in connection with the bankruptcy or reorganization  of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each case  in the ordinary course of business;                                         92   

 

               (d)   Investments by way of contributions to capital or purchases of Capital Stock  (i) outstanding as of the date hereof and (ii) hereafter (x) by any Credit Party in any other Credit  Party and (y) by any Subsidiary that is not a Credit Party in any Subsidiary that is not a Credit  Party;               (e)   Investments constituting (i) receivables arising, (ii) trade debt granted, or  (iii) deposits made in connection with the purchase price of goods or services, in each case, in the  ordinary course of business;               (f)   Investments consisting of any deferred portion of the sales price received  by any Credit Party in connection with any Disposition permitted under Section 9.04;               (g)   Investments consisting of intercompany loans, other extensions of credit or  other Investments (i) outstanding as of the date hereof and (ii) hereafter (x) by a Credit Party to  any other Credit Party, (y) by a Subsidiary that is not a Credit Party to a Credit Party or another  Subsidiary that is not a Credit Party or (z) by a Credit Party to any Subsidiary that is not a Credit  Party or to any Licensed Insurance Entity, in each case so long as at the time of such Investment  pursuant to this clause (z), (x) no Event of Default has occurred and is continuing and (y) either  such  Investment  is  scheduled  on  Schedule  9.05(g)  or  the  amount  of  such  non-scheduled  Investments  shall  not  exceed  $2,500,000  in  the  aggregate  at  any  time; provided,  that,  any  intercompany Indebtedness described above: (1) shall be evidenced by one or more promissory  notes in form and substance reasonably satisfactory to the Administrative Agent, duly executed  and delivered in pledge to the Administrative Agent pursuant to the Security Documents, and shall  not  be  forgiven  or  otherwise  discharged  for  any  consideration  other  than  and  to  the  extent  of  repayment in cash; and (2) shall be subordinated to the Obligations pursuant to the subordination  terms set forth therein;               (h)   Permitted Acquisitions;                (i)   the maintenance of deposit accounts in the ordinary course of business so  long  as  the  applicable provisions of Section 8.12 have been complied  with  in  respect  of such  deposit accounts;                (j)   Investments made by Credit Parties in the form of the Passport Shareholder  Payment (or any other payment obligations under the Passport Shareholders Agreement), to the  extent required by and made pursuant to the Passport Stockholders Agreement and, with respect  to the Passport Shareholder Payment, resulting in Justify Holdings, Inc. becoming 100% owned  by EH Holding Company, Inc.;                (k)   Investments in any Person to the extent such Investment represents the non- cash portion of the consideration received in a Disposition permitted pursuant to Section 9.04(i)  or (m);                (l)   Investments consisting of (i) Indebtedness permitted by Section 9.01 (other  than Section 9.01(e)), (ii) transactions permitted by Section 9.03, (iii) Dispositions permitted by  Section  9.04  (other  than  Section  9.04(e)),  (iv)  Restricted  Payments  permitted  by  Section  9.06  (other than Section 9.06(s)) and (v) transactions permitted under Section 9.09 (other than Section  9.09(b);                                         93   

 

               (m)   the Credit Parties and their Subsidiaries  may (i) extend trade credit in the  ordinary course of business and (ii) acquire and hold accounts receivables owing to any of them if  created or acquired in the ordinary course of business and payable or dischargeable in accordance  with customary terms;                (n)   the Credit Parties and their Subsidiaries may endorse negotiable instruments  held for collection in the ordinary course of business;               (o)   to  the  extent  constituting  Investments,  the Credit Parties  and  their  Subsidiaries may make earnest money deposits made in connection with the acquisition of property  or assets not prohibited hereunder;               (p)   Investments  consisting  of  extensions  of  credit  in  the  nature  of  accounts  receivable  or  notes receivable arising  from  the  grant  of  trade  credit  in  the  ordinary  course  of  business, and Investments received in satisfaction or partial satisfaction thereof in connection with  the  settlement  of  delinquent  accounts  in  the  ordinary  course  of  business  or  from  financially  troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;                (q)   prepaid expenses or lease, utility and other similar deposits, in each case  made in the ordinary course of business;                (r)   promissory notes or other obligations of officers or other employees of such  Credit Party  or  such  Subsidiary  acquired  in  connection  with  such  officers’  or  employees’  acquisition of Capital Stock in such Credit Party or such Subsidiary, so long as no cash is advanced  by the Borrower or any of its Subsidiaries in connection with such Investment;                (s)   Investments of any person that becomes a Subsidiary on or after the Closing  Date; provided that  (i)  such  Investments  exist  at  the  time  such  person  is  acquired,  (ii)  such  Investments are not made in anticipation or contemplation of such person becoming a Subsidiary,  and (iii) such Investments are not directly or indirectly recourse to any Credit Party or any other  Subsidiary or any of their respective assets, other than to the person that becomes a Subsidiary;                (t)   so long as no Default or Event of Default has occurred and is continuing,  Investments funded with equity proceeds of Qualified Capital or consideration paid in respect of  the Capital Stock of Parent and contributed as Qualified Capital Stock to the Borrower;                (u)   the Transactions;                (v)   the Lighthouse Capital Contributions;                (w)   the Somos Capital Contributions; and               (x)   Investments made in any Licensed Insurance Entity and Justify Holdings,  Inc. to be used as statutory capital or for other capital reserves to the extent required by Applicable  Laws or regulations or to the extent required by any Governmental Authority; provided, that, any  Investments described in this clause (x) in an aggregate amount exceeding $2,000,000 at any time  shall be evidenced by one or more promissory notes in form and substance reasonably satisfactory  to the Administrative Agent (it being understood that any provisions required to be included in                                         94   

 

   such note or notes under Applicable Law or as required by any applicable regulator or regulatory  entity shall be satisfactory to the Administrative Agent), duly executed and delivered in pledge to  the  Administrative  Agent  pursuant  to  the  Security  Documents,  and  shall  not  be  forgiven  or  otherwise discharged for any consideration other than and to the extent of repayment in cash;                (y)   loans and other advances to officers, director and employees in an amount  not to exceed $1,000,000 at any time;                (z)   the  put  and  call  arrangements set  forth  in  the  Passport  Stockholders  Agreement;                (aa)  (i) to the extent constituting Investments, cost plus margin arrangements  pursuant  to  the Intercompany  Service  Agreement and  (ii)  Investments  in Evolent  Health  International Private Limited in an amount not to exceed $2,500,000 at any time; and                (bb)  so long as no Event of Default has occurred and is continuing, additional  Investments in an amount not to exceed $5,000,000 at any time.    In addition, to the extent an Investment is permitted to be made by a Subsidiary directly in any  Subsidiary or any other Person who is not a Credit Party (each such person, a “Target Person”)  under any provision of this Section 9.05, such Investment may be made by advance, contribution  or distribution by a Credit Party to a Subsidiary or Parent, which is further contemporaneously  advanced or contributed to a Subsidiary for purposes of making the relevant Investment in the  Target Person without such initial advance, contribution or distribution constituting an Investment  (it  being  understood  that  such  ultimate  Investment  in  the  Target  Person  must  satisfy  the  requirements of, and shall count towards any thresholds in, a provision of this Section 9.05 as if  made by the applicable Subsidiary directly to the Target Person).         SECTION 9.06  Restricted Payments, etc.  No Credit Party shall, and no Credit Party shall  permit  any  of  its Subsidiaries  to,  make  any  Restricted  Payment,  or  make  any  deposit  for  any  Restricted Payment, other than:               (a)   payments by any Subsidiary of the Borrower to the Borrower or its direct  parent (and,  in  the  case  of  a  Restricted  Payment  by  a  non-wholly  owned Subsidiary,  to  the  Borrower and any other Subsidiaries and to each other owner of Capital Stock of such Subsidiary  based on their relative ownership interests of the relevant class of Capital Stock);                (b)   Restricted Payments by any Credit Party or any of its Subsidiaries to pay  dividends with respect to its Capital Stock payable solely in additional shares of its common stock  (other than Disqualified Capital Stock);                (c)   Restricted Payments by any Credit Party or any of its Subsidiaries to Parent  to enable Parent to pay any applicable income or franchise Taxes then due and payable, to the  extent such Taxes are attributable to the activities or income of the Borrower and its Subsidiaries;               (d)   regularly scheduled, nonaccelerated payments with respect to Indebtedness  subordinated to the Obligations (including, without limitation, seller notes and earnout obligations)                                         95   

 

   to  the  extent  expressly  permitted  by the applicable  subordination  agreement  or  such  other  subordination terms with respect thereto;                (e)   the 2021 Convertible Notes Repurchase on the maturity date (as set forth in  the 2021 Convertible Notes);                (f)   redemptions, repurchases, retirements or other acquisitions of Capital Stock   (i) deemed to occur on the exercise of options by the delivery of Capital Stock in satisfaction of  the exercise price of such options or (ii) in consideration of withholding or similar taxes payable  by any future, present or former officer, employee, director, member of management, or consultant  (or their respective estates, executors, administrators, heirs, family members, legatees, distributees,  spouses,  former  spouses,  domestic  partners  and  former  domestic  partners),  including  deemed  repurchases  in  connection  with  the  exercise  of  stock  options; provided,  that,  any Restricted  Payments made pursuant to this clause (f) are not be made in cash;                (g)   conversion of the 2021 Convertible Notes and the 2025 Convertible Notes  into Qualified Capital Stock of Parent in accordance with the terms thereof;                (h)   all mandatory or scheduled payments in respect of the Convertible Senior  Notes;                (i)   payment and/or satisfaction of the (i) Existing Earnouts (whether by way of  cash payments or issuance of Capital Stock of the Parent) and (ii) the Global Share Backstop;                (j)   payments in respect of the Warrants;                (k)   to the extent no Event of Default has occurred and is continuing at the time  of such distribution (both before and after giving effect thereto), any Credit Party and any of its  Subsidiaries  may  make  distributions  in  an  amount  sufficient  to  make payments  (with  cash  or  Shareholder Redemption Notes) on account of the purchase, redemption, or other acquisition or  retirement  of  any  shares  of the  Capital  Stock of  a Credit  Party  or  Subsidiary from  former  employees, officers, or directors of the Credit Parties and their Subsidiaries (or any spouses, ex- spouses, beneficiaries or estates of any of the foregoing) which may be in the form of forgiveness  of Indebtedness,  and Parent may  make  such payments  (with  cash  or  Shareholder  Redemption  Notes) on account of the purchase, redemption, or other acquisition or retirement of any shares of  its  Capital  Stock, and,  in  each  case,  make  distributions  to  satisfy  any  tax  liabilities  arising  in  connection with such transactions; provided that the amount of such distributions and repurchases  (including any such distributions or repurchases in the form of forgiveness of Indebtedness) may  not exceed the sum of (x) $1,000,000 in any fiscal year plus (y) the amount of the cash proceeds  of any permitted issuance of Qualified Capital Stock received by the Parent or Borrower for the  purpose of making such payments and used solely for such purpose plus (z) key man life insurance  proceeds received by the Parent, Borrower or any of their Subsidiaries during such fiscal year;                (l)   the put and call arrangements and any payment obligations set forth in the  Passport Stockholders Agreement;                (m)   the  making  of  any  Restricted  Payment  within  60  days  after  the  date  of  declaration thereof, if at the date of such declaration such Restricted Payment would have complied                                        96   

 

   with another provision of this Section 9.06; provided that the making of such Restricted Payment  will reduce capacity for Restricted Payments pursuant to such other provision when so made;                (n)   to  the  extent  constituting  Restricted  Payments,  the  consummation  of  the  Transactions;                (o)   (i) the redemption, repurchase, retirement or other acquisition of any Capital  Stock (“Retired  Capital  Stock”)  of Parent in  exchange  for,  or  out  of  the  proceeds  of,  the  substantially concurrent sale of, Capital Stock of Parent or contributions to the equity capital of  Parent (other than any Disqualified Capital Stock) (collectively, including any such contributions,  “Refunding  Capital  Stock”)  and  (ii)  the  declaration  and  payment  of  dividends  on  the  Retired  Capital Stock out of the proceeds of the substantially concurrent sale of Refunding Capital Stock;               (p)   the Parent and its  Subsidiaries may make any payments  required by the  terms of the TRA;                (q)   the Parent or  any of  the  Subsidiaries  may  pay  cash  in  lieu  of  fractional  Capital  Stock in  connection  with  any  dividend,  split  or  combination  thereof,  any  Permitted  Acquisition  or  any  exercise  of  warrants,  options  or  other  securities  convertible  into  or  exchangeable for Capital Stock;                (r)   to the extent no Event of Default has occurred or is continuing and to the  extent not prohibited by the applicable subordination provisions applicable thereto, the Parent and  its Subsidiaries may pay earn-outs, seller notes, deferred purchase price obligations, holdbacks or  similar obligations that were incurred pursuant to Section 9.01(x); and               (s)   to  the  extent  constituting  Restricted  Payments,  the  Borrower  and  its  Subsidiaries may enter into and consummate transactions permitted by Section 9.04 (other than  Section 9.04(e)) and Section 9.05 (other than Section 9.05(l)).    To the extent that the Parent or its Subsidiaries are permitted to make any Restricted Payments  pursuant to this Section 9.06, the same may be made as a loan or advance to the recipient thereof,  and in such case the amount of such loan or advance so made shall reduce the amount of Restricted  Payments that may be made by the Parent or its Subsidiaries in respect thereof.         SECTION 9.07  Modification  of  Certain  Agreements.  No  Credit  Party  shall,  and  no  Credit Party shall permit any of its Subsidiaries to, consent to any amendment, supplement, waiver  or other modification of, or enter into any forbearance from exercising any rights with respect to  the terms or provisions contained in (a) any of the Organization Documents if such amendment,  modification or change would (i) require any mandatory redemption date of any Capital Stock, (ii)  require any cash dividends or other payments in cash to be made earlier than the Maturity Date,  (iii) in the case of a Credit Party, modify any name, jurisdiction of organization, organizational  identification number or federal identification number unless at least five (5) Business Days prior  written notice shall be given to the Administrative Agent (or such shorter period of time reasonably  agreed to by the Administrative Agent) or (iv) otherwise be materially adverse to the interests of  the Administrative Agent or the Lenders in any respect, (b) any document, agreement or instrument  evidencing  or  governing  any  Indebtedness  that  has  been contractually subordinated  to  the  Obligations in right of payment or any Liens that have been contractually subordinated in priority                                        97   

 

   to the Liens of the Administrative Agent, unless such amendment, supplement, waiver or other  modification is permitted under the terms of the subordination agreement applicable thereto or (c)  any Material Contract, except to the extent that such amendment, modification or change could  not,  individually  or  in  the  aggregate,  reasonably  be  expected  to  be  materially  adverse  to  the  interests of the Lender.         SECTION 9.08  Sale and Leaseback.  No Credit Party shall, and no Credit Party shall  permit any of its Subsidiaries to, directly or indirectly, enter into any agreement or arrangement  providing for the sale or transfer by it of any property (now owned or hereafter acquired) to a  Person and the subsequent lease or rental of such property or other similar property from such  Person.         SECTION 9.09  Transactions with Affiliates.  No Credit Party shall, and no Credit Party  shall permit any of its Subsidiaries to, enter into or cause or permit to exist any arrangement,  transaction or contract (including for the purchase, lease or exchange of property or the rendering  of services) with any Affiliate except (a) on fair and reasonable terms no less favorable to such  Credit Party or such Subsidiary than it could obtain in an arm’s-length transaction with a Person  that is not an Affiliate, (b) any transaction expressly permitted under Section 9.03, Section 9.05(d),  Section 9.05(g), Section 9.05(j), Section 9.05(r), Section 9.05(v), Section 9.05(w), Section 9.05(y)  or Section 9.06, (c) customary fees to, and indemnifications of, directors, officers, consultants and  employees of the Credit Parties and their respective Subsidiaries, (d) the payment of reasonable  and  customary  compensation  and  indemnification  arrangements  and  benefit  plans  (including,  without limitation, health, disability and insurance plans) for officers and employees of the Credit  Parties  and  their  respective  Subsidiaries  in  the  ordinary  course  of  business,  (e)  arrangements,  transactions and contracts consented to by the Administrative Agent, (f) employment agreements  and severance arrangements entered into by a Credit Party or any of the Subsidiaries in the ordinary  course of business, (g) capital contributions by Parent or any of its Subsidiaries to any Subsidiary,  to the extent otherwise permitted hereunder, (h) payments of loans (or cancellations of loans) to  employees that are (A) approved by a majority of the board of directors (or other governing body)  of  Borrower  in  good  faith,  (B)  made  in  compliance  with  applicable  law,  and  (C)  otherwise  permitted  under  this  Agreement,  (i)  arrangements,  transactions  or  contracts  among  the  Credit  Parties, their Subsidiaries, (j) the Transactions and performance of the Credit Parties and their  Subsidiaries of their obligations under the Passport Health Acquisition Agreement, (k) the non- exclusive licensing of patents, trademarks, software, know-how, copyrights or other intellectual  property  rights  in  the  ordinary  course  of  business  to  permit  the  commercial  exploitation  of  intellectual property rights, (l) payments to or from, and transactions with, joint ventures, in the  ordinary course of business, in each case to the extent otherwise permitted under Section 9.05 and  (m) arrangements, transactions or contracts set forth on Schedule 9.09.         SECTION 9.10  Restrictive Agreements, etc.  No Credit Party shall, and no Credit Party  shall  permit  any  of  its  Subsidiaries  to,  enter  into  any  agreement  (other  than  a Transaction  Document) prohibiting:               (a)   the  creation  or  assumption by  any  Credit  Party of  any  Lien  upon  its  properties, revenues or assets, whether now owned or hereafter acquired;                                          98   

 

               (b)   the  ability  of  such  Person  to  amend  or  otherwise  modify  any Credit  Document; or               (c)   the ability of such Person to make any dividends, directly or indirectly, to  the Credit Parties.   The foregoing prohibitions shall not apply to (i) customary restrictions of the type described in  clause (a) above (which do not prohibit the Credit Parties from complying with or performing the  terms of this Agreement and the other Credit Documents) which are contained in any agreement,  (A)  governing  any  Indebtedness  permitted  by Section  9.01(d) as  to  assets  financed  with  the  proceeds of such Indebtedness, (B) for the creation or assumption of any Lien on the sublet or  assignment of any leasehold interest of any Credit Party or any of its Subsidiaries entered into in  the ordinary course of business, (C) for the assignment of any contract entered into by any Credit  Party or any of its Subsidiaries in the ordinary course of business or (D) for the transfer of any  asset pending the close of the sale of such asset pursuant to a Disposition permitted under this  Agreement,  (ii)  the  agreements  listed  on  Schedule  9.10,  (iii)  agreements  in  relation  to  the  obligations set forth in Section 9.01(q) and (iv) any subordination agreement entered into by the  Administrative Agent and any applicable counterparty as required hereunder;         SECTION 9.11  Hedging Transactions.  No Credit Party shall, and no Credit Party shall  permit  any  of  its  Subsidiaries  to,  enter  into  any  Hedging Transaction, except  (a) Hedging  Transactions entered into to hedge or mitigate risks to which such Credit Party or such Subsidiary  has actual exposure (other than those in respect of Capital Stock) and (b) Hedging Transactions  entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating  rate, from one floating rate to  another  floating rate or otherwise) with  respect  to  any interest- bearing liability or investment of such Credit Party or such Subsidiary.         SECTION 9.12  Changes in Business.  No Credit Party shall, and no Credit Party shall  permit any of its Subsidiaries to engage in any business other than the businesses the Credit Parties  and their Subsidiaries are engaged in as of the date hereof and other businesses that are reasonably  related, ancillary or incidental thereto or reasonable extensions thereof.         SECTION 9.13  Financial Performance Covenant.  The Credit Parties will not permit:               (a)   Minimum Net Revenue.  (i) Net Revenue on a consolidated basis to be less  than $850,000,000 for the twelve (12) month period to be tested for the fiscal quarter ending March  31, 2020, (ii) Net Revenue on a consolidated basis to be less than $800,000,000 for each twelve  (12) month period to be tested for the fiscal quarters ending June 30, 2020, September 30, 2020  and December 31, 2020 and (iii) thereafter, Net Revenue on a consolidated basis to be less than  $750,000,000 for each twelve (12) month period to be tested quarterly commencing with the fiscal  quarter ending March 31, 2021 through and including the fiscal quarter ending December 31, 2021;  provided,  that,  to  the  extent True  Health  New  Mexico,  Inc. is  sold,  transferred  or  otherwise  disposed of for Net Proceeds of $12,500,000 or more during any such fiscal quarter pursuant to a  transaction permitted hereunder, then the minimum Net Revenue required by this Section 9.13(a)  shall thereafter  be  reduced  by  an  amount  equal  to  the lesser  of  (x)  $150,000,000 and  (y) Net  Revenue contributed by True Health New Mexico, Inc. for the twelve (12) month period ended as                                         99   

 

   of  last  fiscal  quarter  for  which  such  Net Revenue  was  calculated  immediately  prior  to  the  consummation of such sale, transfer or disposition.                (b)   Minimum Liquidity.  Liquidity to be less than the amount set forth below  opposite such relevant measurement period:                   Measurement Period                       Liquidity         January 1, 2020-March 31, 2020      $20,000,000  (or,  to  the  extent  one  or  more                                            draws  on  the  DDTL  Facility  has  occurred,                                            $40,000,000)          April 1, 2020- December 31, 2020    $25,000,0000 (or, to the extent one or more                                            draws  on  the  DDTL  Facility  has  occurred,                                            $40,000,000)         Each date thereafter                $40,000,000                        (c)   Total Secured Leverage Ratio.  The Total Secured Leverage Ratio, as of the  last day of each fiscal quarter set forth in the chart below (provided for the Test Periods ending  March 31, 2021, June 30, 2021 and September 30, 2021, Total Secured Leverage Ratio shall mean:   (i) for the Test Period ending March 31, 2021, the ratio of (x) Consolidated Secured Debt as of  March 31, 2021, to (y) Consolidated Adjusted EBITDA for the three month period ending March  31,  2021, multiplied by 4;  (ii)  for  the  Test  Period  ending  June  30,  2021,  the  ratio  of  (x)  Consolidated Secured Debt as of June 30, 2021, to (y) Consolidated Adjusted EBITDA for the six  (6)-month  period  ending  June  30,  2021, multiplied by 2;  and  (iii)  for  the  Test  Period  ending  September 30, 2021, the ratio of (x) Consolidated Secured Debt as of September 30, 2021, to (y)  Consolidated  Adjusted  EBITDA  for  the nine  (9)-month  period  ending  September  30,  2021,  multiplied by 4/3), to be greater than the ratio set forth below opposite such measurement date:      Test Period                             Total Secured Leverage Ratio      4 Quarters ending March 31, 2021       5.50:1.00      4 Quarters ending June 30, 2021        5.50:1.00      4 Quarters ending September 30, 2021   5.50:1.00      4 Quarters ending December 31, 2021    5.50:1.00      4 Quarters ending March 31, 2022 and ending 4.50:1.00     each fiscal quarter thereafter                                                        100   

 

         SECTION 9.14  Disqualified Capital Stock.  No Credit Party shall, and no Credit Party  shall permit any of its Subsidiaries to, issue any Disqualified Capital Stock.         SECTION 9.15  [Reserved].         SECTION 9.16  Holdings Covenant.                 (a)   Parent.                     (i)   Parent shall not own or acquire any assets (other than Capital Stock,  cash and Cash Equivalents) or engage in any business or activity other than (i) the ownership of  Capital Stock, and activities and assets incidental thereto, (ii) the maintenance of its corporate  existence  and  activities  incidental  thereto  and  to  its  existence  as  a  public  company,  including  general and corporate overhead and the ability to incur fees, costs and expenses relating to such  maintenance,  (iii)  activities  required  to  comply  with  Applicable  Laws,  (iv)  maintenance  and  administration of stock option and stock ownership plans and activities incidental thereto, (v) the  receipt of Restricted Payments to the extent permitted by Section 9.06, (vi) concurrently with any  issuance of Capital Stock, the redemption, purchase or retirement of any Capital Stock of Parent  using the proceeds of, or conversion or exchange of any Capital Stock of, Parent for, such Capital  Stock,  (viii)  the  obtainment  of,  and  the  payment  of  any  fees  and  expenses  for,  management,  consulting, investment banking and advisory services to the extent otherwise permitted by this  Agreement, (ix) compliance with its obligations under the Credit Documents or any Indebtedness  or guarantees permitted under Section 9.16(a)(ii), (x) activities necessary or reasonably advisable  for  or  incidental  to  the  registration  and  listing  of  Parent’s  common  stock  and  the  continued  existence of Parent as a public company, (xi) any public offering of its common stock or any other  issuance of its Capital Stock (including Qualified Capital Stock) (xii) the execution, delivery and  performance of contracts in the ordinary course of business and consistent with past practice, (xiii)  any transaction that Parent is expressly permitted to enter into or consummate under this Article  IX, (xiv) providing indemnification and contribution to directors, officers, employees, members  of management, and consultants, (xv) activities incidental to any of the foregoing activities.                     (ii)  Parent  shall  not create,  incur,  assume  or  permit  to  exist  any  Indebtedness  except  (i)  Indebtedness  created  under  the  Credit  Documents  (or  any  Permitted  Refinancing  thereof),  (ii)  other  unsecured  Indebtedness  permitted  under  Section  9.01,  (iii)  unsecured Guarantee Obligations of obligations of Borrower and its Subsidiaries to the extent not  prohibited herein and (iv) liabilities imposed by law, including Tax liabilities, and other liabilities  incidental to its existence and permitted business and activities.                     (iii) Parent shall not create, incur, assume or permit to exist any Lien  (other than Liens permitted by Sections 9.02(a), (f) and (h) or other non-consensual Permitted  Liens arising by operation of applicable law) on any of the Voting Stock issued by the Borrower  to Parent.               (b)   EH Holding Company, Inc.                     (i)   EH  Holding  Company,  Inc.  shall  not  own  or  acquire  any  assets  (other than Capital Stock, cash and Cash Equivalents) or engage in any business or activity other  than  (i)  the  ownership  of  Capital  Stock,  and  activities  and  assets  incidental  thereto,  (ii)  the                                       101   

 

   maintenance  of  its  corporate  existence  and  activities  incidental  thereto,  including  general  and  corporate overhead, (iii) activities required to comply with Applicable Laws, (iv) maintenance and  administration of stock option and stock ownership plans and activities incidental thereto, (v) the  receipt of Restricted Payments to the extent permitted by Section 9.06, (vi) concurrently with any  issuance of Capital Stock, the redemption, purchase or retirement of any Capital Stock of Parent  using the proceeds of, or conversion or exchange of any Capital Stock of, EH Holding Company,  Inc. for, such Capital Stock, (viii) the obtainment of, and the payment of any fees and expenses  for, management, consulting, investment banking and advisory services to the extent otherwise  permitted by this Agreement, (ix) compliance with its obligations under the Credit Documents or  any Indebtedness or guarantees permitted under Section 9.16(b)(ii), (x) any transaction that EH  Holding Company, Inc. is expressly permitted to enter into or consummate under this Article IX  and (xi) activities incidental to any of the foregoing activities.                     (ii)  EH Holding Company, Inc. shall not create, incur, assume or permit  to exist any Indebtedness except  (i) Indebtedness created under the Credit Documents (or any  Permitted Refinancing thereof) and (ii) liabilities imposed by law, including Tax liabilities, and  other liabilities incidental to its existence.                     (iii) EH Holding Company, Inc. shall not create, incur, assume or permit  to exist any Lien  on any Capital Stock of any Subsidiary or joint venture of EH Holding Company,  Inc. to EH Holding Company, Inc.               (c)   Holding Company Guarantor.                       (i)   No Holding  Company Guarantor shall own or  acquire any assets  (other than Capital Stock, cash and Cash Equivalents) or engage in any business or activity other  than  (i)  the  ownership  of  Capital  Stock,  and  activities  and  assets  incidental  thereto,  (ii)  the  maintenance  of  its  corporate  existence  and  activities  incidental  thereto,  including  general  and  corporate overhead, (iii) activities required to comply with Applicable Laws, (iv) maintenance and  administration of stock option and stock ownership plans and activities incidental thereto, (v) the  receipt of Restricted Payments to the extent permitted by Section 9.06, (vi) concurrently with any  issuance of Capital Stock, the redemption, purchase or retirement of any Capital Stock of Parent  using the proceeds of, or conversion or exchange of any Capital Stock of, such Holding Company  Guarantor  for,  such  Capital  Stock, (viii)  the  obtainment  of,  and  the  payment  of  any  fees  and  expenses for, management, consulting, investment banking and advisory services to the extent  otherwise  permitted  by  this  Agreement,  (ix)  compliance  with  its  obligations  under  the  Credit  Documents  or any  Indebtedness  or guarantees  permitted  under  Section  9.16(c)(ii),  (x)  any  transaction that Holding Company Guarantor is expressly permitted to enter into or consummate  under this Article IX and (xi) activities incidental to any of the foregoing activities.                     (ii)  No  Holding  Company  Guarantor  shall create,  incur,  assume  or  permit to exist any Indebtedness except (i) Indebtedness created under the Credit Documents (or  any Permitted Refinancing thereof) and (ii) liabilities imposed by law, including Tax liabilities,  and other liabilities incidental to its existence.                                         102   

 

                     (iii) No  Holding  Company  Guarantor  shall create,  incur,  assume  or  permit to exist any Lien  on any Capital Stock of any Subsidiary or joint venture of such Holding  Company Guarantor to such Holding Company Guarantor.                                    ARTICLE X                                                                          Events of Default         SECTION 10.01 Listing  of  Events  of  Default.   Each  of  the  following  events  or  occurrences described in this Section 10.01 shall constitute an “Event of Default”:               (a)   Nonpayment of Obligations.  The Borrower shall default in the payment of:                     (i)   any principal of any Loan when such amount is due; or                     (ii)  any interest on any Loan when such amount is due and such default  shall continue unremedied for a period of five (5) Business Days after such amount is due; or                     (iii) any fee described in Article IV or any other monetary Obligation  under the Credit Documents when such amount is due and such default shall continue unremedied  for a period of five (5) Business Days after such amount is due.               (b)   Breach of Warranty.  Any representation or warranty of any Credit Party  made or deemed to be made in any Credit Document (including any certificates delivered pursuant  to Article VI) which, by its terms, is subject to a materiality qualifier, is or shall be incorrect in  any respect when made or deemed to have been made or any other representation or warranty of  any Credit Party made or deemed to be made in any Credit Document (including any certificates  delivered pursuant to Article VI) is or shall be incorrect in any material respect when made or  deemed to have been made.               (c)   Non-Performance of Certain Covenants and Obligations.  Any Credit Party  shall  default  in  the  due performance  or  observance  of  any  of  its  obligations  under  (i) Section  8.01(a) through (d), Section 8.01(f), Section 8.03, Section 8.05(a)(i) (solely with respect to the  existence of the Parent and the Borrower), Section 8.10, Section 8.11(b), Section 8.11(c), Section  8.12, Section 8.15, Section 8.16 or Article IX and (ii) Section 8.01(e) and such default under this  subclause (ii) shall continue unremedied for a period of five (5) Business Days after the earlier of  (x) any officer of any Credit Party shall first have actual knowledge thereof or (y) any Credit Party  receives written notice from the Administrative Agent or the Required Lenders in respect thereof.               (d)   Non-Performance of Other Covenants and Obligations.  Any Credit Party  shall default in the due performance and observance of any covenant obligation contained in any  Credit Document executed by it (other than as specified in Section 10.01(a), Section 10.01(b) or  Section 10.01(c)), and such default shall continue unremedied for a period of thirty (30) Business  Days after the earlier of (i) any officer of any Credit Party shall first have actual knowledge thereof  or (ii) any Credit Party receives written notice from the Administrative Agent or the Required  Lenders in respect thereof.                                         103   

 

               (e)   Default on Other Indebtedness.  (i) A default shall occur in the payment of  any  amount  when  due  (subject  to  any  applicable  grace  period  or  cure  period),  whether  by  acceleration  or  otherwise,  of  any  principal  or  stated  amount  of,  or  interest  or  fees  on,  any  Indebtedness (other than the Obligations) of any Credit Party, or Subsidiary of any Credit Party  having a principal or stated amount, individually or in the aggregate, in excess of $15,000,000, or  a default shall occur in the performance or observance of any obligation or condition with respect  to  any  such  Indebtedness  if  the  effect  of  such  default  is  to  accelerate  the  maturity  of  such  Indebtedness or to permit the holder or holders of such Indebtedness, or any trustee or agent for  such holders, to cause or declare such Indebtedness to become immediately due and payable or  (iii) an “Event of Default” (as defined in the Convertible Senior Notes) shall have occurred and be  continuing under the Convertible Senior Notes if the effect of such Event of Default is to permit  the holder or holders of such Indebtedness, or any trustee or agent for such holders, to cause or  declare such Indebtedness to become immediately due and payable or if, as a result of such Event  of Default thereunder, the maturity of any Notes  (as  defined in  the Convertible Senior Notes)  thereunder has been accelerated, the Commitments (as defined therein) shall have been terminated  or the noteholders otherwise shall cause such Notes to become due and payable (or require the  conversion  of  such  Convertible  Senior  Notes)  in  its  entirety  prior  to  its  expressed  maturity;  provided that clauses  (i) and (ii) shall not  apply  to  (x)  Indebtedness  which is  convertible into  Capital Stock and converts to Capital Stock in accordance with its terms and such conversion is  not prohibited hereunder or (y) any breach or default that is waived (including in the form of  amendment or forbearance) by the required holders of the applicable item of Indebtedness, in either  case, prior to the acceleration of Loans pursuant to Section 10.02.               (f)   Judgments.  Any final judgment  or  order  for  the  payment  of  money  individually or in the aggregate in excess of $15,000,000 (exclusive of any amounts fully covered  by insurance (less any applicable deductible) and as to which the insurer has been notified of the  claim  and has not  disputed coverage) shall be rendered against any Credit Party or any of its  Subsidiaries and such judgment shall not have been satisfied, vacated or discharged or stayed or  bonded pending appeal within sixty (60) days after the entry thereof or enforcement proceedings  shall have been commenced by any creditor upon such judgment or order.               (g)   Plans.  An ERISA Event occurs that has resulted or could reasonably be  expected to result in a Material Adverse Effect.               (h)   Bankruptcy,  Insolvency,  etc.   Any  Credit  Party or  any  of  its Significant  Subsidiaries shall:                     (i)   become insolvent  or generally fail to  pay, or admit  in  writing  its  inability or unwillingness generally to pay, its debts as they become due;                     (ii)  apply for, consent to, or acquiesce in the appointment of a trustee,  receiver, sequestrator or other custodian for any substantial part of the assets or other property of  any such Person, or make a general assignment for the benefit of creditors;                     (iii) in the absence of such application, consent or acquiesce to or permit  or  suffer  to  exist,  the  appointment  of  a  trustee,  receiver,  sequestrator  or  other  custodian  for  a  substantial part of the property of any thereof, and such trustee, receiver, sequestrator or other                                        104   

 

   custodian shall not be discharged within sixty (60) days; provided, that each Credit Party hereby  expressly authorizes each Secured Party to appear in any court conducting any relevant proceeding  during such sixty (60)-day period to preserve, protect and defend their rights under the Credit  Documents;                      (iv)  permit  or  suffer  to  exist  the  commencement  of  any  bankruptcy,  reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency  law or any dissolution, winding up or liquidation proceeding, in respect thereof, and, if any such  case or proceeding is not commenced by such Person, such case or proceeding shall be consented  to or acquiesced in by such Person, or shall result in the entry of an order for relief or shall remain  for sixty (60) days undismissed; provided, that each Credit Party hereby expressly authorizes each  Secured Party to appear in any court conducting any such case or proceeding during such 60-day  period to preserve, protect and defend their rights under the Credit Documents; or                     (v)   take  any  action  authorizing,  or in  furtherance  of,  any  of  the  foregoing.               (i)   Impairment of Security, etc.  Any Credit Document or any Lien granted  thereunder with respect to any material portion of the Collateral (except in accordance with its  terms), in whole or in part, terminate, cease to be effective or cease to be the legally valid, binding  and enforceable obligation of any Credit Party thereto, or any Credit Party or any other Person  shall contest in writing such effectiveness, validity, binding nature or enforceability; or, except as  permitted under any Credit Document, any Lien on any material portion of the Collateral shall  cease to be a perfected Lien (other than as a result of the Administrative Agent’s failure to take  any action within its control).               (j)   Change of Control.  Any Change of Control shall occur.               (k)   Subordination.  The  subordination  provisions  of  any  subordination  agreement or any subordination provisions governing any subordinated Indebtedness shall for any  reason be revoked or invalidated, or otherwise cease to be in full force and effect, or any Credit  Party or any Affiliate of a Credit Party shall contest in writing the validity or enforceability thereof  or deny in writing that it has any further liability or obligation thereunder, or the Obligations, for  any reason shall not have the priority contemplated by such subordination provisions (other than  as a result of the Administrative Agent’s failure to take any action within its control).         SECTION 10.02 Remedies Upon Event of Default.  If any Event of Default shall occur  for any reason, whether voluntary or involuntary, and be continuing, the Administrative Agent  may,  and  upon  the  direction  of  the  Required  Lenders  shall,  by  notice  to  the  Borrower  (a)  permanently reduce the Commitment in whole or in part or (b) declare all or any portion of the  outstanding principal amount of the Loans and other Obligations to be due and payable and the  Commitments (if not theretofore terminated) to be terminated, whereupon the full unpaid amount  of such Loans and other Obligations which shall be so declared due and payable shall be and  become immediately due and payable, without further notice, demand or presentment, and the  Commitments shall terminate.  The Lenders and the Administrative Agent shall have all other  rights and remedies available at law or in equity or pursuant to any Credit Documents.                                        105   

 

                                    ARTICLE XI                                                                      The Administrative Agent         SECTION 11.01 Appointment. Each Lender (and, if applicable, each other Secured Party)  hereby appoints Ares as its Administrative Agent under and for purposes of each Credit Document  and hereby authorizes the Administrative Agent to act on behalf of such Lender (or, if applicable,  each  other  Secured  Party)  under  each  Credit  Document  and,  in  the  absence  of  other  written  instructions from the Lenders, pursuant to the terms of the Credit Documents received from time  to time by the Administrative Agent, to exercise such powers hereunder and thereunder as are  specifically delegated to or required of the Administrative Agent by the terms hereof and thereof,  together with such powers as may be incidental thereto.  Each Lender (and, if applicable, each  other Secured Party) hereby irrevocably designates and appoints the Administrative Agent as the  agent of such Lender.  Notwithstanding any provision to the contrary elsewhere in this Agreement,  the Administrative Agent shall not have any duties or responsibilities, except those expressly set  forth herein, or any fiduciary relationship with any Lender or other Secured Party, and no implied  covenants,  functions,  responsibilities,  duties,  obligations  or  liabilities  shall  be  read  into  this  Agreement or any other Credit Document or otherwise exist against the Administrative Agent.         SECTION 11.02 Delegation of Duties.  The Administrative Agent may execute any of its  duties  under  this  Agreement  and  the  other  Credit  Documents  by  or  through  agents  or  attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such  duties.  The Administrative Agent shall not be responsible for the negligence or misconduct of any  agents or attorneys-in-fact selected by it with reasonable care.         SECTION 11.03 Exculpatory Provisions.  Neither the Administrative Agent nor any of its  respective officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be (a) liable  for any action lawfully taken or omitted to be taken by it or such Person under or in connection  with this Agreement or any other Credit Document (except to the extent that any of the foregoing  are  found  by  a  final  and  nonappealable decision  of  a  court  of  competent  jurisdiction  to  have  resulted from its or such Person’s own gross negligence or willful misconduct) or (b) responsible  in  any  manner  to  any  of  the  Lenders  or  any  other  Secured  Party  for  any  recitals,  statements,  representations or warranties made by any Credit Party or any officer thereof contained in this  Agreement or any other Credit Document or in any certificate, report, statement or other document  referred to or provided for in, or received by the Administrative Agent under or in connection with,  this Agreement or any other Credit Document or for the value, validity, effectiveness, genuineness,  enforceability or sufficiency of this Agreement or any other Credit Document or for any failure of  any  Credit  Party  or  other  Person  to  perform  its  obligations  hereunder  or  thereunder.  The  Administrative Agent shall not be required to take any action that, in its opinion or the opinion of  its  counsel,  may expose the Administrative Agent  to  liability  or that is contrary to  any Credit  Document  or  applicable  law,  including  for  the  avoidance  of  doubt  any action  that  may  be  in  violation of the automatic stay under any bankruptcy or insolvency law or other similar law or that  may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation  of any bankruptcy or insolvency law or other similar law.  The Administrative Agent shall not be  under any obligation to any Lender to ascertain or to inquire as to the observance or performance  of  any  of  the  agreements  contained  in,  or  conditions  of,  this  Agreement  or  any  other  Credit  Document, or to inspect the properties, books or records of any Credit Party.                                        106   

 

         SECTION 11.04 Reliance by Administrative Agent.  The Administrative Agent shall be  entitled to rely, and shall be fully protected in relying, upon any instrument, writing, resolution,  notice, consent, certificate, affidavit, letter, electronic mail, statement, order or other document or  conversation believed by it to be genuine and correct and to have been signed, sent or made by the  proper Person or Persons and upon advice and statements of legal counsel (including counsel to  the  Credit  Parties),  independent  accountants  and  other  experts  selected  by the  Administrative  Agent.  The Administrative Agent may deem and treat the payee of any note as the owner thereof  for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have  been filed with the Administrative Agent.  The Administrative Agent shall be fully justified in  failing or refusing to take any action under this Agreement or any other Credit Document unless it  shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this  Agreement, all or other requisite Lenders) as it deems appropriate or it shall first be indemnified  to its satisfaction by the Lenders against any and all liability and expense that may be incurred by  it by reason of taking or continuing to take any such action.  The Administrative Agent shall in all  cases be fully protected in acting, or in refraining from acting, under this Agreement and the other  Credit Documents in accordance with a request of the Required Lenders (or, if so specified by this  Agreement, all Lenders), and such request and any action taken or failure to act pursuant thereto  shall be binding upon all the Lenders and all future holders of the Loans and all other Secured  Parties.         SECTION 11.05 Notice of Default.  The Administrative Agent shall not be deemed to  have knowledge or notice of the occurrence of any Default or Event of Default hereunder, except  with  respect  to  any Default or Event  of Default in  the payment of principal, interest  and  fees  required  to  be  paid  to  the  Administrative  Agent  for  the  account  of  the  Lenders  unless the  Administrative  Agent  has  received  notice  from  a  Lender  or  the  Borrower  referring  to  this  Agreement, describing such Default or Event of Default and stating that such notice is a “notice  of default.”  In the event that the Administrative Agent receives such a notice, the Administrative  Agent shall give notice thereof to the Lenders.  The Administrative Agent shall take such action  with respect to such Default or Event of Default as shall be reasonably directed by the Required  Lenders  (or,  if  so  specified  by  this  Agreement,  all  Lenders  or  any  other  instructing  group  of  Lenders specified by this Agreement); provided, that unless and until the Administrative Agent  shall have received such directions, the Administrative Agent may (but shall not be obligated to)  take such  action, or refrain  from  taking such action, with  respect  to  such Default or Event of  Default  as the  Administrative Agent  shall  deem  advisable  in  the  best  interests  of  the  Secured  Parties.         SECTION 11.06 Nonreliance on Administrative Agent and Other Lenders.  Each Lender  (and,  if  applicable,  each  other  Secured Party)  expressly  acknowledges  that  neither  the  Administrative  Agent nor  any  of its respective  officers,  directors,  employees,  agents,  attorneys-in-fact or Affiliates have made any representations or warranties to it and that no act by  the Administrative Agent hereafter taken, including any review of the affairs of a Credit Party or  any Affiliate of a Credit Party, shall be deemed to constitute any representation or warranty by the  Administrative Agent to any Lender or any other Secured Party.  Each Lender (and, if applicable,  each other Secured Party) represents to the Administrative Agent that it has, independently and  without reliance upon the Administrative Agent or any other Lender or any other Secured Party,  and based on such documents and information as it has deemed appropriate, made its own appraisal  of  an  investigation  into  the  business,  operations,  property,  financial  and  other  condition  and                                        107   

 

   creditworthiness of the Credit Parties and their Affiliates and made its own decision to make its  Loans  hereunder  and  enter  into  this  Agreement. Each  Lender  (and,  if  applicable,  each  other  Secured  Party)  also  represents  that  it  will,  independently  and  without  reliance  upon the  Administrative Agent  or  any  other  Lender  or  any  other  Secured  Party,  and  based  on  such  documents and information as it shall deem appropriate at the time, continue to make its own credit  analysis, appraisals and decisions in taking or not taking action under this Agreement and the other  Credit Documents, and to make such investigation as it deems necessary to inform itself as to the  business, operations, property, financial and other condition and creditworthiness of the Credit  Parties and their Affiliates.  Except for notices, reports and other documents expressly required to  be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall  not have any duty or responsibility to provide any Lender or any other Secured Party with any  credit or other information concerning the business, operations, property, condition (financial or  otherwise), prospects or creditworthiness of any Credit Party or any Affiliate of a Credit Party that  may  come  into  the  possession  of the  Administrative Agent  or  any  of  its  officers,  directors,  employees, agents, attorneys-in-fact or Affiliates.         SECTION 11.07 Indemnification.   The Lenders  agree  to  indemnify  the  Administrative  Agent  in  its  capacity  as  such  (to  the  extent  not  reimbursed  by  the  Credit  Parties  and  without  limiting the obligation of the Credit Parties to do so), ratably according to their respective Total  Credit Exposure in effect on the date on which indemnification is sought under this Section 11.07  (or, if indemnification is sought after the date upon which the Commitments shall have terminated  and the Loans shall have been paid in full, ratably in accordance with such Total Credit Exposure  immediately  prior  to  such  date),  from  and  against  any  and  all  liabilities,  obligations,  losses,  damages,  penalties,  actions,  judgments,  suits,  costs,  expenses  or  disbursements  of  any  kind  whatsoever that may at any time (whether before or after the payment of the Loans) be imposed  on, incurred by or asserted against the Administrative Agent in any way relating to or arising out  of, the Commitments, this Agreement, any of the other Credit Documents, any Specified Hedging  Agreement or any documents contemplated by or referred to herein or therein or the transactions  contemplated hereby or thereby or any action taken or omitted by the Administrative Agent under  or in connection with any of the foregoing; provided, that no Lender shall be liable for the payment  of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,  costs, expenses or disbursements that are found by a final and nonappealable decision of a court  of competent jurisdiction to have resulted from the Administrative Agent’s gross negligence or  willful misconduct.  The agreements in this Section 11.07 shall survive the payment of the Loans  and all other amounts payable hereunder.         SECTION 11.08 Agent  in  Its  Individual  Capacity.  The  Administrative Agent  and  its  Affiliates may make loans to, accept deposits from and generally engage in any kind of business  with any Credit Party as though the Administrative Agent were not the Administrative Agent.   With respect to its Loans made or renewed by it, the Administrative Agent shall have the same  rights and powers under this Agreement and the other Credit Documents as any Lender and may  exercise  the  same  as  though  it  were  not the  Administrative Agent,  and  the  terms  “Lender,”  “Lenders,” “Secured Party” and “Secured Parties” shall include the Administrative Agent in its  individual capacity.         SECTION 11.09 Successor  Agents.  The  Administrative  Agent may  resign  as  Administrative Agent, upon twenty (20) days’ notice to the Lenders and the Borrower.  If the                                        108   

 

   Administrative Agent shall resign as Administrative Agent under this Agreement and the other  Credit Documents, then the Required Lenders shall appoint from among the Lenders a successor  agent,  which  successor  agent  shall  (unless  an  Event  of  Default  shall  have  occurred  and  be  continuing) be subject to approval by the Borrower (which approval shall not be unreasonably  withheld or delayed), whereupon such successor agent shall succeed to the rights (other than any  rights to indemnity payments owed to the retiring Administrative Agent), powers and duties of the  Administrative Agent,  and  the  term  “Administrative  Agent”  shall mean  such  successor  agent  effective upon such appointment and approval, and the former Administrative Agent’s rights (other  than any rights to indemnity payments owed to the retiring Administrative Agent), powers and  duties as Administrative Agent shall be terminated, without any other or further act or deed on the  part of such former Agent or any of the parties to this Agreement or any holders of the Loans.  If  no applicable successor agent has accepted appointment as Administrative Agent by the date that  is twenty (20) days following such retiring Administrative Agent’s notice of resignation, such  retiring Agent’s resignation shall nevertheless thereupon become effective (except that in the case  of any Collateral held by the Administrative Agent for the benefit of the Secured Parties under any  of the Credit Documents, the Administrative Agent will continue to hold such collateral security  until such time as a successor Administrative Agent is appointed)  and the Lenders shall assume  and perform all of the duties of the Administrative Agent hereunder until such time, if any, as the  Required Lenders appoint a successor agent as provided for above.  After an Agent’s resignation  as the Administrative Agent, the provisions of this Article XI shall inure to its benefit as to any  actions taken or omitted to be taken by it while it was an Agent under this Agreement and the other  Credit Documents.         SECTION 11.10 Agents  Generally.   Except  as  expressly  set  forth  herein, the  Administrative Agent shall not have any duties or responsibilities hereunder in its capacity as such.         SECTION 11.11 Restrictions on Actions by Lenders; Sharing of Payments.               (a)   Each of the Lenders agrees  that  it shall not,  without  the express  written  consent of the Administrative Agent, and that it shall, to the extent it is lawfully entitled to do so,  upon the written request of Administrative Agent, set-off against the Obligations, any amounts  owing by such Lender to any Credit Party or any of their respective Subsidiaries or any deposit  accounts of any Credit Party or any of their respective Subsidiaries now or hereafter maintained  with such Lender.  Each of the Lenders further agrees that it shall not, unless specifically requested  to do so in writing by Administrative Agent, take or cause to be taken any action, including, the  commencement of any legal or equitable proceedings to enforce any Credit Document against any  Credit Party or to foreclose any Lien on, or otherwise enforce any security interest in, any of the  Collateral.               (b)   Subject to Section 12.09, if, at any time or times any Lender shall receive  (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or any payments with  respect to the Obligations, except for any such proceeds or payments received by such Lender from  the Administrative  Agent pursuant  to  the  terms  of  this  Agreement,  or  (ii)  payments  from the  Administrative Agent in excess of such Lender’s pro rata share of all such distributions by the  Administrative Agent, such Lender promptly shall (A) turn the same over to the Administrative  Agent,  in-kind,  and  with  such  endorsements  as  may  be  required  to  negotiate  the  same  to  the  Administrative Agent, or in immediately available funds, as applicable, for the account of all of                                        109   

 

   the Lenders and for application to the Obligations in accordance with the applicable provisions of  this  Agreement,  or  (B)  purchase,  without  recourse  or  warranty,  an  undivided  interest  and  participation in the Obligations owed to the other Lenders, so that such excess payment received  shall be applied ratably as among the Lenders in accordance with their pro rata shares; provided,  that to the extent that such excess payment received by the purchasing party is thereafter recovered  from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and  the applicable portion of the purchase price paid therefor shall be returned to such purchasing  party, but without interest except to the extent that such purchasing party is required to pay interest  in connection with the recovery of the excess payment.         SECTION 11.12 Agency for Perfection.  Administrative Agent hereby appoints each other  Secured  Party  as  its  agent  (and  each  Secured  Party  hereby accepts  such  appointment)  for  the  purpose of perfecting the Administrative Agent’s Liens in assets which, in accordance with Article  7 or Article 8, as applicable, of the Uniform Commercial Code of any applicable state can be  perfected only by possession or control.  Should any Secured Party obtain possession or control of  any such Collateral, such Secured Party shall notify Administrative Agent thereof, and, promptly  upon Administrative Agent’s request therefor shall deliver possession or control of such Collateral  to Administrative Agent or in accordance with Administrative Agent’s instructions.         SECTION 11.13 Authorization to File Proof of Claim.  In case of the pendency of any  bankruptcy,  insolvency  or  other  similar  proceeding  with  respect  to  any  Credit  Party,  the  Administrative Agent (irrespective of whether the principal of any Loan shall then be due and  payable  or  whether  the  Administrative  Agent  shall  have  made  any  demand  therefor)  shall  be  entitled: (i) to file and prove a claim in such proceeding for the full amount of the principal and  interest owing and unpaid in respect of the Loans and to file such other documents as may be  necessary or advisable in order to have the claims of the Lenders and the Administrative Agent  (including any claim for reimbursement under Section 12.05) allowed in such proceeding; and (ii)  to collect and receive any monies or other property payable or deliverable on any such claims and  to distribute the same; and any trustee, liquidator or another similar official in any such proceedings  is hereby authorized by each Lender to make such payments to the Administrative Agent for the  account of such Lender.  Nothing contained herein shall be deemed to authorize the Administrative  Agent  to  consent  to  or  accept  or  adopt  on  behalf  of  any  Lender  any  plan  of  reorganization,  arrangement, adjustment or composition affecting the obligations of the Credit Party hereunder or  the rights of any Lender, or to authorize the Administrative Agent to vote in respect of the claim  of any Lender in any such proceeding.         SECTION 11.14 Credit  Bids.   Each  Credit  Party  and  each  Secured  Party  hereby  irrevocably authorizes Administrative Agent, based upon the written instruction of the Required  Lenders, to bid and purchase (either directly or through one (1) or more acquisition vehicles) all  or any portion of the Collateral at any sale thereof conducted (i) by the Administrative Agent under  the provisions of the Code, including pursuant to Sections 9-610 or 9-620 of the Code (ii) under  the provisions of the Bankruptcy Code, including Section 363, 365 and/or 1129 of the Bankruptcy  Code or (iii) by the Administrative Agent (whether by judicial action or otherwise, including a  foreclosure sale) in accordance with applicable law (clauses (i), (ii) an (iii), a “Collateral Sale”);  and in connection with any Collateral Sale based upon the written instruction of Required Lenders,  the Administrative Agent may accept noncash consideration, including debt and equity securities  issued by such acquisition vehicle under the direction or control of the Administrative Agent and                                        110   

 

   the Administrative Agent may offset all or any portion of the Obligations against the purchase  price of such Collateral.  Each Secured Party hereby agrees that, except as otherwise provided in  any Credit Documents, or with the written consent of the Administrative Agent and the Required  Lenders,  it  will  not  take  any  enforcement  action,  accelerate obligations  under  any  Credit  Documents, or exercise any right that it might otherwise have under applicable law to credit bid at  foreclosure sales, UCC sales or other similar dispositions of Collateral.         SECTION 11.15 Binding Effect.  Each Secured Party, by accepting the benefits of the  Credit Documents, agrees that (i) any action taken by the Administrative Agent or the Required  Lenders (or, if expressly required hereby, a greater proportion of the Lenders) in accordance with  the  provisions  of  the  Credit  Documents,  (ii)  any  action  taken  by the  Administrative Agent  in  reliance upon the instructions of Required Lenders (or, where so required, such greater proportion)  and (iii) the exercise by the Administrative Agent or the Required Lenders (or, where so required,  such greater proportion) of the powers set forth herein or therein, together with such other powers  as are reasonably incidental thereto, shall be authorized and binding upon all of the Secured Parties.                                   ARTICLE XII                                                                            Miscellaneous         SECTION 12.01 Amendments and Waivers.  Neither this Agreement nor any other Credit  Document, nor any terms hereof or thereof, may be amended, supplemented or modified except in  accordance with the provisions of this Section 12.01.  The Required Lenders may, or, with the  consent of the Required Lenders or the Administrative Agent, as applicable, may, from time to  time,  (a)  enter  into  with  the  relevant  Credit  Party  or  Credit  Parties  written  amendments,  supplements or modifications hereto and to the other Credit Documents for the purpose of adding  any provisions to this Agreement or the other Credit Documents or changing in any manner the  rights of the Lenders or the Credit Parties hereunder or thereunder or (b) waive, on such terms and  conditions as the Required Lenders or the Administrative Agent, as the case may be, may specify  in such instrument, any of the requirements of this Agreement or the other Credit Documents or  any Default or Event of Default and its consequences; provided, that no such waiver, amendment,  supplement or modification shall directly:                     (i)   (A) reduce or forgive any portion of any Loan or extend the final  expiration date of any Lender’s Commitment or extend the final scheduled maturity date of any  Loan or reduce the stated interest rate (it being understood that only the consent of the Required  Lenders shall be necessary to waive any obligation of the Borrower to pay interest at the Default  Rate or amend Section 2.08(c)), or (B) reduce or forgive any portion or extend the date for the  payment, of any interest or fee payable hereunder (other than as a result of waiving the applicability  of any post-default increase in interest rates) or (C) amend or modify any provisions of Section  12.09(b) or  any  other  provision  that  provides  for  the pro  rata nature  of  disbursements  by  or  payments  to  Lenders,  in  each  case, without  the  written  consent  of  each  Lender  directly  and  adversely affected thereby;                     (ii)  amend,  modify  or  waive  any  provision  of  this Section  12.01 or  reduce the percentages specified in the definitions of the term “Required Lenders” or consent to  the  assignment  or  transfer  by  any  Credit  Party  of  its  rights  and  obligations  under  any  Credit                                        111   

 

   Document to  which it is a party (except  as permitted pursuant  to Section 9.03), in  each case,  without the written consent of each Lender directly and adversely affected thereby;                     (iii) increase the aggregate amount of any Commitment of any Lender  without the consent of such Lender;                     (iv)  amend, modify or waive any provision of Article XI applicable to  the Administrative Agent without the written consent of the Administrative Agent;                     (v)   release all or substantially all of the Guarantors under the Guarantee  Agreement  (except  as  expressly  permitted  by  the  Guarantee  Agreement), or  release  all  or  substantially all of the  Collateral  under the Security  Agreement  and the Mortgages  (except  as  expressly permitted thereby and in Section 12.19), in each case without the prior written consent  of each Lender;                     (vi)  amend Section 2.10 so as to permit Interest Period intervals greater  than three months if not agreed to by all applicable Lenders; or   Notwithstanding the foregoing or anything to the contrary herein:                     (i)   this Agreement may be amended (or amended and restated) with the  written consent of the Required Lenders, the Administrative Agent, and the Borrower (x) to add  one or more additional credit facilities to this Agreement and to permit the extensions of credit  from time to time outstanding thereunder and the accrued interest and fees in respect thereof to  share ratably in the benefits of this Agreement and the other Credit Documents with the Loans and  the accrued interest and fees in respect thereof and (y) to include appropriately the Lenders holding  such credit facilities in any determination of the Required Lenders;                     (ii)  no Defaulting Lender shall have any right to approve or disapprove  any amendment, waiver or consent hereunder, except that the Commitment of such Lender may  not  be  increased  or  extended,  and  amounts  payable  to  such  Lender  hereunder  may  not  be  permanently reduced without the consent of such Lender (other than reductions in fees and interest  in which such reduction does not disproportionately affect such Lender);                     (iii) schedules to this Agreement and the Security Agreement may be  amended or supplemented with the consent of the Administrative Agent; and                     (iv)  this Agreement and any other Credit Document may be amended  solely with the consent of the Administrative Agent and the Borrower without the need to obtain  the consent of any other Lender if such amendment is delivered in order to (x) correct or cure  ambiguities,  errors,  omissions,  defects,  (y)  effect  administrative  changes  of  a  technical  or  immaterial nature or (z) correct or cure incorrect cross references or similar inaccuracies in this  Agreement or the applicable Credit Document, in each case, with regards to clauses (x) through  (z), the correction of which is not adverse to the interest of any Lender.  Guarantees, collateral  documents,  security  documents,  intercreditor  agreements,  and  related  documents  executed  in  connection with this Agreement may be amended, modified, terminated or waived, and consent to  any departure therefrom may be given, without the consent of any Lender if such amendment,  modification, waiver or consent is given in order to cause such guarantee, collateral document,                                       112   

 

   security  document,  intercreditor  agreement  or  related  document  to  be  consistent  with  this  Agreement and the other Credit Documents. Any such amendment shall become effective without  any further consent of any other party to such Credit Document.         SECTION 12.02 Notices and Other Communications; Facsimile Copies.               (a)   General.  Unless otherwise expressly provided herein, all notices and other  communications provided for hereunder or under any other Credit Document shall be in writing  (including  by electronic  transmission).   All  such  written  notices  shall  be  mailed,  e-mailed  or  delivered  to  the  applicable  address  or  electronic  mail  address,  and  all  notices  and  other  communications  expressly  permitted hereunder to be given by telephone shall be made to  the  applicable telephone number, as follows:                     (i)   if to  the Credit Parties, the Administrative Agent, to the address,  electronic mail address or telephone number specified for such Person on Schedule 12.02 or to  such other address, electronic mail address or telephone number as shall be designated by such  party in a notice to the other parties; and                     (ii)  if to any other Lender, to the address, facsimile number, electronic  mail address or telephone number specified in its Administrative Questionnaire or to such other  address, facsimile number, electronic mail address or telephone number as shall be designated by  such party in a notice to the Borrower, and the Administrative Agent.         All such notices and other communications shall be deemed to be given or made upon the  earlier to occur of:  (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand  or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail,  three (3) Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile,  when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail  (which form of delivery is subject to the provisions of Section 12.02(c)), when delivered; provided,  that notices and other communications to the Administrative Agent pursuant to Article II shall not  be effective until actually received by such Person.               (b)   Effectiveness of Electronic Documents and Signatures.  Credit Documents  may be transmitted and/or signed by email or other electronic communication.  The effectiveness  of any such documents and signatures shall have the same force and effect as manually signed  originals and shall be binding on all Credit Parties, the Administrative Agent and the Lenders.               (c)   Reliance by the Administrative Agent and Lenders.  The Administrative  Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic  Notices of Borrowing) purportedly given by or on behalf of any Credit Party even if (i) such notices  were not made in a manner specified herein, were incomplete or were not preceded or followed by  any other form of notice specified herein or (ii) the terms thereof, as understood by the recipient,  varied from any confirmation thereof.  All telephonic notices to the Administrative Agent may be  recorded by the Administrative Agent,  and  each of the parties  hereto  hereby consents  to  such  recording.         SECTION 12.03 No Waiver; Cumulative Remedies.  No failure to exercise and no delay  in exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or                                       113   

 

   privilege hereunder or under the other Credit Documents shall operate as a waiver thereof, nor  shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any  other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The  rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any  rights, remedies, powers and privileges provided by law.         SECTION 12.04 Survival  of  Representations  and  Warranties.   All  representations  and  warranties made hereunder and in the other Credit Documents shall survive the execution and  delivery of this Agreement and the making of the Loans hereunder.         SECTION 12.05 Payment of Expenses; Indemnification.  The Borrower agrees, subject to  any limitations set forth in the Fee Letter, (a) to pay or reimburse the Administrative Agent and  the Lenders for all their reasonable and documented out-of-pocket costs and expenses incurred in  connection with the development, preparation, negotiation and execution of, and any amendment,  waiver, supplement or modification to, this Agreement and the other Credit Documents and any  other  documents  prepared  in  connection  herewith  or  therewith,  and  the  consummation and  administration of the transactions contemplated hereby and thereby, including the reasonable and  documented fees, disbursements and other charges of one counsel (and, to the extent necessary,  one local counsel in any relevant jurisdiction and, if reasonably required, one regulatory counsel)  to  the  Administrative  Agent,  (b)  to  pay  or  reimburse  (i)  a  single  firm  of  counsel  to  the  Administrative Agent, (ii) if reasonably necessary, one local counsel in each relevant jurisdiction  (which may include special counsel acting in multiple jurisdictions) and (iii) solely in the case of  an  actual  or  perceived  conflict  of  interest,  one  additional  primary  counsel  and  one  additional  counsel in each relevant jurisdiction (which may include a single special counsel acting in multiple  jurisdictions) for each group of affected Lenders similarly situated taken as a whole, for all their  reasonable  and  documented  out-of-pocket  costs  and  expenses  incurred  in  connection  with  the  enforcement or preservation of any rights under this Agreement, the other Credit Documents and  any  such  other  documents,  and  (c)  to  pay,  indemnify  and  hold  harmless  each  Lender  and  the  Administrative Agent and their respective Related Parties from and against any and all other actual  liabilities, obligations, losses, damages, penalties, actions, judgments, suits, and reasonable out- of-pocket costs, expenses or disbursements of any kind or nature whatsoever, including reasonable  and documented fees, disbursements and other charges of one counsel, arising as a result of the  execution, delivery, enforcement, performance and administration of this Agreement, the other  Credit Documents and any such other documents, including any of the foregoing relating to the  violation of, noncompliance with or liability under, any Environmental Law on the part of any  Credit Party or any of its Subsidiaries or any actual or alleged presence of Hazardous Materials as  a result of the operations of each Credit Party or any of its Subsidiaries, including at any of their  Real  Property  (all  the  foregoing  in  this  clause  (c),  collectively,  the  “indemnified  liabilities”);  provided, that the Credit Parties shall have no obligation hereunder to the Administrative Agent or  any Lender nor any of their Related Parties with respect to indemnified liabilities arising from (i)  the gross negligence or willful misconduct of the party to be indemnified or one of their Related  Parties; (ii) disputes among the Administrative Agent, the Lenders and/or their transferees; or (iii)  diminution  in value  of any  Real  Property  of  any  Credit  Party  resulting  from  the  presence  of  Hazardous Materials existing at such Real Property on or before the Closing Date.  The agreements  in this Section 12.05 shall survive repayment of the Loans and all other amounts payable hereunder  and termination of this Agreement.  To the fullest extent permitted by Applicable Law, no Credit  Party  shall  assert,  and  each  Credit  Party  hereby  waives,  any  claim  against  any  Lender,  the                                        114   

 

   Administrative Agent and their respective Related Parties, on any theory of liability, for special,  indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out  of,  in  connection  with,  or  as  a  result  of,  this  Agreement,  any  other  Credit  Document  or  any  agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby,  any Loan or the use of the proceeds thereof.  No Lender, the Administrative Agent nor any of their  respective Related Parties  shall be liable for any damages  arising  from  the use by unintended  recipients  of  any  information  or  other  materials  distributed  by  it  through  telecommunications,  electronic or other information transmission systems in connection with this Agreement or the  other Credit Documents or the transactions contemplated hereby or thereby.  This Section 12.05  shall not apply to Taxes other than any Taxes that represent losses, claims, damages, etc., arising  from a non-Tax claim.         SECTION 12.06 Successors and Assigns; Participations and Assignments.                 (a)   The provisions of this Agreement shall be binding upon and inure to the  benefit of the parties hereto and their respective successors and assigns permitted hereby, except  that (i) except as set forth in Section 9.03, no Credit Party may assign or otherwise transfer any of  its  rights  or obligations  hereunder  without  the  prior  written  consent  of  each  Lender  (and  any  attempted assignment or transfer by any Credit Party without such consent shall be null and void)  and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in  accordance with this Section 12.06.  Nothing in this Agreement, expressed or implied, shall be  construed to confer upon any Person (other than the parties hereto, their respective successors and  assigns  permitted  hereby,  Participants  (to  the  extent  provided  in  paragraph  (c)  of  this Section  12.06)  and,  to  the  extent  expressly  contemplated  hereby,  the  Related  Parties  of  each  of  the  Administrative Agent, and the Lenders) any legal or equitable right, remedy or claim under or by  reason of this Agreement.  Notwithstanding anything to the contrary herein, (a) any Lender shall  be permitted to pledge or grant a security interest in all or any portion of such Lender’s rights  hereunder including, but not limited to, any Loans (without the consent of, or notice to or any other  action by, any other party hereto) to secure the obligations of such Lender or any of its Affiliates  to any Person providing any loan, letter of credit or other extension of credit to or for the account  of such Lender or any of its Affiliates and any agent, trustee or representative of such Person and  (b) the Administrative Agent shall be permitted to pledge or grant a security interest in all or any  portion of its respective rights hereunder or under the other Credit Documents, including, but not  limited to, rights to payment (without the consent of, or notice to or any other action by, any other  party hereto), to secure the obligations of the Administrative Agent or any of its Affiliates to any  Person providing any loan, letter of credit or other extension of credit to or for the account of the  Administrative Agent  or  any  of  its  Affiliates  and  any  agent,  trustee  or  representative  of  such  Person.               (b)   (i)   Subject to the conditions set forth in paragraph (b)(ii) below, any  Lender may assign to one or more assignees (other than to a Defaulting Lender or to the Borrower  or to  any of the Borrower’s  Affiliates  or Subsidiaries)  (each,  an “Eligible Assignee”) all or a  portion  of  its  rights  and  obligations  under  this  Agreement  (including  all  or  a  portion  of  its  Commitments and the Loans at the time owing to it) with the prior written consent (which consent  in each case shall not be unreasonably withheld or delayed) of:                                         115   

 

                           (A)   the Borrower; provided, that (1) no consent of the Borrower  shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if  Default or an Event of Default pursuant to Section 10.01(a), 10.01(c) (solely with respect to a  default under Section 8.01(b) through (d) and Section 9.13) or Section 10.01(h) has occurred and  is continuing, any other assignee and (2) the Borrower shall be deemed to have consented to any  such assignment unless it shall object thereto by written notice to the Administrative Agent within  five (5) Business Days after having received notice thereof;                           (B)   the Administrative Agent; provided, that no consent of the  Administrative Agent shall be required for an assignment to a Lender, an Affiliate of a Lender or  an Approved Fund.                     (ii)  Assignments shall be subject to the following additional conditions:                           (A)   except in the case of an assignment to a Lender, an Affiliate  of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning  Lender’s Commitments  or  Loans,  the  amount  of  the  Commitments  or  Loans  of  the  assigning  Lender subject to each such assignment (determined as of the date the Assignment and Acceptance  with respect to such assignment is delivered to the Administrative Agent) shall not be less than  $1,000,000, unless each of the Borrower and the Administrative Agent otherwise consents, which  consent, in each case, shall not be unreasonably withheld or delayed; provided, however, that no  such consent of the Borrower shall be required if an Event of Default under Section 10.01(a), (c)  (solely in respect of a breach of Section 8.01(a), (b), (c), (d) or (e), or Section 9.13) or Section  10.01(h) has occurred and is continuing; and provided further, that contemporaneous assignments  to a single assignee made by affiliated Lenders or related Approved Funds and contemporaneous  assignments  by  a  single  assignor  to  affiliated  Lenders  or  related  Approved  Funds  shall  be  aggregated for purposes of meeting the minimum assignment amount requirements stated above;                           (B)   each partial assignment shall be made as an assignment of a  proportionate  part  of  all  the  assigning  Lender’s  rights  and  obligations  under  this  Agreement;  provided, that this paragraph shall not be construed to prohibit the assignment of a proportionate  part of all the assigning Lender’s rights and obligations in respect of Commitments or Loans;                           (C)   the parties to each assignment shall execute and deliver to  the Administrative Agent  an  Assignment  and  Acceptance,  together  with  a  processing  and  recordation fee of $3,500; provided, that only one such fee shall be payable in connection with  simultaneous assignments to two or more Approved Funds;                           (D)   the assignee, if it shall not be a Lender, shall deliver to the  Administrative Agent an Administrative Questionnaire; and                           (E)   No  Lender  may  assign  or  otherwise  transfer  its  rights  or  obligations hereunder to any of the Credit Parties.         In  connection  with  any  assignment  of  rights  and  obligations  of  any  Defaulting  Lender  hereunder,  no  such  assignment  shall  be  effective  unless  and  until,  in  addition  to  the  other  conditions  thereto  set  forth  herein,  the parties  to  such  assignment  shall  make  such  additional  payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof                                       116   

 

   as appropriate (which may be outright payment, purchases by the assignee of participations or  subparticipations,  or  other  compensating  actions,  including  funding,  with  the  consent  of  the  Borrower  and  the  Administrative  Agent,  the  applicable  pro  rata  share  of  Loans  previously  requested but not funded by the Defaulting Lender, to each of which the applicable assignee (by  its execution and delivery of the applicable Assignment and Acceptance to the Administrative  Agent)  and  assignor  hereby  irrevocably  consent),  to  (x)  pay  and  satisfy  in  full  all  payment  liabilities  then  owed  by  such  Defaulting  Lender  to  the  Administrative  Agent,  or  any  Lender  hereunder  (and  interest  accrued  thereon)  and  (y)  acquire  (and  fund  as  appropriate)  its  full  respective  Pro  Rata  Share  of  all  Loans.   Notwithstanding  the  foregoing,  in  the  event  that  any  assignment of rights and obligations of any Defaulting Lender hereunder shall become effective  under applicable Law without compliance with the provisions of this paragraph, then the assignee  of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until  such compliance occurs.                     (iii) Subject to acceptance and recording thereof pursuant to paragraph  (b)(v) of this Section 12.06, from and after the effective date specified in each Assignment and  Acceptance,  the  assignee  thereunder  shall  be  a  party  hereto  and,  to  the  extent  of  the  interest  assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under  this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned  by such Assignment and Acceptance, be released from its obligations under this Agreement (and,  in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and  obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue  to be entitled to the benefits of Sections 2.10, 2.11, 5.03 and 12.05); provided, that except to the  extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender  will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s  having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations  under this Agreement that does not comply with this Section 12.06 shall be treated for purposes of  this  Agreement  as  a  sale  by such  Lender  of  a  participation  in  such  rights  and  obligations  in  accordance with paragraph (c) of this Section 12.06.                     (iv)  The Administrative Agent, acting solely for this purpose as an agent  of the Borrower, shall maintain a copy of each Assignment and Acceptance delivered to it and a  register for the recordation of the names and addresses of the Lenders, and the Commitments of,  and principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time  to  time  (the  “Register”).   Further,  the  Register  shall  contain  the  name  and  address  of  the  Administrative Agent  and  the  lending  office  through  which  each  such  Person  acts  under  this  Agreement.  The entries in the Register shall be conclusive absent manifest error, and the Credit  Parties, the Administrative Agent, and the Lenders shall treat each Person whose name is recorded  in  the  Register  pursuant  to  the  terms  hereof  as  a  Lender  hereunder  for  all  purposes  of  this  Agreement, notwithstanding notice to the contrary.  In addition, the Administrative Agent shall  maintain on the Register information regarding the designation, and revocation of designation, of  any Lender as a Defaulting Lender.  The Register, as in effect at the close of business on the  preceding Business Day, shall be available for inspection by the Borrower, and any Lender, at any  reasonable time and from time to time upon reasonable prior notice.                     (v)   Upon its receipt of a duly completed Assignment and Acceptance  executed  by  an  assigning  Lender  and  an  assignee,  the  assignee’s  completed Administrative                                        117   

 

   Questionnaire (unless the assignee shall already be a Lender hereunder) and any written consent  to such assignment required by paragraph (b)(i) of this Section 12.06, the Administrative Agent  shall accept such Assignment and Acceptance and record the information contained therein in the  Register.  No assignment shall be effective for purposes of this Agreement unless and until it has  been recorded in the Register as provided in this paragraph.                     (vi)  Disqualified Institutions.                           (A)   No assignment or participation shall be made to any Person  that was a Disqualified Institution as of the date (the “Trade Date”) on which the assigning or  transferring Lender entered into a binding agreement to sell and assign, or grant a participation in,  all or a portion of its rights and obligations under this Agreement, as applicable, to such Person  unless Administrative Agent and the Borrower (unless a Default or Event of Default under Section  10.01(a) or 10.01(h) has occurred and is continuing, in which case no consent from the Borrower  is required) have consented in writing in their sole and absolute discretion to such assignment or  participation, in which case such Person will not be considered a Disqualified Institution for the  purpose of such assignment or participation.  For the avoidance of doubt, (x) no assignment or  participation shall be retroactively invalidated pursuant to this Section 12.06(b)(vi) if the Trade  Date therefor occurred prior to the assignee’s or participant’s becoming a Disqualified Institution  (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice  period referred to in, the definition of “Disqualified Institution”), and (y) the execution by the  Borrower or Agent of an Assignment and Acceptance with respect to such an assignment will not  by itself result in such assignee no longer being considered a Disqualified Institution.                           (B)   Administrative Agent and each assignor of a Loan or seller  of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee  Lender or Participant in the relevant Assignment or participation agreement, as applicable, that  such assignee or purchaser is not a Disqualified Institution.  The Administrative Agent shall have  the right, and the Borrower hereby expressly authorizes Administrative Agent, to verbally disclose  to  any  potential  Lender  or  Participant  whether  not  such  Person  is  on the  list  of  Disqualified  Institutions provided by the Borrower and any updates thereto from time to time (collectively, the  “DQ List”).  Any assignment to a Disqualified Institution or grant or sale of participation to a  Disqualified Institution in violation of this Section 12.06(b)(vi) shall not be void, but the other  provisions of this Section 12.06 shall apply.               (c)   (i)   Any Lender  may,  without  the  consent  of  the  Borrower, or  the  Administrative Agent, sell participations to one or more banks or other entities (other than a natural  person, a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries)  (each,  a  “Participant”)  in  all  or  a  portion  of  such  Lender’s  rights  and  obligations  under  this  Agreement (including all or a portion of its Commitments and the Loans owing to it); provided,  that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender  shall remain solely responsible to the other parties hereto for the performance of such obligations  and (C) the Borrower, the Administrative Agent, and the other Lenders shall continue to deal solely  and directly with such Lender in connection with such Lender’s rights and obligations under this  Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation  shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve  any amendment, modification or waiver of any provision of this Agreement or any other Credit                                        118   

 

   Document; provided, that such agreement or instrument may provide that such Lender will not,  without the consent of the Participant, agree to any amendment, modification or waiver described  in clause (i) of the first proviso to Section 12.01.  Subject to paragraph (c)(ii) of this Section 12.06,  the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.10, 2.11,  and 5.04 to the same extent as if it were a Lender and had acquired its interest by assignment  pursuant to paragraph (b) of this Section 12.06.  To the extent permitted by law, each Participant  also shall be entitled to the benefits of Section 12.09(b) as though it were a Lender, provided, that  such Participant agrees to be subject to Section 12.09(a) as though it were a Lender.                     (i)   A Participant shall not be entitled to receive any greater payment  under Section 2.10, 2.11 or 5.04 than the applicable Lender would have been entitled to receive  with respect to the participation sold to such Participant, unless the sale of the participation to such  Participant is made with the Borrower’s prior written consent.  A Participant that would be a Non- U.S. Lender if it were a Lender shall not be entitled to the benefits of Section 5.04 unless the  Borrower is notified of the participation sold to such Participant and such Participant agrees, for  the benefit of the Borrower, to comply with Section 5.04(b) as though it were a Lender.                     (ii)  Each Lender that sells  a participation  shall, acting solely  for this  purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name  and address of each Participant and the principal amounts (and stated interest) of each Participant’s  interest  in  the  Lender’s  obligations  hereunder  (the  “Participant  Register”); provided that  no  Lender shall have any obligation to disclose all or any portion of the Participant Register (including  the  identity  of  any  Participant  or  any information relating  to  a  Participant’s  interest  in  any  commitments, loans, letters of credit or its other obligations under any Credit Document) to any  Person except to the extent that such disclosure is necessary to establish that such commitment,  loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United  States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent  manifest error, and such Lender shall treat each Person whose name is recorded in the Participant  Register as the owner of such participation for all purposes of this Agreement notwithstanding any  notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as  Administrative Agent) shall not have any responsibility for maintaining a Participant Register.         SECTION 12.07 Replacements of Lenders Under Certain Circumstances.                 (a)   The Borrower, at its sole cost and expense, shall be permitted to replace any  Lender (or any Participant), other than an Affiliate of the Administrative Agent, that (i) requests  reimbursement for amounts owing pursuant to Section 2.10, Section 2.11, Section 2.12 or Section  5.04, or (ii) is affected in the manner described in Section 2.10(a)(iii) and as a result thereof any  of the actions described in such Section is required to be taken, provided, that (A) such replacement  does not conflict with any Applicable Law, (B) no Default or Event of Default shall have occurred  and be continuing at the time of such replacement, (C) the Borrower shall repay (or the replacement  bank or institution shall purchase, at par) all Loans and other amounts (other than any disputed  amounts) pursuant to Section 2.10, Section 2.11, Section 2.12 or Section 5.04, as the case may be,  owing  to  such  replaced  Lender  prior  to  the  date  of  replacement,  (D)  the  replacement  bank  or  institution, if not already a Lender, and the terms and conditions of such replacement, shall be  reasonably satisfactory to the Administrative Agent, (E) the replaced Lender shall be obligated to  make  such  replacement  in  accordance  with  the  provisions  of Section  12.06 (except  that  such                                        119   

 

   replaced Lender shall not be obligated to pay any processing and recordation fee required pursuant  thereto) and (F) any such replacement shall not be deemed to be a waiver of any rights that the  Borrower, the Administrative Agent or any other Lender shall have against the replaced Lender.               (b)   If  any  Lender  (a  “Non-Consenting  Lender”)  has  failed  to  consent  to  a  proposed amendment, waiver, discharge or termination, which pursuant to the terms of Section  12.01 requires the consent of all of the Lenders affected or the Required Lenders and with respect  to which the Required Lenders shall have granted their consent, then, provided that no Default or  Event  of  Default  then  exists, the  Borrower  shall  have  the  right  (unless  such  Non-Consenting  Lender grants such consent), at its own cost and expense, to replace such Non-Consenting Lender  by requiring such Non-Consenting Lender to assign its Loans and Commitments to one or more  assignees reasonably acceptable to the Administrative Agent, provided, that: (i) all Obligations of  the Borrower owing to such Non-Consenting Lender being replaced shall be paid in full to such  Non-Consenting Lender concurrently with such assignment and (ii) the replacement Lender shall  purchase the foregoing by paying to such Non-Consenting Lender a price equal to the principal  amount thereof plus accrued and unpaid interest thereon.  In connection with any such assignment,  the Borrower, the Administrative Agent, such Non-Consenting Lender and the replacement Lender  shall otherwise comply with Section 12.06 (except that such Non-Consenting Lender shall not be  obligated to pay any processing and recordation fee required pursuant thereto).         SECTION 12.08 Securitization.  The Credit Parties hereby acknowledge that the Lenders  and their Affiliates may securitize the Loans (a “Securitization”) through the pledge of the Loans  as collateral security for loans to the Lenders or their Affiliates or through the sale of the Loans or  the issuance of direct or indirect interests in the Loans to their controlled Affiliates, which loans  to the Lenders or their Affiliates or direct or indirect interests will be rated by Moody’s, S&P or  one or more other rating agencies.  The Credit Parties shall, to the extent commercially reasonable,  cooperate  with  the  Lenders  and  their  Affiliates  to  effect  any  and  all  Securitizations.   Notwithstanding the foregoing, no such Securitization shall release the Lender party thereto from  any of its obligations hereunder or substitute any pledgee, secured party or any other party to such  Securitization for such Lender as a party hereto and no change in ownership of the Loans may be  effected except pursuant to Section 12.06.         SECTION 12.09 Adjustments; Set-off.  (a) If any Lender (a “Benefited Lender”) shall at  any time receive any payment of all or part of its Loans, or interest thereon, or receive any collateral  in  respect  thereof  (whether  voluntarily  or  involuntarily,  by  set-off,  pursuant  to  events  or  proceedings of the nature referred to in Section 10.01(h) or otherwise), in a greater proportion than  any such payment to or collateral received by any other Lender, if any, in respect of such other  Lender’s Loans or interest thereon, such Benefited Lender shall (i) notify the Administrative Agent  of such fact and (ii) purchase for cash from the other Lenders a participating interest in such portion  of each such other Lender’s Loans, or shall provide such other Lenders with the benefits of any  such collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to  share  the  excess  payment  or  benefits  of  such  collateral  or  proceeds  ratably  with  each  of  the  Lenders; provided, that (x) if all or any portion of such excess payment or benefits is thereafter  recovered from such Benefited Lender, such purchase shall be rescinded, and the purchase price  and benefits returned, to the extent of such recovery, but without interest and (y) the provisions of  this  Section  shall  not  be  construed  to  apply  to  (A)  any  payment  made  by  or  on  behalf  of  the  Borrower pursuant to and in accordance with the express terms of this Agreement (including the                                        120   

 

   application  of  funds  arising  from  the  existence  of  a  Defaulting  Lender)  or (B)  any  payment  obtained by a Lender as consideration for the assignment of or sale of a participation in any of its  Loans to any assignee or participant (as to which the provisions of this Section shall apply).         Notwithstanding the foregoing, in the event that any Defaulting Lender shall exercise any  such right of setoff, (1) all amounts so set-off shall be paid over immediately to the Administrative  Agent for further application in accordance with the provisions of Section 2.05(d) and, pending  such payment, shall be segregated by such Defaulting Lender from its other funds and deemed  held in trust for the benefit of the Administrative Agent and the Lenders, and (2) the Defaulting  Lender shall provide promptly to the Administrative Agent a statement describing in reasonable  detail the Obligations owing to such Defaulting Lender as to which it exercised such right of set- off.         Each Credit Party consents to the foregoing and agrees, to the extent it may effectively do  so  under  applicable  law, that  any  Lender  acquiring  a  participation  pursuant  to  the  foregoing  arrangements may  exercise  against  such  Credit  Party  rights  of  set-off  and  counterclaim  with  respect to such participation as fully as if such Lender were a direct creditor of such Credit Party  in the amount of such participation.               (a)   After the occurrence and during the continuance of an Event of Default, to  the extent consented to by Administrative Agent, in addition to any rights and remedies of the  Lenders provided by law, each Lender shall have the right, without prior notice to the Borrower or  any other Credit Party, any such notice being expressly waived by the Credit Parties to the extent  permitted  by  Applicable  Law,  upon  any  amount  becoming  due  and  payable  by  the  Borrower  hereunder (whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate  and apply against such amount any and all deposits (general or special, time or demand, provisional  or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each  case, whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or  owing by such Lender or any branch or agency thereof to or for the credit or the account of the  Borrower,  as  the  case  may  be.   Each  Lender  agrees  promptly  to  notify  the  Borrower  and  the  Administrative Agent after any such set-off and application made by such Lender; provided, that  the failure to give such notice shall not affect the validity of such set-off and application.         SECTION 12.10 Counterparts.  This Agreement and the other Credit Documents may be  executed by one or more of the parties thereto on any number of separate counterparts (including  by  electronic  transmission),  and  all  of  said  counterparts  taken  together  shall  be  deemed  to  constitute one and the same instrument.  A set of the copies of this Agreement signed by all the  parties shall be lodged with the Borrower and the Administrative Agent.         SECTION 12.11 Severability.   Any  provision  of  this  Agreement  that  is  prohibited  or  unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such  prohibition or unenforceability without invalidating the remaining provisions hereof, and any such  prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such  provision in any other jurisdiction.  Without limiting the foregoing provisions of this Section 12.11,  if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting  Lenders  shall  be  limited  by  bankruptcy,  insolvency,  fraudulent  conveyance,  moratorium,  reorganization and other similar laws relating to or affecting creditors’ rights generally and general                                        121   

 

   principles of equity (whether considered in a proceeding in equity or law), as determined in good  faith by the Administrative Agent, then such provisions shall be deemed to be in effect only to the  extent not so limited.         SECTION 12.12 Integration.  This Agreement and the other Credit Documents represent  the agreement of the Credit Parties, the Administrative Agent and the Lenders with respect to the  subject matter hereof, and there are no promises, undertakings, representations or warranties by  any party hereto or thereto relative to the subject matter hereof not expressly set forth or referred  to herein or in the other Credit Documents.         SECTION 12.13 GOVERNING  LAW.   THIS  AGREEMENT,  THE  OTHER  CREDIT  DOCUMENTS  (UNLESS  EXPRESSLY  PROVIDED  OTHERWISE  THEREIN)  AND  THE  RIGHTS  AND  OBLIGATIONS  OF  THE  PARTIES  HEREUNDER  AND  THEREUNDER  SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE  WITH, THE LAW OF THE STATE OF NEW YORK.         SECTION 12.14 Submission  to  Jurisdiction;  Waivers.   Each  party  hereto  hereby  irrevocably and unconditionally:               (a)   agrees that it will not commence any action, litigation or proceeding of any  kind or description, whether in law or equity, whether in contract or in tort or otherwise, against  the Administrative Agent, any Lender, or any Affiliate of the foregoing in any way relating to this  Agreement or any other Credit Document or the transactions relating hereto or thereto, in any  forum other than the courts of the State of New York sitting in New York County, and of the  United States District Court of the Southern District of New York, and any appellate court from  any  thereof,  and  each  of  the  parties  hereto  irrevocably  and  unconditionally  submits  to  the  jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or  proceeding may be heard and determined in such New York State court or, to the fullest extent  permitted by applicable law, in such federal court;               (b)   consents that any such action or proceeding may be brought in such courts  and waives any objection that it may now or hereafter have to the venue of any such action or  proceeding in any such court or that such action or proceeding was brought in an inconvenient  court and agrees not to plead or claim the same;               (c)   agrees  that  service  of  process  in  any  such  action  or  proceeding  may  be  effected by mailing a copy thereof by registered or certified mail (or any substantially similar form  of mail), postage prepaid, to the applicable party at its respective address set forth on Schedule  12.02 or at such other address of which the Administrative Agent shall have been notified pursuant  thereto;               (d)   agrees that nothing herein shall affect the right to effect service of process  in any other manner permitted by law or shall limit any right that the Administrative Agent or any  Lender may otherwise have to bring any action or proceeding relating to this Agreement or any  other Credit Document against the Borrower or any other Credit Party or their respective properties  in the courts of any jurisdiction;                                        122   

 

               (e)   waives,  to  the  maximum  extent  not  prohibited  by  law,  all  rights  of  rescission,  set-off,  counterclaims,  and  other  defenses  in  connection  with  the  repayment of  the  Obligations; and               (f)   waives, to the maximum extent not prohibited by law, any right it may have  to claim or recover in any legal action or proceeding referred to in this Section 12.14 any special,  exemplary, punitive or consequential damages.         SECTION 12.15 Acknowledgments.  Each Credit Party hereby acknowledges that:               (a)   it has been advised by counsel in the negotiation, execution and delivery of  this Agreement and the other Credit Documents;               (b)   neither  the Administrative  Agent nor  any  Lender  has  any  fiduciary  relationship with or duty to the Credit Parties arising out of or in connection with this Agreement  or any of the other Credit Documents, and the relationship between the Administrative Agent and  Lenders, on one hand, and the Credit Parties, on the other hand, in connection herewith or therewith  is solely that of debtor and creditor; and               (c)   no  joint venture  is  created  hereby  or  by  the  other  Credit  Documents  or  otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among  the Credit Parties and the Lenders.         SECTION 12.16 WAIVERS  OF  JURY  TRIAL.  THE  CREDIT  PARTIES,  THE  ADMINISTRATIVE    AGENT   AND  THE  LENDERS  HEREBY  IRREVOCABLY  AND  UNCONDITIONALLY  WAIVE  TRIAL  BY  JURY  IN  ANY  LEGAL  ACTION  OR  PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT  AND FOR ANY COUNTERCLAIM THEREIN.         SECTION 12.17 Confidentiality.  The  Administrative  Agent and  Lender  shall  hold  all  Confidential Information confidential in accordance with its customary procedure for handling  confidential information of this nature and (in the case of a Lender that is a bank) in accordance  with safe and sound banking practices; provided, that Confidential Information may be disclosed  by the Administrative Agent or Lender:               (a)   as  required  by  any  governmental  agency  or  representative  thereof  (including, without limitation, public disclosures by the Administrative Agent, Lender, or any of  their Related Parties required by the SEC or any other governmental or regulatory authority);               (b)   pursuant to legal process;               (c)   in connection with the enforcement of any rights or exercise of any remedies  by the Administrative Agent or Lender under this Agreement or any other Credit Document or any  action or proceeding relating to this Agreement or any other Credit Document;               (d)   to the Administrative Agent’s or Lender’s attorneys, professional advisors,  independent auditors or Affiliates,                                        123   

 

               (e)   in connection with:                     (i)   the  establishment  of  any  special  purpose  funding  vehicle  with  respect to the Loans,                     (ii)  any Securitization permitted under Section 12.08;                     (iii) any  prospective  assignment  of,  or  participation  in,  its  rights  and  obligations pursuant to Section 12.06, to prospective assignees or Participants, as the case may be;                     (iv)  any Hedging Transaction entered into or proposed to be entered into  in connection with the Loans made hereunder, to actual or proposed direct or indirect contractual  counterparties; and                     (v)   any actual or proposed credit facility for loans, letters of credit or  other extensions of credit to or for the account of the Administrative Agent or Lender or any of its  Affiliates, to  any Person providing or proposing  to provide such loan, letter of credit or other  extension of credit or any agent, trustee or representative of such Person; or               (f)   with the consent of the Borrower;   provided, that in the case of clause (e) hereof, the Person to whom Confidential Information is so  disclosed is advised of and has been directed to comply with the provisions of this Section 12.17.   For purposes of this Section, “Confidential Information” means all information received from a  Credit Party or any Subsidiary, whether directly or from a Credit Party or a Subsidiary’s managers,  officers,  employees,  attorneys,  agents,  or  other  advisors,  relating  to  the  Credit  Parties  or  any  Subsidiary or any of their respective businesses, other than any such information that is available  to the Administrative Agent or any Secured Party on a nonconfidential basis prior to disclosure by  or on behalf of such Credit Party or any Subsidiary.   Notwithstanding  the  foregoing,  (A)  each  of  the Administrative  Agent,  the  Lenders  and  any  Affiliate thereof is hereby expressly permitted by the Credit Parties to refer to any Credit Party  and any of their respective Subsidiaries in connection with any promotion or marketing undertaken  by the Administrative Agent, Lender or Affiliate and, for such purpose, the Administrative Agent,  Lender  or  Affiliate  may  utilize  any  trade  name,  trademark,  logo  or  other  distinctive  symbol  associated  with  such  Credit  Party  or  such  Subsidiary  or  any  of  their  businesses  and  (B)  any  information that is or becomes generally available to the public (other than as a result of prohibited  disclosure by the Administrative Agent or Lender) shall not be subject to the provisions of this  Section 12.17.         EACH  LENDER  ACKNOWLEDGES  THAT  CONFIDENTIAL  INFORMATION  (AS  DEFINED  IN  THIS SECTION  12.17)  FURNISHED  TO  IT  PURSUANT  TO  THIS  AGREEMENT      MAY    INCLUDE     MATERIAL     NON-PUBLIC      INFORMATION  CONCERNING  THE      BORROWER     AND  ITS  RELATED  PARTIES  OR  THEIR  RESPECTIVE  SECURITIES,  AND  CONFIRMS  THAT  IT  HAS  DEVELOPED  COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC  INFORMATION  AND  THAT  IT  WILL  HANDLE  SUCH  MATERIAL  NON-PUBLIC                                        124   

 

   INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE  LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.         ALL  INFORMATION,  INCLUDING  WAIVERS  AND  AMENDMENTS,  FURNISHED  BY  THE  CREDIT  PARTIES  OR       THE  ADMINISTRATIVE     AGENT  PURSUANT  TO,  OR  IN  THE  COURSE  OF   ADMINISTERING,    THIS  AGREEMENT  WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL  NONPUBLIC  INFORMATION  ABOUT  THE  CREDIT  PARTIES  AND  THEIR  RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH  LENDER  REPRESENTS  TO  THE  CREDIT  PARTIES  AND  THE  ADMINISTRATIVE  AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A  CREDIT  CONTACT  WHO  MAY  RECEIVE  INFORMATION  THAT  MAY  CONTAIN  MATERIAL     NONPUBLIC     INFORMATION       IN  ACCORDANCE       WITH    ITS  COMPLIANCE PROCEDURES AND APPLICABLE LAW.         SECTION 12.18 Press Releases, etc.  Each Credit Party will not, and will not permit any  of its respective Subsidiaries, directly or indirectly, to publish any press release or other similar  public  disclosure  or  announcements  (including  any  marketing  materials)  regarding  this  Agreement, the other Credit Documents, the Transaction Documents, or any of the Transactions,  without  the  consent  of  the Administrative Agent,  which  consent  shall  not  be  unreasonably  withheld.         SECTION 12.19 Releases of Guarantees and Liens.  (a) Notwithstanding anything to the  contrary contained herein or in any other Credit Document, the Administrative Agent is hereby  irrevocably authorized and directed by each Secured Party (without requirement of notice to or  consent of any Secured Party except as expressly required by Section 12.01) (x) to take any action  requested by the Borrower having the effect of releasing any Collateral or guarantee obligations  (i) to the extent necessary to permit consummation of any transaction not prohibited by any Credit  Document  or  that  has  been  consented  to  in  accordance  with Section  12.01  or  (ii) under  the  circumstances described in paragraph (b) below and (y) enter into subordination or intercreditor  agreements with respect to Indebtedness to the extent the Administrative Agent or the Collateral  Agent is otherwise contemplated herein as being a party to such intercreditor or subordination  agreement.               (a)   At  such  time  as  (i) the  Loans and  the  other  Obligations  (other  than  Unasserted Contingent Obligations) shall have been paid in full and (ii) the Commitments have  been  terminated,  the  Collateral  shall  be automatically released  from  the  Liens  created  by  the  Security Documents, and the Security Documents and all pledges and obligations (other than those  expressly stated to survive such termination) of the Administrative Agent and each Credit Party  under  the  Security  Documents  shall  terminate,  all  without  delivery  of  any  instrument  or  performance of any act by any Person.               (b)   Upon  request  by  the Administrative Agent  at  any  time,  the  Required  Lenders  will  confirm  in  writing  the Administrative Agent’s  authority  to  release  its  interest  in  particular  types  or  items  of  property,  or  to  release  any  guarantee  obligations  pursuant  to  this  Section 12.19.  In each case as specified in this Section 12.19, the Administrative Agent will (and  each Lender irrevocably authorizes and directs the Administrative Agent to), at the Borrower’s                                        125   

 

   request and expense, (i) execute and deliver any termination statements, lien releases, discharges  of  security  interests,  and  other  similar  discharge  or  release  documents  (and,  if  applicable,  in  recordable form) as are reasonably necessary to release, as of record, the Administrative Agent’s  Liens and all notices of security interests and liens previously filed by the Administrative Agent  and  (ii)  deliver  all  possessory  collateral  in the  Administrative Agent’s possession,  custody  or  control to the Borrower (or the Borrower’s designee), and (iii) execute and deliver to the applicable  Credit Party such other documents as such Credit Party may reasonably request to evidence the  release  of  such  item  of  Collateral  or  obligation  from  the  assignment,  lien  or  security  interest  granted under the Security Documents, in each case in accordance with the terms of the Credit  Documents and this Section 12.19.         SECTION 12.20 USA Patriot Act.  Each Lender hereby notifies each Credit Party that  pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law  October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that  identifies the Credit Parties, which information includes the name and address of each Credit Party  and other information that will allow such Lender to identify each Credit Party in accordance with  the Patriot Act.  Each Credit Party agrees to provide all such information to the Lenders upon  request by the Administrative Agent at any time, whether with respect to any Person who is a  Credit Party on the Closing Date or who becomes a Credit Party thereafter.         SECTION 12.21 No  Fiduciary  Duty.  Each  Credit  Party,  on  behalf  of  itself  and  its  Subsidiaries, agrees that in connection with all aspects of the transactions contemplated hereby  and any communications in connection therewith, the Credit Parties, their respective Subsidiaries  and Affiliates, on the one hand, and the Administrative Agent, the Lenders and their respective  Affiliates, on the other hand, will have a business relationship that does not create, by implication  or otherwise, any fiduciary duty on the part of the Administrative Agent, the Lenders or their  respective Affiliates, and no such duty will be deemed to have arisen in connection with any such  transactions or communications.         SECTION 12.22 Authorized  Officers.   The  execution  of  any  certificate  requirement  hereunder  by  an  Authorized  Officer  shall  be  considered  to  have been  done  solely  in  such  Authorized Officer’s capacity as an officer of the applicable Credit Party (and not individually).   Notwithstanding anything to the contrary set forth herein, the Secured Parties shall be entitled to  rely and act on any certificate, notice or other document delivered by or on behalf of any Person  purporting to be an Authorized Officer of a Credit Party and shall have no duty to inquire as to the  actual incumbency or authority of such Person.         SECTION 12.23 Acknowledgement and Consent to Bail-In of EEA Financial Institutions.   Notwithstanding  anything to  the  contrary  in  any Credit Document  or  in  any  other  agreement,  arrangement or understanding among any such parties, each party hereto acknowledges that any  liability of any EEA Financial Institution arising under any Credit Document, to the extent such  liability  is  unsecured,  may  be  subject  to  the  write-down  and  conversion  powers  of  an  EEA  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:  (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority  to any such liabilities arising hereunder which may be payable to it by any party hereto that is an  EEA Financial Institution, and (b) the effects of any Bail-in Action on any such liability, including,  if applicable: (i) a reduction in full or in part or cancellation of any such liability, (ii) a conversion                                        126   

 

   of all, or a portion of, such liability into shares or other instruments of ownership in such EEA  Financial  Institution, its parent  undertaking,  or  a bridge institution that may be issued to  it or  otherwise conferred on it, and that such shares or other instruments of ownership will be accepted  by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit  Document or (iii) the variation of the terms of such liability in connection with the exercise of the  write-down and conversion powers of any EEA Resolution Authority.                               [SIGNATURE PAGES FOLLOW]                                                 127   

 

         IN  WITNESS  WHEREOF,  each  of  the  parties  hereto  has  caused  a  counterpart  of  this  Agreement to be duly executed and delivered as of the date first above written.   BORROWER:                               EVOLENT HEALTH LLC,                                          a Delaware limited liability company                                            By: /s/ Jonathan Weinberg                                              Name: Jonathan Weinberg                                                 Title: Secretary    PARENT:                                 EVOLENT HEALTH, INC.,                                          a Delaware corporation                                                                                                                              By: /s/ Jonathan Weinberg                                                Name: Jonathan Weinberg                                                Title: Secretary    OTHER GUARANTORS:                       EH HOLDING COMPANY, INC.,                                          a Delaware corporation                                                                                                                              By: /s/ Jonathan Weinberg                                                Name: Jonathan Weinberg                                                Title: Secretary                                            EVOLENT  CARE  PARTNERS  HOLDING                                          COMPANY, INC.,                                          a Delaware corporation                                                                                                                              By: /s/ Jonathan Weinberg                                                Name: Jonathan Weinberg                                                Title: Secretary                                                         Signature Page to Credit Agreement     

 

                                NCIS HOLDINGS, INC.,                  a Delaware corporation                                                      By: /s/ Jonathan Weinberg                        Name: Jonathan Weinberg                        Title: Secretary                    NCH MANAGEMENT SYSTEMS, INC.,                  a California corporation                                                      By: /s/ Jonathan Weinberg                        Name: Jonathan Weinberg                        Title: Secretary                    EVOLENT CARE PARTNERS OF TEXAS,                  INC.,                  a Texas corporation                                                      By: /s/ Jonathan Weinberg                        Name: Jonathan Weinberg                        Title: Secretary        Signature Page to Credit Agreement                               

 

   ADMINISTRATIVE AGENT:                   ARES CAPITAL MANAGEMENT LLC,                                          a Delaware limited liability company                                            By: /s/ Scott Lem                                             Name: Scott Lem                                             Title: Authorized Signatory                                                          Signature Page to Credit Agreement     

 

   LENDERS:                        ARES CAPITAL CORPORATION                                    By: /s/ Scott Lem                                      Name: Scott Lem                                      Title: Authorized Signatory                                    CION ARES DIVERSIFIED CREDIT FUND                                    By:   /s/ Scott Lem                                        Name: Scott Lem                                        Title: Authorized Signatory                                    ARES CREDIT STRATEGIES INSURANCE                                  DEDICATED FUND SERIES INTERESTS OF THE                                  SALI MULTI-SERIES FUND, L.P.                                   By: Ares Management LLC, its investment subadvisor                                  By: Ares Capital Management LLC, as subadvisor                                    By:   /s/ Scott Lem                                        Name: Scott Lem                                        Title: Authorized Signatory                                    ARES DIRECT FINANCE I LP                                   By: Ares Capital Management LLC, its investment                                  manager                                    By:   /s/ Scott Lem                                        Name: Scott Lem                                        Title: Authorized Signatory                            Signature Page to Credit Agreement     

 

                                                                                                 Schedule 1.01(a)                                                         Commitment Ratios                          Lender            1L Term Loan         1L DDTL  Ares Capital Corporation     $67,131,423.77     $44,754,282.52  CION Ares Diversified         $5,277,288.34      $3,518,192.22  Credit Fund  Ares Credit Strategies        $2,291,287.89      $1,527,525.26  Insurance Dedicated Fund  Series Interests of SALI  Multi-Series Fund, L.P.  Ares Direct Finance I LP       $300,000.00         $200,000.00                                    

 

                                                                                                                Schedule 1.01(b)                                                                      Licensed Insurance Entities                                           Evolent Assurance Solutions LLC, a Vermont limited liability company  Justify Holdings, Inc., a Kentucky corporation  Juntos Health Plan Inc., a Texas corporation  True Health New Mexico, Inc., a New Mexico corporation                      

 

                                                                                                                 Schedule 1.01(c)                                                                         Material Contracts    Material Contracts (other than customer contracts):     1. Ironwood Physicians, PC           a. Network Provider Group Participation Contact by and between NCH Management              Systems, Inc. and Ironwood Physicians, PC, dated July 1, 2014 (as amended to date,              most  recently  by  the  Amendment  to  Network  Provider  Group  Participation              Agreement, dated June 26, 2018)     2. Lighthouse Health Plan LLC           a. Amended  and  Restated  Medicaid  Management  Services  Agreement  by  and              between Lighthouse Health Plan, LLC and Evolent Health LLC, effective February              1, 2019      3. 21st Century Oncology LLC           a. Florida                 i. New Century Health Network Provider Group Participation Agreement by                    and between NCH Management Systems, Inc. and 21st Century Oncology,                    LLC,  dated  April  1,  2015  (as  amended  to  date,  most  recently  by  the                    Amendment to New Century Health Network Provider Group Participation                    Agreement, dated September 1, 2019)           b. Arizona                 i. Network Provider Group Participation  Agreement  by and between NCH                    Management Systems, Inc. and Cancer Treatment Services Arizona, LLC,                    dated May 1, 2016                ii. Network Provider Group Participation  Agreement  by and between NCH                    Management  Systems,  Inc.  and  Alliance  Oncology  of  Arizona,  LLC  (as                    amended to date, most recently by the Amendment to New Century Health                    Network Provider Group Participation Agreement, effective April 1, 2019)                iii. Provider  Group  Participation  Agreement  by  and  between  NCH                    Management Systems, Inc. and Arizona Radiation Therapy Management                    Services, Inc., dated July 1, 2014 (as amended to date, most recently by the                    Amendment to Network Provider Group Participation Agreement, effective                    May 1, 2018)     4. CVS Pharmacy, Inc.           a. Amended  &  Restated  Prescription  Benefit  Services  Agreement  by  and  between              CaremarkPCS Health, L.L.C. and Evolent Health LLC, dated January 1, 2018 (as              amended  to  date,  most  recently  by  the  Amendment  to  Amended and  Restated              Prescription Benefit Services Agreement, dated October 1, 2018)     5. Palo Verde Hematology Oncology LTD           a. Network  Provider  Group  Participation  Agreement  by  and  between  NCH              Management Systems, Inc. and Palo Verde Hematology Oncology, dated May 21,              2014 (as amended to date, most recently by the Amendment to Network Provider              Group participation Agreement, dated May 1, 2018)     6. Arizona Oncology Associates, PC     

 

                                                                                          a. Network  Provider  Group  Participation  Agreement  by  and  between  NCH              Management Systems, Inc. and Arizona Oncology Associates, dated July 1, 2014              (as amended to date, most recently by the Amendment to Network Provider Group              Participation Agreement, effective May 1, 2018)    Evolent Health Services Client Contracts (listed by client relationship)     1. County Care (Cook County)           a. Cook County Health and Hospitals System Amended and Restated Master Contract              by and between Cook County  Health and Hospital  Systems  d/b/a Cook County              Health by its CountyCare Health Plan and Evolent Health LLC., dated April 1, 2016              (as amended to date, most recently by the Corrected Amendment No. 5 to Cook              County Master Contract Agreement, dated September 24, 2019)     2. Deaconess           a. Operational  Master  Services  Agreement,  by  and  between  Deaconess  Health              System, Inc. and Evolent Health LLC, dated January 1, 2015 (as amended to date,              most  recently  by  the  Tenth  Amendment  to  the  Operational  Master  Services              Agreement, dated April 1, 2019)     3. Maryland Physicians           a. Medicaid  Master  Services  Agreement  by  and  between  Maryland  Care,  Inc.              (sometimes referred to in the Maryland Medicaid Program as Maryland Physicians              Care) and Evolent Health LLC, effective September 30, 2019     4. Passport           a. Services Agreement, by and between University Health Care, Inc. d/b/a Passport              Health Plan and Evolent Health LLC, dated December 16, 2015 (as amended to              date, most recently by the Eleventh Amendment to the Services Agreement, dated              May 28, 2019)     5. Premera           a. Master Service Agreement by and between Premera Blue Cross and Evolent Health              LLC, made effective January 1, 2019     6. SOMOS           a. Management Services Agreement by and between SOMOS Your Health, LLC and              Evolent Health LLC, dated January 19, 2018 (as amended to date, most recently by              First Amendment to Master Services Agreement, dated May 21, 2019)           b. Management Services Agreement by and between Somos Healthcare Providers Inc.              and Evolent Health LLC, effective January 15, 2018 (as amended to date, most              recently by First Amendment to Management Services Agreement, dated June 15,              2018)    New Century Customer Contracts (listed by client relationship)1     1. CarePlus           a. Specialty Care Agreement, by and between CarePlus Health Plans, Inc. and NCH              Management Systems, Inc., dated March 1, 2009 (as amended to date, most recently                             1 NTD - County Care and Passport are also NCH customers, but the NCH services are contracted as part  of the broader Evolent services, not individually with NCH.     

 

                                                                                       by the Twenty-third Amendment to Specialty Care Agreement, dated January 1,           2015)        b. Specialty Care Agreement, by and between CarePlus Health Plans, Inc. and New           Century Health, dated  April  1, 2004 (as  amended to  date, most recently by the           Amendment to the Network Agreement Between Careplus Health Plans, Inc. and           New Century Health, dated May 1, 2017)        c. Specialty Care Agreement, by and between CarePlus Health Plans, inc. and NCH           Management Systems, Inc., dated April 1, 2004 (as amended to date, most recently           by  the  Amendment  to  the  Specialty  Care  Agreement  between  CarePlus  Health           Plans Inc. and NCH Management Systems, Inc., dated October 1, 2013)  2. Cigna        a. Capitated  Health  System  Agreement,  by  and  between  Cigna  HealthCare  of           Arizona,  Inc.  and  NCH  Management  Systems,  Inc.,  effective  July  1,  2014  (as           amended to date, most recently by Second Amendment to Capitated Health System           Agreement, dated January 1, 2019).  3. Coventry        a. Delegated Network Agreement, by and between Coventry Summit  Health Plan,           Inc. and NCH Management Systems, Inc. f/k/a New Century Infusion Solutions,           Inc.  aka  NCIS,  dated  October  8,  2007  (as  amended  to  date,  most  recently  by           Amendment  Number  3  to  Delegated  Network  Agreement,  dated  September  1,           2011)        b. Network Agreement, by and between Coventry Health Care of Florida, Inc. f/k/a           Vista Healthplan, Inc., Coventry Health Plan of Florida, Inc. f/k/a Vista Healthplan           of South Florida, Inc., Coventry Health Care, Inc. f/k/a Vista Insurance Plan, Inc.           and NCH Management Systems, Inc. d/b/a New Century Health, dated October 8,           2007 (as amended to date most recently by Amendment Number 6 to the Network           Agreement, dated December 1, 2011)        c. Delegated Network Agreement, by and between NCH Management Systems, Inc.           d/b/a New Century Health, f/k/a New Century Infusion Solutions, Inc. a.k.a NCIS           and Aetna Health Inc. (as amended to date most recently by Amendment Number           Six to Delegated Network Agreement, dated January 1, 2017)        d. Network  Agreement,  by  and  between  Summit  Health  Plan,  Inc.  and  NCH           Management  Systems,  Inc.  d/b/a  New  Century  Health,  dated  April  1,  2007  (as           amended to date, most recently by Amendment Number 2 to Network Agreement,           dated December 1, 2009)        e. Delegated Network Agreement, by and between NCH Management Systems, Inc.           d/b/a/  New  Century  Health  and  Aetna  Health  Inc.  (as  amended  to  date,  most           recently  by  Amendment  Number  Five  to  Delegated  Network  Agreement,  dated           April 1, 2018)  4. GlobalHealth        a. Master Services Agreement, by and between NCH Management Systems, Inc. and           GlobalHealth Holdings, LLC, effective February 1, 2020  5. Humana        a. Services  Agreement,  by  and  between  NCH  Management  Systems,  Inc.  and           Humana Health Plan, Inc., Humana Insurance Company and Affiliates, effective                  

 

                                                                                       January 10, 2011 (as  amended to  date, most recently by Amendment Eleven to           Services Agreement, effective July 1, 2016)        b. Network  Services  Agreement,  by  and  between  Humana  Insurance  Company,           Humana Health Insurance Company of Florida, Inc., Humana Medical Plan, Inc.           and their affiliates that underwire or administer health plans, effective May 1, 2013           (as  amended  to  date,  most  recently  by  the  Amendment  to  Network  Services           Agreement, effective April 26, 2017)    6. Optum        a. Lifeprint Health, Inc. Health Services Agreement (Specialty Capitation), by and           between Lifeprint Health, Inc. and NCH Management Systems, Inc., dated October           1, 2017  7. Simply Health        a. Management and Network Agreement, by and between Simply Healthcare Plans,           Inc.  and  NCH  Management  Systems,  Inc.  d/b/a  New  Century  Health,  dated           February  1,  2014  (as  amended  to  date,  most  recently  by  Amendment  to           Management and Network Agreement, effective July 1, 2018)                                         

 

                                                                                                                  Schedule 7.04                                                                             Litigation    Kelly v. Evolent Health LLC, Case No. 1:19-cv-00500 in the United States District Court for the  Northern District of Illinois, Eastern Division.  Lawsuit alleges that Evolent has incorrectly  categorized exempt and nonexempt employees.    Torres v. Evolent Health LLC, Case No. 1:19-cv-02887 in the United States District Court for  the Northern District of Illinois, Eastern Division.  Lawsuit alleges that Evolent has incorrectly  compensated certain nonexempt employees.    DeLeon v. NCH Management Systems, Inc. Case No. 30-2019-01060073-CU-OE-CXC in the  Superior Court of the State of California, County of Orange.  Lawsuit alleges that NCH failed to  pay plaintiff and similarly situated employees for all hours worked, failed to pay him for missed  rest breaks and meal breaks, failed to pay overtime compensation or minimum wages, did not  allow him to take legally required meal and rest breaks, failed to timely pay final wages upon  termination, failed to provide compliant wage statements, failed to maintain complete and  accurate payroll records and failed to reimburse him for work-related expenses.    Plymouth County Retirement System v. Evolent Health, Inc., Case No. 1:19-cv-01031-RDA- TCB in the United States District Court for the Eastern District of Virginia, Alexandria Division.   This is a class action complaint by a purported shareholder of the Company, alleging that  Evolent and its officers defrauded shareholders by making misleading statements and omissions  about Evolent’s business strategy and operations.    Sendero Health Plans, Inc. v. Evolent Health LLC, Case No. 01-19-0001-3352 – this is case is  currently in arbitration.  Demand letter relates to Sendero Health Plans, Inc. (a Texas Medicaid  plan and former client of Evolent) for not timely processing claims.                               

 

                                                                                                                  Schedule 7.12                                                              Subsidiaries and Joint Ventures/Partnerships                                     Subsidiaries                                             Credit Party     Subsidiary         Ownership               State of                                        Percentage      Incorporation/Formation                                                             of Subsidiary  Evolent Health, Evolent Health LLC 100%              Delaware  Inc.  Evolent Health NCIS Holdings, Inc. 100%              Delaware  LLC  NCIS Holdings, NCH Management      100%              California  Inc.           Systems, Inc.  Evolent Health Evolent Care        100%              Delaware  LLC            Partners Holding                 Company, Inc.  Evolent Care   Evolent Care        100%              Texas  Partners       Partners of Texas,  Holding        Inc.  Company, Inc.  Evolent Care   The Accountable     100%              Michigan  Partners       Care Organization  Holding        Ltd  Company, Inc.  Evolent Health Evolent Health      99.998%2          India  LLC            International Private                 Limited  Evolent Health Evolent Assurance   100%              Vermont  LLC            Solutions LLC  Evolent Health EH Holding          100%              Delaware  LLC            Company, Inc.  EH Holding     Justify Holdings, Inc. 100%           Kentucky  Company, Inc.  EH Holding     True Health New     100%              New Mexico  Company, Inc.  Mexico, Inc.  EH Holding     Juntos Health Plan  80%               Texas  Company, Inc.  Inc.                                                                                                                                                                                                2 Note that 1 share is held by an Indian national as required by Indian law.     

 

                                                                                                                                                                                                                                            Joint Ventures                                              Credit Party       Subsidiary            State of          Name of Joint                                       Incorporation/Formation     Venture                                                                  Affiliate(s)  Evolent Health LLC Momentum Health   Delaware               Momentum Health  (28.1%), HE        Group, LLC                               Holdings, LLC  Holding Company,                                            (56.9%)  Inc. (15.0%)  Evolent Health LLC Georgia Physicians Georgia               Better Health of  (26.6%)            for Accountable                          Georgia, LLC and                     Care LLC                                 other individual                                                              equityholders                                                              (73.4%)  Evolent Health LLC SOMOS Innovation  Delaware               Somos Holdings,  (4%)               LLC                                      LLC (96%)  Evolent Health LLC Lighthouse Health Florida                Baptist Hospital,  (40%)              Plan LLC                                 Inc. (60%)  Evolent Health LLC Miami Children’s  Florida                Variety Children’s  (25%)              Health Plan LLC                          Hospital dba                                                              Nicklaus Children’s                                                              Hospital  Evolent Health LLC Vivant Health MSO California             Vivant Health, Inc.  (48%)              LLC                                      (52%)               Subsidiaries of Momentum Health Group, LLC (a Joint Venture)                                                                Subsidiary        Ownership              State of                                         Percentage      Incorporation/Formation                                                              of Subsidiary  Momentum Health   Momentum Health  100%                Delaware  Group, LLC        Acquisition, Inc.  Momentum Health   GlobalHealth     100%                Oklahoma  Acquisition, Inc. Holdings, LLC  GlobalHealth      True Health New  100%                New York  Holdings, LLC     York, Inc.  GlobalHealth      True Health      100%                Indiana  Holdings, LLC     Indiana, Inc.  GlobalHealth      GlobalHealth, Inc. 100%              Oklahoma  Holdings, LLC                                                  

 

                                                                                                                  Schedule 7.15                                                                           Real Property                                                                          Leased Property3            Company                    Location                   Lessor  Evolent Health LLC        121 Airport Center I, 2208 Principle Equity Properties,                            Highway 121, Suite 120,   LP                            Bedford, TX 76021                                                               Address: Linda S. Larabee,                                                      CCIM, RPA                                                      Vice President of Asset                                                      Management                                                      TriStone Realty Management,                                                      LLC (DBA)                                                      13831 Northwest Fwy, Suite                                                      510                                                      Houston, Texas 77040  Evolent Health LLC        950 North Meridian Street, Indiana University Health,                            Indianapolis, IN 46204    Inc.                                                      950 N. Meridian Street, Suite                                                      1200                                                      Indianapolis, IN 46204                                                        Evolent Health LLC        10089 Willow Creek Road,  Willow Creek SD, LLC                             Suite 100, San Diego, CA                              92131                     Address: c/o CAMI, Inc.                                                      10089 Willow Creek Road,                                                      Suite 230                                                      San Diego, California 92131                                                      Attention: Ron Lack  Evolent Health LLC        177 Post Street, Suite 900, 177 Post Street Associates                            San Francisco, CA 94108                                                         Address: 177 Post Street,                                                      Suite 770                                                      San Francisco, CA 94108                             3 All leased properties listed as owned by Justify Holdings, Inc. are being transferred to Justify Holdings,  Inc. as part of the Passport Acquisition.     

 

                                                                                 True Health New Mexico,   2440 Louisiana Blvd NE,   Uptown Tower, LLC (62%  Inc.                      Suite 600, Albuquerque, NM Undivided Interest), Allen                            87110                     Family Investments, LLC                                                      (21% Undivided Interest),  NCH Management Systems,   Huntington Center, Phase II, MRM Office Owner 4, L.P.  Inc.                      2801 SW 149th Avenue, Suite                             130, Miramar, FL 33027    Address: c/o Starwood                                                      Capital Group                                                      591 West Putnam Avenue                                                      Greenwich, Connecticut                                                      06830                                                      Attention: Read Mortimer  Evolent Health LLC        300 South Riverside, Suite South Riverside Building                            400, Chicago, IL 60606    LLC                                                                                                            Address: South Riverside                                                      Building LLC                                                      c/o Third Millenium Group                                                      7700 Congress Ave, Suite                                                      3106                                                      Boca Raton, FL 33487  Evolent Health LLC        300 South Riverside, Suite Sublessor: DeVry Education                            700, Chicago, IL 60606    Group, Inc.                                                                                                            Address: 3005 Highland                                                      Parkway                                                      Downers Grove, IL 60515-                                                     5799                                                      Attn: Real Estate Department  Evolent Health LLC        5111 Commerce Crossings,  Sublessor: Firstsource Group                            Suite 110, Louisville, KY USA, Inc.                            40229                                                                           Address: 1661 Lyndon Farm                                                      Court                                                      Louisville, KY 40223                                                      Attn: CEO  Evolent Health LLC        540 West Madison Street,  540 West Madison Owner                            Chicago, IL 60661         LLC                                                                                                            Address: 110 East 59th Street     

 

                                                                                                                                     Suite 3201                                                      New York, NY 10022                                                      Attn: Seymour Braun and                                                      Maryanne Small                                                        Evolent Health LLC        600 W. Jackson Street, Suite Stockbridge 600 West                            600, Chicago, IL          Jackson, LLC                                                                                                            Address: 600 W Jackson Blvd                                                      Ste 600 Chicago, IL 60661  Evolent Health LLC        Wells Fargo Bank Tower,   WFBT, LLC                            615 North Upper Broadway,                             Suite 1285, Corpus Christi, Address: c/o U.S. Realty                            TX 78401                  Management                                                      615 N. Upper Broadway, Ste.                                                      101                                                      Corpus Christi, TX 78401  Evolent Health LLC        6630 Onion Drive, Fort    Lee Memorial Health System                            Myers, FL 33912           d/b/a Lee Health                                                                                                            Address: Brock Billman                                                      Property Management                                                      12801 Westlinks Drive, Suite                                                      102                                                      Fort Myers, FL 33913  NCH Management Systems,   675 Placentia Avenue, Suite Fairway Center II - Orange  Inc.                      300, Brea, CA 92821       County, CA, LP                                                                                                            Address: c/o Piedmont Office                                                      Realty Trust                                                      11695 Johns Creek Parkway,                                                      Suite 350                                                      Johns Creek, Georgia 30097                                                      Attention: Asset Manager -                                                      West Region                                                        Evolent Health LLC        700 E. Gregory St.,       Sublessor: Baptist Hospital,                            Pensacola, FL 35202       Inc.                                                           

 

                                                                                                                                     Address: 1717 N. E Street,                                                      3rd Floor Administration,                                                      Pensacola, FL 32501  Evolent Health LLC        800 North Glebe Road, Suite North Glebe Office, LLC                            500, Arlington, VA 22203                                                        Address: JBG/Commercial                                                      Management, LLC                                                      4445 Willard Avenue, Suite                                                      400                                                      Chevy Chase, MD 20815                                                      Attn: Executive Vice                                                      President-Commercial Asset                                                      Management  Evolent Health LLC        801 Warrenville Road, Suite Millbrook Lisle 801 LLC                            400, Lisle, IL 60532                                                            Address: c/o Millbrook                                                      Properties LLC                                                      485 Half Day Road, Suite 220                                                      Buffalo Grove, IL 60089                                                      Attn: Bruce Hecktman  NCH Management Systems,   80 William Street, Suite 270, John Hancock Life Insurance  Inc.                      Wellesley, MA 02481       Company (U.S.A.) and John                                                      Hancock Life & Health                                                      Insurance company                                                                                                            Address: c/o John Hancock                                                      Corporate Real Estate                                                      200 Berkeley Street C-01-05                                                      Boston, MA 02110  Evolent Health LLC        8400 N.W. 36th Street, Suite G&I VIII Doral Concourse                            350, Miami, FL 33166      LLC                                                                                                            Address: c/o DRA Advisors                                                      LLC                                                      220 East 42nd Street, 27th                                                      Floor                                                      New York, New York 10017                                                      Attention: Rob Hyman, Asset                                                      Manager     

 

                                                                                 Evolent Health LLC        9601 Amberglen Boulevard, NW Austin Office Partners                            Suite 225, Austin, TX 78729 LLC                                                                                                            Address: NW Austin Office                                                      Partners LLC                                                      c/o Menlo Equities                                                      490 California Avenue,                                                      Fourth Floor                                                      Palo Alto, CA 94306                                                      Attn: Henry Bullock and                                                      Richard Holmstrom  Evolent Health International B-301 Sai Radhe Complex, SAI Construction Private  Private Limited           Behind Sheraton Grand,    Limited                            RBM Road, Pune 411 001,                               India                     Address: 605, Sai Chambers,                                                      16,                                                      Mumbai-Pune Road                                                      Pune: 411 003  Justify Holdings, Inc.    370 Village Drive,        Regency Appalachia LLC                            Prestonburg, KY 41653  Justify Holdings, Inc.    5100 Commerce Crossings   Commerce Office Center,                            Drive, Louisville, KY 40229 LLC  Justify Holdings, Inc.    1841 Taylor Avenue, Suite Underground Vaults &                            107, Louisville, KY 40213 Storage, Inc.                               

 

                                                                                                            Schedule 7.18                                                                Licensed Insurance Entities                 •  Quota  Share  Reinsurance  Agreement,  by  and  between  Coverys  Specialty  Insurance     Company and Evolent Assurance Solutions, LLC, dated January 1, 2019, and the related     Guaranty  and  Indemnification  Agreement,  by  and  between  Evolent  Health,  Inc.  and     Coverys Specialty Insurance Company, dated January 1, 2019.  •  During  June  2019,  Evolent  Health,  Inc.  and  Passport  also  entered  into  an indemnity     agreement with an insurance company (the “Surety”). More specifically, the Surety issued     a  $25  million performance  bond  to  secure  Passport’s  performance  under  its  Medicaid     contract  in  case  of  a  contract  breach.  This  bond  is  required  by  the  Commonwealth  of     Kentucky in the ordinary course of business and does not impact Evolent’s obligation to     absorb  expected losses  or  receive  expected  residual  returns.  That  said,  the  indemnity     agreement is such that Evolent and Passport are jointly and severally liable to the Surety in     the event of losses arising under the bond. That is, while the Surety is securing Passport’s     performance  up  to  $25  million  from  Kentucky’s  perspective,  Evolent  and  Passport  are     liable to reimburse the Surety for the $25 million performance bond if it was to be utilized.     The bond’s effective date is July 1, 2019 through June 30, 2020. No liabilities are recorded     or expected under the Surety arrangement.                                                                               

 

                                                                                                                  Schedule 7.22                                                                   Collective Bargaining Agreements    None.                                

 

                                                                                                                  Schedule 7.24                                                                       Evidence of Indebtedness       1. 2021 Convertible Notes     2. 2021 Mirror Note between Evolent Health Inc. and Evolent Health LLC     3. 2025 Convertible Notes     4. 2025 Mirror Note between Evolent Health Inc. and Evolent Health LLC     5. Global Share Backstop     6. Passport Health Note     7. Loan Agreement, dated as of October 1, 2018 by and among Evolent Health LLC and        NCIS Holdings, Inc.     8. Cash collateralized L/C items:        a) Irrevocable Standby Letter of Credit in favor of Wells Fargo issued in connection with        Cigna Healthcare of Arizona Inc. in the face amount of $650,000.        b) Irrevocable Standby Letter of Credit in favor of Wells Fargo issued in connection with        Humana Health Plan in the face amount of $400,000.        c) Irrevocable Standby Letter of Credit in favor of Wells Fargo issued in connection with        Florida Health Plan Administrators (Coventry) in the face amount of $1,000,000.        d) Irrevocable Standby Letter of Credit in favor of Wells Fargo issued in connection with        Centers for Medicare & Medicaid Services in the face amount of $1,814,817.37.     9. Letters of Credit relating to various leases:        a) Letter of Credit in favor of Bank of America issued in connection with the Millbrook        Lisle Lease with a current balance of $300,000.        c) Letter of Credit in favor of Bank of America issued in connection with the Glebe Road        Lease with a current balance of $1,578,562.        d) Letter of Credit in favor of Bank of America issued in connection with the 540 W        Madison Lease with a current balance of $1,500,000.        e) Letter of Credit in favor of Bank of America issued in connection with the Riverside        Lease with a current balance of $231,895.34.  10. The surety bonds listed on Schedule 7.23.                    

 

                                                                                                                  Schedule 7.25                                                                Deposit Accounts and Securities Accounts          Financial      Credit Party    Account          Type          Excluded      Institution                    Number                         Account?   American Bank,    EH Holding    60004769302    Securities      No  N.A.              Company,                    Inc.  Bank of America   Evolent       5S7-02Z27-1-   Securities      No                    Health LLC    7CIW  Bank of America   Evolent       435029035142   Deposit         No                    Health LLC  Bank of America   Evolent       435029048744   Deposit         No                    Health, Inc.  Wells Fargo       NCH           4122091168     Deposit         No                    Management                    Systems, Inc.  Wells Fargo       NCIS          4122091184     Deposit         No                    Holdings, Inc.  Bank of America   Evolent       435029035155   Deposit         Yes                    Health LLC  Bank of America   Evolent       435029038055   Deposit         Yes                    Health LLC  Bank of America   Evolent       458003277291   Deposit         Yes                    Health LLC  Bank of America   Evolent       435029038071   Deposit         Yes                    Health LLC  Bank of America   Evolent       435029054712   Deposit         Yes                    Health LLC  City National Bank Evolent      450224855      Deposit         Yes                    Health LLC  City National Bank Evolent      450225290      Deposit         Yes                    Health LLC  Wells Fargo       Evolent       4229996442     Deposit         Yes                    Health LLC  Bank of America   Evolent       435029068931   Deposit         Yes                    Health LLC  Wells Fargo       Evolent       4229996483     Deposit         Yes                    Health LLC  Wells Fargo       Evolent       4637312950     Deposit         Yes                    Health LLC  Bank of America   Evolent       385015861904   Deposit         Yes                    Health LLC     

 

                                                                                 Wells Fargo       Evolent       4229996517     Deposit         Yes                    Health LLC  Wells Fargo       Evolent       4069451151     Deposit         Yes                    Health LLC  Wells Fargo       Evolent       4128036068     Deposit         Yes                    Health LLC  Wells Fargo       Evolent       4128036050     Deposit         Yes                    Health LLC  Wells Fargo       Evolent       4398762377     Deposit         Yes                    Health LLC  Wells Fargo       Evolent       4943652651     Deposit         Yes                    Health LLC  Wells Fargo       NCH           4122091176     Deposit         Yes                    Management                    Systems Inc.  Wells Fargo       NCH           4075390070     Deposit         Yes                    Management                    Systems Inc.  Wells Fargo       NCH           4777374463     Deposit         Yes                    Management                    Systems Inc.  Wells Fargo       NCH           4122094576     Deposit         Yes                    Management                    Systems Inc.                                                                                                                   

 

                                                                                                                  Schedule 7.30                                                                 Location of Collateral; Equipment List    The locations listed on Schedule 7.15 contain Collateral.                 

 

                                                                                                                  Schedule 7.31                                                                         Health Care Matters                                                                                    None.                               

 

                                                                                                                  Schedule 9.02                                                                               Liens    Liens securing the Letters of Credit listed on Schedule 7.24.                

 

                                                                                                                  Schedule 9.04                                                                            Dispositions    Disposition of Miami Children’s Health Plan LLC    Disposition of Vivant Health MSO LLC                         

 

                                                                                                                 Schedule 9.05(g)                                                                            Investments                                                                                                                             Passport Health Note  The Investments listed on Schedule 7.12  2021 Mirror Note between Evolent Health Inc. and Evolent Health LLC  2025 Mirror Note between Evolent Health Inc. and Evolent Health LLC  Cash Equivalents:                                THNM Investments                                                    Category                 Description                Maturity  Money market funds        CAVANAL HILL GOVT                                     SEC MMKT-SEL  Corporate bonds           BANK OF AMERICA CORP      3/5/2024  Corporate bonds           JACKSON NATL LIFE         6/21/2024                            GLOBAL  Corporate bonds           AT&T INC                  3/1/2024  Corporate bonds           KEURIG DR PEPPER INC      5/25/2003  Private CMO               CSMC SER 2015-3 CL A9     3/5/2045  Private CMO               GSR SER 2005-5F CL 2A2    6/25/2035  Private CMO               JPMMT SER 2016-4 CL A5    10/25/2046  Private CMO               JPMMT SER 2017-1 CL A5    1/25/2047  Private CMO               JPMMT SER 2017-3 CL 1A5   8/25/2047  Private CMO               WIN SER 2014-1 CL A4      6/20/2044  CMBS                      CGCMT SER 2015-GC27 CL A2 2/10/2048  CMBS                      WFCM SER 2015-NXS1 CL A2  5/15/2048  US Treasury               US Treasury Note          6/30/2023  US Treasury               US Treasury Note          7/15/2021  US Treasury               US Treasury Note          12/31/2019  Agency                    FFCB                      10/15/2026  Agency CMO                FNMA SER 2003-W6 CL 6A    8/25/2042  Agency CMO                FNW SER 2003-W10 CL 2A    6/25/2043  Agency CMO                FNW SER 2003-W12 CL 3A    3/25/2043  Agency CMO                FNW SER 2004-W3 CL A7     5/25/2034  Agency CMO                GNR SER 2014-52 CL AE     8/16/2041     

 

                                                                                 Agency CMO                GNR SER 2017-96 CL MC     8/20/2046  Agency CMO                VENDE SER 2003-2 CL Z     5/15/2033  Sovereign debt            EXPORT-IMPORT BANK KOREA  11/27/2023  Sovereign debt            KOREA DEVELOPMENT BANK    3/12/2023  Corporate bonds           BAIDU INC                 9/29/2023  Corporate bonds           MIZUHO FINANCIAL GROUP    3/5/2023                                Juntos Health Plan, Inc.    Goldman Sachs Government Fund Principal    US Treasury Bill due 10/8/2020                               

 

                                                                                                                  Schedule 9.09                                                                      Transactions with Affiliates    Health  Plan  Services  Agreement  by  and  between  True  Health  New  Mexico,  Inc.  and  Evolent  Health LLC, effective January 1, 2018    Amended and Restated Services Agreement by and between Justify Holdings, Inc. and Evolent  Health LLC4    Medicaid Management Services Agreement by and between Lighthouse Health Plan, LLC and  Evolent Health LLC, dated February 1, 2019    Medicaid Management Services Agreement by and between Miami Children’s Health Plan, LLC  and Evolent Health LLC, dated October 27, 2017    Subcontractor Management Services Agreement by and between Vivant Health MSO, LLC and  Evolent Health, LLC, dated January 3, 2019    Operational Master Services Agreement by and between Georgia Physicians for Accountable Care  and Evolent Health LLC, dated May 6, 2016    Subcontractor Management Services Agreement by and between GlobalHealth Holdings, LLC and  Evolent Health LLC, dated May 24, 2019    Master Services Agreement by and between GlobalHealth Holdings, LLC and NCH Management  System, Inc., effective February 1, 2020    Intercompany  Service  Agreement  by  and  between  Evolent  Health  LLC  and  Evolent  Health  International Private Limited (fka Valence Health Solutions India Private Limited), dated January  31, 2018    Intercompany Service Agreement by and between Evolent Health LLC and NCH Management  Systems, Inc., dated January 1, 2019                                                          4 NTD – consolidation of the current agreement is expected to be completed on January 3, 2020.     

 

                                                                                                                  Schedule 9.10                                                                        Restrictive Agreements    The letters of credit listed on Schedule 7.24.                  

 

                                                                                                                   Schedule 12.02                                                                        Addresses for Notices  If to the Borrower:    Evolent Health LLC  Attn: Chief Financial Officer  800 N. Glebe Rd., Suite 500  Arlington, VA 22203    With copies to:    Evolent Health LLC  Attn: General Counsel  800 N. Glebe Rd., Suite 500  Arlington, VA 22203    King & Spalding LLP  Attn: Amy Peters and Evan Palenschat  353 N Clark Street  12th Floor  Chicago, IL 60654      If to the Administrative Agent:    Ares Capital Corporation  2000 Avenue of the Stars, 12th Floor  Lost Angeles, CA 90067  Attention: Doug Dieter  Email: ddieter@aresmgmt.com    With copies to:    Morgan, Lewis & Bockius LLP  101 Park Avenue  New York, NY  Attention: Kate Weinstein  Email: katherine.weinstein@morganlewis.com                                              

 

                                                                                                                                                    EXHIBIT A-1                      FORM OF ASSIGNMENT AND ACCEPTANCE                                 Date: __________, 2019                Reference is made to the Credit Agreement, dated as of December 30, 2019 (as   amended, restated, amended and restated, supplemented, or otherwise modified from time to time,   the  “Credit  Agreement”),  among EVOLENT  HEALTH,  INC.,  a  Delaware  corporation   (“Parent”), EVOLENT HEALTH LLC, a Delaware limited liability company (the “Borrower”),   its Subsidiaries signatory thereto as guarantors or hereafter designated as Guarantors pursuant to   Section 8.11 of the Credit Agreement, the lenders from time to time party thereto (each a “Lender”   and,  collectively,  the  “Lenders”),  and ARES  CAPITAL  CORPORATION,  a  Maryland   corporation (“Ares”), as administrative agent and collateral agent for the Lenders (in such capacity,   together with its successors and assigns in such capacity, the “Administrative Agent”).                Unless otherwise defined herein, capitalized terms used herein and defined in the   Credit Agreement shall have the meanings given to them in the Credit Agreement.                1.  The Assignor identified on Schedule 1 hereto (the “Assignor”) and the Assignee   identified on Schedule l hereto (the “Assignee”) agree as follows:                2.  For an agreed consideration, the Assignor hereby irrevocably sells and assigns   to the Assignee without recourse to the Assignor, and the Assignee hereby irrevocably purchases   and assumes from the Assignor, without recourse to the Assignor, subject to and in accordance   with the terms and conditions of the Credit Agreement, as of the Effective Date (as defined below),   the interest described in Schedule 1 hereto (the “Assigned Interest”) in and to the Assignor’s rights   and obligations under the Credit Agreement and any other documents or instruments delivered   pursuant thereto with respect to the Commitments (the “Assigned Commitments”) or Loans (the   “Assigned  Facilities”),  as  applicable,  contained  in  the  Credit  Agreement  as  are  set  forth  on   Schedule  1 hereto,  in  a  principal  amount  for  each  such  Assigned  Commitments  or  Assigned   Facilities, as applicable, as set forth on Schedule 1 hereto.                3.  The Assignor (x) represents and warrants that (i) it is the legal and beneficial   owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance   or other adverse claim and (iii) it has full power and authority, and has taken all action necessary,   to  execute  and deliver  this  Assignment  and  Acceptance  and  to  consummate  the  transactions   contemplated hereby and (y)(i) makes no representation or warranty and assumes no responsibility   with respect to any statements, warranties or representations made in or in connection with the   Credit Agreement or with respect to the execution, legality, validity, enforceability, genuineness,   sufficiency or value of the Credit Agreement, any other Credit Document or any other instrument   or document furnished pursuant thereto, other than that the Assignor has not created any adverse   claim upon the interest being assigned by it hereunder and that such interest is free and clear of   any such adverse claim; (ii) makes no representation or warranty and assumes no responsibility   with respect to the financial condition of any Borrower, any Subsidiary or any other Loan Party or   the performance or observance by any Borrower, any Subsidiary or any other Loan Party of any   of their respective obligations under the Credit Agreement or any other Credit Document or any   other  instrument  or  document  furnished  pursuant  hereto  or  thereto;  and  (iii)  attaches  any                                    Exhibit A-1 - 1  DB1/  110516459.3   

 

                                                                                 promissory notes held by it evidencing the Assigned Facilities (“Notes”) and (A) requests that the  Administrative Agent, upon request by the Assignee, exchange the attached Notes for a new Note  or Notes payable to the Assignee and (B) if the Assignor has retained any interest in the Assigned  Facilities, requests that the Administrative Agent exchange the attached Notes for a new Note or  Notes payable to the Assignor, in each case in amounts which reflect the assignment being made  hereby  (and  after  giving  effect  to  any  other  assignments  which  have  become  effective  on  the  Effective Date).               4.  The Assignee (a) represents and warrants that (i) it has full power and authority,  and has taken all action necessary, to execute and deliver this Assignment and Assumption and to  consummate  the  transactions  contemplated  hereby  and  to  become  a  Lender  under  the  Credit  Agreement and (ii) it meets all the requirements to be an assignee under Section 12.06(a) and (b)  of  the  Credit  Agreement  (subject  to  such  consents,  if  any,  as  may  be  required  under  Section  12.06(a)  of  the  Credit  Agreement);  (b) confirms  that  (i)  it  has  received  a  copy  of  the  Credit  Agreement, together with copies of the financial statements delivered pursuant to Section 8.01  thereof and such other documents and information as it has deemed appropriate to make its own  credit  analysis  and  decision  to  enter  into  this  Assignment  and  Acceptance,  (ii)  that  it  is  sophisticated with respect to decisions to acquire assets of the type represented by the Assigned  Interest  and either it, or the Person exercising discretion in  making its decision to  acquire the  Assigned Interest, is experienced in acquiring assets of such type; and (iii) it has, independently  and  without  reliance  upon  the  Administrative  Agent  or  any  other  Lender  and  based  on  such  documents and information as it has deemed appropriate, made its own credit analysis and decision  to enter into this Assignment and Assumption and to purchase the Assigned Interest; (c) agrees  that it will, independently and without reliance upon the Assignor, the Administrative Agent or  any other Lender and based on such documents and information as it shall deem appropriate at the  time, continue to make its own credit decisions in taking or not taking action under the Credit  Agreement, the other Credit Documents or any other instrument or document furnished pursuant  hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as agent  on its behalf and to exercise such powers and discretion under the Credit Agreement, the other  Loan Documents or any other instrument or document furnished pursuant hereto or thereto as are  delegated to  the Administrative Agent by the terms  thereof, together with  such powers  as  are  incidental thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement  as a Lender thereunder, and to the extent of the Assigned Interest, and shall perform in accordance  with its terms all the obligations which by the terms of the Credit Agreement are required to be  performed by it as a Lender.               5.  The effective date of this Assignment and Acceptance shall be the Effective Date  of Assignment described in Schedule 1 hereto (the “Effective Date”).  Following the execution of  this Assignment and Acceptance, it will be delivered to the Administrative Agent for acceptance  by it and recording by the Administrative Agent pursuant to the Credit Agreement, effective as of  the Effective Date (which shall not, unless otherwise agreed to by the Administrative Agent, be  earlier  than  five  (5)  Business  Days  after  the  date  of  such  acceptance  and  recording  by  the  Administrative Agent).               6.  Upon such acceptance and recording, from and after the Effective Date, the  Administrative  Agent  shall  make  all  payments  in  respect  of  the  Assigned  Interest  (including  payments of principal, interest, fees and other amounts) to the Assignor for amounts which have                                   Exhibit A-1 - 2   

 

                                                                                 accrued to the Effective Date and to the Assignee for amounts which have accrued subsequent to  the Effective Date.               7.  From and after the Effective Date, (a) the Assignee shall be a party to the Credit  Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and  obligations of a Lender thereunder and under the other Credit Documents and shall be bound by  the provisions thereof and (b) the Assignor shall, to the extent provided in this Assignment and  Acceptance, relinquish its rights and be released from its obligations under the Credit Agreement.               8.   This  Assignment  and  Acceptance  shall  be  governed  by  and  construed  in  accordance  with  the  laws  of  the  State  of  New  York,  without  reference  to  conflicts  of  law  provisions.               IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Assignment  and  Acceptance to be executed as of the date first written above by their respective duly authorized  officers on Schedule 1 hereto.                                                   Exhibit A-1 - 3   

 

                                                                                                                               Schedule 1                                   to Assignment and Acceptance                                                         Name of Assignor: [_____]         Name of Assignee: [_____]         Effective Date of Assignment: [_____], 20[__]            Assigned Interest     Principal      Percentage of the applicable Purchase Price for Assignment  [Initial Term Loan    Amount         [Assigned Commitment]   Commitment]           Assigned       [Assigned Loan]              $[_____]   [DDTL Commitment]                                                              [Initial Term Loan]  $__________    ____.______%  [Delayed Draw Term  Loan]                                      ____________________                                                                [_____], as Assignor             [_____], as Assignee                                                                                                                                                                                                    By: ____________________________              By: ________________________________  Name:                                         Name:    Title:                                        Title:                                                  Assignee’s Address for Notices:                                                                                                                                                                                                   Exhibit A-1 - 4         

 

                                                                                 Accepted and Consented to:              [Consented To:                                            ARES CAPITAL CORPORATION,               EVOLENT HEALTH LLC,   as Administrative Agent                 as Borrower5                                                                                      By:  _________________________________  By:  _________________________________  Name:                                   Name:  Title:                                  Title:                                                                              5 To the extent required under the Credit Agreement.                                   Exhibit A-1 - 5   

 

                                                                                                                                                   EXHIBIT C-1                        FORM OF COMPLIANCE CERTIFICATE                                                                         [_______________]               This certificate is delivered pursuant to Section 8.01(d) of the Credit Agreement,  dated as of December 30, 2019 (as amended, restated, amended and restated, supplemented, or  otherwise modified from time to time, the “Credit Agreement”), among EVOLENT HEALTH  LLC, a Delaware limited liability company (the “Borrower”), EVOLENT HEALTH, INC., a  Delaware  corporation  (“Parent”),  the  Persons  signatory  thereto  as  guarantors  or hereafter  designated as Guarantors pursuant thereto, the lenders from time to time party thereto (each a  “Lender”  and,  collectively,  the  “Lenders”),  and ARES  CAPITAL  CORPORATION,  a  Maryland corporation (“Ares”), as administrative agent and collateral agent for the Lenders (in  such  capacity,  together  with  its  successors  and  assigns  in  such  capacity,  the  “Administrative  Agent”). Unless otherwise defined herein, capitalized terms used herein and in the attachments  hereto shall have the meanings provided in the Credit Agreement.               The Borrower hereby certifies, on behalf of the Credit Parties, that as of the date  hereof [no Default or Event of Default had occurred and is continuing] [a Default/an Event of  Default has occurred and is continuing and set forth on Attachment 6 are the details specifying  such Default or Event of Default and the action taken or to be taken with respect thereto].  The  Borrower hereby further certifies, on behalf of the Credit Parties, that as of [_____], 20[__] (the  “Computation Date”):               (1)    The financial statements delivered with this Certificate in accordance with  Section 8.01 of the Credit Agreement have been prepared in accordance with GAAP, as applicable,  and present fairly in all material respects the financial position and results of operations of the  Credit Parties at the respective dates of such information and for the respective periods covered  thereby, subject in the case of unaudited financial information, to changes resulting from normal  year end audit adjustments and to the absence of footnotes.               (2)    There  are  no  material  liabilities  of  any  Credit  Party  of  any  kind  whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, and  there is no existing condition, situation or set of circumstances which could reasonably be expected  to result in any such liabilities, other than those liabilities provided for or disclosed in the financial  statements delivered with this Certificate in accordance with Section 8.01 of the Credit Agreement.               (3)    The Net Revenue of the Credit Parties on a consolidated basis is not less  than [[$850,000,000]6 [$800,000,000]7 [$750,000,000]8]9                             6 To only be included for the Test Period ending March 31, 2020.  7 To only be included for the Test Periods ending June 30, 2020, September 30, 2020 and December 31, 2020.  8 To only be included for the Test Periods commencing with the fiscal quarter ending March 31, 2021 through and  including the fiscal quarter ending December 31, 2021.  9 To the extent True Health New Mexico, Inc. is sold, transferred or other disposed of for Net Proceeds of  $12,500,000 or more during any such fiscal quarter pursuant to a transaction permitted by the Credit Agreement, this    

 

               (4)    The Liquidity is not less than [$20,000,000 (or, to the extent one or more  draws on the DDTL Facility has occurred, $40,000,000]10 [$25,000,000 (or, to the extent one or  more draws on the DDTL Facility has occurred, $40,000,000)]11 [$40,000,000]12               (5)    [The  Total  Secured  Leverage  Ratio  on  the  last  day  of  the  Test  Period  ending on the Computation Date was ____ to 1.00, as computed on Attachment 2 hereto. The Total  Secured Leverage Ratio for such period must not be greater than 5.50 : 1.00 for such Test Period  as pursuant to Section 9.13(c) of the Credit Agreement.]13               (6)    [The  Total  Secured  Leverage  Ratio  on  the  last  day  of  the  Test  Period  ending on the Computation Date was ____ to 1.00, as computed on Attachment 2 hereto. The Total  Secured Leverage Ratio for such period must not be greater than 4.50 : 1.00 for such Test Period  as pursuant to Section 9.13(c) of the Credit Agreement.]14               (7)    Attachment 3 hereto contains the changes, if any, in the identity of the  Subsidiaries from those identified to the Administrative Agent since [the Closing Date]15 [the date  of the most recent Compliance Certificate delivered to the Administrative Agent].               (8)    [Attachment 4 hereto contains a written supplement, if any, substantially  in  the  form  of  Schedules  1-5,  as  applicable,  to  the  Security  Agreement  with  respect  to  any  additional assets and property acquired by any Credit Party [after the Closing Date]16 [since the  date  of  the  most  recent  Compliance  Certificate  delivered  to  the  Administrative  Agent],  in  reasonable  detail  and  each  such  written  supplement  shall  be  deemed  to  immediately  and  automatically amend such Schedule as then in effect.]17               (9)    [Attachment  5 hereto  contains  a  written  supplement,  if  any,  updating  Schedules  [1.01(b)],  [1.01(c)18],  [7.12],  [7.15],  [7.22],  [7.23],  [7.25]  and  [7.30]  of  the  Credit  Agreement and each such written supplement shall be deemed to immediately and automatically  amend such Schedule as then in effect.]19                             amount is to be reduced by an amount equal to the lesser of (i) $150,000,000 and (ii) Net Revenue contributed by  True Health New Mexico, Inc. for the twelve (12) month period ended as of last fiscal quarter for which such Net  Revenue was calculated immediately prior to the consummation of such sale, transfer or disposition.    10 To only be included for measurement period January 1, 2020 through March 31, 2020.  11 To only be included for measurement period April 1, 2020 through December 31, 2020.  12 To only be included for measurement periods commencing after December 31, 2020.  13 To only be included for reporting for the Test Periods ending March 31, 2021 through December 31, 2021.  14 To only be included for reporting for the Test Periods ending March 31, 2022 and ending each fiscal quarter  thereafter.  15 To only be included for the first delivery of the Compliance Certificate only.  16 To only be included for the first delivery of the Compliance Certificate only.  17 To the extent applicable for the relevant Test Period.  18 Including delivery of copies of (x) each Material Contract entered into since the Closing Date or the most recently  delivered Compliance Certificate, as applicable and (y) each material amendment or modification of any Material  Contract since the Closing Date or the most recently delivered Compliance Certificate, as applicable.   19 To the extent applicable for the relevant Test Period.    

 

                                [Remainder of page intentionally left blank]                 

 

                                                                      Attachment 1                                                                         (to _/_/_                                                            Compliance Certificate)                        CONSOLIDATED ADJUSTED EBITDA20                                                             As of _______ __, 20__ (the “Computation Date”)                           for the Test Period ending on the                      Computation Date (the “Computation Period”)     I. Consolidated Adjusted EBITDA for the Computation Period: an amount  determined for the Borrower and its Subsidiaries on a consolidated basis equal  to:                                                                       A. Consolidated Net Income:  the consolidated net income (or loss) of the Parent     and its Subsidiaries determined in accordance with GAAP; minus $___________       (i)  the income (or loss) of any Person (other than consolidated           Subsidiaries of Parent) in which any Person (other than Parent or any           of its consolidated Subsidiaries) has a joint ownership interest, or that           is accounted for by the equity method of accounting, except to the           extent of the amount of dividends or other distributions actually paid           to Parent or any of its consolidated Subsidiaries by such Person           during such specified period, minus                     $___________      (ii)  the income (or loss) of any Person accrued prior to the date it           becomes a consolidated Subsidiary of Parent or is merged into or           consolidated with Parent or any of its consolidated Subsidiaries or           such Person’s assets are acquired by Parent or any of its consolidated           Subsidiaries, minus                                     $___________                              20 All attachments to Compliance Certificate to be conformed with final Credit Agreement.    

 

      (iii) the income of any consolidated Subsidiary of Parent (other than a           Credit Party) to the extent that the declaration or payment of           dividends or similar distributions by that consolidated Subsidiary of           that income is not at the time permitted by operation of the terms of           its charter or any agreement, instrument, judgment, decree, order,           statute, rule, governmental regulation applicable to that consolidated           Subsidiary or would require governmental (including regulatory)           consent; provided, that, the income (or loss) of any consolidated           Subsidiary of Parent (other than a Credit Party) shall not be excluded           from this definition to the extent governmental (including regulatory)           consent has been received for the declaration or payment of dividends           or similar distributions by that consolidated Subsidiary of its           income..........................................................................                      $___________   B. In each case to the extent deducted in calculating Consolidated Net Income     for the Computation Period (other than with respect to clause (B)(13) below),      the sum of, and without duplication, amounts for:                            (1) Consolidated Interest Expense (net of interest income):  for the         Borrower and its Subsidiaries, determined on a consolidated basis in         accordance with GAAP, the sum of:                                                                                      (a) all interest in respect of Indebtedness (including, without           limitation, the interest component of any payments in respect of $___________           Capitalized Lease Obligations) accrued or capitalized during such           period (whether or not actually paid during such period) plus...... .             (b) the net amount payable (or minus the net amount receivable) in            respect of Hedging Obligations relating to interest during such period           (whether or not actually paid or received during such period)........ $___________          (2) Provisions for Taxes based on income and any payments made   pursuant to the TRA...................................................................                      $___________          (3) Total depreciation expense...............................................         $___________          (4) Total amortization expense..............................................            $___________          (5) Other non-cash charges reducing Consolidated Net Income   (excluding any such non cash item (a) to the extent that it represents an accrual   or reserve for potential cash items in any future period or amortization of a   prepaid cash item that was paid in a prior period or (b) relating to a write-  down, write off or reserve with respect to receivables or   inventory)..............................................................................                          $___________     

 

                      (6) Losses, costs and expenses on asset sales, disposals or  abandonments (other than (a) of current assets and (b) asset sales, disposals or  abandonments in the ordinary course of business)... ............................    $___________        (7) Fees and expenses incurred in connection with a Permitted  Acquisition, other Investments permitted under the Credit Agreement,  Dispositions (other than in the ordinary course of business) permitted under the  Credit Agreement, Restricted Payments permitted under the Credit Agreement  or the refinancing or redemption of Indebtedness permitted under the Credit  Agreement; provided, that, to the extent such transactions have not been  consummated, such costs, fees and expenses shall not exceed an amount not  greater than $1,500,000 in any Test Period ........................................       $___________        (8) Fees and expenses incurred in connection with the consummation of  the Transactions on the Closing Date in an aggregate amount not to exceed  $5,200,000 and to the extent disclosed to Administrative Agent.................. $___________        (9) Non-cash adjustments pursuant to any management equity or equity- based plan or stock option plan or any other management or employee benefit  plan or agreement or any stock subscription or stockholders agreement........ $___________        (10) (a) The effects of adjustments in the Parent’s and its Subsidiaries’  consolidated financial statements pursuant to GAAP (including in the property  and equipment, software, goodwill, intangible assets, deferred revenue and debt  line items thereof) resulting from the application of recapitalization accounting  or purchase accounting, as the case may be, in relation to the Transactions or  any consummated acquisition or the amortization of any amounts thereof, (b)  any non-cash losses, charges or adjustments resulting from the application of  Accounting Standards Codification 606 and (c) earnout obligations and other  similar contingent consideration......................................................              $___________         (11) Costs, fees and expenses relating to restructuring, severance,  recruiting, retentions and relocations, signing and stay bonuses, payments made  to employees or producers who are subject to non-compete agreements, and  curtailments or modifications to pension and post-retirement employee benefits  plans; provided, that, the aggregate amount included in this Item (B)(11) during  any Test Period shall not exceed $7,500,000.......................................        $___________         (12) Charges, losses or expenses to the extent paid for, reimbursed or  indemnified by a Person other than Parent and its Subsidiaries or reimbursed  through insurance by a Person other than Parent and its Subsidiaries, in each  case to the extent such expenses are actually paid or refunded to Parent or any  of its Subsidiaries (to the extent such payments or refunds are included in  Consolidated Net Income).............................................................                 $___________         (13) Proceeds received from business interruption insurance........... $___________                  

 

          (14) To the extent included in Consolidated Net Income, losses   attributable to non-controlling interests............................................       $___________          (15) Extraordinary, unusual and non-recurring costs, expenses and   losses in any Test Period; provided, that the aggregate amount included in this   Item (B)(15) during any Test Period shall not exceed the greater of (x)   $2,500,000 and (y) 20% of Consolidated Adjusted EBITDA as of the end of the   most recently ended Test Period .....................................................             $___________                     (16) Sum of Item (B)(1) through Item (B)(15)...........................     $___________   C. In each case to the extent included in calculating Consolidated Net Income     for the Computation Period, the sum of, without duplication, amounts for:          (1) Gains on asset sales, disposals or abandonments (other than of (a)   current assets and (b) asset sales, disposals or abandonments in the ordinary   course of business)....................................................................                     $___________         (2) Other non-cash gains increasing Consolidated Net Income for such   period (excluding any such non-cash item to the extent it represents the   reversal of an accrual or reserve for a potential cash item in any prior       period). .................................................................................                            $___________                    (3) Extraordinary, unusual and non-recurring gains and income....... $___________         (4) Any software development costs to the extent capitalized during   such period............................................................................                           $___________                    (5) Sum of Item (C)(1) through Item (C)(4)..............................      $___________   D. Consolidated Adjusted EBITDA for the Computation Period:  The sum of                                               Item (A) and Item (B)(16) minus Item (C)(5) ...................................     $___________                                                                                                                                                                                                                                                                                                                                                                                        

 

                                                                      Attachment 2                                                                         (to _/_/_                                                            Compliance Certificate)                         TOTAL SECURED LEVERAGE RATIO                                                            As of _________ __, 20__ (the “Computation Date”)                           for the Test Period ending on the                      Computation Date (the “Computation Period”)   A. Consolidated Secured Debt outstanding on the last date of the Computation     Period:                                                                           (1) The outstanding principal amount of all Funded Debt that is            secured, in whole or party, by a Lien on any asset of Parent or any            of its Subsidiaries .......................................................                                                                   $___________   B. Consolidated Adjusted EBITDA for the Computation Period:                                                                           (1) The amount set forth in Item (D) of Attachment 1 to this            Compliance Certificate...................................................                $___________        (2) [The amount set forth in Item (B)(1) [multiplied by four (4)]21            [multiplied by two (2)]22 [multiplied by four-thirds (4/3)]23........]24 $___________       C. Total Secured Leverage Ratio on the last day of the Computation Period:      The ratio of Item (A)(1) to [Item (B)(2)]25 [Item     (B)(1)]...............................................................................                                                                        ___ : 1.00                                21 To only be included for the Test Period ending March 31, 2021, where Consolidated Adjusted EBITDA set forth  in Item (B)(1) is for the three (3) month period ending March 31, 2021.  22 To only be included for the Test Period ending June 30, 2021, where Consolidated Adjusted EBITDA set forth in  Item (B)(1) is for the six (6) month period ending June 30, 2021.  23 To only be included for the Test Period ending September 30, 2021, where Consolidated Adjusted EBITDA set  forth in Item (B)(1) is for the nine (9) month period ending September 30, 2021.   24 To only be included for the Test Periods ending March 31, 2020 through September 30, 2021.  25 To only be included for the Test Periods ending March 31, 2020 through September 30, 2021.    

 

                                                                  Attachment 3                                                        (to _/_/_                                           Compliance Certificate)  CHANGES IN IDENTITY OF THE SUBSIDIARIES                                                  

 

                                                                      Attachment 4                                                                         (to _/_/_                                                            Compliance Certificate)        UPDATES/SUPPLEMENTS TO CERTAIN SCHEDULES OF THE SECURITY                                  AGREEMENT   An updated Schedule [__] of the Security Agreement                                                                                                                                                                                                   

 

                                                                      Attachment 5                                                                         (to _/_/_                                                            Compliance Certificate)   UPDATES/SUPPLEMENTS TO CERTAIN SCHEDULES OF THE CREDIT AGREEMENT   An updated Schedule [__] of the Credit Agreement              

 

                                                                                                                                                         Attachment 6                                                                   (to _/_/_                                                      Compliance Certificate)                                           DETAILS SPECIFYING DEFAULT OR EVENT OF DEFAULT  AND THE ACTION TAKEN OR TO BE TAKEN WITH RESPECT THERETO                                         

 

                                                                    EXHIBIT D-1                               FORM OF DDTL NOTE   $[____________]                                                  [_____], 20[__]                  FOR  VALUE  RECEIVED,  the  undersigned  (the  “Borrower”),  hereby  unconditionally  promises  to  pay  to  [_________________],  a  [___________]  or  its  registered  assigns (the “Holder”), in lawful money of the United States and in immediately available funds,  the  principal  amount  of  (a) [____________________]  DOLLARS  ($[________]),  or,  if  less,  (b) the unpaid principal amount of the Delayed Draw Term Loan of the Holder outstanding under  the Credit Agreement (as defined below).  The principal amount of this DDTL Note (as amended,  restated, amended and restated, supplemented or otherwise modified, this “Note”) shall be paid in  the amounts and on the dates specified in the Credit Agreement to the account designated by the  Administrative Agent  (as  defined below).  The Borrower further agrees  to  pay interest  in like  money to the account designated by the Administrative Agent under Section 2.08(f) of the Credit  Agreement on the unpaid principal amount hereof from time to time outstanding at the rates and  on the dates specified in the Credit Agreement.               This Note (a) is one of the promissory notes referred to in the Credit Agreement,  dated as of December 30, 2019 (as amended, restated, amended and restated, supplemented, or  otherwise modified from time to time, the “Credit Agreement”), among the Borrower, Parent, the  other Credit Parties from time to time party thereto, the lenders from time to time party thereto  (each a “Lender” and, collectively, the “Lenders”), and ARES CAPITAL CORPORATION, a  Maryland corporation (“Ares”), as administrative agent and collateral agent for the Lenders (in  such  capacity,  together  with  its  successors  and  assigns  in  such  capacity,  the  “Administrative  Agent”), (b) is subject to the provisions of the Credit Agreement and (c) is subject to optional and  mandatory prepayment in whole or in part as provided in the Credit Agreement.  This Note is  secured and guaranteed as provided in the Credit Documents.  Reference is hereby made to the  Credit Documents for a description of the properties and assets in which a security interest has  been granted, the nature and extent of the security and the guarantees, the terms and conditions  upon which the security interests and each guarantee were granted and the rights of the Holder in  respect thereof.                Upon the occurrence of any one or more of the Events of Default, all principal and  all accrued interest then remaining unpaid on this Note shall become, or may be declared to be,  immediately due and payable, all as provided in the Credit Agreement.               All  parties  now  and  hereafter  liable  with  respect  to  this  Note,  whether  maker,  principal, surety, guarantor, endorser or otherwise, hereby waive presentment, demand, protest and  all other notices of any kind.               Unless otherwise defined herein, capitalized terms defined in the Credit Agreement  and used herein shall have the meanings given to them in the Credit Agreement.                                        D-1 - 1   

 

                                                                             2                  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED  HEREIN  OR  IN  THE  CREDIT  AGREEMENT,  THIS  NOTE  MAY  NOT  BE  TRANSFERRED  EXCEPT  PURSUANT  TO  AND  IN  ACCORDANCE  WITH  THE  REGISTRATION  AND  OTHER  PROVISIONS  OF  SECTION 12.06  OF  THE  CREDIT  AGREEMENT.               THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES  HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED  IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.                                                                          [Signature page follows.]                                       D-1 - 2   

 

                                                     EVOLENT HEALTH LLC,       a Delaware limited liability company                                        By                   Name:              Title:                                                                               D-1 - 3 

 

                                                                    EXHIBIT N-1                                                                                                        FORM OF NOTICE OF BORROWING   Ares Capital Corporation,   as Administrative Agent  2000 Avenue of the Stars, 12th Floor  Los Angeles, CA 90067  Attention:  agency@aresmgmt.com      Ladies and Gentlemen:          This Notice of Borrowing is delivered to you as of [__], [__] pursuant to Section 2.03 of  the  Credit  Agreement,  dated  as  of  December  30,  2019  (as  amended,  restated,  amended  and  restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”), among  EVOLENT HEALTH, INC., a Delaware corporation (“Parent”), EVOLENT HEALTH LLC,  a  Delaware  limited  liability  company  (the  “Borrower”),  its  Subsidiaries  signatory thereto  as  guarantors  or  thereafter  designated  as  Guarantors  pursuant  to  Section  8.11  of  the  Credit  Agreement, the lenders from time to time party thereto (each a “Lender” and, collectively, the  “Lenders”),  and ARES  CAPITAL  CORPORATION,  a  Maryland  corporation  (“Ares”),  as  administrative  agent  and  collateral  agent  for  the  Lenders  (in  such  capacity,  together  with  its  successors and assigns in such capacity, the “Administrative Agent”). Unless otherwise defined  herein, capitalized terms used herein and defined in the Credit Agreement shall have the meanings  provided in the Credit Agreement.          (1)   The Borrower hereby requests that on [__], 20[__], a [Initial Term Loan] [Delayed  Draw  Term  Loan]  be  made  in  the  aggregate  principal  amount  of  ____________________  ($____________)  as [a][an]  [ABR  Loan]  [Eurodollar  Loan]  with  interest  payable  quarterly  in  accordance  with  the  Credit  Agreement,  with  the  proceeds  of  such  Loan  to  be  disbursed  in  accordance with Section 4 hereto.         (2)   The Borrower hereby acknowledges that, pursuant to Section 6.02(a) of the Credit  Agreement, the acceptance by the Borrower for the benefit of the Credit Parties of the proceeds of  the Loans requested hereby constitutes a representation and warranty by the Borrower, on behalf  of each Credit Party, that, on the date of such Credit Extension (both immediately before and after  giving effect thereto and to the application of the proceeds thereof) all the statements set forth in  Section 6.02(a) of the Credit Agreement are true and correct.           (3)   The Borrower agrees that if, prior to the time of the Borrowings requested hereby,  any matter certified to herein by them will not be true and correct in all respects at the date of such  Borrowings as if then made, they will immediately so notify the Administrative Agent.  Except to  the extent, if any, that prior to the time of the Borrowings requested hereby, the Administrative  Agent shall receive written notice to the contrary from the Borrower, each matter certified to herein  shall be deemed to be certified as true and correct at the date of such Borrowings.                                    Exhibit N-1 - 4   

 

         (4)   Please wire transfer the proceeds of the Borrowings [to the following account and  financial institution] [for initial Notice of Borrowing; in accordance with that certain Letter of  Direction and Flow of Funds to be delivered to the Administrative Agent]:                Bank Name: [                  ]              Bank Address: [               ]              Account Name: [               ]              Account No.: [                ]              ABA No.: [                    ]              Attention: [                  ]                                                                  [Remainder of page left intentionally blank.]                                    Exhibit N-1 - 5   

 

               The Borrower has caused this Notice of Borrowing to be executed and delivered as  of the date first written above.                                                      EVOLENT HEALTH LLC,                                       a Delaware limited liability company                                                                                                                  By:                                                                       Name: ______________________________                                      Title:                        ______                                      Exhibit N-1 - 6   

 

                                                                    EXHIBIT N-2                                                          FORM OF NOTICE OF CONVERSION OR CONTINUATION   Ares Capital Corporation,     as Administrative Agent  2000 Avenue of the Stars, 12th Floor  Los Angeles, CA 90067  Attention:  agency@aresmgmt.com    Ladies and Gentlemen:   This  Notice  of  Conversion  or  Continuation  is  delivered  to  you  as  of  [____________],  20___  pursuant to  Section  2.06  of  the  Credit  Agreement,  December  30,  2019  (as  amended,  restated,  amended  and  restated, supplemented,  or  otherwise  modified  from  time  to  time,  the  “Credit  Agreement”),  among EVOLENT  HEALTH,  INC.,  a  Delaware  corporation  (“Parent”),  EVOLENT  HEALTH  LLC,  a  Delaware  limited  liability  company  (the  “Borrower”),  its  Subsidiaries signatory thereto  as guarantors or thereafter designated as Guarantors pursuant to  Section 8.11 of the Credit Agreement, the lenders from time to time party thereto (each a “Lender”  and,  collectively,  the  “Lenders”),  and ARES  CAPITAL  CORPORATION,  a  Maryland  Corporation  (“Ares”),  as  administrative  agent  and  collateral  agent  for  the  Lenders  (in  such  capacity, together with its successors and assigns in such capacity, the “Administrative Agent”).  Unless otherwise defined herein or the context otherwise requires, capitalized terms used herein  and  defined  in  the  Credit  Agreement  shall  have  the  meanings  given  to  them  in  the  Credit  Agreement.                             The Borrower hereby requests26 that on ___________ __, 20___27,               1.    $___________.00  of  the  currently  outstanding  principal  amount  of  the  [Initial Term Loan] [Delayed Draw Term Loan] originally made on ___________ __, 20___,               2.    all currently being maintained as [ABR][Eurodollar] Loans,               3.    be [converted into][continued as],               4.    [ABR  Loans]  [Eurodollar  Loans  with  an  Interest  Period  of  [__]  months  (which shall be 1, 2, 3 or 6 months).                             26 Such request to be made prior to 1:00 p.m. (New York time) at least three Business Days (or one Business Day in  the case of a conversion into ABR Loans) (and in either case on not more than five Business Days) prior to the  proposed conversion or continuation.    27 Such date to be a Business Day.                                   Exhibit N-2 - 1   

 

               Except to the extent, if any, that prior to the time of the continuation or conversion  requested hereby the Administrative Agent shall receive written notice to the contrary from the  Borrower, each matter certified to herein shall be deemed to be certified as true and correct in all  respects at the date of such continuation or conversion as if then made.                                    Exhibit N-2 - 2 

 

               The Borrower has caused this Notice of Conversion or Continuation to be  executed and delivered by its duly Authorized Officer this __ day of _________, 20__.                                                      EVOLENT HEALTH LLC,                                       a Delaware limited liability company                                                                                                                  By:                                                                          Name:                                                                     Title:                                                                                                                                                                                           Exhibit N-2 - 3 

 

                                                                                                                                                  EXHIBIT T-1                            FORM OF TERM LOAN NOTE   $[____________]                                            [________ __], 20[__]                  FOR  VALUE  RECEIVED,  the  undersigned  (the  “Borrower”),  hereby  unconditionally  promises  to  pay  to  [_________________],  a  [___________]  or  its  registered  assigns (the “Holder”), in lawful money of the United States and in immediately available funds,  the  principal  amount  of  (a) [____________________]  DOLLARS  ($[________]),  or,  if  less,  (b) the unpaid principal amount of the Term Loans of the Holder outstanding under the Credit  Agreement  (as  defined  below).   The  principal  amount  of  this  Term  Loan  Note  (as  amended,  restated, amended and restated, supplemented or otherwise modified, this “Note”) shall be paid in  the amounts and on the dates specified in the Credit Agreement to the account designated by the  Administrative  Agent  (as  defined  below).  The  Borrower  further  agrees  to  pay  interest  in  like  money to the account designated by the Administrative Agent under Section 2.08(f) of the Credit  Agreement on the unpaid principal amount hereof from time to time outstanding at the rates and  on the dates specified in the Credit Agreement.               This Note (a) is one of the promissory notes referred to in the Credit Agreement,  dated as of December 30, 2019 (as amended, restated, amended and restated, supplemented, or  otherwise modified from time to time, the “Credit Agreement”), among the Borrower, Parent, the  other Credit Parties from time to time party thereto, the lenders from time to time party thereto  (each a “Lender” and, collectively, the “Lenders”), and ARES CAPITAL CORPORATION, a  Maryland corporation (“Ares”), as administrative agent and collateral agent for the Lenders (in  such  capacity,  together  with  its  successors  and  assigns  in  such  capacity,  the  “Administrative  Agent”), (b) is subject to the provisions of the Credit Agreement and (c) is subject to optional and  mandatory prepayment in whole or in part as provided in the Credit Agreement.  This Note is  secured and guaranteed as provided in the Credit Documents. Reference is hereby made to the  Credit Documents for a description of the properties and assets in which a security interest has  been granted, the nature and extent of the security and the guarantees, the terms and conditions  upon which the security interests and each guarantee were granted and the rights of the Holder in  respect thereof.                Upon the occurrence of any one or more of the Events of Default, all principal and  all accrued interest then remaining unpaid on this Note shall become, or may be declared to be,  immediately due and payable, all as provided in the Credit Agreement.               All  parties  now  and  hereafter  liable  with  respect  to  this  Note,  whether  maker,  principal, surety, guarantor, endorser or otherwise, hereby waive presentment, demand, protest and  all other notices of any kind.               Unless otherwise defined herein, capitalized terms defined in the Credit Agreement  and used herein shall have the meanings given to them in the Credit Agreement.                                     Exhibit T-1 - 1   

 

                                                                                                NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED  HEREIN  OR  IN  THE  CREDIT  AGREEMENT,  THIS  NOTE  MAY  NOT  BE  TRANSFERRED  EXCEPT  PURSUANT  TO  AND  IN  ACCORDANCE  WITH  THE  REGISTRATION  AND  OTHER  PROVISIONS  OF  SECTION 12.06  OF  THE  CREDIT  AGREEMENT.               THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES  HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED  IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.                                                                          [Signature page follows.]                                    Exhibit T-1 - 2 

 

                                                        EVOLENT HEALTH LLC,        a Delaware limited liability company                                  By                      Name:                Title:                                                                                   Exhibit T-1 - 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]