Document:

Exhibit 10.2

 

EXECUTION VERSION

	
 
    
	
 
    
	
FIRST LIEN GUARANTEE AND   COLLATERAL AGREEMENT
    
	
 
    
	
made by
    
	
 
    
	
PG HOLDCO, LLC,
    
	
 
    
	
PGA HOLDINGS, INC.,
    
	
as Borrower,
    
	
 
    
	
and the Subsidiary   Guarantors party hereto
    
	
 
    
	
in favor of
    
	
 
    
	
BARCLAYS BANK PLC, 
    
	
as Collateral Agent
    
	
 
    
	
Dated as of April 20,   2012
    
	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 1.   
    	
 
    	
DEFINED   TERMS
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.1
    	
 
    	
Definitions
    	
 
    	
1
    
	
1.2
    	
 
    	
Other   Definitional Provisions
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 2.   
    	
 
    	
Guarantee
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.1
    	
 
    	
Guarantee
    	
 
    	
5
    
	
2.2
    	
 
    	
Right   of Contribution
    	
 
    	
6
    
	
2.3
    	
 
    	
No   Subrogation
    	
 
    	
6
    
	
2.4
    	
 
    	
Amendments, etc.   with respect to the Borrower Obligations
    	
 
    	
6
    
	
2.5
    	
 
    	
Guarantee   Absolute and Unconditional
    	
 
    	
7
    
	
2.6
    	
 
    	
Reinstatement
    	
 
    	
7
    
	
2.7
    	
 
    	
Payments
    	
 
    	
7
    
	
2.8
    	
 
    	
Information
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 3.   
    	
 
    	
GRANT   OF SECURITY INTEREST
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
3.1
    	
Grant   of Security Interests
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 4.   
    	
 
    	
REPRESENTATIONS   AND WARRANTIES
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.1
    	
 
    	
Representations   in Credit Agreement
    	
 
    	
9
    
	
4.2
    	
 
    	
Title;   No Other Liens
    	
 
    	
9
    
	
4.3
    	
 
    	
Names;   Jurisdiction of Organization; Chief Executive Office
    	
 
    	
10
    
	
4.4
    	
 
    	
Pledged   Securities
    	
 
    	
10
    
	
4.5
    	
 
    	
Intellectual   Property
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 5.   
    	
 
    	
COVENANTS
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.1
    	
 
    	
Covenants   in Credit Agreement
    	
 
    	
10
    
	
5.2
    	
 
    	
Investment   Property
    	
 
    	
11
    
	
5.3
    	
 
    	
Maintenance   of Perfected Security Interest; Defense of Claims
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 6.   
    	
 
    	
REMEDIAL   PROVISIONS
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.1
    	
 
    	
Certain   Matters Relating to Receivables
    	
 
    	
11
    
	
6.2
    	
 
    	
Communications   with Grantors; Grantors Remain Liable
    	
 
    	
12
    
	
6.3
    	
 
    	
Pledged   Securities
    	
 
    	
12
    
	
6.4
    	
 
    	
Intellectual   Property
    	
 
    	
13
    
	
6.5
    	
 
    	
Proceeds   to be Turned Over To Collateral Agent
    	
 
    	
14
    
	
6.6
    	
 
    	
Application   of Proceeds
    	
 
    	
14
    
	
6.7
    	
 
    	
Code   and Other Remedies
    	
 
    	
14
    
	
6.8
    	
 
    	
Private   Sales
    	
 
    	
15
    
	
6.9
    	
 
    	
Deficiency
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 7.   
    	
 
    	
THE   COLLATERAL AGENT
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.1
    	
 
    	
Collateral   Agent’s Appointment as Attorney-in-Fact, etc.
    	
 
    	
15
    
	
7.2
    	
 
    	
Duty   of Collateral Agent
    	
 
    	
17
    
	
7.3
    	
 
    	
Execution   of Financing Statements; Control Agreements
    	
 
    	
17
    
	
7.4
    	
 
    	
Authority   of Collateral Agent
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 8.
    	
 MISCELLANEOUS
    	
 
    	
17
    
								

 

i

 

TABLE OF CONTENTS

(con’t)

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.1
    	
 
    	
Amendments   in Writing
    	
 
    	
17
    
	
8.2
    	
 
    	
Notices
    	
 
    	
17
    
	
8.3
    	
 
    	
No   Waiver by Course of Conduct; Cumulative Remedies
    	
 
    	
18
    
	
8.4
    	
 
    	
Enforcement   Expenses; Indemnification
    	
 
    	
18
    
	
8.5
    	
 
    	
Successors   and Assigns
    	
 
    	
18
    
	
8.6
    	
 
    	
Set-Off
    	
 
    	
18
    
	
8.7
    	
 
    	
Counterparts
    	
 
    	
18
    
	
8.8
    	
 
    	
Severability
    	
 
    	
18
    
	
8.9
    	
 
    	
Section Headings
    	
 
    	
19
    
	
8.10
    	
 
    	
Integration
    	
 
    	
19
    
	
8.11
    	
 
    	
GOVERNING   LAW
    	
 
    	
19
    
	
8.12
    	
 
    	
Submission   To Jurisdiction; Waivers
    	
 
    	
19
    
	
8.13
    	
 
    	
Acknowledgements
    	
 
    	
19
    
	
8.14
    	
 
    	
Additional   Grantors
    	
 
    	
20
    
	
8.15
    	
 
    	
Releases
    	
 
    	
20
    
	
8.16
    	
 
    	
WAIVER   OF JURY TRIAL
    	
 
    	
20
    
	
8.17
    	
 
    	
Intercreditor   Agreement Governs
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULES
    	
 
    	
 
    	
 
    
	
Schedule   1
    	
Notice   Addresses
    	
 
    	
 
    
	
Schedule   2
    	
Investment   Property
    	
 
    	
 
    
	
Schedule   3
    	
Legal   Name, Jurisdictions of Organization and Organizational Identification Number
    	
 
    	
 
    
	
Schedule   4
    	
Intellectual   Property
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
ANNEXES
    	
 
    	
 
    	
 
    
	
Annex   I
    	
Assumption   Agreement
    	
 
    	
 
    
	
Annex   II
    	
Acknowledgement   and Consent
    	
 
    	
 
    

 

ii

 

FIRST LIEN GUARANTEE AND COLLATERAL AGREEMENT

 

This FIRST LIEN GUARANTEE AND COLLATERAL AGREEMENT, dated as of April 20, 2012, made by each of the signatories hereto, in favor of BARCLAYS BANK PLC, as Collateral Agent (in such capacity, the “Collateral Agent”) for the Secured Parties, including the banks and other financial institutions or entities (the “Lenders”) from time to time parties to the First Lien Credit Agreement, dated as of April 20, 2012 (as amended, restated, supplemented waived and/or otherwise modified from time to time, the “Credit Agreement”), among PG Holdco, LLC, a Delaware limited liability company (“Holdings”), as Holdings, PGA Holdings, Inc., a Delaware corporation (the “Borrower”), as the Borrower, the Lenders and Issuing Lenders party thereto from time to time, Barclays Bank PLC, as Administrative Agent and Collateral Agent, Goldman Sachs Lending Partners LLC, as Syndication Agent, General Electric Capital Markets, Inc. and UBS Securities LLC, as Co-Documentation Agents, Barclays Bank PLC and Goldman Sachs Lending Partners LLC, as Joint Bookrunners and Barclays Bank PLC, Goldman Sachs Lending Partners LLC and General Electric Capital Markets, Inc., as Joint Lead Arrangers.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject to the conditions set forth therein;

 

WHEREAS, the Borrower is a member of an affiliated group of companies that includes each other Grantor (as defined below);

 

WHEREAS, the proceeds of the extensions of credit under the Credit Agreement will be used in part to enable the Borrower to make valuable transfers to one or more of the other Grantors in connection with the operation of their respective businesses;

 

WHEREAS, the Borrower and the other Grantors are engaged in related businesses, and each Grantor will derive substantial direct and indirect benefit from the making of the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have executed and delivered this Agreement to the Collateral Agent for the ratable benefit of the Secured Parties;

 

NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent, the Collateral Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each Grantor hereby agrees with the Collateral Agent, for the ratable benefit of the Secured Parties, as follows:

 

SECTION 1.                            DEFINED TERMS

 

1.1                               Definitions. (a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement, and the following terms are used herein as defined in the New York UCC: “Accession”, “Account”, “As-Extracted Collateral”, “Certificated Security”, “Chattel Paper”, “Commercial Tort Claim”, “Document”, “Equipment”, “Fixture”, “General Intangible”, “Goods”, “Instrument”, “Inventory”, “Letter-of-Credit Right”, “Securities Account”, “Security”, “Supporting Obligations” and “Uncertificated Securities”.

 

(a) The following terms shall have the following meanings:

 

 

 

“Agreement”: this First Lien Guarantee and Collateral Agreement, as the same may be amended, restated, supplemented waived and/or otherwise modified from time to time.

 

“Borrower Credit Agreement Obligations”: the collective reference to the unpaid principal of and interest on (including, without limitation, interest accruing at the then applicable rate provided in the Credit Agreement after the maturity of the Loans and Reimbursement Obligations and interest accruing at the then applicable rate provided in the Credit Agreement after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans (including, for the avoidance of doubt, any New Term Loans or New Revolving Loans), the Reimbursement Obligations and all other obligations and liabilities of the Borrower to the Collateral Agent or any other Secured Party, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, in each case, which may arise under, out of, or in connection with, the Credit Agreement, this Agreement, the other Loan Documents or any Letter of Credit, in each case, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Administrative Agent, the Revolving Agent, the Collateral Agent or any other Secured Parties that are required to be paid by the Borrower pursuant to the terms of any of the foregoing agreements).

 

“Borrower Hedge Agreement and Cash Management Obligations”: the collective reference to all obligations and liabilities of the Borrower and its Restricted Subsidiaries (including, without limitation, interest accruing at the then applicable rate provided in any Specified Hedge Agreement or Cash Management Document after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) to any Hedge Counterparty (or any Hedge Counterparty at the time such Specified Hedge Agreement was entered into) or any other Person party to any Cash Management Document (or any other Person that was a Lender or an Affiliate of a Lender at the time such Cash Management Document was entered into), whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, in each case, which may arise under, out of, or in connection with, any Specified Hedge Agreement or Cash Management Document, as the case may be, in each case whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the relevant Hedge Counterparty or other party to the relevant Cash Management Document, as applicable, that are required to be paid by the Borrower and/or its Subsidiaries, as the case may be, pursuant to the terms of any Specified Hedge Agreement or Cash Management Document, as the case may be).

 

“Borrower Obligations”: collectively, the (i) Borrower Credit Agreement Obligations and (ii) Borrower Hedge Agreement and Cash Management Obligations, but, as to foregoing clause (ii) only to the extent that, and only so long as, the Borrower Credit Agreement Obligations are secured and guaranteed pursuant to this Agreement.

 

“Collateral”: as defined in Section 3.1.

 

“Collateral Account”: any collateral account established by the Collateral Agent as provided in Section 6.1 or 6.5.

 

“Collateral Agent”: as defined in the preamble hereto.

 

“Copyright Licenses”: all written agreements naming any Grantor as licensor or licensee (including, without limitation, those listed in Schedule 4), granting any right under any Copyright,

 

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including, without limitation, the grant of rights to manufacture, distribute, exploit and sell materials derived from any Copyright.

 

“Copyrights”: (i) all copyrights arising under the laws of the United States, multinational or foreign laws or otherwise, whether registered or unregistered and whether published or unpublished (including, without limitation, those listed in Schedule 4), all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations, recordings and applications in the United States Copyright Office, and (ii) the right to obtain all renewals thereof.

 

“Deposit Account”: all deposit accounts as defined in the Uniform Commercial Code of any applicable jurisdiction and, in any event, including, without limitation, any demand, time, savings, passbook or like account maintained with a depositary institution.

 

“Foreign Subsidiary Voting Stock”: the voting Capital Stock of any Foreign Subsidiary.

 

“Grantors”: the collective reference to each signatory hereto (other than the Collateral Agent) together with any other entity that may become a party hereto as provided herein.

 

“Guarantor Obligations”: with respect to any Guarantor, all obligations and liabilities of such Guarantor which may arise under or in connection with this Agreement (including, without limitation, Section 2) or any other Loan Document, Specified Hedge Agreement or Cash Management Document to which such Guarantor is a party, in each case whether on account of guarantee obligations, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Administrative Agent, to the Collateral Agent or to the other Secured Parties that are required to be paid by such Guarantor pursuant to the terms of this Agreement or any other Loan Document).

 

“Guarantors”: the collective reference to Holdings and the Subsidiary Guarantors that are or may become a party hereto as provided herein.

 

“Intellectual Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, now existing or hereafter adopted, created or acquired, including, without limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, domain names, technology, trade secrets, know-how and processes, and all rights to sue at law or in equity or otherwise recover for any past, present or future infringement, misappropriation or other violation or impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Intercompany Note”: any promissory note evidencing loans made by any Grantor to Holdings or any of its Subsidiaries.

 

“Investment Property”: the collective reference to (i) all “investment property” as such term is defined in Section 9-102(a)(49) of the New York UCC (other than any Foreign Subsidiary Voting Stock excluded from the definition of “Pledged Stock”) and (ii) whether or not constituting “investment property” as so defined, all Pledged Securities.

 

“Issuers”: the collective reference to each issuer of a Pledged Security.

 

“New York UCC”: the Uniform Commercial Code from time to time in effect in the State of New York.

 

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“Obligations”: (i) in the case of the Borrower, its Borrower Obligations and (ii) in the case of each Guarantor, its Guarantor Obligations.

 

“Patent License”: all written agreements providing for the grant by or to any Grantor of any right to manufacture, use, sell or otherwise exploit any invention covered in whole or in part by a Patent, including, without limitation, any of the foregoing referred to in Schedule 4.

 

“Patents”: (i) all letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof, and all goodwill associated therewith, including, without limitation, any of the foregoing referred to in Schedule 4, (ii) all applications for letters patent of the United States, any other country or any political subdivision thereof, and all divisionals, continuations and continuations in part thereof, including, without limitation, any of the foregoing referred to in Schedule 4, and (iii) all rights to obtain any reissues, rexaminations or extensions of the foregoing.

 

“Pledged Notes”: all promissory notes listed on Schedule 2, all Intercompany Notes at any time issued to any Grantor in excess of $2,500,000 and all other promissory notes issued to or held by any Grantor in excess of $2,500,000 (other than promissory notes issued in connection with extensions of trade credit by any Grantor in the ordinary course of business).

 

“Pledged Securities”: the collective reference to the Pledged Notes and the Pledged Stock.

 

“Pledged Stock”: the collective reference to (i) the shares of Capital Stock listed on Schedule 2, (ii) any other shares, stock certificates, options, interests or rights of any nature whatsoever in respect of the Capital Stock of any Person that may be issued or granted to, or held by, any Grantor while this Agreement is in effect and that are required to become Collateral pursuant to Section 3.1; provided that in no event shall more than 65% of the total outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be required to be pledged hereunder and (iii) all shares of non-voting stock of any Foreign Subsidiary.

 

“Proceeds”: all “proceeds” as such term is defined in Section 9-102(a)(64) of the New York UCC and, in any event, shall include, without limitation, all dividends or other income from the Investment Property, collections thereon or distributions or payments with respect thereto.

 

“Receivable”: any right to payment for goods sold or leased or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and whether or not it has been earned by performance (including, without limitation, any Account).

 

“Securities Act”: the Securities Act of 1933, as amended.

 

“Trademark License”: all written agreements providing for the grant by or to any Grantor of any right to use any Trademark, including, without limitation, any of the foregoing referred to in Schedule 4.

 

“Trademarks”: (i) all United States and foreign trademarks, trade names, corporate names, company names, business names, domain names, fictitious business names, trade styles, service marks, logos and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof, or otherwise, all common-law rights related thereto, including, without limitation, any registrations and applications for registrations in respect of the foregoing referred to in Schedule 4, and all goodwill of the business connected with the use of or symbolized by any of the foregoing and (ii) the right to obtain all renewals thereof.

 

4

 

“Vehicles”: all cars, trucks, trailers, construction and earth moving equipment and other vehicles covered by a certificate of title law of any state.

 

1.2                               Other Definitional Provisions. (a) The words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and Schedule references are to this Agreement unless otherwise specified.

 

(b)           The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

(c)            Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof.

 

SECTION 2.                            Guarantee

 

2.1                               Guarantee. (a) Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees to the Collateral Agent for the ratable benefit of the Secured Parties and their respective permitted successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the Borrower Obligations.

 

(b)           Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable federal and state laws relating to the insolvency of debtors (after giving effect to the right of contribution established in Section 2.2).

 

(c)            Each Guarantor agrees that the Borrower Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of the Collateral Agent or any other Secured Party hereunder.

 

(d)           The guarantee contained in this Section 2 shall remain in full force and effect until all the Borrower Obligations and the obligations of each Guarantor under the guarantee contained in this Section 2 shall have been satisfied by payment in full (other than contingent or indemnification obligations not then asserted or due), no Letter of Credit (that is not cash collateralized or backstopped to the reasonable satisfaction of the Issuing Lender or purchasing Lender, as applicable, in respect thereof) shall be outstanding and the Commitments shall have been terminated, notwithstanding that from time to time during the term of the Credit Agreement the Borrower may be free from any Borrower Obligations.

 

(e)            Except as provided in Section 8.15, no payment made by the Borrower, any of the Guarantors, any other guarantor or any other Person or received or collected by the Collateral Agent or any other Secured Party from the Borrower, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Borrower Obligations or any payment received or collected from such Guarantor in respect of the Borrower Obligations), remain liable for the Borrower Obligations up to the maximum liability of such Guarantor hereunder until the Borrower Obligations shall have been paid in full (other than contingent or

 

5

 

indemnification obligations not then asserted or due), no Letter of Credit (that is not cash collateralized or backstopped to the reasonable satisfaction of the Issuing Lender or purchasing Lender, as applicable, in respect thereof) shall be outstanding and the Commitments shall have been terminated.

 

2.2                               Right of Contribution. Each Subsidiary Guarantor hereby agrees that to the extent that a Subsidiary Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Subsidiary Guarantor shall be entitled to seek and receive contribution from and against any other Subsidiary Guarantor hereunder which has not paid its proportionate share of such payment. Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2.3. The provisions of this Section 2.2 shall in no respect limit the obligations and liabilities of any Subsidiary Guarantor to the Collateral Agent and the other Secured Parties, and each Subsidiary Guarantor shall remain liable to the Collateral Agent and the other Secured Parties for the full amount guaranteed by such Subsidiary Guarantor hereunder.

 

2.3                               No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor by the Collateral Agent or any other Secured Party, no Guarantor shall be entitled to be subrogated to any of the rights of the Collateral Agent or any other Secured Party against the Borrower or any other Guarantor or any collateral security or guarantee or right of offset held by the Collateral Agent or any other Secured Party for the payment of the Borrower Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder, until all amounts owing to the Collateral Agent and the other Secured Parties by the Borrower on account of the Borrower Obligations shall have been paid in full (other than contingent or indemnification obligations not then asserted or due), no Letter of Credit (that is not cash collateralized or backstopped to the reasonable satisfaction of the Issuing Lender or purchasing Lender, as applicable, in respect thereof) shall be outstanding and the Commitments shall have been terminated. If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of such Borrower Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust for the Collateral Agent and the other Secured Parties, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Collateral Agent in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Collateral Agent, if required), to be applied against the Borrower Obligations, whether matured or unmatured, in such order as the Collateral Agent may determine.

 

2.4                               Amendments, etc. with respect to the Borrower Obligations. To the fullest extent permitted by applicable law, each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Borrower Obligations made by the Collateral Agent or any other Secured Party may be rescinded by the Collateral Agent or such other Secured Party and any of the Borrower Obligations continued, and the Borrower Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Collateral Agent or any other Secured Party, and the Credit Agreement and the other Loan Documents and any other documents executed and delivered in connection therewith may be, amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required Lenders, the Majority Facility Lenders in respect of the Revolving Facility, the Majority Facility Lenders in respect of the Term Facility or all Lenders, as the case may be) may reasonably deem advisable from time to time, and any collateral security, guarantee or right of set-off at any time held by the Collateral Agent or any other Secured Party for the payment of the Borrower Obligations may be sold, exchanged, waived, surrendered or released. Neither the Collateral Agent nor any other Secured Party shall have any obligation to protect, secure, perfect or insure any Lien

 

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at any time held by it as security for the Borrower Obligations or for the guarantee contained in this Section 2 or any property subject thereto.

 

2.5                               Guarantee Absolute and Unconditional. To the fullest extent permitted by applicable law, each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or proof of reliance by the Collateral Agent or any other Secured Party upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Borrower Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Borrower and any of the Guarantors, on the one hand, with respect to the Loan Documents and the Collateral Agent and the other Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2. To the fullest extent permitted by applicable law, each Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrower or any of the Guarantors with respect to the Borrower Obligations. Each Guarantor understands and agrees that the guarantee of such Guarantor contained in this Section 2, to the fullest extent permitted by applicable law, shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of the Credit Agreement or any other Loan Document, any of the Borrower Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Collateral Agent or any other Secured Party, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by the Borrower or any other Person against the Collateral Agent or any other Secured Party, or (c) any other circumstance whatsoever (other than a defense of payment or performance) (with or without notice to or knowledge of the Borrower or any Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower from the Borrower Obligations, or of such Guarantor under the guarantee of such Guarantor contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Collateral Agent or any other Secured Party may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Borrower, any other Guarantor or any other Person or against any collateral security or guarantee for the Borrower Obligations or any right of offset with respect thereto, and any failure by the Collateral Agent or any other Secured Party to make any such demand, to pursue such other rights or remedies or to collect any payments from the Borrower, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Collateral Agent or any other Secured Party against any Guarantor. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

2.6                               Reinstatement. The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Borrower Obligations is rescinded or must otherwise be restored or returned by the Collateral Agent or any other Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made.

 

2.7                               Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to the Collateral Agent (x) without set-off or counterclaim in Dollars at the Funding Office and (y) free and

 

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clear of, and without deduction for, any Non-Excluded Taxes or Other Taxes on the same terms and to the same extent that payments by the Borrower are required to be made pursuant to the terms of Section 2.20 of the Credit Agreement, applying the provisions of Section 2.20 of the Credit Agreement to such Guarantor and the Collateral Agent mutatis mutandis.

 

2.8                               Information. Each Guarantor (a) assumes all responsibility for being and keeping itself informed of the financial condition and assets of each of the Borrower and each other Loan Party, and of all other circumstances bearing upon the risk of nonpayment of the Borrower Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and (b) agrees that none of the Administrative Agent or the other Secured Parties will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances or risks.

 

SECTION 3.                            GRANT OF SECURITY INTEREST

 

3.1                               Grant of Security Interests. Each Grantor hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in all of the following property now owned or at any time hereafter acquired or created by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

 

(a)        all Accounts;

 

(b)        all Chattel Paper;

 

(c)         all Deposit Accounts;

 

(d)        all Documents;

 

(e)         all Equipment;

 

(f)          all Fixtures;

 

(g)         all General Intangibles;

 

(h)        all Goods not covered by the other clauses of this Section 3;

 

(i)            all Instruments, including the Pledged Notes;

 

(j)           all Intellectual Property;

 

(k)        all Inventory;

 

(l)            all Investment Property;

 

(m)    all other tangible and intangible personal property not otherwise described above;

 

(n)        all books and records pertaining to the Collateral; and

 

(o)        to the extent not otherwise included, all Proceeds, Supporting Obligations and products of any of the Collateral and products of any and all of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing;

 

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provided, however, that notwithstanding any of the other provisions set forth in this Section 3.1, this Agreement shall not constitute a grant of a security interest in (i) any leasehold interest in real property, (ii) any Vehicles and all Proceeds thereof, (iii) any property to the extent that such grant of a security interest is (A) prohibited by any Requirements of Law of a Governmental Authority, (B) requires a consent not obtained of any Governmental Authority pursuant to such Requirement of Law or (C) prohibited by, or constitutes a breach or default under or results in the termination of or requires any consent not obtained under, any contract, license, agreement, instrument or other document evidencing or giving rise to or otherwise related to such property or, in the case of any Investment Property, any Pledged Security, any applicable shareholder or similar agreement, except to the extent that such Requirement of Law or the term in such contract, license, agreement, instrument or other document or shareholder or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable law (provided that, the foregoing exclusions of this clause (iii) shall in no way be construed (A) to apply to the extent that any described prohibition is unenforceable under Section 9-406, 9-407, 9-408, or 9-409 of the UCC or other applicable law, (B) to limit, impair, or otherwise affect the Collateral Agent’s continuing security interests in and liens upon any rights or interests of any Grantor in or to (x) monies due or to become due under any described contract, lease, permit, license, charter or license agreement (including any Accounts), or (y) any proceeds from the sale, license, lease, or other dispositions of any such contract, lease, permit, license, charter, or license agreement, or (C) apply to the extent that any consent or waiver has been obtained that would permit the security interest notwithstanding the prohibition), (iv) any Collateral that constitutes Equipment subject to a certificate of title statute, Farm Products, Accessions and As-Extracted Collateral, (v) Letter-of-Credit Rights and Commercial Tort Claims, (vi) any Capital Stock of a Person that is not a Subsidiary of a Grantor or (vii) with respect to any United States Collateral, any “intent-to-use” Trademark applications prior to the filing and acceptance of a “Statement of Use” or “Amendment to Allege Use” with respect thereto, to the extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of such “intent-to-use” Trademark application under applicable federal law. It is hereby understood and agreed that any Property described in the preceding proviso as being expressly excluded from the security interest created hereby, and any Property that is otherwise expressly excluded from clauses (a) through (o) above, shall be excluded from the definition of “Collateral”.

 

SECTION 4.                            REPRESENTATIONS AND WARRANTIES

 

To induce the Lenders and the other Secured Parties to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower, each Guarantor and each Grantor hereby represents and warrants to the Collateral Agent and each other Secured Party and, with respect to Section 4.1, each Lender and, with respect to Sections 4.2 through 4.5, each other Secured Party, that:

 

4.1                               Representations in Credit Agreement. In the case of each Guarantor, the representations and warranties set forth in Section 4 of the Credit Agreement to the extent they refer to such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is hereby incorporated herein by reference, are true and correct in all material respects, and the Collateral Agent and each other Secured Party shall be entitled to rely on each of them as if they were fully set forth herein; provided that each reference in each such representation and warranty to Holdings’ or the Borrower’s knowledge shall, for the purposes of this Section 4.1, be deemed to be a reference to such Guarantor’s knowledge.

 

4.2                               Title; No Other Liens. Except as otherwise permitted under Section 7.3 of the Credit Agreement, such Grantor owns or has rights in each item of the Collateral free and clear of any and all Liens. Except as otherwise permitted under Section 7.3 of the Credit Agreement, no financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public

 

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office except financing statements that have been filed without the consent of the Grantor. For the avoidance of doubt, it is understood and agreed that any Grantor may, as part of its ordinary course of business, grant licenses to third parties to use Intellectual Property owned, licensed or developed by a Grantor, such licenses to be on fair market value terms. For purposes of this Agreement and the other Loan Documents, such licensing activity shall not constitute a “Lien” on such Intellectual Property. The Collateral Agent and each other Secured Party understands that any such license may be exclusive to the applicable licensees, and such exclusivity provisions may limit the ability of the Administrative Agent to utilize, sell, lease or transfer the related Intellectual Property or otherwise realize value from such Intellectual Property pursuant hereto; provided, in each case, that such licenses are granted in the ordinary course of business.

 

4.3                               Names; Jurisdiction of Organization; Chief Executive Office. On the date hereof, such Grantor’s full and correct legal name, jurisdiction of organization and identification number from the jurisdiction of organization (if any) are specified on Schedule 3.

 

4.4                               Pledged Securities. On the date hereof, the shares of Pledged Stock pledged by such Grantor hereunder:

 

(a)        with respect to the shares of Pledged Stock issued by the Borrower and any other Subsidiary, have been duly authorized, validly issued and are fully paid and non-assessable, to the extent such concepts are applicable; and

 

(b) constitute all the issued and outstanding shares of all classes of the Capital Stock of each Issuer owned by such Grantor or (x) in the case of Foreign Subsidiary Voting Stock, 65% of the outstanding Foreign Subsidiary Voting Stock and (y) in the case of shares of non-voting stock of any Foreign Subsidiary, 100% of such issued and outstanding shares of each relevant Issuer.

 

4.5                               Intellectual Property.

 

(a)        Schedule 4.5(a) lists all registered or applied for Intellectual Property owned by such Grantor in its own name on the date hereof.

 

(b)        Schedule 4.5(b) sets forth all Intellectual Property licenses under which a Grantor is an exclusive licensee or licensor.

 

SECTION 5.                            COVENANTS

 

Each Guarantor and each Grantor covenants and agrees with the Collateral Agent and, with respect to Section 5.1, the Lenders and, with respect to Section 5.2 and 5.3, the other Secured Parties, that, from and after the date of this Agreement until the Obligations shall have been paid in full (other than contingent and indemnification obligations not yet asserted or due and owing), no Letter of Credit (that is not cash collateralized or backstopped to the reasonable satisfaction of the Issuing Lender or purchasing Lender, as applicable, in respect thereof) shall be outstanding and the Commitments shall have been terminated:

 

5.1                               Covenants in Credit Agreement. In the case of each Guarantor, to the extent applicable, such Guarantor shall take, or shall refrain from taking, as the case may be, each action that is necessary to be taken or not taken, as the case may be, so that no Default or Event of Default is caused by the failure to take such action or to refrain from taking such action by such Guarantor or any of its Subsidiaries.

 

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5.2                               Investment Property. (a) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be bound by the terms of this Agreement relating to the Pledged Securities issued by it and will comply with such terms insofar as such terms are applicable to it and (ii) the terms of Sections 6.3(c) and 6.8 shall apply to it, mutatis mutandis, with respect to all actions that may be required of it pursuant to Section 6.3(c) or 6.8 with respect to the Pledged Securities issued by it.

 

(b)        To the extent any Pledged Stock (x) constitutes interests in any limited liability company or limited partnership controlled now or in the future by any Grantor and (y) is a “Security” within the meaning of Article 8 of the New York UCC and is governed by Article 8 of the New York UCC, such interest shall be certificated and each such interest shall at all times hereafter continue to be such a security and represented by such certificate. Each Grantor further acknowledges and agrees that with respect to any interest in any limited liability company or limited partnership controlled now or in the future by such Grantor and pledged hereunder that is not a “Security” within the meaning of Article 8 of the New York UCC, such Grantor shall at no time elect to treat any such interest as a “Security” within the meaning of Article 8 of the New York UCC, nor shall such interest be represented by a certificate, unless such Grantor provides prior written notification to the Collateral Agent of such election and such interest is thereafter represented by a certificate that is promptly delivered to the Collateral Agent pursuant to the terms hereof.

 

(c)         To the extent that any Pledged Security is a Certificated Security or an Instrument or is an Uncertificated Security that becomes a Certificated Security or Instrument, the applicable Grantor shall promptly deliver such certificates or Instruments evidencing such Pledged Securities to the Collateral Agent together with stock powers or indorsements thereof reasonably satisfactory to the Collateral Agent.

 

5.3                               Maintenance of Perfected Security Interest; Defense of Claims. Each Grantor agrees to promptly notify the Collateral Agent of any change (i) in its legal name, (ii) in the identity or type of organization or corporate structure of any Grantor, (iii) in the jurisdiction of organization of any Grantor, (iv) in the “location” (as determined in accordance with Section 9-307 of the New York UCC) of any Grantor or (v) in the organizational identification number of any Grantor. Each Grantor agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been made under the New York UCC or other applicable Law that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected (to the extent perfection of the security interest in such property is required by the terms hereof), security interest (subject only to Lien permitted under the Credit Agreement and having priority by operation of applicable Law) in the Collateral for its benefit and the benefit of the other Secured Parties.

 

SECTION 6.                            REMEDIAL PROVISIONS

 

6.1                               Certain Matters Relating to Receivables.

 

(a)        At any time during the continuance of an Event of Default, upon the Collateral Agent’s reasonable request and at the expense of the relevant Grantor, such Grantor shall use its best efforts to cause independent public accountants or others satisfactory to the Collateral Agent to furnish to the Collateral Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the Receivables.

 

(b)        If required by the Collateral Agent at any time after the occurrence and during the continuance of an Event of Default under Section 8.1(a) or 8.1(f) of the Credit Agreement, any payments of Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any event, within three Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the Collateral Agent if required, in a Collateral Account maintained under the sole dominion and control

 

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of the Collateral Agent, subject to withdrawal by the Collateral Agent for the account of the Collateral Agent and the other Secured Parties only as provided in Section 6.6 and (ii) until so turned over, shall be held by such Grantor in trust for the Collateral Agent and the other Secured Parties, segregated from other funds of such Grantor. Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit.

 

(c)         If an Event of Default has occurred and is continuing and at the Collateral Agent’s request, each Grantor shall deliver to the Collateral Agent all documents evidencing, and relating to, the agreements and transactions which gave rise to the Receivables, including, without limitation, all orders, invoices and shipping receipts.

 

6.2                               Communications with Grantors; Grantors Remain Liable.

 

(a)        Upon the request of the Collateral Agent at any time after the occurrence and during the continuance of an Event of Default under Section 8.1(a) or 8.1(f) of the Credit Agreement, each Grantor shall notify obligors on the Receivables that such Receivables have been assigned to the Collateral Agent for the ratable benefit of the Collateral Agent and the other Secured Parties and that payments in respect of such Receivables shall be made directly to the Collateral Agent.

 

(b)        Anything herein to the contrary notwithstanding, each Grantor shall remain liable under the Receivables (or any agreements giving rise thereto) to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto. Neither the Collateral Agent nor any other Secured Party shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any other Secured Party of any payment relating thereto, nor shall the Collateral Agent or any other Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

 

6.3                               Pledged Securities. (a) Unless an Event of Default shall have occurred and be continuing and the Collateral Agent shall have given notice to the relevant Grantor of the Collateral Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to receive all cash dividends paid in respect of the Pledged Stock and all payments made in respect of the Pledged Notes to the extent permitted in the Credit Agreement, and to exercise all voting and corporate or other organizational rights with respect to the Pledged Securities.

 

(b)        If an Event of Default shall occur and be continuing and the Collateral Agent shall give notice to the relevant Grantor or Grantors of its intent to exercise such rights, (i) unless otherwise provided in the Credit Agreement, the Collateral Agent shall have the right to receive any and all cash dividends, payments or other Proceeds paid in respect of the Pledged Securities and make application thereof to the Obligations in the order set forth in Section 6.6 and (ii) any or all of the Pledged Securities shall be registered in the name of the Collateral Agent or its nominee, and the Collateral Agent or its nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to such Pledged Securities at any meeting of shareholders of the relevant Issuer or Issuers or otherwise and (y) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such Pledged Securities as if it were the absolute owner thereof (including, without limitation, the right to exchange at its discretion any and all of the Pledged Securities upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the corporate structure of any Issuer, or

 

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upon the exercise by any Grantor or the Collateral Agent of any right, privilege or option pertaining to such Pledged Securities, and in connection therewith, the right to deposit and deliver any and all of the Pledged Securities with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Collateral Agent may determine), all without liability except to account for property actually received by it, but the Collateral Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing unless the Collateral Agent has given notice of its intent to exercise as set forth above.

 

(c)         Each Grantor hereby authorizes and instructs each Issuer of any Pledged Securities pledged by such Grantor hereunder to comply with any instruction received by it from the Administrative Agent in writing that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying.

 

6.4                               Intellectual Property.

 

(i)                                     Without limiting any rights of the Collateral Agent under the Loan Documents, for the purpose of enabling the Collateral Agent to exercise rights and remedies under Section 6, solely during such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, and at no other time or for no other purpose, each Grantor hereby grants to the Collateral Agent, to the extent permitted by law, an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to such Grantor) to use, assign, license, sublicense or otherwise exploit any of the Intellectual Property now owned or hereafter acquired or created by such Grantor, wherever the same may be located; provided, however, that nothing in this Section 6.4 shall require a Grantor to grant any license that is prohibited by any rule of law, statute or regulation or is prohibited by, or constitutes a breach or default under or results in the termination of or gives rise to any right of acceleration, modification or cancellation under any contract, license, agreement, instrument or other document evidencing, giving rise to a right to use or theretofore granted with respect to such property; provided, further, that such licenses to be granted hereunder with respect to Trademarks shall be subject to the maintenance of quality standards with respect to the goods and services on which such Trademarks are used sufficient to preserve the validity of such Trademarks.

 

(ii)                                  Notwithstanding anything contained herein to the contrary, but subject to the provisions of Section 7.5 of the Credit Agreement that limit the rights of the Grantors to dispose of their property but subject to the Collateral Agent’s exercise of its rights and remedies under Section 6, the Grantors will be permitted to exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or take other actions with respect to the Intellectual Property in the ordinary course of the business of the Grantors. In furtherance of the foregoing, so long as no Event of Default shall have occurred and be continuing, the Collateral Agent shall from time to time, upon the request of the respective Grantor (through the Borrower), execute and deliver any instruments, certificates or other documents, in the form so requested, that such Grantor (through the Borrower) shall have certified are appropriate in its judgment to allow it to take any action permitted above (including relinquishment of the license provided pursuant to clause (i) immediately above as to any specific Intellectual Property). Further, upon the payment in full in cash of all of the Obligations (other than contingent or indemnification obligations not then asserted or due) and cancellation or termination of all Commitments and Letters of Credit (that are not cash collateralized or backstopped to the reasonable satisfaction of the Issuing Lender or purchasing Lender, as applicable, in respect thereof) or earlier expiration of this Agreement or release of the Collateral, the license granted pursuant to clause (i) immediately above shall terminate and become null and void. Notwithstanding the foregoing, the exercise of rights and

 

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remedies under Section 6 by the Collateral Agent shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by the Grantors in accordance with the first sentence of this clause (ii).

 

(iii)                               If at any time the Trademarks within the Collateral contain any “intent-to-use” applications, the Collateral Agent shall refrain from exercising any of its rights under Section 6, solely to the extent such exercise would invalidate or cause a Grantor to abandon any such applications.

 

6.5                               Proceeds to be Turned Over To Collateral Agent. If an Event of Default shall have occurred and be continuing and the Loans shall have been accelerated pursuant to Section 8 of the Credit Agreement, all Proceeds received by any Grantor consisting of cash, checks and other near-cash items shall be held by such Grantor in trust for the Collateral Agent and the other Secured Parties, segregated from other funds of such Grantor, and shall, promptly upon receipt by such Grantor, be turned over to the Collateral Agent in the exact form received by such Grantor (duly indorsed by such Grantor to the Collateral Agent, if required). All Proceeds received by the Collateral Agent hereunder shall be held by the Collateral Agent in a Collateral Account maintained under its sole dominion and control. All Proceeds while held by the Collateral Agent in a Collateral Account (or by such Grantor in trust for the Collateral Agent and the other Secured Parties) shall continue to be held as collateral security for all of the Obligations and shall not constitute payment thereof until applied as provided in Section 6.7.

 

6.6                               Application of Proceeds. If an Event of Default shall have occurred and be continuing and the Loans shall have been accelerated pursuant to Section 8 of the Credit Agreement, the Collateral Agent shall apply all or any part of Proceeds constituting Collateral and any proceeds of the guarantee set forth in Section 2, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any Collateral or otherwise reasonably relating to the Collateral or the rights of the Collateral Agent and any other Secured Party hereunder, in payment of the Obligations, and shall make any such application in accordance with Section 2.18(h) of the Credit Agreement, and only after such application and after the payment by the Collateral Agent of any other amount required by any Requirement of Law, need the Collateral Agent account for the surplus, if any, to any Grantor.

 

6.7                               Code and Other Remedies. If an Event of Default shall have occurred and be continuing, the Collateral Agent, on behalf of itself, the Administrative Agent and the Lenders, may exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured party under the New York UCC or any other applicable law. Without limiting the generality of the foregoing, if an Event of Default shall have occurred and be continuing, the Collateral Agent, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below or notices otherwise provided in the Loan Documents) to or upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived unless otherwise provided in the Loan Documents), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of the Collateral Agent or any Lender or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. Any Agent or any Lender shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby waived and released. Each Grantor further

 

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agrees, at the Collateral Agent’s request, if an Event of Default shall have occurred and be continuing, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at such Grantor’s premises or elsewhere. The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.7, after deducting all reasonable out-of-pocket costs and expenses of every kind actually incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Collateral Agent and the Lenders hereunder, including, without limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, in such order as the Collateral Agent may elect, and only after such application and after the payment by the Collateral Agent of any other amount required by any provision of law, including, without limitation, Section 9-615(a)(3) of the New York UCC, need the Collateral Agent account for the surplus, if any, to any Grantor. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least 10 days before such sale or other disposition.

 

6.8                               Private Sales. Each Grantor recognizes that the Collateral Agent may be unable to effect a public sale of any or all the Pledged Stock, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner. The Collateral Agent shall be under no obligation to delay a sale of any of the Pledged Stock for the period of time necessary to permit the Issuer thereof to register such securities for public sale under the Securities Act, or under applicable state securities laws, even if such Issuer would agree to do so.

 

6.9                               Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the reasonable fees and disbursements of any attorneys employed by the Collateral Agent to collect such deficiency.

 

SECTION 7.                            THE COLLATERAL AGENT

 

7.1                               Collateral Agent’s Appointment as Attorney-in-Fact, etc.

 

(a) Each Grantor hereby irrevocably constitutes and appoints the Collateral Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the Collateral Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the following after written notice by the Collateral Agent of its intent to do so (provided that anything in this Section 7.1(a) to the contrary notwithstanding, the Collateral Agent agrees that it will not exercise any rights under the power of attorney provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be continuing):

 

(i)                                     in the name of such Grantor or its own name, or otherwise, take possession of and indorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Receivable or with respect to any other Collateral and file any

 

15

 

claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Collateral Agent for the purpose of collecting any and all such moneys due under any Receivable or with respect to any other Collateral whenever payable;

 

(ii)                                  in the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as the Collateral Agent may request to evidence and/or perfect the Secured Parties’ security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby;

 

(iii)                               pay or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or provide any insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof;

 

(iv)                              execute, in connection with any sale provided for in Section 6.7 or 6.8, any indorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and

 

(v)                                 (1) direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct; (2) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (3) sign and indorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (4) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the Collateral Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for such term or terms, on such conditions, and in such manner, as the Collateral Agent shall in its sole discretion determine; and (8) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Collateral Agent were the absolute owner thereof for all purposes, and do, at the Collateral Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and things which the Collateral Agent deems necessary to protect, preserve or realize upon the Secured Parties’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might do.

 

(b)        If any Grantor fails to perform or comply with any of its agreements contained herein, the Collateral Agent, at its option, but without any obligation so to do, may give such Grantor written notice of such failure to perform or comply and if such Grantor fails to perform or comply within three (3) Business Days of receiving such notice (or if the Collateral Agent reasonably determines that irreparable harm to the Collateral or to the security interest of the Secured Parties hereunder could result prior to the end of such three-Business Day period), then the Collateral Agent may perform or comply, or otherwise cause performance or compliance, with such agreement.

 

(c)         Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled with an

 

16

 

interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.

 

7.2                               Duty of Collateral Agent. To the extent permitted by law, the Collateral Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals with similar property for its own account. None of the Collateral Agent, any other Secured Party or any of their respective officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof. The powers conferred on the Collateral Agent and the other Secured Parties hereunder are solely to protect the Collateral Agent’s and the other Secured Parties’ interests in the Collateral and shall not impose any duty upon the Collateral Agent or any other Secured Party to exercise any such powers. The Collateral Agent and the other Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct or that of their directors, officers, employees or agents.

 

7.3                               Execution of Financing Statements; Control Agreements. Pursuant to any applicable law, each Grantor authorizes the Collateral Agent to file or record financing statements and other filing or recording documents or instruments with respect to the Collateral without the signature of such Grantor in such form and in such offices as the Collateral Agent reasonably determines appropriate to perfect the security interests of the Collateral Agent (for the benefit of the Secured Parties) under this Agreement. Each Grantor authorizes the Collateral Agent to use the collateral description “all personal property” or any similar phrase in any such financing statements. Notwithstanding anything herein or in any other Loan Document to the contrary, the delivery of control agreements with respect to any Deposit Accounts, Securities Accounts and Commodities Accounts shall not be required.

 

7.4                               Authority of Collateral Agent. Each Grantor acknowledges that the rights and responsibilities of the Collateral Agent under this Agreement with respect to any action taken by the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as among the Collateral Agent and the other Secured Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between the Collateral Agent and the Grantors, the Collateral Agent shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority.

 

SECTION 8.                            MISCELLANEOUS

 

8.1                               Amendments in Writing. None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 10.1 of the Credit Agreement.

 

8.2                               Notices. All notices, requests and demands to or upon the Collateral Agent or any Grantor hereunder shall be effected in the manner provided for in Section 10.2 of the Credit Agreement; provided that any such notice, request or demand to or upon any Guarantor shall be addressed to such Guarantor at its notice address set forth on Schedule 1.

 

17

 

8.3                               No Waiver by Course of Conduct; Cumulative Remedies. Neither the Collateral Agent nor any Lender shall by any act (except by a written instrument pursuant to Section 8.1 above), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of the Collateral Agent or any Lender, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Collateral Agent or any Lender of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Collateral Agent or such Lender would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

8.4                               Enforcement Expenses; Indemnification. Each Guarantor agrees to pay, and to save the Collateral Agent and the Lenders harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement to the extent the Borrower would be required to do so pursuant to Section 10.5 of the Credit Agreement. The agreements in this Section 8.4 shall survive repayment of the Obligations and all other amounts payable under the Credit Agreement and the other Loan Documents.

 

8.5                               Successors and Assigns. This Agreement shall be binding upon the successors and assigns of each Grantor and shall inure to the benefit of the Collateral Agent and the other Secured Parties and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the Collateral Agent (it being understood that Dispositions and fundamental changes permitted under the Credit Agreement shall not be subject to this proviso).

 

8.6                               Set-Off. Each Grantor hereby irrevocably authorizes the Collateral Agent and each Lender at any time and from time to time while an Event of Default shall have occurred and be continuing, without notice to such Grantor or any other Grantor, any such notice being expressly waived by each Grantor, to the extent permitted by applicable law, upon any amount becoming due and payable by each Grantor (whether at the stated maturity, by acceleration or otherwise after the expiration of any applicable grace periods) to set-off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final but excluding trust accounts), 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 the Collateral Agent or such Lender to or for the credit or the account of such Grantor. Each of the Collateral Agent and each Lender shall notify such Grantor promptly of any such set-off made by it and the application made by it of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application.

 

8.7                               Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

8.8                               Severability. Any provision of this Agreement which 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.

 

18

 

8.9                               Section Headings. The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

 

8.10                        Integration. This Agreement and the other Loan Documents represent the agreement of the Grantors, the Collateral Agent and the other Secured Parties with respect to the subject matter hereof and thereof.

 

8.11                        GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

8.12                        Submission To Jurisdiction; Waivers. Each Grantor hereby irrevocably and unconditionally:

 

(a)        submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

 

(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 such Grantor at its address referred to in Section 8.2 or at such other address of which the Collateral 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 the right to sue in any other jurisdiction; and

 

(e)         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 any special, exemplary, punitive or consequential damages.

 

8.13                        Acknowledgements. Each Grantor hereby acknowledges that:

 

(a)        it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it is a party;

 

(b)        neither the Collateral Agent nor any other Secured Party has any fiduciary relationship with or duty to any Grantor arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Grantors, on the one hand, and the Collateral Agent and the other Secured Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

19

 

(c)         no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Collateral Agent and the other Secured Parties or among the Grantors and the Collateral Agent and the other Secured Parties.

 

8.14                        Additional Grantors. Each Subsidiary of Holdings that is required to become a party to this Agreement pursuant to Section 6.8 of the Credit Agreement shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement in the form of Annex I hereto.

 

8.15                        Releases.

 

(a)        At such time as the Loans, the Reimbursement Obligations and the other Obligations (other than Borrower Hedge Agreement and Cash Management Obligations and contingent or indemnification obligations not then asserted or due) shall have been paid in full, the Commitments shall have been terminated or expired and no Letter of Credit (that is not cash collateralized or backstopped to the reasonable satisfaction of the Issuing Lender or purchasing Lender, as applicable, in respect thereof) shall be outstanding, the Collateral shall be automatically released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Collateral Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Grantors. At the request and sole expense of any Grantor following any such termination, the Collateral Agent shall deliver to such Grantor any Collateral held by the Collateral Agent hereunder, and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

 

(b)        If any of the Collateral shall be sold, transferred or otherwise Disposed of by any Grantor in a transaction permitted by the Credit Agreement or permitted by the Required Lenders, then (i) the security interest in any such Collateral shall be automatically released to the extent that such Disposition does not (x) pertain to Capital Stock of the Borrower or any Subsidiary Guarantor or other Collateral in the possession of the Collateral Agent or (y) involve the filing of amendments to or termination of any financing statement or mortgage in favor of the Collateral Agent on behalf of the Secured Parties and (ii) the Collateral Agent, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other documents reasonably necessary or desirable for the release of the Liens created hereby on such Collateral. At the request and sole expense of the Borrower, a Guarantor shall be released from its obligations hereunder in the event that all the Capital Stock of such Guarantor shall be sold, transferred or otherwise Disposed of in a transaction permitted by the Credit Agreement or permitted by the Required Lenders.

 

8.16                        WAIVER OF JURY TRIAL. EACH GRANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, EACH OF THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT AND EACH OTHER SECURED PARTY, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

8.17                        Intercreditor Agreement Governs. Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent hereunder are subject to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement shall govern.

 

(signature pages follow)

 

20

 

IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly executed and delivered as of the date first above written.

 

	
 
    	
PG HOLDCO, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew J. Cavanna
    
	
 
    	
Name:
    	
Andrew J. Cavanna
    
	
 
    	
Title:
    	
Treasurer & CFO
    
	
 
    	
 
    
	
 
    	
PGA HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul D. Worland
    
	
 
    	
Name:
    	
Paul D. Worland
    
	
 
    	
Title:
    	
VP & Secretary
    
	
 
    	
 
    
	
 
    	
PRESS GANEY ASSOCIATES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul D. Worland
    
	
 
    	
Name:
    	
Paul D. Worland
    
	
 
    	
Title:
    	
VP & Secretary
    
	
 
    	
 
    
	
 
    	
PATIENTIMPACT LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul D. Worland
    
	
 
    	
Name:
    	
Paul D. Worland
    
	
 
    	
Title:
    	
VP & Secretary
    
	
 
    	
 
    
	
 
    	
DATA ADVANTAGE, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul D. Worland
    
	
 
    	
Name:
    	
Paul D. Worland
    
	
 
    	
Title:
    	
VP & Secretary
    
	
 
    	
 
    
	
 
    	
CENTER FOR PERFORMANCE SCIENCES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ K. Robert Draughon
    
	
 
    	
Name:
    	
K. Robert Draughon
    
	
 
    	
Title:
    	
President & Treasurer
    

 

[FIRST LIEN GUARANTEE AND COLLATERAL AGREEMENT]

 

 

	
 
    	
BARCLAYS BANK PLC, as Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Vanessa A. Kurbatskiy
    
	
 
    	
 
    	
Name:
    	
Vanessa A. Kurbatskiy
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[FIRST LIEN GUARANTEE AND COLLATERAL AGREEMENT]

 

 

Schedule 1

 

NOTICE ADDRESSES OF GUARANTORS

 

	
Guarantor
    	
 
    	
Notice Address
    
	
 
    	
 
    	
c/o   Vestar Capital Partners
    
	
 
    	
 
    	
245   Park Avenue, 41st Floor
    
	
PG   Holdco, LLC
    	
 
    	
New   York, NY 10167
    
	
 
    	
 
    	
Email:   sdellarocca@VestarCapital.com
    
	
 
    	
 
    	
Attn:   General Counsel
    
	
 
    	
 
    	
404   Columbia Place,
    
	
Press   Ganey Associates, Inc.
    	
 
    	
South   Bend, IN 46601
    
	
 
    	
Email:   mlal@pressganey.com
    
	
 
    	
 
    	
Attn:   Manuj Lal
    
	
 
    	
 
    	
404   Columbia Place,
    
	
PatientImpact   LLC
    	
 
    	
South   Bend, IN 46601
    
	
 
    	
Email:   mlal@pressganey.com
    
	
 
    	
 
    	
Attn:   Manuj Lal
    
	
 
    	
 
    	
404   Columbia Place,
    
	
Data   Advantage, LLC
    	
 
    	
South   Bend, IN 46601
    
	
 
    	
Email:   mlal@pressganey.com
    
	
 
    	
 
    	
Attn:   Manuj Lal
    
	
 
    	
 
    	
404   Columbia Place,
    
	
Center   for Performance Sciences, Inc.
    	
 
    	
South   Bend, IN 46601
    
	
 
    	
Email:   mlal@pressganey.com
    
	
 
    	
 
    	
Attn:   Manuj Lal
    

 

 

Schedule 2

 

DESCRIPTION OF INVESTMENT PROPERTY

 

Pledged Stock:

 

	
Issuer
    	
 
    	
Class of Stock
    	
 
    	
Stock Certificate No.
    	
 
    	
No. of Shares
    
	
PGA Holdings, Inc.
    	
 
    	
Common
    	
 
    	
1
    	
 
    	
15,368.74
    
	
Press Ganey Associates, Inc.
    	
 
    	
Common
    	
 
    	
2
    	
 
    	
100
    
	
PatientImpact LLC
    	
 
    	
Voting Shares
    	
 
    	
N/A
    	
 
    	
8,500,000
    
	
 
    	
Nonvoting Shares
    	
 
    	
N/A
    	
 
    	
1,329,865
    
	
Data Advantage, LLC
    	
 
    	
Class A Units
    	
 
    	
N/A
    	
 
    	
771,640
    
	
 
    	
Class B Units
    	
 
    	
N/A
    	
 
    	
78,360
    
	
 
    	
Class C Units
    	
 
    	
N/A
    	
 
    	
150,000
    
	
Center for Performance Sciences, Inc.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    

 

Pledged Notes:

 

Notes Receivable in an amount equal to or more than $2,500,000.00 as of March 31, 2012.

 

	
Member of Management
    	
 
    	
Amount ($)
    	
 
    	
Maturity Date
    	
 
    
	
Patrick T. Ryan
    	
 
    	
$
    	
9,250,000.00
    	
 
    	
2/27/2022
    	
 
    
							

 

 

Schedule 3

 

LEGAL NAME, LOCATION OF JURISDICTION OF ORGANIZATION AND ORGANIZATIONAL IDENTIFICATION NUMBER

 

	
 
    	
 
    	
Jurisdiction of
    	
 
    	
Organizational
    
	
Legal Name
    	
 
    	
Organization
    	
 
    	
Identification Number
    
	
PG   Holdco, LLC
    	
 
    	
Delaware
    	
 
    	
4490736
    
	
PGA   Holdings, Inc.
    	
 
    	
Delaware
    	
 
    	
3700962
    
	
Press   Ganey Associates, Inc.
    	
 
    	
Indiana
    	
 
    	
198508-318
    
	
PatientImpact   LLC
    	
 
    	
Illinois
    	
 
    	
01353594
    
	
Data   Advantage, LLC
    	
 
    	
Texas
    	
 
    	
800945205
    
	
Center   for Performance Sciences, Inc.
    	
 
    	
Maryland
    	
 
    	
D04577938
    

 

 

Schedule 4

 

SCHEDULE 4(a)

 

INTELLECTUAL PROPERTY

 

Trademarks:

 

	
 
    	
 
    	
COUNTRY
    	
 
    	
Trademark
    	
 
    	
Application
   No.
    	
 
    	
Status
    	
 
    	
Registration
   No.
    	
 
    	
Registration
   Date
    	
 
    	
Owner
   Information
    
	
1.
    	
 
    	
United   States of America
    	
 
    	
(Device   Only)
    	
 
    	
77188230
    	
 
    	
Registered
    	
 
    	
3356012
    	
 
    	
Dec-18-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
2.
    	
 
    	
Austria
    	
 
    	
AUQIP
    	
 
    	
AM   2615/98
    	
 
    	
Registered
    	
 
    	
118667.292   3
    	
 
    	
Sep-11-1998
    	
 
    	
The   Maryland Hospital Association, Inc.
    
	
3.
    	
 
    	
United   States of America
    	
 
    	
BEST   PLACE TO PRACTICE
    	
 
    	
77615182
    	
 
    	
Registered
    	
 
    	
3730218
    	
 
    	
Dec-22-2009
    	
 
    	
Press   Ganey Associates, Inc
    
	
4.
    	
 
    	
Canada
    	
 
    	
BEST   PLACE TO PRACTICE
    	
 
    	
1431428
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
5.
    	
 
    	
United   States of America
    	
 
    	
BRAND   POSITION ANALYSIS
    	
 
    	
85428854
    	
 
    	
Registered
    	
 
    	
4119863
    	
 
    	
Mar-27-2012
    	
 
    	
Press   Ganey Associates, Inc
    
	
6.
    	
 
    	
United   States of America
    	
 
    	
BRIEFINGS
    	
 
    	
77469110
    	
 
    	
Registered
    	
 
    	
3645789
    	
 
    	
Jun-30-2009
    	
 
    	
Press   Ganey Associates, Inc
    
	
7.
    	
 
    	
Canada
    	
 
    	
BRIEFINGS
    	
 
    	
1408838
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
8.
    	
 
    	
United   States of America
    	
 
    	
CARDIAC   CATH LAB OPTIMIZER
    	
 
    	
85430020
    	
 
    	
Registered
    	
 
    	
4116508
    	
 
    	
Mar-20-2012
    	
 
    	
Press   Ganey Associates, Inc
    
	
9.
    	
 
    	
Australia
    	
 
    	
CLEARLY   THE RIGHT DIRECTION
    	
 
    	
873560
    	
 
    	
Registered
    	
 
    	
873560
    	
 
    	
Apr-24-2001
    	
 
    	
Press   Ganey Associates, Inc
    
	
10.
    	
 
    	
United   States of America
    	
 
    	
CLINICAL   PERFORMER
    	
 
    	
85443898
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
11.
    	
 
    	
United   States of America
    	
 
    	
CLINICAL   PERFORMER OPTIMIZER
    	
 
    	
85430019
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
12.
    	
 
    	
United   States of America
    	
 
    	
COMPASS   AWARD
    	
 
    	
77182561
    	
 
    	
Registered
    	
 
    	
3348003
    	
 
    	
Dec-4-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
13.
    	
 
    	
Australia
    	
 
    	
COMPASS   AWARD
    	
 
    	
1184731
    	
 
    	
Registered
    	
 
    	
1184731
    	
 
    	
Jun-29-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
14.
    	
 
    	
United   States of America
    	
 
    	
COST   REPORT SCHEDULES
    	
 
    	
85426578
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
15.
    	
 
    	
United   States of America
    	
 
    	
CUSTOM   COST REPORTS
    	
 
    	
85426577
    	
 
    	
Registered
    	
 
    	
4116506
    	
 
    	
Mar-20-2012
    	
 
    	
Press   Ganey Associates, Inc
    
	
16.
    	
 
    	
Australia
    	
 
    	
ECOMPASS
    	
 
    	
1182931
    	
 
    	
Registered
    	
 
    	
1182931
    	
 
    	
Jun-21-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
17.
    	
 
    	
United   States of America
    	
 
    	
EMERGENCY   DEPARTMENT OPTIMIZER
    	
 
    	
85430028
    	
 
    	
Registered
    	
 
    	
4116509
    	
 
    	
Mar-20-2012
    	
 
    	
Press   Ganey Associates, Inc
    

 

 

	
18.
    	
 
    	
United   States of America
    	
 
    	
EMPLOYEE   PARTNER
    	
 
    	
85424217
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
19.
    	
 
    	
United   States of America
    	
 
    	
EMPLOYEE   PARTNER OPTIMIZER
    	
 
    	
85446153
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
20.
    	
 
    	
New   Zealand
    	
 
    	
FIRST   PERSON
    	
 
    	
654090
    	
 
    	
Registered
    	
 
    	
654090
    	
 
    	
Sep-5-2002
    	
 
    	
Press   Ganey Associates, Inc
    
	
21.
    	
 
    	
Canada
    	
 
    	
FIRST   PERSON
    	
 
    	
1135222
    	
 
    	
Registered
    	
 
    	
TMA627589
    	
 
    	
Dec-6-2004
    	
 
    	
Press   Ganey Associates, Inc
    
	
22.
    	
 
    	
Australia
    	
 
    	
FIRST   PERSON
    	
 
    	
906331
    	
 
    	
Registered
    	
 
    	
906331
    	
 
    	
Mar-14-2002
    	
 
    	
Press   Ganey Associates, Inc
    
	
23.
    	
 
    	
United   States of America
    	
 
    	
FIRST   PERSON
    	
 
    	
76320275
    	
 
    	
Registered
    	
 
    	
2681835
    	
 
    	
Jan-28-2003
    	
 
    	
Press   Ganey Associates, Inc
    
	
24.
    	
 
    	
United   States of America
    	
 
    	
FOCUS   GROUP OPTIMIZER
    	
 
    	
85430014
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
25.
    	
 
    	
United   States of America
    	
 
    	
GOAL &   BARRIER OPTIMIZER
    	
 
    	
85430016
    	
 
    	
Registered
    	
 
    	
4116507
    	
 
    	
Mar-20-2012
    	
 
    	
Press   Ganey Associates, Inc
    
	
26.
    	
 
    	
United   States of America
    	
 
    	
HOT   COMMENTS
    	
 
    	
77469118
    	
 
    	
Registered
    	
 
    	
3649579
    	
 
    	
Jul-7-2009
    	
 
    	
Press   Ganey Associates, Inc
    
	
27.
    	
 
    	
Australia
    	
 
    	
HOT   COMMENTS
    	
 
    	
1258639
    	
 
    	
Registered
    	
 
    	
1258639
    	
 
    	
Aug-25-2008
    	
 
    	
Press   Ganey Associates, Inc
    
	
28.
    	
 
    	
Canada
    	
 
    	
HOT   COMMENTS
    	
 
    	
1408599
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
29.
    	
 
    	
Australia
    	
 
    	
INFOEDGE
    	
 
    	
838970
    	
 
    	
Registered
    	
 
    	
838970
    	
 
    	
Jun-15-2000
    	
 
    	
Press   Ganey Associates, Inc
    
	
30.
    	
 
    	
United   States of America
    	
 
    	
INFOEDGE
    	
 
    	
75887573
    	
 
    	
Registered
    	
 
    	
2505910
    	
 
    	
Nov-13-2001
    	
 
    	
Press   Ganey Associates, Inc
    
	
31.
    	
 
    	
Canada
    	
 
    	
INFOEDGE
    	
 
    	
1059942
    	
 
    	
Registered
    	
 
    	
TMA573327
    	
 
    	
Jan-9-2003
    	
 
    	
Press   Ganey Associates, Inc
    
	
32.
    	
 
    	
Canada
    	
 
    	
INFOTURN
    	
 
    	
1059944
    	
 
    	
Registered
    	
 
    	
TMA581597
    	
 
    	
May-14-2003
    	
 
    	
Press   Ganey Associates, Inc
    
	
33.
    	
 
    	
United   States of America
    	
 
    	
INFOTURN
    	
 
    	
75887586
    	
 
    	
Registered
    	
 
    	
2570703
    	
 
    	
May-21-2002
    	
 
    	
Press   Ganey Associates, Inc
    
	
34.
    	
 
    	
Australia
    	
 
    	
INFOTURN
    	
 
    	
838966
    	
 
    	
Registered
    	
 
    	
838966
    	
 
    	
Jun-15-2000
    	
 
    	
Press   Ganey Associates, Inc
    
	
35.
    	
 
    	
Canada
    	
 
    	
ONLINE   ACTION PLANNING
    	
 
    	
1408837
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
36.
    	
 
    	
United   States of America
    	
 
    	
ONLINE   ACTION PLANNING
    	
 
    	
77469129
    	
 
    	
Registered
    	
 
    	
3637013
    	
 
    	
Jun-9-2009
    	
 
    	
Press   Ganey Associates, Inc
    
	
37.
    	
 
    	
United   States of America
    	
 
    	
OPERATING   ROOM OPTIMIZER
    	
 
    	
85430030
    	
 
    	
Registered
    	
 
    	
4116510
    	
 
    	
Mar-20-2012
    	
 
    	
Press   Ganey Associates, Inc
    
	
38.
    	
 
    	
United   States of America
    	
 
    	
OPPORTUNITY   ASSESSMENT OPTIMIZER
    	
 
    	
85430018
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
39.
    	
 
    	
United   States of America
    	
 
    	
OUTPATIENT   REPORTS
    	
 
    	
85426582
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
40.
    	
 
    	
United   States of America
    	
 
    	
PARTNER   OF CHOICE
    	
 
    	
77615180
    	
 
    	
Registered
    	
 
    	
3857505
    	
 
    	
Oct-5-2010
    	
 
    	
Press   Ganey Associates, Inc
    
	
41.
    	
 
    	
Canada
    	
 
    	
PARTNER   OF CHOICE
    	
 
    	
1431565
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    

 

 

	
42.
    	
 
    	
Australia
    	
 
    	
PARTNER   OF CHOICE
    	
 
    	
1291398
    	
 
    	
Registered
    	
 
    	
1291398
    	
 
    	
Mar-24-2009
    	
 
    	
Press   Ganey Associates, Inc
    
	
43.
    	
 
    	
Canada
    	
 
    	
PARTNERS   IN IMPROVEMENT
    	
 
    	
1357705
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
44.
    	
 
    	
Australia
    	
 
    	
PARTNERS   IN IMPROVEMENT
    	
 
    	
1186786
    	
 
    	
Registered
    	
 
    	
1186786
    	
 
    	
Jul-12-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
45.
    	
 
    	
United   States of America
    	
 
    	
PARTNERS   IN IMPROVEMENT
    	
 
    	
77162961
    	
 
    	
Registered
    	
 
    	
3406364
    	
 
    	
Apr-1-2008
    	
 
    	
Press   Ganey Associates, Inc
    
	
46.
    	
 
    	
United   States of America
    	
 
    	
PATIENT   EXPERIENCE OPTIMIZER
    	
 
    	
85430037
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
47.
    	
 
    	
United   States of America
    	
 
    	
PATIENTFLOW   OPTIMIZER
    	
 
    	
85430031
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
48.
    	
 
    	
United   States of America
    	
 
    	
PHYSICIAN   PARTNER
    	
 
    	
85425572
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
49.
    	
 
    	
United   States of America
    	
 
    	
PHYSICIAN   PARTNER OPTIMIZER
    	
 
    	
85430035
    	
 
    	
Registered
    	
 
    	
4116511
    	
 
    	
Mar-20-2012
    	
 
    	
Press   Ganey Associates, Inc
    
	
50.
    	
 
    	
Canada
    	
 
    	
PRESS   GANEY
    	
 
    	
881871
    	
 
    	
Registered
    	
 
    	
TMA521871
    	
 
    	
Jan-19-2000
    	
 
    	
Press   Ganey Associates, Inc
    
	
51.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY
    	
 
    	
85079653
    	
 
    	
Registered
    	
 
    	
4,021,466
    	
 
    	
Sep-6-2011
    	
 
    	
Press   Ganey Associates, Inc
    
	
52.
    	
 
    	
Australia
    	
 
    	
PRESS   GANEY
    	
 
    	
873559
    	
 
    	
Registered
    	
 
    	
873559
    	
 
    	
Apr-24-2001
    	
 
    	
Press   Ganey Associates, Inc
    
	
53.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY
    	
 
    	
75425846
    	
 
    	
Registered
    	
 
    	
2228347
    	
 
    	
Mar-2-1999
    	
 
    	
Press   Ganey Associates, Inc
    
	
54.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY CLINICAL PREFORMANCE SUITE
    	
 
    	
85443896
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
55.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY IMPROVEMENT PORTAL
    	
 
    	
85445034
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
56.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY OPERATIONAL PERFORMANCE SUITE
    	
 
    	
85443902
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
57.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY OUTCOMES DRIVEN. PERFORMANCE STRONG.
    	
 
    	
85079735
    	
 
    	
Pending
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
58.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY PARTNERS
    	
 
    	
77573025
    	
 
    	
Registered
    	
 
    	
3772658
    	
 
    	
Apr-6-2010
    	
 
    	
Press   Ganey Associates, Inc
    
	
59.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY PARTNERSHIP PERFORMANCE SUITE
    	
 
    	
85443906
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
60.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY PERFORMANCE CONSULTING SUITE
    	
 
    	
85430011
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    

 

 

	
61.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY PERFORMANCE SOLUTIONS
    	
 
    	
85427781
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
62.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY SATISFACTION PERFORMANCE SUITE
    	
 
    	
85445002
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
63.
    	
 
    	
United   States of America
    	
 
    	
PRESS   GANEY STRATEGIC PLANNING & MARKETING PERFORMANCE SUITE
    	
 
    	
85428851
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
64.
    	
 
    	
United   States of America
    	
 
    	
PROVIDER   PARTNER
    	
 
    	
85428879
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
65.
    	
 
    	
United   States of America
    	
 
    	
PSYCH   INSIGHTS
    	
 
    	
77524675
    	
 
    	
Registered
    	
 
    	
3781956
    	
 
    	
Apr-27-2010
    	
 
    	
Press   Ganey Associates, Inc
    
	
66.
    	
 
    	
United   States of America
    	
 
    	
QI
    	
 
    	
75216975
    	
 
    	
Registered
    	
 
    	
2125539
    	
 
    	
Dec-30-1997
    	
 
    	
Press   Ganey Associates, Inc
    
	
67.
    	
 
    	
United   States of America
    	
 
    	
QI
    	
 
    	
78930940
    	
 
    	
Registered
    	
 
    	
3329432
    	
 
    	
Nov-6-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
68.
    	
 
    	
United   States of America
    	
 
    	
QUALITY   INDICATOR PROJECT
    	
 
    	
78930936
    	
 
    	
Registered
    	
 
    	
3329431
    	
 
    	
Nov-6-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
69.
    	
 
    	
United   States of America
    	
 
    	
QUALITY   PERFORMER
    	
 
    	
85443904
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
70.
    	
 
    	
United   States of America
    	
 
    	
SAFETY   PERFORMER
    	
 
    	
85443900
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
71.
    	
 
    	
United   States of America
    	
 
    	
SECRET   SHOPPER OPTIMIZER
    	
 
    	
85430038
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
72.
    	
 
    	
United   States of America
    	
 
    	
SOLUTIONS   STARTER
    	
 
    	
78704967
    	
 
    	
Registered
    	
 
    	
3126796
    	
 
    	
Aug-8-2006
    	
 
    	
Press   Ganey Associates, Inc
    
	
73.
    	
 
    	
United   States of America
    	
 
    	
SOLUTIONS   STARTERS
    	
 
    	
77142349
    	
 
    	
Registered
    	
 
    	
3439221
    	
 
    	
Jun-3-2008
    	
 
    	
Press   Ganey Associates, Inc
    
	
74.
    	
 
    	
Australia
    	
 
    	
SOLUTIONS   STARTERS
    	
 
    	
1182933
    	
 
    	
Registered
    	
 
    	
1182933
    	
 
    	
Jun-21-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
75.
    	
 
    	
Canada
    	
 
    	
SOLUTIONS   STARTERS
    	
 
    	
1353785
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
76.
    	
 
    	
Canada
    	
 
    	
SUCCESS   STORY AWARD
    	
 
    	
1352369
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
77.
    	
 
    	
United   States of America
    	
 
    	
SUCCESS   STORY AWARD
    	
 
    	
77187874
    	
 
    	
Registered
    	
 
    	
3348013
    	
 
    	
Dec-4-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
78.
    	
 
    	
United   States of America
    	
 
    	
SUMMIT   AWARD
    	
 
    	
77182471
    	
 
    	
Registered
    	
 
    	
3348001
    	
 
    	
Dec-4-2007
    	
 
    	
Press   Ganey Associates, Inc
    
	
79.
    	
 
    	
Canada
    	
 
    	
SUMMIT   AWARD
    	
 
    	
1352360
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
80.
    	
 
    	
United   States of America
    	
 
    	
THE   DAY OF THE WEEK REPORT
    	
 
    	
85430007
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
81.
    	
 
    	
United   States of America
    	
 
    	
THE   EXECUTIVE ADVANTAGE REPORT
    	
 
    	
85428849
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    

 

 

	
82.
    	
 
    	
United   States of America
    	
 
    	
THE   FINANCIAL PROFILES REPORT
    	
 
    	
85428844
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
83.
    	
 
    	
United   States of America
    	
 
    	
THE   HOSPITAL INDICATOR REPORT
    	
 
    	
85428847
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
84.
    	
 
    	
United   States of America
    	
 
    	
THE   HOSPITAL PERFORMANCE REPORT
    	
 
    	
85428845
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
85.
    	
 
    	
United   States of America
    	
 
    	
THE   HOSPITAL TREND REPORT
    	
 
    	
85428843
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
86.
    	
 
    	
United   States of America
    	
 
    	
THE   TOP 20 REPORTS
    	
 
    	
85428846
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
87.
    	
 
    	
United   States of America
    	
 
    	
TOP   IMPROVER
    	
 
    	
77615181
    	
 
    	
Registered
    	
 
    	
3730217
    	
 
    	
Dec-22-2009
    	
 
    	
Press   Ganey Associates, Inc
    
	
88.
    	
 
    	
Canada
    	
 
    	
TOP   IMPROVER
    	
 
    	
1431564
    	
 
    	
Pending
    	
 
    	
not   registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    
	
89.
    	
 
    	
Taiwan
    	
 
    	
TQIP
    	
 
    	
88047780
    	
 
    	
Registered
    	
 
    	
144506
    	
 
    	
Jun-16-2001
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
90.
    	
 
    	
Taiwan
    	
 
    	
TQIP
    	
 
    	
88047851
    	
 
    	
Registered
    	
 
    	
132214
    	
 
    	
Nov-16-2000
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
91.
    	
 
    	
United   Kingdom
    	
 
    	
UKQIP
    	
 
    	
2140605
    	
 
    	
Registered
    	
 
    	
2140605
    	
 
    	
Jul-30-1997
    	
 
    	
The   Maryland Hospital Association, Inc.
    
	
92.
    	
 
    	
United   States of America
    	
 
    	
VALUE-BASED   PURCHASING OPTIMIZER
    	
 
    	
85430013
    	
 
    	
Pending
    	
 
    	
Not   Registered
    	
 
    	
 
    	
 
    	
Press   Ganey Associates, Inc
    

 

Copyrights:

 

	
 
    	
 
    	
TITLE
    	
 
    	
REG. NO.
    	
 
    	
OWNER INFORMATION
    
	
1.
    	
 
    	
Air   medical transport services referring client survey
    	
 
    	
TX6073819
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
2.
    	
 
    	
Air   medical transport services referring client survey
    	
 
    	
V3563D129
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
3.
    	
 
    	
Air   medical transport services referring client survey
    	
 
    	
V3571D199
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
4.
    	
 
    	
Air   medical transport services receiving client survey
    	
 
    	
TX6073820
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
5.
    	
 
    	
Ambulatory   surgery survey
    	
 
    	
TX6073852
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
6.
    	
 
    	
Ambulatory   surgery survey
    	
 
    	
TX6125038
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
7.
    	
 
    	
Assisted   living resident survey
    	
 
    	
TX6073849
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
8.
    	
 
    	
Assisted   living family survey
    	
 
    	
TX6073850
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
9.
    	
 
    	
Bank   customer satisfaction survey
    	
 
    	
TX6073848
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
10.
    	
 
    	
Billing   process survey
    	
 
    	
TX6073844
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
11.
    	
 
    	
Credit   union member satisfaction survey
    	
 
    	
TX6073847
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
12.
    	
 
    	
Dental   data solutions survey
    	
 
    	
TX6073846
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
13.
    	
 
    	
Dental   patient satisfaction survey
    	
 
    	
TX5532885
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
14.
    	
 
    	
Dental   patient satisfaction survey
    	
 
    	
TX5532886
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
15.
    	
 
    	
Dental   patient satisfaction survey
    	
 
    	
TX5537123
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
16.
    	
 
    	
Dental   patient satisfaction survey
    	
 
    	
V3503D477
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
17.
    	
 
    	
Dental   service survey
    	
 
    	
TX6073846
    	
 
    	
Press,   Ganey Associates, Inc.
    

 

 

	
 
    	
 
    	
TITLE
    	
 
    	
REG. NO.
    	
 
    	
OWNER INFORMATION
    
	
18.
    	
 
    	
Dental   Survey
    	
 
    	
V3548D891
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
19.
    	
 
    	
Dental   Survey
    	
 
    	
V3561D827
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
20.
    	
 
    	
Emergency   room survey
    	
 
    	
TX6073812
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
21.
    	
 
    	
Emergency   medical transportation satisfaction survey
    	
 
    	
TX6073843
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
22.
    	
 
    	
Employee   satisfaction survey
    	
 
    	
TX6073832
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
23.
    	
 
    	
Employee   perspective survey
    	
 
    	
TX6073833
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
24.
    	
 
    	
Home   health care survey
    	
 
    	
TX6073831
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
25.
    	
 
    	
Home   medical equipment survey
    	
 
    	
TX6073830
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
26.
    	
 
    	
Hospice   services survey
    	
 
    	
TX6073829
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
27.
    	
 
    	
Inpatient   survey with ICU section
    	
 
    	
TX6073822
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
28.
    	
 
    	
Inpatient   survey with ICU section
    	
 
    	
TX6541259
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
29.
    	
 
    	
Inpatient   obstetrical survey
    	
 
    	
TX6073823
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
30.
    	
 
    	
Inpatient   obstetrical survey
    	
 
    	
TX6541255
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
31.
    	
 
    	
Inpatient   survey with emergency department section
    	
 
    	
TX6073824
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
32.
    	
 
    	
Inpatient   survey with emergency department section
    	
 
    	
TX6541256
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
33.
    	
 
    	
Inpatient   survey
    	
 
    	
TX6073825
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
34.
    	
 
    	
Inpatient   survey
    	
 
    	
TX6541258
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
35.
    	
 
    	
Inpatient   behavioral health satisfaction survey
    	
 
    	
TX6073827
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
36.
    	
 
    	
Inpatient   pediatric survey
    	
 
    	
TX6073837
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
37.
    	
 
    	
Inpatient   rehabilitation survey
    	
 
    	
TX6073840
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
38.
    	
 
    	
Inpatient   rehabilitation survey
    	
 
    	
TX6541257
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
39.
    	
 
    	
Inpatient   Transplant Survey
    	
 
    	
TXu1665637
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
40.
    	
 
    	
LTACH   inpatient survey
    	
 
    	
TX6073821
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
41.
    	
 
    	
Medical   practices survey
    	
 
    	
TX5962553
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
42.
    	
 
    	
Medical   practice survey
    	
 
    	
TX5962567
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
43.
    	
 
    	
Medical   staff survey
    	
 
    	
TX6073826
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
44.
    	
 
    	
Medical   staff survey
    	
 
    	
TX6073838
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
45.
    	
 
    	
Nursing   home resident survey
    	
 
    	
TX6073817
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
46.
    	
 
    	
Nursing   home family survey
    	
 
    	
TX6073818
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
47.
    	
 
    	
Orthodontic   services survey
    	
 
    	
TX6073813
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
48.
    	
 
    	
Outpatient   rehabilitation survey
    	
 
    	
TX6073814
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
49.
    	
 
    	
Outpatient   mental health survey
    	
 
    	
TX6073815
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
50.
    	
 
    	
Outpatient   oncology survey
    	
 
    	
TX6073816
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
51.
    	
 
    	
Outpatient   services survey
    	
 
    	
TX6073851
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
52.
    	
 
    	
Outpatient   services survey
    	
 
    	
TX6073811
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
53.
    	
 
    	
Outpatient   Transplant Survey
    	
 
    	
TXu1665638
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
54.
    	
 
    	
Patient   survey
    	
 
    	
TX6073845
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
55.
    	
 
    	
Pediatric   emergency department survey
    	
 
    	
TX6073842
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
56.
    	
 
    	
Physician   satisfaction questionnaire
    	
 
    	
TX6073841
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
57.
    	
 
    	
Referral   source physician survey
    	
 
    	
TX6073834
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
58.
    	
 
    	
Referral   source nonphysician survey
    	
 
    	
TX6073835
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
59.
    	
 
    	
Referral   source dentist survey
    	
 
    	
TX6073836
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
60.
    	
 
    	
Retirement/independent   living survey
    	
 
    	
TX6073828
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
61.
    	
 
    	
Urgent   care survey
    	
 
    	
TX6073839
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
62.
    	
 
    	
What   patients love: Press Ganey’s Guide to HCAHPS
    	
 
    	
TX6577750
    	
 
    	
Press,   Ganey Associates, Inc.
    
	
63.
    	
 
    	
The   Maryland Hospital Association quality indicator project 7.0 software suite
    	
 
    	
TXu000901920
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
64.
    	
 
    	
The   Maryland Hospital Association quality indicator project Qi Graph : ver. 6.0
    	
 
    	
TXu000785077
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
65.
    	
 
    	
The   Maryland Hospital Association quality indicator
    	
 
    	
TXu000901861
    	
 
    	
Center   for Performance Sciences, Inc.
    

 

 

	
 
    	
 
    	
TITLE
    	
 
    	
REG. NO.
    	
 
    	
OWNER INFORMATION
    
	
 
    	
 
    	
project   QI tracking
    	
 
    	
 
    	
 
    	
 
    
	
66.
    	
 
    	
Maryland   Hospital Association, Quality Indicator Project report, fourth quarter, 1996
    	
 
    	
TXu000794557
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
67.
    	
 
    	
MHA   Quality Indicator Project, analysis of second quarter 1999 : home care   indicator data
    	
 
    	
TX0005079311
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
68.
    	
 
    	
MHA   Quality Indicator Project, second quarter 1999
    	
 
    	
TX0005079309
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
69.
    	
 
    	
Center   for Performance Sciences, Inc.OI Project core measures component   software & associated documentation
    	
 
    	
TXu001098985
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
70.
    	
 
    	
Psych   Qi Graph 1.5 : system coordinator version : user’s guide
    	
 
    	
TXu000812955
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
71.
    	
 
    	
Quality   Indicator Project : acute care implementation manual
    	
 
    	
TXu000860082
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
72.
    	
 
    	
Quality   Indicator Project acute care indicator set quarter 3, 2000
    	
 
    	
TX0005352760
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
73.
    	
 
    	
Quality   Indicator Project : analysis of ... acute care indicator data, 1st quarter 99
    	
 
    	
TX0005018895
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
74.
    	
 
    	
Quality   Indicator Project : analysis of ... acute care indicator data, 2nd quarter 99
    	
 
    	
TX0005079310
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
75.
    	
 
    	
Quality   Indicator Project : analysis of ... acute care indicator data, 4th quarter 99
    	
 
    	
TX0005082600
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
76.
    	
 
    	
Quality   Indicator Project : analysis of first quarter 1999 home care indicator data
    	
 
    	
TXu000928129
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
77.
    	
 
    	
Quality   Indicator Project : analysis of fourth quarter 1997 core indicator data
    	
 
    	
TXu000852360
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
78.
    	
 
    	
Quality   Indicator Project : analysis of fourth quarter 1998 acute care indicator data
    	
 
    	
TX0005001106
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
79.
    	
 
    	
Quality   Indicator Project : analysis of fourth quarter 1998 long-term care indicator   data
    	
 
    	
TX0005001107
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
80.
    	
 
    	
Quality   Indicator Project : analysis of fourth quarter 1998 psychiatric care indicator   data
    	
 
    	
TX0005001105
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
81.
    	
 
    	
Quality   Indicator Project : analysis of ... long-term care indicator data, 1st quarter   99
    	
 
    	
TX0005029656
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
82.
    	
 
    	
Quality   Indicator Project : analysis of ... long-term care indicator data, 4th quarter   99
    	
 
    	
TX0005082598
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
83.
    	
 
    	
Quality   Indicator Project : analysis of ... psychiatric indicator data, 1st quarter 99
    	
 
    	
TX0005030245
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
84.
    	
 
    	
Quality   Indicator Project : analysis of ... psychiatric indicator data, 4th quarter 99
    	
 
    	
TX0005082599
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
85.
    	
 
    	
Quality   Indicator Project : analysis of second quarter 1998 acute care indicator data
    	
 
    	
TXu000895643
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
86.
    	
 
    	
Quality   Indicator Project : analysis of second quarter 1998 long-term care indicator   data
    	
 
    	
TXu000895644
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
87.
    	
 
    	
Quality   Indicator Project : analysis of second quarter 1998 psychiatric care   indicator data
    	
 
    	
TXu000895765
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
88.
    	
 
    	
Quality   Indicator Project : analysis of second quarter 1999 psychiatric care   indicator data
    	
 
    	
TX0005079617
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
89.
    	
 
    	
Quality   indicator project : analysis of the fourth quarter 1997 long-term care   indicator data
    	
 
    	
TXu000852413
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
90.
    	
 
    	
Quality   indicator project : analysis of the fourth quarter
    	
 
    	
TXu000852412
    	
 
    	
Center   for Performance Sciences, Inc.
    

 

 

	
 
    	
 
    	
TITLE
    	
 
    	
REG. NO.
    	
 
    	
OWNER INFORMATION
    
	
 
    	
 
    	
1997   psychiatric care indicator data
    	
 
    	
 
    	
 
    	
 
    
	
91.
    	
 
    	
Quality   Indicator Project : analysis of the third quarter 1997 long term care   indicator data
    	
 
    	
TXu000837316
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
92.
    	
 
    	
Quality   Indicator Project : analysis of third quarter 1998 acute care indicator data
    	
 
    	
TX0004998073
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
93.
    	
 
    	
Quality   Indicator Project : analysis of third quarter 1998 long-term care indicator   data
    	
 
    	
TX0004998072
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
94.
    	
 
    	
Quality   Indicator Project : analysis of third quarter 1998 psychiatric care indicator   data
    	
 
    	
TX0004998071
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
95.
    	
 
    	
Quality   Indicator Project analysis second quarter 1997 core data
    	
 
    	
TXu000821404
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
96.
    	
 
    	
Quality   Indicator Project : analysis third quarter 1997 core data
    	
 
    	
TXu000837317
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
97.
    	
 
    	
Quality   Indicator Project : first quarter, 1998
    	
 
    	
TXu000860074
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
98.
    	
 
    	
Quality   Indicator Project : first quarter 1998 core indicators report
    	
 
    	
TXu000860080
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
99.
    	
 
    	
Quality   Indicator Project : first quarter 1998 long term care indicators report
    	
 
    	
TXu000860075
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
100.
    	
 
    	
Quality   Indicator Project home care indicator set quarter 3, 2000
    	
 
    	
TX0005352764
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
101.
    	
 
    	
Quality   Indicator Project implementation manual
    	
 
    	
TXu000877361
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
102.
    	
 
    	
Quality   indicator project implementation manual : long- term care indicators :   May 1997
    	
 
    	
TXu000805820
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
103.
    	
 
    	
Quality   Indicator Project implementation manual : psychiatric indicators
    	
 
    	
TXu000804224
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
104.
    	
 
    	
Quality   Indicator Project : long term care indicator data
    	
 
    	
TXu000860079
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
105.
    	
 
    	
Quality   Indicator Project long-term care indicator set quarter 3, 2000
    	
 
    	
TX0005352762
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
106.
    	
 
    	
Quality   Indicator Project : psychiatric care implementation manual
    	
 
    	
TXu000860081
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
107.
    	
 
    	
Quality   Indicator Project psychiatric care indicator set quarter 3, 2000
    	
 
    	
TX0005352758
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
108.
    	
 
    	
Quality   Indicator Project Qi graph, version 6.0 system manual
    	
 
    	
TXu000791380
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
109.
    	
 
    	
Quality   indicator project report : 1st quarter, 1997 : analysis of first quarter 1997   core data
    	
 
    	
TXu000805821
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
110.
    	
 
    	
QI   Project data collection software manual core indicators 6.0
    	
 
    	
TXu000775509
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
111.
    	
 
    	
Quality   indicator project
    	
 
    	
TXu000505969
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
112.
    	
 
    	
Quality   Indicator Project : core indicators 6.0 data collection software manual
    	
 
    	
TXu000775513
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
113.
    	
 
    	
Quality   Indicator Project implementation manual
    	
 
    	
TXu000775511
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
114.
    	
 
    	
Quality   Indicator Project implementation manual : psychiatric indicators
    	
 
    	
TXu000775515
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
115.
    	
 
    	
Quality   Indicator Project psychiatric care indicators : data collection software   manual
    	
 
    	
TXu000775512
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
116.
    	
 
    	
Clinical   assignments for healthcare students
    	
 
    	
V3599D151
    	
 
    	
Center   for Performance Sciences, Inc.
    
	
117.
    	
 
    	
Data   Advantage hospital pricing report
    	
 
    	
TX0003506919
    	
 
    	
Data   Advantage, LLC
    

 

 

Patents:

 

	
 
    	
 
    	
COUNTRY
    	
 
    	
TITLE
    	
 
    	
STATUS
    	
 
    	
APPLICATION
   #
    	
 
    	
FILING
   DATE
    	
 
    	
PATENT #
    	
 
    	
ISSUE
   DATE
    
	
1.
    	
 
    	
USA
    	
 
    	
Performance   Date User Interface
    	
 
    	
Pending
    	
 
    	
PGA-P0002
    	
 
    	
June 10,   2011
    	
 
    	
 
    	
 
    	
 
    

 

 

 

SCHEDULE 4(b)

 

LICENSE ARRANGEMENTS AND AGREEMENTS

 

1.              Licensing and Processing Agreement between Press Ganey Associates, Inc. and Press Ganey Associates Pty. Ltd dated as of September 1, 2003.

 

2.              Settlement and License Agreement between PDHC Ltd. and Press, Ganey Associates, Inc. dated July 2, 2003.

 

 

Annex I to

Guarantee and Collateral Agreement

 

ASSUMPTION AGREEMENT, dated as of                    , 201    , made by                            (the “Additional Grantor”), in favor of Barclays Bank PLC (“Barclays”), as Collateral Agent (in such capacity, the “Collateral Agent”) for the banks and other financial institutions or entities (the “Secured Parites”) in connection with the Credit Agreement referred to below. All capitalized terms not defined herein shall have the meaning ascribed to them in such Credit Agreement.

 

W I T N E S S E T H :

 

WHEREAS PG Holdco, LLC (“Holdings”), PGA Holdings, Inc. (the “Borrower”), the Lenders and Issuing Lenders, the Collateral Agent, Barclays Bank PLC, as Administrative Agent, Goldman Sachs Lending Partners LLC, as Syndication Agent, General Electric Capital Markets, Inc. and UBS Securities LLC, as Co-Documentation Agents, Barclays Bank PLC and Goldman Sachs Lending Partners LLC, as Joint Bookrunners and Barclays Bank PLC, Goldman Sachs Lending Partners LLC and General Electric Capital Markets, Inc., as Joint Lead Arrangers , have entered into that certain First Lien Credit Agreement, dated as of April 20, 2012 (as amended, restated, supplemented, waived and/or otherwise modified from time to time, the “Credit Agreement”);

 

WHEREAS, in connection with the Credit Agreement, Holdings, the Borrower and certain of its Affiliates (other than the Additional Grantor) have entered into the Guarantee and Collateral Agreement, dated as of April 20, 2012 (as amended, restated, supplemented, waived and/or otherwise modified from time to time, the “Guarantee and Collateral Agreement”) in favor of the Collateral Agent for the benefit of the Secured Parties;

 

WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the Guarantee and Collateral Agreement; and

 

WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Guarantee and Collateral Agreement;

 

NOW, THEREFORE, IT IS AGREED:

 

1.                                      Guarantee and Collateral Agreement. By executing and delivering this Assumption Agreement, the Additional Grantor, as provided in Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor thereunder with the same force and effect as if originally named therein as a Grantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Grantor thereunder. The information set forth in Annex 1-A hereto is hereby added to the information set forth in the Schedules to the Guarantee and Collateral Agreement. The Additional Grantor hereby represents and warrants, to the extent applicable, that each of the representations and warranties contained in Section 4 of the Guarantee and Collateral Agreement is true and correct in all material respects on and as of the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such date except to the extent that any representation and warranty relates to an earlier date, in which case such representation and warranty shall be true and correct in all material respects as of such earlier date.

 

2.               GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

 

IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written.

 

	
 
    	
[ADDITIONAL GRANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

2

 

Annex I-A to

Assumption Agreement

 

Supplement to Schedule 1

 

Supplement to Schedule 2

 

Supplement to Schedule 3

 

Supplement to Schedule 4

 

 

Annex II to

Guarantee and Collateral Agreement

 

ACKNOWLEDGMENT AND CONSENT

 

The undersigned hereby acknowledges receipt of a copy of the Guarantee and Collateral Agreement dated as of April 20, 2012 (the “Agreement”), made by the Grantors parties thereto for the benefit of Barclays Bank PLC, as Collateral Agent. The undersigned agrees for the benefit of the Collateral Agent and the other Secured Parties as follows:

 

1.              The undersigned will be bound by the terms of the Agreement and will comply with such terms insofar as such terms are applicable to the undersigned.

 

2.              The terms of Sections 6.3(c) and 6.8 of the Agreement shall apply to it, mutatis mutandis, with respect to all actions that may be required of it pursuant to Section 6.3(c) or 6.8 of the Agreement.

 

	
 
    	
[NAME OF ISSUER]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Fax:Exhibit 10.3

 

EXECUTION VERSION

 

SECOND AMENDED AND RESTATED

 

SECURITYHOLDERS AGREEMENT

 

DATED AS OF NOVEMBER 9, 2012

 

BY AND AMONG

 

PG HOLDCO, LLC

 

AND

 

THE OTHER PARTIES HERETO

 

 

Table of Contents

 

	
 
    	
Page
    
	
 
    
	
SECURITYHOLDERS AGREEMENT
    	
1
    
	
 
    	
 
    
	
ARTICLE I REPRESENTATIONS AND WARRANTIES OF   THE PARTIES
    	
1
    
	
 
    	
 
    
	
1.1
    	
 
    	
Representations   and Warranties of the Company
    	
1
    
	
1.2
    	
 
    	
Representations   and Warranties of the Securityholders
    	
2
    
	
 
    	
 
    
	
ARTICLE II VOTING AGREEMENTS
    	
2
    
	
 
    	
 
    
	
2.1
    	
 
    	
Election   of Management Committee Members and Directors
    	
2
    
	
2.2
    	
 
    	
Other   Voting Matters
    	
3
    
	
 
    	
 
    
	
ARTICLE III TRANSFERS OF SECURITIES
    	
4
    
	
 
    	
 
    
	
3.1
    	
 
    	
Restrictions   on Transfer of Employee Securities and Co-Investor Securities
    	
4
    
	
3.2
    	
 
    	
Right   of First Refusal
    	
4
    
	
3.3
    	
 
    	
Restrictions   on Transfers of Vestar Securities
    	
5
    
	
3.4
    	
 
    	
Transfer   to Company Competitor
    	
8
    
	
3.5
    	
 
    	
Securities   Act Compliance
    	
8
    
	
3.6
    	
 
    	
Certain   Transferees Bound by Agreement
    	
8
    
	
3.7
    	
 
    	
Transfers   in Violation of Agreement
    	
9
    
	
 
    	
 
    
	
ARTICLE IV DRAG-ALONG RIGHTS ON APPROVED SALE
    	
9
    
	
 
    	
 
    
	
4.1
    	
 
    	
Drag-Along   Rights
    	
9
    
	
 
    	
 
    
	
ARTICLE V REGISTRATION RIGHTS
    	
11
    
	
 
    	
 
    
	
5.1
    	
 
    	
Demand   Registrations
    	
11
    
	
5.2
    	
 
    	
Incidental   Registration
    	
13
    
	
5.3
    	
 
    	
Holdback   Agreements
    	
14
    
	
5.4
    	
 
    	
Registration   Procedures
    	
15
    
	
5.5
    	
 
    	
Shelf   Registration
    	
18
    
	
5.6
    	
 
    	
Registration   Expenses
    	
18
    
	
5.7
    	
 
    	
Indemnification;   Contribution
    	
19
    
	
5.8
    	
 
    	
Rules 144   and 144A
    	
21
    
	
5.9
    	
 
    	
Underwritten   Registrations
    	
22
    
	
5.10
    	
 
    	
No   Inconsistent Agreements
    	
22
    
	
 
    	
 
    
	
ARTICLE VI VENTURE CAPITAL OPERATING COMPANY
    	
22
    
	
 
    	
 
    
	
6.1
    	
 
    	
VCOC   Securityholders
    	
22
    

 

i

 

	
ARTICLE VII AMENDMENT   AND TERMINATION
    	
24
    
	
 
    	
 
    
	
7.1
    	
 
    	
Amendment and Waiver
    	
24
    
	
7.2
    	
 
    	
Termination of Agreement
    	
24
    
	
7.3
    	
 
    	
Termination as to a Party
    	
24
    
	
7.4
    	
 
    	
Issuer of Registrable Securities
    	
24
    
	
 
    	
 
    
	
ARTICLE VIII   PARTICIPATION RIGHTS
    	
25
    
	
 
    	
 
    
	
8.1
    	
 
    	
Participation Right
    	
25
    
	
8.2
    	
 
    	
Definition of New Units
    	
25
    
	
8.3
    	
 
    	
Notice from the Company
    	
25
    
	
8.4
    	
 
    	
Sale by the Company
    	
25
    
	
8.5
    	
 
    	
Closing
    	
26
    
	
8.6
    	
 
    	
Purchases by Vestar Holder(s)
    	
26
    
	
8.7
    	
 
    	
Termination of this Article Upon a Public Offering
    	
26
    
	
 
    	
 
    
	
ARTICLE IX   MISCELLANEOUS
    	
26
    
	
 
    	
 
    
	
9.1
    	
 
    	
Certain Defined Terms
    	
26
    
	
9.2
    	
 
    	
Legends
    	
34
    
	
9.3
    	
 
    	
Severability
    	
35
    
	
9.4
    	
 
    	
Entire Agreement
    	
35
    
	
9.5
    	
 
    	
Successors and Assigns
    	
35
    
	
9.6
    	
 
    	
Counterparts
    	
35
    
	
9.7
    	
 
    	
Remedies
    	
35
    
	
9.8
    	
 
    	
Notices
    	
35
    
	
9.9
    	
 
    	
Governing Law
    	
36
    
	
9.10
    	
 
    	
Descriptive Headings
    	
36
    

 

ii

 

SECURITYHOLDERS AGREEMENT

 

This Second Amended and Restated Securityholders Agreement (this “Agreement”) is entered into as of November 9, 2012 by and among (i) PG Holdco, LLC, a Delaware limited liability company (the “Company”), (ii) Vestar Capital Partners V, L.P., a Cayman Islands exempted limited partnership (“VCP”), (iii) Vestar Capital Partners V-A, L.P., a Cayman Islands exempted limited partnership (“VCPA”), (iv) Vestar Holdings V, L.P., a Cayman Islands exempted limited partnership (“VH”), (v) Vestar Executive V, L.P., a Cayman Islands exempted limited partnership (“VE”), (vi) Vestar/PGA Investors, LLC, a Delaware limited liability company (“Vestar/PGA Investors” and, together with VCP, VCPA, VH and VE, “Vestar”), (vii) parties to this Agreement who are identified as Co-Investors on the signature page hereto (each, a “Co-Investor” and, collectively, the “Co-Investors”), (viii) parties to this Agreement who are identified as Employees on the signature page hereto (each, an “Employee” and, collectively, the “Employees”), and (ix) each other holder of Securities who hereafter executes a separate agreement to be bound by the terms hereof (Vestar, the Co-Investors, the Employees and each other Person that is or may become a party to this Agreement as contemplated hereby are sometimes referred to herein collectively as the “Securityholders” and individually as a “Securityholder”). Certain capitalized terms used herein are defined in Section 7.1.

 

WHEREAS, on March 12, 2008, the Securityholders party thereto entered into the initial Securityholders Agreement of PG Holdco, LLC (the “Original Agreement”);

 

WHEREAS, on March 9, 2010, the Original Agreement was amended and restated (the “Amended and Restated Securityholders Agreement”), in accordance with the terms of the Original Agreement, to reflect certain modifications set forth therein; and

 

WHEREAS, the Management Committee, the Company and the Vestar Majority Holders desire to amend and restate the Amended and Restated Securityholders Agreement, in accordance with the terms of the Amended and Restated Securityholders Agreement, to reflect the terms set forth herein.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto, each intending to be legally bound, agree as follows:

 

ARTICLE I

REPRESENTATIONS AND WARRANTIES

OF THE PARTIES

 

1.1                               Representations and Warranties of the Company. The Company hereby represents and warrants to the Securityholders that as of the date of this Agreement:

 

(a)                                 it is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, it has full power and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance by it of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary limited liability company action;

 

 

(b)                                 this Agreement has been duly and validly executed and delivered by the Company and constitutes a legal and binding obligation of the Company, enforceable against the Company in accordance with its terms; and

 

(c)                                  the execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby will not, with or without the giving of notice or lapse of time, or both (i) violate any provision of law, statute, rule or regulation to which the Company is subject, (ii) violate any order, judgment or decree applicable to the Company, or (iii) conflict with, or result in a breach or default under, any term or condition of the Company’s organizational documents or any agreement or instrument to which the Company is a party or by which it is bound.

 

1.2                               Representations and Warranties of the Securityholders. Each Securityholder (as to himself or itself only) represents and warrants to the Company and the other Securityholders that, as of the time such Securityholder becomes a party to this Agreement:

 

(a)                                 this Agreement (or the separate joinder agreement executed by such Securityholder) has been duly and validly executed and delivered by such Securityholder, and this Agreement constitutes a legal and binding obligation of such Securityholder, enforceable against such Securityholder in accordance with its terms; and

 

(b)                                 the execution, delivery and performance by such Securityholder of this Agreement (or any joinder to this Agreement) and the consummation by such Securityholder of the transactions contemplated hereby (and thereby) will not, with or without the giving of notice or lapse of time, or both, (i) violate any provision of law, statute, rule or regulation to which such Securityholder is subject, (ii) violate any order, judgment or decree applicable to such Securityholder, or (iii) conflict with, or result in a breach or default under, any term or condition of any agreement or other instrument to which such Securityholder is a party or by which such Securityholder is bound.

 

ARTICLE II

VOTING AGREEMENTS

 

2.1                               Election of Management Committee Members and Directors. (a) Each Person, other than the Company, that is a party to this Agreement hereby agrees that such Person will vote, or cause to be voted, all voting securities of the Company over which such Person has the power to vote or direct the voting, and will take all other necessary or desirable action within such Person’s control, and the Company will take all necessary and desirable actions within its control, to cause the authorized number of members or directors for each of the respective management committee or board of directors of the Company and PGA Holdings to be established at up to nine members/directors, and to elect or cause to be elected to the respective management committee or board of directors of PGA Holdings and cause to be continued in office, the following individuals:

 

(i)                                     up to eight members/directors designated by the Vestar Majority Holders (the “Vestar Directors”); and

 

(ii)                                  one member/director who shall be the Chief Executive Officer of PGA

 

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Holdings (the “Management Director”).

 

(b)                                 If at any time the Vestar Majority Holders shall notify the other parties to this Agreement of their desire to remove, with or without cause, any individual from a Company or Subsidiary directorship for which such Person or Persons have designation rights pursuant to paragraph (a) above, all such parties so notified will vote, or cause to be voted, or execute a written consent with respect to, all voting securities of the Company and the aforementioned Subsidiaries over which they have the power to vote or direct the voting, and shall take all such other actions promptly as shall be necessary or desirable to cause the removal of such director.

 

(c)                                  If at any time any Management Director or Vestar Director ceases to serve on the management committee or board of directors of the Company or PGA Holdings (whether due to resignation, removal or otherwise), the Vestar Majority Holders shall be entitled to designate a successor member/director to fill the vacancy created thereby. Each Person that is a party hereto agrees to vote, or cause to be voted, or execute a written consent with respect to, all voting securities of the Company and the aforementioned Subsidiaries over which such Person has the power to vote or direct the voting, and shall take all such other actions as shall be necessary or desirable to cause the designated successor to be elected to fill such vacancy.

 

(d)                                 Nothing in this Agreement shall be construed to impair any rights that the unitholders or stockholders of the Company or any Subsidiary of the Company may have to remove any director for cause under applicable law, the LLC Agreement or the organizational documents of the Company or such Subsidiary, as the case may be. No such removal of an individual designated pursuant to this Section 2.1 for cause shall affect any of the Securityholders’ rights to designate a different individual pursuant to this Section 2.1 to fill the position from which such individual was removed.

 

(e)                                  The provisions of this Section 2.1 shall remain in effect following a Public Offering.

 

2.2                               Other Voting Matters. (a) Subject to Section 7.5 of the LLC Agreement, each party to this Agreement hereby agrees that such party will vote, or cause to be voted, all voting securities of the Company and its Subsidiaries over which such party has the power to vote or direct the voting, either in person or by proxy, whether at a securityholders meeting, or by written consent, in the manner in which Vestar directs in connection with the approval of any amendment or amendments to the Company’s organizational documents, the merger, security exchange, combination or consolidation of the Company with any other Person or Persons, the sale, lease or exchange of all or substantially all of the property and assets of the Company and its Subsidiaries on a consolidated basis, and the reorganization, recapitalization, liquidation, dissolution or winding-up of the Company.

 

(b)                                 In order to effectuate the provisions of Sections 2.1 and 2.2 hereof, each holder of Employee Securities hereby grants to the Chief Executive Officer of the Company, or if the Chief Executive Officer of the Company shall be unable to exercise this proxy due to illness or absence or if the position of Chief Executive Officer of the Company shall be vacant, to the Chief Financial Officer of the Company, a proxy to vote at any annual or special meeting of Securityholders, or to take any action by written consent in lieu of such meeting with respect

 

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to, or to otherwise take action in respect of, all of the Securities owned or held of record by such holder in connection with the matters set forth in Sections 2.1 and 2.2 hereof in accordance with the provisions of Sections 2.1 and 2.2 hereof. Each of the proxies granted hereby is irrevocable and is coupled with an interest. To effectuate the provisions of this Article II, the Secretary of each of the Company and each of the aforementioned Subsidiaries of the Company, or if there be no Secretary such other officer or employee of the Company or such Subsidiaries as the management committee or board of directors (or similar governing body) of the Company or such Subsidiaries may appoint to fulfill the duties of the Secretary, shall not record any vote or consent or other action contrary to the terms of this Article II.

 

ARTICLE III

TRANSFERS OF SECURITIES

 

3.1                               Restrictions on Transfer of Employee Securities and Co-Investor Securities. (a) Prior to the earlier of (i) a Sale of the Company and (ii) the fifth anniversary of the Closing Date, no holder of Employee Securities may Transfer any Employee Securities, except in an Exempt Employee Transfer.

 

(b)                                 Without the prior written consent of Vestar, prior to a Sale of the Company, no holder of Co-Investor Securities may Transfer any Co-Investor Securities, except (i) to an Affiliate which is a Controlled Affiliate of the ultimate Controlling Person of such Co-Investor, (ii) pursuant to an exercise of tag-along rights as an Other Holder under Section 3.3, (iii) pursuant to a Sale of the Company under Section 4.1 or other transaction approved under Section 2.2, (iv) pursuant to an exercise of incidental registration rights pursuant to Section 5.2, (v) incidental to the exercise, conversion or exchange of such securities in accordance with their terms, any combination of shares (including any reverse stock split), (vi) as a pledge to financing sources of the Co-Investor, or (vi) to Vestar in connection with any recapitalization, reorganization or reclassification of, or any merger or consolidation involving, the Company; provided, that if Vestar Transfers Securities in a Rule 144 Sale and does not afford a Co-Investor the opportunity to participate in such Transfer on a pro rata basis on the same terms, then such Co-Investor may Transfer in a Rule 144 Sale a number of Securities of the same type and class as the Securities so transferred by Vestar constituting the same percentage of its total holdings of such type and class of Securities as the aforementioned Securities Transferred by Vestar constituted of Vestar’s total holdings.

 

3.2                               Right of First Refusal. (a) If, at any time on or after the fifth anniversary of the Closing Date and prior to the earlier of (i) a Public Offering resulting in a public market for the Securities and (ii) a Sale of the Company, any holder of Employee Securities (for purposes of this Section 3.2(a), a “Selling Employee Holder”) proposes to sell any or all of his Employee Securities (other than a Transfer described in Section 3.3(b)) to a third party (a “Proposed Sale”), such Selling Employee Holder shall first notify the Company in writing, which notice shall (x) state such Selling Employee Holder’s intention to sell Employee Securities to one or more persons, the amount of Employee Securities to be sold, the purchase price therefor, the identity of each prospective transferee, if known, and the other material terms of the Proposed Sale and (y) contain an irrevocable offer to sell such Employee Securities to the Company (in the manner set forth below) at a purchase price equal to the price contained in, and

 

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on the same terms and conditions of, the Proposed Sale (such notice, the “Proposed Sale Notice”).

 

(b)                                 At any time within thirty (30) days after the date of the receipt by the Company of the Proposed Sale Notice, the Company shall have the right and option to purchase, or to arrange for a third party to purchase, all of the Employee Securities covered by the Proposed Sale Notice at the same price and on the same terms and conditions of the Proposed Sale (or, if the Proposed Sale includes any consideration other than cash, then, at the sole option of the Company, at the equivalent all cash price, determined in good faith by the management committee or board directors of the Company, as applicable), by delivering a certified bank check or checks in the appropriate amount (or by wire transfer of immediately available funds, if the Selling Employee Holder provides to the Company wire transfer instructions) (and any such non-cash consideration to be paid) to the Selling Employee Holder at the principal office of the Company or one of its Subsidiaries against delivery of certificates or other instruments representing the Employee Securities so purchased, appropriately endorsed by the Selling Employee Holder. If at the end of the 30-day period, the Company or such third party has not tendered the purchase price for such Employee Securities in the manner set forth above, the Selling Employee Holder may, during the succeeding 30-day period, sell not less than all of the Employee Securities covered by the Proposed Sale to a third party on terms no less favorable to Selling Employee Holder than those contained in the Proposed Sale Notice. Promptly after such sale, the Selling Employee Holder shall notify the Company of the consummation thereof and shall furnish such evidence of the completion and time of completion of such sale and of the terms thereof as may reasonably be requested by the Company. If, at the end of thirty (30) days following the expiration of the 30-day period during which the Company is entitled hereunder to purchase the Employee Securities, the Selling Employee Holder has not completed the sale of such Employee Securities as aforesaid, all of the restrictions on sale, transfer or assignment contained in this Agreement shall again be in effect with respect to such Employee Securities.

 

3.3                               Restrictions on Transfers of Vestar Securities.

 

(a)                                 Tag-Along Rights. Subject to the next paragraph, prior to making any Transfer of Vestar Securities (other than a Transfer described in Section 3.3(b)) any holder of Vestar Securities proposing to make such a Transfer (for purposes of this Section 3.3, a “Selling Vestar Holder”) shall give at least fifteen (15) days’ prior written notice to each holder of Employee Securities and each holder of Co-Investor Securities (for purposes of this Section 3.3, each an “Other Holder”), and the Company, which notice (for purposes of this Section 3.3, the “Sale Notice”) shall identify the type and amount of Vestar Securities to be sold (for purposes of this Section 3.3, the “Offered Securities”), describe the terms and conditions of such proposed Transfer, and identify each prospective transferee. Any of the Other Holders may, within ten (10) days of the receipt of the Sale Notice, give written notice (each, a “Tag-Along Notice”) to the Selling Vestar Holder that such Other Holder wishes to participate in such proposed Transfer upon the terms and conditions set forth in the Sale Notice, which Tag-Along Notice shall specify the Securities such Other Holder desires to include in such proposed Transfer; provided, however, that (1) each Other Holder shall be required, as a condition to being permitted to sell Securities pursuant to this Section 3.3(a) in connection with a Transfer of Offered Securities, to elect to sell Securities of the same type and class, only to the extent such Securities are vested (or may become vested as a result of such Transfer) pursuant to the terms and conditions set forth in

 

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the applicable Management Unit Subscription Agreement, and in the same relative proportions (which proportions shall be determined on a Unit for Unit or, as the case may be, share for share basis and on the basis of aggregate liquidation value with respect to Preferred Units or Preferred Stock) as the Securities which comprise the Offered Securities, and (2) to exercise its tag-along rights hereunder, each Other Holder must agree to make to the transferee the same representations, warranties, covenants, indemnities and agreements as the Selling Vestar Holder agrees to make in connection with the Transfer of the Offered Securities (except that in the case of representations and warranties pertaining specifically to, or covenants made specifically by, the Selling Vestar Holder, the Other Holders shall make comparable representations and warranties pertaining specifically to (and, as applicable, covenants by) themselves), and must agree to bear his or its ratable share (for which they shall be severally liable based on the value of Securities that are Transferred; provided that such liability of any Other Holder shall not exceed the gross proceeds received by such Other Holder in the Transfer) of all liabilities to the transferees arising out of representations, warranties and covenants (other than those representations, warranties, covenants and indemnitees that pertain specifically to a given Securityholder, who shall bear all of the liability related thereto), indemnities or other agreements made in connection with the Transfer; provided, that no Securityholder shall be required to make representations or warranties that pertain specifically to the Company or its Subsidiaries (although each Securityholder must nevertheless bear its ratable share of any indemnification liability for any breach of any such representation or warranty) or, in the case of holders of Co-Investor Securities only, agree to any non-competition covenants or agreements. Each Securityholder will bear (x) its or his own costs of any sale of Securities pursuant to this Section 3.3(a) and (y) its or his pro-rata share (based upon the relative amount of Securities sold) of the costs of any sale of Securities pursuant to this Section 3.3(a) (excluding all amounts paid to any Securityholder or his or its Affiliates as a transaction fee, broker’s fee, finder’s fee, advisory fee, success fee, or other similar fee or charge related to the consummation of such sale) to the extent such costs are incurred for the benefit of all Securityholders and are not otherwise paid by the transferee.

 

If none of the Other Holders gives the Selling Vestar Holder a timely Tag-Along Notice with respect to the Transfer proposed in the Sale Notice, then (notwithstanding the first sentence of this Section 3.3(a)) the Selling Vestar Holder may Transfer such Offered Securities on the terms and conditions set forth, and to or among any of the transferees identified (or Affiliates of transferees identified), in the Sale Notice at any time within ninety (90) days after expiration of the ten-day period for giving Tag-Along Notices with respect to such Transfer. Any such Offered Securities not Transferred by the Selling Vestar Holder during such 90-day period will again be subject to the provisions of this Section 3.3(a) upon subsequent Transfer. If one or more Other Holders give the Selling Vestar Holder a timely Tag-Along Notice, then the Selling Vestar Holder shall use all reasonable efforts to obtain the agreement of the prospective transferee(s) to the participation of the Other Holders in any contemplated Transfer, on the same terms and conditions as are applicable to the Offered Securities, and no Selling Vestar Holder shall transfer any of its units or shares, as the case may be, to any prospective transferee if such prospective transferee(s) declines to allow the participation of the Other Holders, unless the Selling Vestar Holder agrees to purchase the Units that such Other Holders are entitled to sell and have elected to sell in connection with such Transfer. If the prospective transferee(s) is unwilling or unable to acquire all of the Offered Securities and all of the Securities specified in a timely Tag-Along Notice upon such terms, then the Selling Vestar Holder may elect either to

 

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cancel such proposed Transfer or to allocate the maximum number of each class of Securities that the prospective transferees are willing to purchase (the “Allocable Shares”) among the Selling Vestar Holder and the Other Holders giving timely Tag-Along Notices as follows (it being understood that the prospective transferees shall be required to purchase Securities of the same class, only to the extent such Securities are vested (or may become vested as a result of such Transfer) pursuant to the terms and conditions set forth in the applicable Management Unit Subscription Agreement, on the same terms and conditions taking into account the provisions of clause (1) of the first paragraph of this Section 3.3(a), whether or not they are represented by voting trust certificates, and to consummate such Transfer on those terms and conditions):

 

(i)                                     each participating Securityholder (including the Selling Vestar Holder) shall be entitled to sell a number of Units or shares of each class of Securities (taking into account the provisions of clause (1) of the first paragraph of this Section 3.3(a)) (not to exceed, for any Other Holder, the number of Units or shares of such class of Securities identified in such Other Holder’s Tag-Along Notice) equal to the product of (A) the number of Allocable Shares of such class of Securities and (B) a fraction, the numerator of which is such Securityholder’s Ownership Percentage of such class of vested Securities and the denominator of which is the aggregate Ownership Percentage for all participating Securityholders of such class of Securities; provided, however, that if a Securityholder was unable to sell Securities in one or more prior Transfers effected pursuant to this Section 3.3(a) because of clause (2) of the first paragraph of this Section 3.3(a) and, as a result, the aggregate percentage of Securities sold by such Securityholder in Transfers effected pursuant to this Section 3.3(a) is less than the aggregate percentage of Securities sold by Vestar in such Transfers, then additional Allocable Shares shall be allocated to such Securityholder (not to exceed the number of Securities identified in such Securityholder’s Tag-Along Notice) in priority over other Securityholders until, after giving effect to the Transfer proposed to be effected, the aggregate percentage of Securities sold by Vestar and such Securityholder are equal; and

 

(ii)                                  if after allocating the Allocable Shares of any class of Securities to such Securityholders in accordance with clause (i) above, there are any Allocable Shares of such class that remain unallocated, then they shall be allocated (in one or more successive allocations on the basis of the allocation method specified in clause (i) above) among the Selling Vestar Holder and each such Other Holder that has elected in its Tag-Along Notice to sell a greater number of Units or shares of such class of Securities than previously has been allocated to it pursuant to clause (i) and this clause (ii) (all of whom (but no others) shall, for purposes of clause (i) above, be deemed to be the participating Securityholders) until all such Allocable Shares have been allocated in accordance with this clause (ii).

 

(b)                                 Excluded Transfers. The rights and restrictions contained in Section 3.3(a) shall not apply with respect to any of the following Transfers of Securities:

 

(i)                                     any Transfer of Vestar Securities in a Public Sale;

 

(ii)                                  any Transfer of Vestar Securities to and among (A) the members or partners of Vestar and the members, partners, securityholders and employees of such

 

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partners or (B) wholly owned subsidiaries of Vestar or any Person controlled by or under the common control with Vestar and its affiliated funds (but excluding any portfolio company of Vestar or its affiliated funds) or (C) any Person controlled by any Person described above (subject to compliance with Sections 3.4 and 3.5 hereof);

 

(iii)                               any Transfer of Vestar Securities in accordance with Section 4.1;

 

(iv)                              any Transfer of Vestar Securities incidental to the exercise, conversion or exchange of such securities in accordance with their terms or any reclassification or combination of shares (including any reverse stock split);

 

(v)                                 any Transfer of Vestar Securities to employees or directors of, or consultants to, any of the Company and its Subsidiaries; and

 

(vi)                              any Transfer constituting an Exempt Individual Transfer.

 

(c)                                  Excluded Securities. No Securities that have been transferred by the Selling Vestar Holder or an Other Holder in a Transfer pursuant to the provisions of Section 3.3(a) (“Excluded Securities”) shall be subject again to the restrictions set forth in Section 3.3(a), nor shall any Securityholder holding Excluded Securities be entitled to exercise any rights as an Other Holder under Section 3.3(a) with respect to such Excluded Securities, and no Excluded Securities held by a Selling Vestar Holder or any Other Holder shall be counted in determining the respective participation rights of such Holders in a Transfer subject to Section 3.3(a).

 

(d)                                 The provisions of this Section 3.3 shall remain in effect following a Public Offering.

 

3.4                               Transfer to Company Competitor. Notwithstanding the foregoing, unless Vestar agrees in writing to the contrary, no Employee or Co-Investor (or transferee thereof) shall Transfer any of its Securities at any time to a Company Competitor or a Person that has been deemed by the management committee or board of directors of the Company or PGA Holdings to be materially adverse to the Company; provided that following a Public Offering, such restriction shall not apply to sales in an open market transaction as long as the selling Securityholder has no knowledge that the recipient is a Company Competitor or has been deemed by the management committee or board of directors of the Company or PGA Holdings to be materially adverse to the Company.

 

3.5                               Securities Act Compliance. No Securities may be transferred by a Securityholder (other than pursuant to an effective registration statement under the Securities Act) unless such Securityholder first delivers to the Company an opinion of counsel, which opinion and counsel shall be reasonably satisfactory to the Company, to the effect that such Transfer is not required to be registered under the Securities Act.

 

3.6                               Certain Transferees Bound by Agreement. Subject to compliance with the other provisions of this Article III, any Securityholder may Transfer any Securities held by such Securityholder in accordance with applicable law; provided, however, that if the Transfer is not made pursuant to a Public Sale or a transaction the consummation of which will cause the

 

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termination of this Agreement pursuant to Article VI, then the Transferor of such Security shall first deliver to the Company a written agreement of the proposed transferee (excluding a transferee that is a Limited Partner) to become a Securityholder and to be bound by the terms of this Agreement (unless such proposed transferee is already a Securityholder). All Employee Securities will continue to be Employee Securities in the hands of any transferee (other than the Company, Vestar, a Co-Investor or any transferee in a Public Sale or pursuant to a sale under Section 3.3(a)); provided that Employee Securities Transferred pursuant to an exercise of tag-along rights as an Other Holder under Section 3.3(a) shall not be subject to the provisions of Section 3.1 in the hands of the transferee or any subsequent transferee. All Co-Investor Securities will continue to be Co-Investor Securities in the hands of any transferee (other than the Company, Vestar, the Employees or a transferee in a Public Sale or pursuant to a sale under Section 3.3(a)); provided that Co-Investor Securities Transferred pursuant to an exercise of tag-along rights as an Other Holder under Section 3.3(a) shall not be subject to the provisions of Section 3.1 in the hands of the transferee or any subsequent transferee. All Vestar Securities will continue to be Vestar Securities in the hands of any transferee (other than the Company, the Co-Investors, the Employees or a transferee in a Public Sale).

 

3.7                               Transfers in Violation of Agreement. Any Transfer or attempted Transfer of any Securities in violation of any provision of this Agreement shall be void, and the Company shall not record such Transfer on its books or treat any purported transferee of such Securities as the owner of such Securities for any purpose.

 

ARTICLE IV

DRAG-ALONG RIGHTS

ON APPROVED SALE

 

4.1                               Drag-Along Rights. (a) Subject to the next paragraph, if Vestar elects to consummate, or to cause the Company to consummate, a transaction constituting a Sale of the Company, Vestar shall notify the Company and the other Securityholders in writing of that election, the other Securityholders will consent to and raise no objections to the proposed transaction, and the Securityholders and the Company will take all other actions reasonably necessary or desirable to cause the consummation of such transaction on the terms proposed by Vestar (a “Drag Along Sale”). Without limiting the foregoing, (i) if the proposed Drag Along Sale is structured as a sale of assets or a merger or consolidation, or otherwise requires stockholder approval, the Securityholders and the Company will vote or cause to be voted all Securities that they hold or with respect to which such Securityholder has the power to direct the voting and which are entitled to vote on such transaction in favor of such transaction and will waive any appraisal rights which they may have in connection therewith, and (ii) if the proposed Drag Along Sale is structured as or involves a sale or redemption of Securities, the Securityholders will agree to sell their pro-rata share of the Securities being sold in such Drag Along Sale on the terms and conditions approved by Vestar, and the Securityholders will execute any merger, asset purchase, security purchase, recapitalization or other sale agreement approved by Vestar in connection with such Sale of the Company, which may require the Securityholders to make to the transferee the same representations, warranties, covenants, indemnities and agreements as Vestar agrees to make in connection with such Sale of the Company (except that in the case of representations and warranties pertaining specifically to, or covenants made specifically by, Vestar, the other Securityholders shall make comparable representations and

 

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warranties pertaining specifically to (and, as applicable, covenants by) themselves), and must agree to bear his or its ratable share (for which they shall be severally liable based on the value of Securities that are Transferred; provided that such liability of any Securityholder shall not exceed the gross proceeds received by such Securityholder in the transaction) of all liabilities to the transferees arising out of representations, warranties and covenants (other than those representations, warranties, covenants and indemnitees that pertain specifically to a given Securityholder, which shall bear all of the liability related thereto), indemnities or other agreements made in connection with the transaction; provided, that no Securityholder shall be required to make representations or warranties that pertain specifically to the Company or its Subsidiaries (although each Securityholder must nevertheless bear its ratable share of any indemnification liability for any breach of any such representation or warranty) or , in the case of holders of Co-Investor Securities only, agree to any non-competition covenants or agreements.

 

(b)                                 The obligations of the Securityholders with respect to the Drag Along Sale are subject to the satisfaction of the following conditions: (i) upon the consummation of the Drag Along Sale, all of the holders of a particular class or series of Securities (if any consideration is to be received by any of them) shall receive the same form and amount of consideration per share, Unit or amount of Securities, only to the extent such shares, Units or Securities are vested (or may become vested as a result of such Transfer) pursuant to the terms and conditions set forth in the applicable Management Unit Subscription Agreement, or if any holders of a particular class or series of Securities are given an option as to the form and amount of consideration to be received, all holders of such class or series, only to the extent such Securities are vested (or may become vested as a result of such Transfer) pursuant to the terms and conditions set forth in the applicable Management Unit Subscription Agreement, will be given the same option, (ii) if consideration is to be received by holders of Securities, all holders of then currently exercisable rights to acquire a particular class or series of Securities will be given an opportunity to either (A) exercise such rights prior to the consummation of the Drag Along Sale and participate in such sale as holders of such Securities or (B) upon the consummation of the Drag Along Sale, receive in exchange for such rights consideration equal to the amount determined by multiplying (1) the same amount of consideration per share, Unit or amount of Securities received by the holders of such type and class of Securities in connection with the Drag Along Sale less the exercise price per share, Unit or amount of such rights to acquire such Securities by (2) the number of shares, Units or aggregate amount of Securities represented by such rights, and (iii) if consideration is to be received by holders of Securities, the holders of Preferred Units or, as the case may be, Preferred Stock shall receive consideration in respect of all of the issued and outstanding Preferred Units, or, as the case may be, shares of Preferred Stock in such Drag Along Sale having a fair market value equal to the aggregate liquidation value and preferred return of such Preferred Units or, as the case may be, Preferred Stock before any consideration is paid in respect of the Class A Units or, as the case may be, Common Stock in such Drag Along Sale.

 

(c)                                  Each Securityholder will bear its or his pro-rata share (based upon the relative amount of Securities sold) of the reasonable costs of any sale of Securities pursuant to a Drag Along Sale to the extent such costs are incurred for the benefit of all Securityholders and are not otherwise paid by the Company or the acquiring party. Costs incurred by or on behalf of a Securityholder for its or his sole benefit will not be considered costs of the transaction hereunder. In the event that any transaction that Vestar elects to consummate or cause to be

 

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consummated pursuant to this Section 4.1 is not consummated for any reason, the Company will reimburse Vestar for all actual and reasonable expenses paid or incurred by Vestar in connection therewith.

 

(d)                                 Notwithstanding any provision in this Agreement to the contrary, but subject to the terms of the Management Agreement, Vestar Capital Partners shall be entitled to be paid customary and reasonable fees by the Company for any investment banking services provided by it in connection with a Sale of the Company.

 

(e)                                  The provisions of this Section 4.1 shall remain in effect following the first Public Offering.

 

ARTICLE V

REGISTRATION RIGHTS

 

5.1                               Demand Registrations.

 

(a)                                 Requests for Registration. Subject to the provisions of this Article V, the holders of a majority of Vestar Securities that constitute Registrable Securities shall have the right (the “Vestar Demand Right”) to request registration under the Securities Act of all or any portion of the Registrable Securities held by such Securityholders (in each case, referred to herein as the “Requesting Holders”) on Form S-1 or any similar long-form registration (“Long-Form Demand Registration”) or on Form S-3 or any similar short-form registration (“Short-Form Demand Registration”), if such registration is available to the Company, by delivering a written notice to the principal business office of the Company, which notice identifies the Requesting Holders and specifies the number of Registrable Securities to be included in such registration (the “Registration Request”). Subject to the restrictions set forth in Section 5.1(d), the Company will give prompt written notice of such Registration Request (the “Registration Notice”) to all other holders of Registrable Securities and will thereupon use its best efforts to effect the registration (a “Demand Registration”) under the Securities Act on any form available to the Company of:

 

(i)                                     the Registrable Securities requested to be registered by the Requesting Holders;

 

(ii)                                  all other Registrable Securities of the same type and class which the Company has received a written request to register within 30 days after the Registration Notice is given and any securities of the Company proposed to be included in such registration by the Company for its own account; and

 

(iii)                               any securities of the Company proposed to be included in such registration by the holders of registration rights granted other than pursuant to this Agreement (“Other Registration Rights”), provided that the Company has complied with Section 5.1(f) hereof.

 

(b)                                 Preservation of Demand Registration. A registration undertaken by the Company at the request of the Requesting Holder will not count as a Demand Registration:

 

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(i)                                     if, pursuant to the Vestar Demand Right, the Requesting Holders fail to register and sell at least 75% of the Registrable Securities requested to be included in such registration by them; or

 

(ii)                                  if the Requesting Holders withdraw a Registration Request (A) upon the determination of the management committee or, as the case may be, the board of directors of the Company to postpone the filing or effectiveness of a Registration Statement pursuant to Section 5.1(d) or (B) within ten (10) days of receiving notice from the Company of its intent to exercise its Priority Right in connection with such registration.

 

(c)                                  Priority on Demand Registration. If the sole or managing underwriter of a Demand Registration advises the Company in writing that in its opinion the number of Registrable Securities and other securities requested to be included exceeds the number of Registrable Securities and other securities which can be sold in such offering without adversely affecting the distribution of the securities being offered, the price that will be paid in such offering or the marketability thereof, the Company will include in such registration the greatest number of (i) Registrable Securities proposed to be registered by the holders thereof, (ii) securities having Other Registration Rights that are pari passu with the demand rights granted in respect of Registrable Securities hereunder proposed to be registered by the holders thereof and (iii) securities proposed to be registered by the Company for its own account which in the opinion of such underwriters can be sold in such offering without adversely affecting the distribution of the securities being offered, the price that will be paid in such offering or the marketability thereof, ratably among the holders of Registrable Securities, the holders of such Other Registration Rights and the Company, based (A) as between the Company and such holders requesting registration, on the respective amounts of securities requested to be registered, and (B) as among the holders requesting registration, on the respective amounts of Registrable Securities (whether requested to be registered pursuant to Section 5.1 or 5.2) and securities subject to such Other Registration Rights, as the case may be, held by each such holder; provided, however, that the Company shall have the right (the “Priority Right”) to receive priority over all holders of Registrable Securities in any Demand Registration to be effected under this Section 5.1 with respect to securities that the Company proposes to include in such registration for its own account by giving written notice of its election to exercise such Priority Right to the holders of Registrable Securities requesting registration thereof.

 

(d)                                 Restrictions on Demand Registrations. Except as otherwise provided in this Section 5.1(d), the Company shall be obligated to effect (i) up to three Long-Form Demand Registrations and (ii) unlimited Short-Form Demand Registrations to the extent the Company is a registrant entitled to file a registration statement on Form S-3 or any successor or similar short-form registration statement, in each case pursuant to a Vestar Demand Right. Any Demand Registration requested must be for a firmly underwritten public offering to be managed by an underwriter or underwriters of recognized national standing selected by the Requesting Holders and reasonably acceptable to the Company.

 

(e)                                  Stock Splits. In connection with any Demand Registration pursuant to this Section 5.1, each party to this Agreement will vote, or cause to be voted, all securities of the Company over which it has the power to vote or direct the voting to effect any stock split which,

 

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in the opinion of the sole or managing underwriter, is necessary to facilitate the effectiveness of such Demand Registration.

 

(f)                                   Restriction on Other Registration Rights. Except as provided in this Agreement, the Company shall not grant to any Persons the right to request the Company to register any equity securities of the Company, or any securities convertible or exchangeable into or exercisable for such securities, without the prior written consent of the holders of at least a majority of the Vestar Securities.

 

5.2                               Incidental Registration.

 

(a)                                 Requests for Incidental Registration. At any time the Company proposes to register any Securities under the Securities Act (other than registrations on such form(s) solely for registration of Securities in connection with any employee benefit plan or dividend reinvestment plan or a merger or consolidation), including registrations pursuant to Section 5.1(a), whether or not for sale for its own account, the Company will give written notice to each holder of Registrable Securities at least thirty (30) days prior to the initial filing of such Registration Statement with the SEC of its intent to file such registration statement and of such holder’s rights under this Section 5.2. Upon the written request of any holder of Registrable Securities made within twenty (20) days after any such notice is given (which request shall specify the Registrable Securities intended to be disposed of by such holder), the Company will use its best efforts to effect the registration (an “Incidental Registration”) under the Securities Act of all Registrable Securities which the Company, as the case may be, has been so requested to register by the holders thereof; provided, however, that if, at any time after giving written notice of its intention to register any securities and prior to the effective date of the Registration Statement filed in connection with such Incidental Registration (each an “Incidental Registration Statement”), the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to each holder of Registrable Securities and, thereupon, (i) in the case of a determination not to register, the Company shall be relieved of its obligation to register any Registrable Securities under this Section 5.2 in connection with such registration (but not from its obligation to pay the expenses incurred in connection therewith), and (ii) in the case of a determination to delay registration, the Company shall be permitted to delay registering any Registrable Securities under this Section 5.2 during the period that the registration of such other securities is delayed.

 

(b)                                 Priority on Incidental Registration. If the sole or managing underwriter of a registration advises the Company in writing that in its opinion the number of Registrable Securities and other securities requested to be included exceeds the number of Registrable Securities and other securities which can be sold in such offering without adversely affecting the distribution of the securities being offered, the price that will be paid in such offering or the marketability thereof, the Company will include in such registration the Registrable Securities and other securities of the Company in the following order of priority:

 

(i)                                     first, the greatest number of Securities of the Company proposed to be included in such registration by the Company for its own account and by holders of Other Registration Rights that have priority over the incidental registration rights granted

 

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to holders of Registrable Securities under this Agreement, which in the opinion of such underwriters can be so sold;

 

(ii)                                  second, after all Securities that the Company proposes to register for its own account or for the accounts of holders of Other Registration Rights that have priority over the incidental registration rights under this Agreement have been included, the greatest amount of Registrable Securities and securities having Other Registration Rights that are pari passu with Registrable Securities, in each case requested to be registered by the holders thereof which in the opinion of such underwriters can be sold in such offering without adversely affecting the distribution of the securities being offered, the price that will be paid in such offering or the marketability thereof, ratably among the holders of Registrable Securities (whether requested to be registered pursuant to Section 5.1 or 5.2) and securities subject to such Other Registration Rights that are pari passu based on the respective amounts of Registrable Securities and securities subject to such Other Registration Rights held by each such holder; and

 

(iii)                               third, any other Securities.

 

(c)                                  Upon delivering a request under this Section 5.2, a Securityholder (excluding Vestar and its Affiliates, but including any other Permitted Transferee thereof) will, if requested by the Company, execute and deliver a customary custody agreement and power of attorney in form and substance reasonably satisfactory to the Company and one of the Vestar Directors with respect to such Securityholder’s Securities to be registered pursuant to this Section 5.2 (a “Custody Agreement and Power of Attorney”). The Custody Agreement and Power of Attorney will provide, among other things, that the Securityholder will deliver to and deposit in custody with the custodian and attorney-in-fact named therein (who shall be reasonably satisfactory to one of the Vestar Directors) a certificate or certificates representing such Securities (duly endorsed in blank by the registered owner or owners thereof or accompanied by duly executed stock powers in blank) and irrevocably appoint said custodian and attorney-in-fact with full power and authority to act under the Custody Agreement and Power of Attorney on such Securityholder’s behalf with respect to the matters specified therein. Such Securityholder also agrees to execute such other customary agreements as the Company may reasonably request to further evidence the provisions of this Section 5.2.

 

5.3                               Holdback Agreements. (a) Each holder of Registrable Securities agrees that if requested along with all other holders of Registrable Securities in connection with an underwritten offering made pursuant to a Registration Statement for which such Securityholder has registration rights pursuant to this Article V by the managing underwriter or underwriters of such underwritten offering, such holder will not effect any Public Sale or distribution of any of the securities being registered or any securities convertible or exchangeable or exercisable for such securities (except as part of such underwritten offering), during the period beginning ten (10) days prior to, and ending (i) with respect to the initial Public Offering, 180 days after, and (ii) with respect to any underwritten offering subsequent to the initial Public Offering, ninety (90) days after (or, if approved by the Vestar Majority Holders, a longer period up to 180 days after), the closing date of the underwritten offering made pursuant to such Registration Statement (or for such shorter period as to which the managing underwriter or underwriters may agree, provided that such shorter period applies equally to all holders of Registrable Securities).

 

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(b)                                 The Company agrees (i) not to effect any public sale or distribution of its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, during the seven days prior to and during (x) with respect to the initial Public Offering, the 180-day period, and (y) with respect to any underwritten offering subsequent to the initial Public Offering, the 90-day period (or, if approved by the Vestar Majority Holders, a longer period up to 180 days), in each case beginning on the effective date of any underwritten Demand Registration (or for such shorter period as to which the managing underwriter or underwriters may agree), except as part of such Demand Registration or in connection with any employee benefit or similar plan, any dividend reinvestment plan, or a business acquisition or combination and (ii) to use all reasonable efforts to cause each holder of at least 5% (on a fully-diluted basis) of its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, which are or may be purchased from the Company at any time after the date of this Agreement (other than in a registered offering) to agree not to effect any sale or distribution of any such securities during such period (except as part of such underwritten offering, if otherwise permitted).

 

5.4                               Registration Procedures. In connection with the registration of any Registrable Securities or a sale of securities pursuant to an effective shelf registration statement, as applicable, the Company shall effect such sales or registrations to permit the sale of such Registrable Securities in accordance with the intended method or methods of disposition thereof, and pursuant thereto the Company shall as expeditiously as possible:

 

(a)                                 Prepare and file with the SEC a Registration Statement or Registration Statements on a form available for the sale of the Registrable Securities by the holders thereof in accordance with the intended method of distribution thereof, and use its best efforts to cause each such Registration Statement to become effective;

 

(b)                                 Prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement continuously effective for a period ending on the earlier of (i) ninety (90) days from the effective date and (ii) such time as all of such securities have been disposed of in accordance with the intended method of disposition thereof; cause the related prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and comply with the provisions of the Securities Act, the Exchange Act and the rules and regulations of the SEC promulgated thereunder applicable to it with respect to the disposition of all securities covered by such Registration Statement as so amended or in such prospectus as so supplemented.

 

(c)                                  Notify the selling holders of Registrable Securities promptly (but in any event within two business days), and confirm such notice in writing, (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of the issuance by the SEC of any stop order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use of any preliminary prospectus, (iii) if at any time when a prospectus is required by the Securities Act to be delivered in connection with sales of Registrable Securities the Company becomes aware that the representations and warranties of the Company contained in any agreement (including any underwriting agreement)

 

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contemplated by Section 5.4(h) below cease to be true and correct in all material respects, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of a Registration Statement or any of the Registrable Securities for offer or sale in any jurisdiction, or (v) if the Company becomes aware of the happening of any event that makes any statement made in such Registration Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in such Registration Statement, prospectus or documents so that, in the case of such Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(d)                                 Use its best efforts to prevent the issuance of any order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use of a prospectus or suspending the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, and, if any such order is issued, to obtain the withdrawal of any such order at the earliest possible moment.

 

(e)                                  Deliver to each selling holder of Registrable Securities and the underwriters, if any, without charge, as many copies of the prospectus or prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request; and the Company hereby consents to the use of such prospectus and each amendment or supplement thereto by each of the selling holders of Registrable Securities and the underwriters or agents, if any, in connection with the offering and sale of the Registrable Securities covered by such prospectus and any amendment or supplement thereto.

 

(f)                                   Prior to any public offering of Registrable Securities, to use its best efforts to register or qualify, and cooperate with the selling holders of Registrable Securities, the underwriters, if any, the sales agents and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or “blue sky” laws of such jurisdictions within the United States as any selling holder or the managing underwriters reasonably request in writing; provided, however, that the Company will not be required to (i) qualify generally to do business in any jurisdiction where it is not then so qualified or (ii) take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject.

 

(g)                                  Upon the occurrence of any event contemplated by Section 5.4(c)(v) above, as promptly as practicable prepare a supplement or post-effective amendment to the Registration Statement or a supplement to the related prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

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(h)                                 Enter into an underwriting agreement in form, scope and substance as is customary in underwritten offerings and take all such other actions as are reasonably requested by the managing or sole underwriter in order to expedite or facilitate the registration or the disposition of such Registrable Securities, and in such connection, (i) make such representations and warranties to the underwriters, with respect to the business of the Company and its subsidiaries, and the Registration Statement, prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings, and confirm the same if and when requested, (ii) obtain opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters), addressed to the underwriters covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by underwriters, (iii) obtain “cold comfort” letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any Subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement), addressed to each of the underwriters, such letters to be in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with underwritten offerings, and (iv) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures no less favorable to the holders of Registrable Securities than those set forth in Section 5.7 hereof (or such other provisions and procedures acceptable to holders of a majority of the Registrable Securities covered by such Registration Statement and the managing underwriters or agents) with respect to all parties to be indemnified pursuant to said Section. The above shall be done at each closing under such underwriting agreement, or as and to the extent required thereunder.

 

(i)                                     Comply with all applicable rules and regulations of the SEC and make generally available to its Securityholders earnings statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than forty-five (45) days after the end of any 12-month period (or ninety (90) days after the end of any 12-month period if such period is a fiscal year) (i) commencing at the end of any fiscal quarter in which Registrable Securities are sold to underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold to underwriters in such an offering, commencing on the first day of the first fiscal quarter of the Company after the effectiveness of a Registration Statement, which statements shall cover said 12-month periods.

 

(j)                                    (i) Use its best efforts to cause all such Registrable Securities covered by such registration statement to be listed on the principal securities exchange on which Securities are then listed (if any), if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) if no Securities are then so listed, use its best efforts to, either (as the Company may elect) (x) cause all such Registrable Securities to be listed on a national securities exchange or (y) secure designation of all such Registrable Securities as a NASDAQ “national market system security” within the meaning of Rule 11Aa2-1 or, failing that, to secure NASDAQ authorization for such shares and, without limiting the generality of the foregoing, to arrange for at least two market makers to register as such with respect to such shares with the National Association of Securities Dealers, Inc. (“NASD”).

 

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The Company may require each holder of Registrable Securities as to which any registration is being effected to furnish to the Company such information regarding such holder and the distribution of such Registrable Securities as the Company may, from time to time, reasonably request in writing and the Company shall be entitled to rely on such information provided; provided that such information shall be used only in connection with such registration. The Company may exclude from such registration the Registrable Securities of any holder who unreasonably fails to furnish such information promptly after receiving such request. Each holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 5.4(c)(ii), 5.4(c)(iv) or 5.4(c)(v), such holder will forthwith discontinue disposition of such Registrable Securities covered by such Registration Statement or prospectus until such holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 5.4, or until it is advised in writing by the Company that the use of the applicable prospectus may be resumed, and has received copies of any amendments or supplements thereto.

 

5.5                               Shelf Registration. Subject to the provisions set forth in Section 5.4, if the holders of a majority of Vestar Securities that constitute Registrable Securities so specify, in the Registration Notice that they desire the Company to undertake a shelf registration of some or all of such Registrable Securities, then the Company shall file with the SEC a registration statement under the Securities Act on the appropriate form pursuant to Rule 415 under the Securities Act (the “Required Registration”). The Company shall use its best efforts to cause the Required Registration to be declared effective under the Securities Act as soon as practical after filing, and once effective, the Company shall cause such Required Registration to remain effective for a period ending on the earliest of (i) the second anniversary of the effectiveness thereof, (ii) the date on which all Registrable Securities have been sold pursuant to the Required Registration and (iii) the date as of which there are no longer any Registrable Securities in existence.

 

5.6                               Registration Expenses. Subject to Section 5.1(b)(i), all fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the Company, whether or not any Registration Statement is filed or becomes effective, including, without limitation, (i) all registration and filing fees (including, without limitation, (A) fees with respect to filings required to be made with the NASD in connection with an underwritten offering and (B) fees and expenses of compliance with state securities or “blue sky” laws), (ii) reasonable messenger, telephone and delivery expenses, (iii) fees and disbursements of counsel for the Company, (iv) fees and disbursements of all independent certified public accountants referred to in Section 5.4(h), (v) underwriters’ fees and expenses (excluding discounts, commissions, or fees of underwriters, selling brokers, dealer managers or similar securities industry professionals relating to the distribution of the Registrable Securities), (vi) Securities Act liability insurance, if the Company so desires such insurance, (vii) internal expenses of the Company, (viii) the expense of any annual audit, (ix) the fees and expenses incurred in connection with the listing of the securities to be registered on any securities exchange, and (x) the fees and expenses of any Person, including special experts, retained by the Company. In connection with any Demand Registration or Incidental Registration hereunder, the Company shall reimburse the holders of the Registrable Securities being registered in such registration for the reasonable fees and disbursements of not more than one counsel (together with appropriate local counsel) chosen by the Requesting Holders, if pursuant to a Demand Registration, or the Company, in all other cases, and other reasonable out-of-pocket expenses of

 

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the holders of Registrable Securities incurred in connection with the registration of the Registrable Securities.

 

5.7                               Indemnification; Contribution.

 

(a)                                 Indemnification by the Company. The Company shall, without limitation as to time, indemnify and hold harmless, to the full extent permitted by law, each holder of Registrable Securities, the officers, directors, agents and employees of each of them, each Person who controls each such holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), the officers, directors, agents and employees of each such controlling person and any financial or investment adviser (each, an “Indemnified Party”), to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities, actions or proceedings (whether commenced or threatened) reasonable costs (including, without limitation, reasonable costs of preparation and reasonable attorneys’ fees) and reasonable expenses (including reasonable expenses of investigation) (collectively, “Losses”), as incurred, arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, prospectus or form of prospectus or in any amendment or supplements thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, except to the extent that the same arise out of or are based upon information furnished in writing to the Company by such Indemnified Party or the related holder of Registrable Securities expressly for use therein or (ii) any violation by the Company of any federal, state or common law rule or regulation applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration; provided, however, that the Company shall not be liable to any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls such underwriters within the meaning of the Securities Act to the extent that any such Losses arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (x) such Person failed to send or deliver a copy of the prospectus with or prior to the delivery of written confirmation of the sale by such Person to the Person asserting the claim from which such Losses arise, (y) the prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, and (z) the Company has complied with its obligations under Section 5.4(c). Each indemnity and reimbursement of costs and expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified party.

 

(b)                                 Indemnification by Holders. In connection with any Registration Statement in which a holder of Registrable Securities is participating, such holder, or an authorized officer of such holder, shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any Registration Statement or prospectus and agrees, severally and not jointly, to indemnify, to the full extent permitted by law, the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling persons, from and against all Losses arising out of or based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, prospectus, or form of prospectus, or arising out of or based upon any omission or alleged omission of a material fact required to be

 

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stated therein or necessary to make the statements therein not misleading, to the extent, but only to the extent, that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information so furnished in writing by such holder to the Company expressly for use in such Registration Statement or prospectus and that such statement or omission was relied upon by the Company in preparation of such Registration Statement, prospectus or form of prospectus; provided, however, that such holder of Registrable Securities shall not be liable in any such case to the extent that the holder has furnished in writing to the Company within a reasonable period of time prior to the filing of any such Registration Statement or prospectus or amendment or supplement thereto information expressly for use in such Registration Statement or prospectus or any amendment or supplement thereto which corrected or made not misleading, information previously furnished to the Company, and the Company failed to include such information therein. In no event shall the liability of any selling holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds (net of payment of all expenses) received by such holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified party.

 

(c)                                  Conduct of Indemnification Proceedings. If any Person shall be entitled to indemnity hereunder (an “indemnified party”), such indemnified party shall give prompt notice to the party or parties from which such indemnity is sought (the “indemnifying parties”) of the commencement of any action, suit, proceeding or investigation or written threat thereof (a “Proceeding”) with respect to which such indemnified party seeks indemnification or contribution pursuant hereto; provided, however, that the failure to so notify the indemnifying parties shall not relieve the indemnifying parties from any obligation or liability except to the extent that the indemnifying parties have been prejudiced by such failure. The indemnifying parties shall have the right, exercisable by giving written notice to an indemnified party promptly after the receipt of written notice from such indemnified party of such Proceeding, to assume, at the indemnifying parties’ expense, the defense of any such Proceeding, with counsel reasonably satisfactory to such indemnified party; provided, however, that an indemnified party or parties (if more than one such indemnified party is named in any Proceeding) shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless: (i) the indemnifying parties agree to pay such fees and expenses; (ii) the indemnifying parties fail promptly to assume the defense of such Proceeding or fail to employ counsel reasonably satisfactory to such indemnified party or parties; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such indemnified party or parties and the indemnifying parties or an affiliate of the indemnifying parties or such indemnified parties, and there may be one or more defenses available to such indemnified party or parties that are different from or additional to those available to the indemnifying parties, in which case, if such indemnified party or parties notifies the indemnifying parties in writing that it elects to employ separate counsel at the expense of the indemnifying parties, the indemnifying parties shall not have the right to assume the defense thereof and such counsel shall be at the expense of the indemnifying parties, it being understood, however, that, unless there exists a conflict among indemnified parties, the indemnifying parties shall not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses

 

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of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such indemnified party or parties. Whether or not such defense is assumed by the indemnifying parties, such indemnifying parties or indemnified party or parties will not be subject to any liability for any settlement made without its or their consent (but such consent will not be unreasonably withheld). The indemnifying parties shall not consent to entry of any judgment or enter into any settlement which (x) provides for other than monetary damages without the consent of the indemnified party or parties (which consent shall not be unreasonably withheld or delayed) or (y) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party or parties of a release, in form and substance satisfactory to the indemnified party or parties, from all liability in respect of such Proceeding for which such indemnified party would be entitled to indemnification hereunder.

 

(d)                                 Contribution. If the indemnification provided for in this Section 5.7 is unavailable to an indemnified party or is insufficient to hold such indemnified party harmless for any Losses in respect of which this Section 5.7 would otherwise apply by its terms, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall have a joint and several obligation to contribute to the amount paid or payable by such indemnified party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such indemnifying party, on the one hand, and indemnified party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been taken by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include any legal or other fees or expenses incurred by such party in connection with any Proceeding, to the extent such party would have been indemnified for such expenses if the indemnification provided for in Section 5.7(a) or 5.7(b) was available to such party. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5.7(d) were determined by pro-rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 5.7(d). Notwithstanding the provisions of this Section 5.7(d), an indemnifying party that is a selling holder of Registrable Securities shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such indemnifying party exceeds the amount of any damages that such indemnifying party has otherwise been required to pay by reasons of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

5.8                               Rules 144 and 144A. At all times after the Company effects its first Public Offering, the Company shall file in a timely manner the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations promulgated thereunder (or, if the Company is not required to file such reports, it will, upon the request of any holder of Registrable Securities, make publicly available other information so long as such

 

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information is necessary to permit sales under Rule 144A), and will take such further action as any holder of Registrable Securities may reasonably request, all to the extent required from time to time to enable such holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 and Rule 144A. Upon the request of any holder of Registrable Securities, the Company shall deliver to such holder a written statement as to whether it has complied with such requirements.

 

5.9                               Underwritten Registrations. No holder of Registrable Securities may participate in any underwritten registration hereunder unless such holder (a) agrees to sell such holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements.

 

5.10                        No Inconsistent Agreements. The Company has not and will not, enter into any agreement with respect to the Company’s securities that is inconsistent with the rights granted to the holders of Registrable Securities in this Article V or otherwise conflicts with the provisions hereof.

 

ARTICLE VI

VENTURE CAPITAL OPERATING COMPANY

 

6.1                               VCOC Securityholders. (a) Each of VCP, any Co-Investor or any Affiliates thereof that directly or indirectly has an interest in the Company, in each case that is intended to qualify as a “venture capital operating company” as defined in the Plan Asset Regulations (each, a “VCOC Securityholder”), for so long as the VCOC Securityholder, directly or through one or more conduit Subsidiaries, continues to hold any Units (or other securities of the Company into which such Units may be converted or for which such Units may be exchanged), without limitation or prejudice of any the rights provided to the Securityholders hereunder, the Company shall, with respect to each such VCOC Securityholder:

 

(i)                                     Provide each VCOC Securityholder or its designated representative with:

 

(A)                               the right to visit and inspect any of the offices and properties of the Company and its Subsidiaries and inspect and copy the books and records of the Company and its Subsidiaries, as the VCOC Securityholder shall reasonably request;

 

(B)                               as soon as available and in any event within forty-five (45) days after the end of each of the first three quarters of each fiscal year of the Company, consolidated balance sheets of the Company and its Subsidiaries as of the end of such period, and consolidated statements of income and cash flows of the Company and its Subsidiaries for the period then ended prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, and subject to the absence of footnotes and to year-end adjustments;

 

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(C)                               as soon as available and in any event within ninety (90) days after the end of each fiscal year of the Company, a consolidated balance sheet of the Company and its Subsidiaries as of the end of such year, and consolidated statements of income and cash flows of the Company and its Subsidiaries for the year then ended prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, together with an auditor’s report thereon of a firm of established national reputation; and

 

(D)                               to the extent the Company or any of its Subsidiaries is required by law or pursuant to the terms of any outstanding indebtedness of the Company or such Subsidiary to prepare such reports, any annual reports, quarterly reports and other periodic reports pursuant to Section 13 or 15(d) of the Exchange Act, actually prepared by the Company or such Subsidiary as soon as available.

 

(ii)                                  Make appropriate directors and officers of the Company, and its subsidiaries, available periodically and at such times as reasonably requested by the VCOC Securityholder for consultation with the VCOC Securityholder or its designated representative with respect to matters relating to the business and affairs of the Company and its Subsidiaries, including significant changes in management personnel and compensation of employees, introduction of new products or new lines of business, important acquisitions or dispositions of plants and equipment, significant research and development programs, the purchasing or selling of important trademarks, licenses or concessions or the proposed commencement or compromise of significant litigation;

 

(iii)                               To the extent consistent with applicable law (and with respect to events which require public disclosure, only following the Company’s public disclosure thereof through applicable securities law filings or otherwise), inform the VCOC Securityholder or its designated representative in advance with respect to any significant corporate actions, including extraordinary dividends, mergers, acquisitions or dispositions of assets, issuances of significant amounts of debt or equity and material amendments to the organizational documents of the Company, and to provide the VCOC Securityholder or its designated representative with the right to consult with the Company with respect to such actions; and

 

(iv)                              Provide the VCOC Securityholder or its designated representative with such other rights of consultation which the VCOC Securityholder’s counsel may determine to be reasonably necessary under applicable legal authorities promulgated after the date hereof to qualify its investment in the Company as a “venture capital investment” for purposes of the Plan Assets Regulation.

 

(b)                                 The Company agrees to consider, in good faith, the recommendations of each VCOC Securityholder or its designated representative in connection with the matters on which it is consulted as described above, recognizing that the ultimate discretion with respect to all such matters shall be retained by the Company.

 

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(c)                                  In the event that the Company ceases to qualify as an “operating company” (within the meaning of the first sentence of 29 C.F.R. Section 2510.3-101(c)(1) of the Plan Asset Regulations), then the Company and each Securityholder will cooperate in good faith to take all reasonable action necessary to provide that the investment (or at least 51% of the investment valued at cost) of each VCOC Securityholder shall continue to qualify as a “venture capital investment” (as defined in the Plan Asset Regulations).

 

ARTICLE VII

AMENDMENT AND TERMINATION

 

7.1                               Amendment and Waiver. Except as otherwise provided herein, no modification, amendment or waiver of any provision of this Agreement shall be effective against the Company or the Securityholders unless such modification, amendment or waiver is approved in writing by each of the Company and the Vestar Majority Holders; provided that no such modification, amendment or waiver may change the rights or obligations hereunder of (a) holders of Employee Securities in a manner that is material and disproportionately adverse to such holders generally vis-á-vis other holders of Securities unless approved in writing by the Employee Majority Holders or (b) holders of Co-Investor Securities in a manner that is material and disproportionately adverse to such holders generally vis-á-vis other holders of Securities unless approved in writing by the Co-Investor Majority Holders; and provided further, that this Agreement may not be amended so as to discriminate among holders of the same class or series of Securities. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms.

 

7.2                               Termination of Agreement. This Agreement will terminate in respect of all Securityholders (a) with the written consent of each of the Company, the Vestar Majority Holders, the Co-Investor Majority Holders and the Employee Majority Holders, (b) upon the dissolution, liquidation or winding-up of the Company or (c) upon the consummation of a Sale of the Company (except with respect to the rights to Incidental Registration under Article V, which shall survive). The termination of this Agreement will not affect any indemnification or contribution obligations under Section 5.7, which shall survive such termination.

 

7.3                               Termination as to a Party. Any Person who ceases to hold any Securities shall cease to be a Securityholder and shall have no further rights or obligations under this Agreement (except with respect to any indemnification and contribution obligations under Section 5.7, which shall survive).

 

7.4                               Issuer of Registrable Securities. Prior to distributing to the holders of Units all or substantially all of the securities of any direct or indirect Subsidiary of the Company, the Company shall cause such Subsidiary to execute and deliver a Stockholders Agreement complying with this Section 7.4 (the “Stockholders Agreement”), and each Person, other than the Company, that is a party to this Agreement shall execute and deliver the Stockholders Agreement. The Stockholders Agreement shall be substantially identical to this Agreement, including the provisions that are applicable to an issuer of Registrable Securities hereunder, except that it shall be revised so that such issuer replaces the Company hereunder with respect to provisions that are applicable to the Company hereunder, and such other revisions shall be made

 

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as are necessary or desirable to reflect the fact that the issuer is a corporation rather than a limited liability company. In addition, if the issuer has consummated its initial Public Offering, then any provision of this Agreement that, pursuant to the terms of this Agreement, terminates upon a initial Public Offering shall be excluded from the Stockholders Agreement, and, in any event, this Section 7.4 shall not be included in the Stockholders Agreement.

 

ARTICLE VIII

PARTICIPATION RIGHTS

 

8.1                               Participation Right. The Company hereby grants to each Employee and Co-Investor who owns Preferred Units or Class A Units the right to irrevocably subscribe for (the “Participation Right”) a pro rata portion of New Units (as defined in Section 8.2 hereof) which the Company, from time to time, proposes to sell or issue in one transaction or a series of related transactions to Vestar or any Affiliate thereof (but not including any employee, director or consultant of the Company or any of its subsidiaries solely in his capacity as such) (collectively, “Vestar Holders”). The pro rata portion of an Employee or Co-Investor for purposes of this Section 8.1 is the ratio of the number of outstanding Preferred Units and Class A Units (to the extent such units are vested (or may become vested as a result of such Transfer) pursuant to the terms and conditions set forth in the applicable Management Unit Subscription Agreement) such Employee or Co-Investor then owns to the total number of Preferred Units and Class A Units then outstanding.

 

8.2                               Definition of New Units. “New Units” shall mean any (i) units of the Company, or (ii) any warrants, rights, calls, options or other securities exchangeable for or exercisable or convertible into units or any other security entitled to participate in the Company’s profits, in each case to be issued by the Company to a Vestar Holder.

 

8.3                               Notice from the Company. If the Company proposes to undertake an issuance of New Units to a Vestar Holder, the Company shall give each Employee and Co-Investor who has a Participation Right under this Article VIII written notice of such proposal (the “Sale Participation Notice”), describing the type of New Units and the price and the terms and conditions upon which the Company proposes to issue the same and setting forth such Securityholder’s pro rata portion of the New Units. For a period of ten (10) business days following the receipt of such notice from the Company the Company shall be deemed to have irrevocably offered to sell to each Employee and Co-Investor such number of New Units as set forth above for the price and upon the terms specified in the notice. Each Employee and Co-Investor may irrevocably exercise the Participation Rights hereunder by giving written notice to the Company and stating therein the quantity of New Units set forth in the Sale Participation Notice to be purchased.

 

8.4                               Sale by the Company. If any Employee or Co-Investor who has a Participation Right under this Article VIII fails to exercise in full such Securityholder’s Participation Right within said ten (10) business day period, the Company shall have one hundred eighty (180) days thereafter to sell the New Units with respect to which the Participation Right was not exercised, at a price and upon terms no more favorable to the purchasers thereof than specified in the Company’s notice given pursuant to Section 8.3.

 

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8.5                               Closing. The closing for any such issuance or sale to an Employee or Co-Investor shall take place as proposed by the Company with respect to the New Units to be issued or sold no earlier than ten (10) days after the Company receives notice of the exercise of the Participation Right but no later than sixty (60) days after the issuance of the New Units with respect to which such Participation Right was exercised, at which closing the Company shall deliver certificates for the New Units (if the Units are evidenced by certificates) in the respective names of the purchasing Employee or Co-Investor against receipt of the consideration therefor. If the consideration for the New Units is other than cash, the Employee or Co-Investor shall be entitled to deliver cash in lieu thereof in an amount equal to the fair market value of such non-cash consideration.

 

8.6                               Purchases by Vestar Holder(s). Nothing in this Article VIII shall be deemed to prevent any Vestar Holder from purchasing any New Units without the Company first complying with the provisions of this Article VIII; provided that in connection with such purchase (a) the Company gives prompt notice of such purchase to each Person with a Participation Right, which notice shall describe in reasonable detail the New Units being purchased by the Vestar Holder(s) and the purchase price thereof, and (b) the Vestar Holder(s) and the Company take all steps reasonably necessary to enable each Person with a Participation Right as of such date to effectively exercise his Participation Right with respect to the purchase of a pro rata share of the New Units issued to the Vestar Holder(s) after such purchase by the Vestar Holder(s) on the terms specified in this Article VIII.

 

8.7                               Termination of this Article Upon a Public Offering. The provisions of this Article VIII shall terminate immediately prior to the consummation of a Public Offering.

 

ARTICLE IX

MISCELLANEOUS

 

9.1                               Certain Defined Terms. As used in this Agreement, the following terms shall have the meanings set forth or as referenced below:

 

“Affiliate” of any particular Person means any other Person Controlling, Controlled by or under common Control with such particular Person or, in the case of a natural Person, any other member of such Person’s Family Group.

 

“Agreement” has the meaning set forth in the preface.

 

“Allocable Shares” has the meaning set forth in Section 3.3(a).

 

“Amended and Restated Securityholders Agreement” has the meaning given such terms in the recitals hereto.

 

“Call Option” has the meaning given to such term in the Management Unit Subscription Agreements.

 

“Class A Units” has the meaning set forth in the LLC Agreement.

 

“Class B Units” has the meaning set forth in the LLC Agreement.

 

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“Class C Units” has the meaning set forth in the LLC Agreement.

 

“Closing Date” means the date of the closing of the purchase or grant, as applicable, of the applicable Units by a Securityholder.

 

“Co-Investor Majority Holders” means the Person or Persons holding a majority of the Preferred Units or Preferred Stock and a majority of the Class A Units or Common Stock constituting Co-Investor Securities.

 

“Co-Investor Securities” means (a) Units acquired by the Co-Investors on or after the date of this Agreement under the Unit Purchase Agreements, (b) any Securities, Units, Common Stock or Common Stock Equivalents hereafter acquired by any holder of Co-Investor Securities, and (c) any securities issued with respect to the securities referred to in clauses (a) or (b) above by way of a payment-in-kind, stock dividend or stock split or in connection with a combination of shares, exchange, conversion, recapitalization, merger, consolidation or other reorganization, or otherwise.

 

“Co-Investors” has the meaning give to such term in the preface.

 

“Common Units” has the meaning set forth in the LLC Agreement.

 

“Common Stock” means, collectively, (i) following the conversion of the Company into a corporation or the Company being merged into, or otherwise succeeded by, a corporation, the common stock of the Company, (ii) following the distribution to Securityholders of common stock of a then corporate subsidiary of the Company, the common stock of such subsidiary, and (iii) any other class or series of authorized capital stock of the Company or any such subsidiary which is not limited to a fixed sum or percentage of par or stated value in respect to the rights of the holders thereof to participate in dividends or in the distribution of assets upon any liquidation, dissolution or winding up of the Company or any such subsidiary.

 

“Common Stock Equivalents” means (without duplication with any Class A Units, Common Stock or other Common Stock Equivalents) rights, warrants, options, convertible securities, or exchangeable securities or indebtedness, or other rights, exercisable for or convertible or exchangeable into, directly or indirectly, Class A Units, Common Stock or securities exercisable for or convertible or exchangeable into Class A Units or Common Stock, as the case may be, whether at the time of issuance or upon the passage of time or the occurrence of some future event.

 

“Company” has the meaning set forth in the preface.

 

“Company Competitor” means any Person engaged, directly or indirectly, wholly or in part, in the Restricted Area or otherwise directly or indirectly competes with the business of the Company and its Subsidiaries.

 

“Control” (including, with correlative meaning, all conjugations thereof) means with respect to any Person, the ability of another Person to control or direct the actions or policies of such first Person, whether by ownership of voting securities, by contract or otherwise.

 

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“Custody Agreement and Power of Attorney” has the meaning given to such term in Section 5.2(c).

 

“Demand Registration” has the meaning given to such term in Section 5.1(a).

 

“Drag Along Sale” has the meaning given to such term in Section 4.1(a).

 

“Employee” has the meaning given such term in the preface.

 

“Employee Majority Holders” means the Person or Persons having beneficial ownership of a majority of the Class A Units or, as the case may be, Common Stock constituting Employee Securities.

 

“Employee Preferred Units” means any Preferred Units held by any Employee or such Employee’s permitted assigns.

 

“Employee Securities” means (a) Units acquired by the Employees on or after the date of this Agreement under the Management Unit Subscription Agreements, (b) any Securities, Units, Common Stock or Common Stock Equivalents hereafter acquired by any holder of Employee Securities, and (c) any securities issued with respect to the securities referred to in clauses (a) or (b) above by way of a payment-in-kind, stock dividend or stock split or in connection with a combination of shares, exchange, conversion, recapitalization, merger, consolidation or other reorganization, or otherwise.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Excluded Securities” has the meaning set forth in Section 3.3(c).

 

“Exempt Employee Transfer” means a Transfer of Employee Securities (a) pursuant to an exercise of tag-along rights as an Other Holder under Section 3.3, (b) pursuant to a Sale of the Company under Section 4.1 or other transaction approved under Section 2.2, (c) to the Company pursuant to a Call Option under a Management Unit Subscription Agreement, (d) pursuant to an exercise of incidental registration rights pursuant to Section 5.2, (e) upon the death of the holder pursuant to the applicable laws of descent and distribution, (f) solely to or among such Employee’s Family Group, (g) incidental to the exercise, conversion or exchange of such securities in accordance with their terms, any combination of shares (including any reverse stock split), or (h) to Vestar in connection with any recapitalization, reorganization or reclassification of, or any merger or consolidation involving, the Company.

 

“Exempt Individual Transfer” means a Transfer of Securities held by a natural person (a) upon the death of the holder pursuant to the applicable laws of descent and distribution, (b) solely to or among such Person’s Family Group, or (c) to the Company incidental to the exercise, conversion or exchange of such securities in accordance with their terms, any combination of shares (including any reverse stock split) or any recapitalization, reorganization or reclassification of, or any merger or consolidation involving, the Company.

 

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“Family Group” means, with respect to any individual, such individual’s spouse and descendants (whether natural or adopted) and any trust, partnership, limited liability company or similar vehicle established and maintained solely for the benefit of (or the sole members or partners of which are) such individual, such individual’s spouse and/or such individual’s descendants.

 

“Fully-Diluted Units” means, as of any date of determination, the number of shares of Common Stock outstanding plus (without duplication) all Class A Units or, as the case may be, shares of Common Stock issuable, whether at such time or upon the passage of time or the occurrence of future events, upon the exercise, conversion or exchange of all then-outstanding Common Stock Equivalents.

 

“Incidental Registration” has the meaning given such term in Section 5.2(a).

 

“Indemnified Party” has the meaning given such term in Section 5.7(a).

 

“Indemnifying Parties” has the meaning given to such term in Section 5.7(c).

 

“Limited Partner” means a limited partner of Vestar (excluding any such limited partner who is an employee either of the general partner of Vestar or an Affiliate of the general partner of Vestar).

 

“LLC Agreement” means the Third Amended and Restated Limited Liability Company Agreement, dated as of the date hereof, by and among the Company and its members, as it may be amended from time to time.

 

“Long-Form Demand Registration” has the meaning given to such term in Section 5.1(a).

 

“Losses” has the meaning given such term in Section 5.7(a).

 

“Management Agreement” means the management agreement in effect from time to time among the Company, the Subsidiaries of the Company named therein and Vestar Capital Partners.

 

“Management Director” has the meaning given such term in Section 2.1(a)(ii).

 

“Management Unit Subscription Agreements” mean the unit subscription or unit grant agreements, as applicable, between the Company and the respective Employees, as such agreements may be amended from time to time.

 

“Member” has the meaning given such term in the LLC Agreement.

 

“NASD” has the meaning given such term in Section 5.4(j).

 

“NASDAQ” means the National Association of Securities Dealers Automated Quotation System.

 

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“New Units” has the meaning given such term in Section 8.2.

 

“Notice” has the meaning given such term in Section 5.1(a).

 

“Offered Securities” has the meaning given such term in Section 3.3(a).

 

“Original Agreement” has the meaning given such terms in the recitals hereto.

 

“Other Holder” has the meaning given such term in Section 3.3(a).

 

“Other Registration Rights” has the meaning given such term in Section 5.1(a)(iii).

 

“Ownership Percentage” means, for each Securityholder and with respect to a type and class of Security, the percentage obtained by dividing the number of Units or shares of such Security held by such Securityholder (to the extent such Units or shares of such Security are vested (or may become vested as a result of such Transfer) pursuant to the terms and conditions set forth in the applicable Management Unit Subscription Agreement) by the total number of Units or shares of such Security (other than Excluded Securities) outstanding (to the extent such Units or shares of such Security are vested (or may become vested as a result of such Transfer) pursuant to the terms and conditions set forth in the applicable Management Unit Subscription Agreement).

 

“Participation Right” has the meaning given to such term in Section 8.1.

 

“Person” means an individual, a partnership, a joint venture, a corporation, an association, a joint stock company, a limited liability company, a trust, an unincorporated organization or a government or any department or agency or political subdivision thereof.

 

“PGA Holdings” means PGA Holdings, Inc., a Delaware corporation, and wholly owned Subsidiary of the Company.

 

“Plan Asset Regulations” means the regulations issued by the U.S. Department of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29 of the Code of Federal Regulations, or any successor regulations as the same may be amended from time to time.

 

“Preferred Stock” means collectively, following the conversion of the Company into a corporation or the company being merged into, or otherwise succeeded by, a corporation, the Participating Preferred Stock and any other class or series of authorized capital stock of the Company that is limited to a fixed sum or percentage of par value or stated value in respect of the rights of the holders thereof to participate in dividends and in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding up of the Company.

 

“Preferred Units” has the meaning set forth in the LLC Agreement.

 

“Priority Right” has the meaning given such term in Section 5.1(c)(i).

 

“Proceeding” has the meaning given such term in Section 5.7(c).

 

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“Proposed Sale” has the meaning given such term in Section 3.2(a).

 

“Proposed Sale Notice” has the meaning given such term in Section 3.2(a).

 

“Public Offering” means a sale of Common Stock to the public in an offering pursuant to an effective registration statement filed with the SEC pursuant to the Securities Act, as then in effect, provided that a Public Offering shall not include an offering made in connection with a business acquisition or combination or an employee benefit plan.

 

“Public Sale” means a sale of Securities pursuant to a Public Offering or a Rule 144 Sale.

 

“Registrable Securities” means any Vestar Securities and Securities that are of the same type and class as the Vestar Securities, only to the extent such Securities are vested (or may become vested as a result of such Transfer) pursuant to the terms and conditions set forth in the applicable Management Unit Subscription Agreement. As to any particular Registrable Securities, such securities will cease to be Registrable Securities when they have been (a) Transferred in a Public Sale or (b) otherwise Transferred and new certificates not bearing the legend set forth in Section 9.2(b) hereof shall have been delivered by the Company and subsequent disposition of such securities shall not require registration or qualification of such securities under the Securities Act or such state securities or blue sky laws then in force. For purposes of this Agreement, a Person will be deemed to be a holder of Registrable Securities whenever such Person has the right to acquire such Registrable Securities (upon conversion or exercise in connection with a Transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right), whether or not such acquisition has actually been affected.

 

“Registration Expenses” means all amounts payable by the Company pursuant to Section 5.6.

 

“Registration Notice” has the meaning given such term in Section 5.1(a).

 

“Registration Request” has the meaning given such term in Section 5.1(a).

 

“Registration Statement” means any registration statement of the Company under which any of the Registrable Securities are included therein pursuant to the provisions of this Agreement, including the prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Requesting Holder” has the meaning given such term in Section 5.1(a).

 

“Required Registration” has the meaning given such term in Section 5.5.

 

“Restricted Area” means (i) the general area of satisfaction or quality measurement and (ii) products or services related to the general area of satisfaction or quality measurement or products or services related to taking any actions on or publishing or reporting results in connection with, the general area of satisfaction or quality measurement, in all cases

 

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described in the foregoing clauses (i) and (ii) to or about health care of related institutions or employees thereof, or medical or other professionals operating in the health care industry anywhere in North America. The term “Restricted Area” also includes any other industry in which the Company or any of its Subsidiaries provides services related to the general area of satisfaction or quality measurement or services related to taking any actions on, or publishing or reporting results in connection with, the general area of satisfaction or quality measurement or has substantially progressed towards providing such services.

 

“Rule 144” means Rule 144 adopted under the Securities Act (or any successor rule or regulation).

 

“Rule 144 Sale” means a sale of Securities to the public through a broker, dealer or market-maker pursuant to the provisions of Rule 144 adopted under the Securities Act (or any successor rule or regulation).

 

“Sale Notice” has the meaning given such term in Section 3.3(a).

 

“Sale of the Company” means the consummation of a transaction, whether in a single transaction or in a series of related transactions that are consummated contemporaneously (or consummated pursuant to contemporaneous agreements), with any other Person or Persons on an arm’s-length basis, pursuant to which such party or parties (a) acquire (whether by merger, stock purchase, recapitalization, reorganization, redemption, issuance of capital stock or otherwise) more than 50% of the Fully Diluted Units or voting stock of the Company, PGA Holdings or Press, Ganey Associates, Inc. or (b) acquire assets constituting all or substantially all of the assets of the Company and its Subsidiaries on a consolidated basis; provided that in no event shall a Sale of the Company be deemed to include any transaction effected solely for the purpose of (x) changing, directly or indirectly, the form of organization or the organizational structure of the Company, PGA Holdings or Press, Ganey Associates, Inc. or any Transfer to a Person (whether a corporation, limited liability company or otherwise) that is a wholly-owned Subsidiary of, parent of, equity interest holder of, or is controlled by or under the common control of any Person described in this clause (x) that does not directly or indirectly change in a material respect the ownership of the Company, PGA Holdings or Press, Ganey Associates, Inc. or (y) contributing stock or other securities to Subsidiaries of the Company.

 

“Sale Participation Notice” has the meaning given to such term in Section 8.3.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” means, collectively, the Vestar Securities, the Co-Investor Securities and the Employee Securities.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time.

 

“Securityholder” has the meaning given such term in the preface.

 

“Selling Employee Holder” has the meaning given such term in Section 3.2(a).

 

“Selling Vestar Holder” has the meaning given such term in Section 3.3(a).

 

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“Short-Form Demand Registration” has the meaning given to such term in Section 5.1(a).

 

“Stockholders Agreement” has the meaning given such term in Section 7.4.

 

“Subsidiary” means any corporation, limited liability company, partnership or other entity with respect to which another specified entity has the power to vote or direct the voting of sufficient securities to elect directors (or comparable authorized persons of such entity) having a majority of the voting power of the board of directors (or comparable governing body) of such entity.

 

“Tag-Along Notice” has the meaning given such term in Section 3.3(a).

 

“Transfer” means (in either the noun or the verb form, including with respect to the verb form, all conjugations thereof within their correlative meanings) with respect to any security, the gift, sale, assignment, transfer, pledge, hypothecation or other disposition (whether for or without consideration, whether directly or indirectly, and whether voluntary, involuntary or by operation of law) of such Security or any interest therein.

 

“Unit Purchase Agreements” has the meaning set forth in the LLC Agreement.

 

“Units” has the meaning set forth in the LLC Agreement.

 

“VCP” has the meaning set forth in the preface.

 

“VCPA” has the meaning set forth in the preface.

 

“VE” has the meaning set forth in the preface.

 

“Vestar” has the meaning set forth in the preface.

 

“Vestar Demand Right” has the meaning given such term in Section 5.1(a).

 

“Vestar Directors” has the meaning given such term in Section 2.1(a)(i).

 

“Vestar Holders” has the meaning given to such term in Section 8.1.

 

“Vestar Majority Holders” means the Person or Persons holding a majority of the Preferred Units or Preferred Stock and a majority of the Class A Units or Common Stock constituting Vestar Securities.

 

“Vestar/PGA Investors” has the meaning set forth in the preface.

 

“Vestar Securities” means (a) Vestar Units, (b) Securities, Class A Units, Common Stock, Common Stock Equivalents, Preferred Units or Preferred Stock hereafter acquired by Vestar, and (c) any securities of the Company issued with respect to the securities referred to in clause (a) or (b) above by way of a payment-in-kind, stock dividend, or stock split or in connection with a combination of shares, exchange, conversion, recapitalization, merger, consolidation or other reorganization, or otherwise.

 

33

 

“Vestar Units” means the Class A Units and Preferred Units issued to Vestar on the date hereof.

 

“VH” has the meaning set forth in the preface.

 

9.2                               Legends.

 

(a)                                 Securityholders Agreement. Each certificate or instrument evidencing Securities, if any, and each certificate or instrument, if any, issued in exchange for or upon the Transfer of any such Securities (if such securities remain subject to this Agreement after such Transfer) shall be stamped or otherwise imprinted with a legend (as appropriately completed under the circumstances) in substantially the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE CONSTITUTE [“EMPLOYEE SECURITIES”] [“VESTAR SECURITIES”] [“CO-INVESTOR SECURITIES”] UNDER A CERTAIN SECOND AMENDED AND RESTATED SECURITYHOLDERS AGREEMENT DATED AS OF OCTOBER [ ], 2012 AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S SECURITYHOLDERS AND, AS SUCH, ARE SUBJECT TO CERTAIN VOTING PROVISIONS, PURCHASE RIGHTS AND RESTRICTIONS ON TRANSFER SET FORTH IN THE SECOND AMENDED AND RESTATED SECURITYHOLDERS AGREEMENT. A COPY OF SUCH SECOND AMENDED AND RESTATED SECURITYHOLDERS AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.”

 

(b)                                 Restricted Securities. Each instrument or certificate evidencing Securities and each instrument or certificate, if any, issued in exchange or upon the Transfer of any Securities shall be stamped or otherwise imprinted with a legend substantially in the following form:

 

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED OR SOLD UNLESS IT HAS BEEN REGISTERED UNDER THE SECURITIES ACT OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE.”

 

(c)                                  Removal of Legends. Whenever in the opinion of the Company and counsel reasonably satisfactory to the Company (which opinion shall be delivered to the

 

34

 

Company in writing) the restrictions described in any legend set forth above cease to be applicable to any Securities, the holder thereof shall be entitled to receive from the Company, without expense to the holder, a new instrument or certificate not bearing a legend stating such restriction.

 

9.3                               Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

9.4                               Entire Agreement. Except as otherwise expressly set forth herein, this document embodies the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

9.5                               Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and the Securityholders and any subsequent holders of Securities and the respective successors and assigns of each of them, so long as they hold Securities.

 

9.6                               Counterparts. This Agreement may be executed in separate counterparts each of which shall be an original and all of which taken together shall constitute one and the same agreement.

 

9.7                               Remedies. The Company and the Securityholders shall be entitled to enforce their rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement (including costs of enforcement) and to exercise all other rights existing in their favor. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that the Company or any Securityholder may in its or his sole discretion apply to any court of law or equity of competent jurisdiction for specific performance or injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation of the provisions of this Agreement.

 

9.8                               Notices. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) or sent by reputable overnight courier service (charges prepaid) to the Company at the address set forth below and to any other recipient at the address indicated on the Company’s records, or at such address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder when sent by facsimile (receipt confirmed) delivered personally, five days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service. The Company’s address is:

 

35

 

PG Holdco, LLC

c/o Vestar Capital Partners V, L.P.

245 Park Avenue, 41st Floor

New York, New York 10167

Attention:                                         Norman W. Alpert

Managing Director

Facsimile:                                         (212) 351-1606

 

with a copy (which shall not constitute notice) to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017-3954

Attention:                                         Caroline G. Gottschalk

Facsimile:                                         (212) 455-2502

 

A copy of each notice given to the Company shall be given to Vestar (and no notice to the Company shall be effective until such copy is delivered to Vestar) at the following addresses:

 

Vestar Capital Partners V, L.P.

245 Park Avenue, 41st Floor

New York, New York 10167

Attention:                                         General Counsel

 

with a copy (which shall not constitute notice) to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017-3954

Attention:                                         Caroline G. Gottschalk

 

A copy of each notice given to a Co-Investor or Employee shall be delivered to the address as shown on the unit register of the Company.

 

9.9                               Governing Law. The Delaware Limited Liability Company Act (and, following the conversion of the Company into a corporation or the Company being merged into, or otherwise succeeded by, a corporation, the relevant state corporation law) shall govern all questions arising under this Agreement concerning the relative rights of the Company and its stockholders. All other questions concerning the construction, validity and interpretation of this Agreement shall be governed by and construed in accordance with the domestic laws of the State of New York applicable to contracts made and to be performed in the State of New York.

 

9.10                        Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

[Remainder of page intentionally left blank]

 

36

 

IN WITNESS WHEREOF, the parties hereto have executed this Second Amended and Restated Securityholders Agreement on the day and year first above written.

 

	
 
    	
PG HOLDCO, LLC
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Andrew Cavanna
    
	
 
    	
 
    	
Name: Andrew Cavanna
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
VESTAR CAPITAL PARTNERS V, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Associates V, L.P.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Managers V, Ltd.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Norman W. Alpert
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    
	
 
    	
VESTAR CAPITAL PARTNERS V-A, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Managers V, Ltd.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Norman W. Alpert
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    
	
 
    	
VESTAR EXECUTIVE V, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Associates V, L.P.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Managers V, Ltd.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Norman W. Alpert
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title: Managing Director
    

 

 

	
 
    	
VESTAR HOLDINGS V, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Associates V, L.P.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Norman W. Alpert
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    
	
 
    	
VESTAR/PGA INVESTORS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Capital Partners V, L.P.,
    
	
 
    	
 
    	
its Manager
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Associates V, L.P.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
Vestar Managers V, Ltd.
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ Norman W. Alpert
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title: Managing Director
    

 

CO-INVESTORS:

 

* * * * *

 

This Second Amended and Restated Securityholders Agreement is executed by each Co-Investor as of the Closing Date set forth in such Co-Investor’s Master Signature Page.

 

* * * * *

 

EMPLOYEES:

 

* * * * *

 

This Second Amended and Restated Securityholders Agreement is executed by each Employee as of the Closing Date set forth in such Employee’s Master Signature Page.

 

* * * * *

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