QUALITY SYSTEMS, INC.

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2015

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-12537

QUALITY SYSTEMS, INC.(Exact name of registrant as specified in its charter)

California(State or other jurisdiction of incorporation or organization)

18111 Von Karman Avenue, Suite 700, Irvine, California(Address of principal executive offices)

95-2888568(IRS Employer Identification No.)

92612(Zip Code)

(949) 255-2600(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 duringthe preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirementsfor the past 90 days. Yes ☑ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required tobe submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that theregistrant was required to submit and post such files). Yes ☑ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. Seethe definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer oNon-accelerated filer o (Do not check if a smaller reporting company) Small reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ☑

The number of outstanding shares of the Registrant’s common stock as of January 26, 2016 was 60,886,173 shares.

QUALITY SYSTEMS, INC.

TABLE OF CONTENTSFORM 10-Q

FOR THE THREE MONTHS ENDED DECEMBER 31, 2015

Item Page

PART I. FINANCIAL INFORMATION Item 1. Financial Statements. Unaudited Consolidated Balance Sheets as of December 31, 2015 and March 31, 2015 3

Unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended December 31, 2015 and 2014 4

Unaudited Consolidated Statements of Cash Flows for the nine months ended December 31, 2015 and 2014 5

Notes to Consolidated Financial Statements 7Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 23Item 3. Quantitative and Qualitative Disclosures about Market Risk. 42Item 4. Controls and Procedures. 42 PART II. OTHER INFORMATION Item 1. Legal Proceedings. 43Item 1A. Risk Factors. 44Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 44Item 3. Defaults Upon Senior Securities. 44Item 4. Mine Safety Disclosure. 44Item 5. Other Information. 44Item 6. Exhibits. 45 Signatures 46

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PART I. FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTS.

QUALITY SYSTEMS, INC.CONSOLIDATED BALANCE SHEETS(In thousands, except per share data)

(Unaudited)

December 31, 2015 March 31, 2015ASSETS Current assets:

Cash and cash equivalents $ 92,648 $ 118,993Restricted cash and cash equivalents 4,452 2,419Marketable securities 12,165 11,592Accounts receivable, net 92,592 107,669Inventories 662 622Income taxes receivable 10,565 3,147Deferred income taxes, net 24,074 24,080Prepaid expenses and other current assets 14,111 11,535

Total current assets 251,269 280,057Equipment and improvements, net 23,171 20,807Capitalized software costs, net 44,573 40,397Intangibles, net 22,287 27,689Goodwill 73,513 73,571Other assets 18,577 18,000

Total assets $ 433,390 $ 460,521

LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:

Accounts payable $ 10,250 $ 10,018Deferred revenue 55,146 66,343Accrued compensation and related benefits 16,345 24,051Income taxes payable 53 10,048Dividends payable 10,726 10,700Other current liabilities 38,575 33,924

Total current liabilities 131,095 155,084Deferred revenue, net of current 1,127 1,349Deferred compensation 6,667 5,750Other noncurrent liabilities 9,918 14,798

Total liabilities 148,807 176,981Commitments and contingencies (Note 12) Shareholders’ equity: Common Stock

$0.01 par value; authorized 100,000 shares; issued and outstanding 60,886 and 60,303 shares at December31, 2015 and March 31, 2015, respectively 609 603

Additional paid-in capital 210,184 198,650Accumulated other comprehensive loss (517) (192)Retained earnings 74,307 84,479

Total shareholders’ equity 284,583 283,540Total liabilities and shareholders’ equity $ 433,390 $ 460,521

The accompanying notes are an integral part of these consolidated financial statements.

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QUALITY SYSTEMS, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)(Unaudited)

Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014Revenues:

Software license and hardware $ 16,150 $ 21,428 $ 52,026 $ 60,505Software related subscription services 11,705 11,864 36,388 31,266

Total software, hardware and related 27,855 33,292 88,414 91,771Support and maintenance 39,519 43,045 125,408 125,985Revenue cycle management and relatedservices 21,594 20,392 62,630 54,517

Electronic data interchange and data services 20,643 19,051 61,413 56,276Professional services 7,421 7,644 26,700 33,288

Total revenues 117,032 123,424 364,565 361,837Cost of revenue:

Software license and hardware 6,530 7,295 20,149 22,326Software related subscription services 5,533 5,194 17,454 15,029

Total software, hardware and related 12,063 12,489 37,603 37,355Support and maintenance 7,537 7,365 23,874 21,064Revenue cycle management and relatedservices 14,381 14,246 43,573 40,154

Electronic data interchange and data services 12,437 11,956 37,302 35,970Professional services 7,367 8,304 24,008 32,780

Total cost of revenue 53,785 54,360 166,360 167,323Gross profit 63,247 69,064 198,205 194,514

Operating expenses: Selling, general and administrative 39,395 41,482 115,962 116,893Research and development costs 14,518 18,468 49,584 51,602Amortization of acquired intangible assets 897 904 2,692 2,795

Total operating expenses 54,810 60,854 168,238 171,290Income from operations 8,437 8,210 29,967 23,224

Interest income (expense), net 49 (82) 392 41Other expense, net (43) — (147) (17)Income before provision for income taxes 8,443 8,128 30,212 23,248Provision for income taxes 1,141 1,452 8,233 6,659

Net income $ 7,302 $ 6,676 $ 21,979 $ 16,589Other comprehensive income:

Foreign currency translation (net of tax) (7) (101) (291) (177)Unrealized gain (loss) on marketable securities(net of tax) (29) 68 (34) 94

Comprehensive income $ 7,266 $ 6,643 $ 21,654 $ 16,506

Net income per share: Basic $ 0.12 $ 0.11 $ 0.36 $ 0.28Diluted $ 0.12 $ 0.11 $ 0.36 $ 0.27

Weighted-average shares outstanding: Basic 60,867 60,272 60,548 60,250Diluted 61,279 60,855 61,190 60,813

Dividends declared per common share $ 0.175 $ 0.175 $ 0.525 $ 0.525


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QUALITY SYSTEMS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)(Unaudited)

Nine Months Ended December 31, 2015 2014Cash flows from operating activities:

Net income $ 21,979 $ 16,589Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 6,577 6,755Amortization of capitalized software costs 7,428 10,190Amortization of other intangibles 5,402 5,371Loss on disposal of equipment and improvements 158 12Provision for bad debts 2,107 38Provision for inventory obsolescence 118 71Share-based compensation 2,328 2,627Deferred income taxes 741 (20)Change in fair value of contingent consideration 1,201 1,533Loss on disposition of Hospital Solutions Division 1,366 —

Changes in assets and liabilities, net of amounts acquired: Accounts receivable 11,313 8,779Inventories (160) 98Accounts payable 6 (1,084)Deferred revenue (10,320) (3,897)Accrued compensation and related benefits (7,706) 3,635Income taxes (18,395) 4,868Deferred compensation 917 668Other assets and liabilities 2,232 2,473

Net cash provided by operating activities 27,292 58,706Cash flows from investing activities:

Additions to capitalized software costs (11,604) (9,535)Additions to equipment and improvements (9,926) (5,444)Proceeds from sales and maturities of marketable securities 5,310 10,352Purchases of marketable securities (6,024) (10,995)

Net cash used in investing activities (22,244) (15,622)Cash flows from financing activities:

Proceeds from issuance of shares under employee plans 732 170Dividends paid (32,125) (32,073)Payment of contingent consideration related to acquisitions — (686)

Net cash used in financing activities (31,393) (32,589)Net increase (decrease) in cash and cash equivalents (26,345) 10,495Cash and cash equivalents at beginning of period 118,993 103,145Cash and cash equivalents at end of period $ 92,648 $ 113,640

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QUALITY SYSTEMS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS – (Continued)

(In thousands)(Unaudited)

Nine Months Ended December 31, 2015 2014Supplemental disclosures of cash flow information:

Cash paid during the period for income taxes, net of refunds $ 25,574 $ 1,523

Common stock issued for Mirth share-based contingent consideration $ 9,273 $ —

Non-cash investing and financing activities: Dividends declared but not paid $ 10,726 $ 10,697

Unpaid additions to equipment and improvements $ 226 $ 158


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QUALITY SYSTEMS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except shares and per share data)(Unaudited)

1. Summary of Significant Accounting Policies

Principles of Consolidation. The consolidated financial statements include the accounts of Quality Systems, Inc. and its wholly-owned subsidiaries, whichconsist of NextGen Healthcare Information Systems, LLC (“NextGen”), NextGen RCM Services, LLC, QSI Management, LLC, Quality Systems IndiaHealthcare Private Limited (“QSIH”), ViaTrack Systems, LLC (“ViaTrack”), Matrix Management Solutions, LLC, and Mirth LLC and Mirth Limited (“Mirth”)(collectively, the “Company”). Each of the terms “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompanyaccounts and transactions have been eliminated.

On October 22, 2015, we closed an Asset Purchase Agreement with Quadramed Affinity Corporation (part of the Harris Operating Group of ConstellationSoftware Inc.) in which we sold and assigned substantially all assets and liabilities of the Hospital Solutions Division (“Hospital disposition”). The results ofoperations and cash flows for the Hospital Solutions Division are reflected in the accompanying consolidated financial statements through the date ofdisposition. See Note 3 for additional details.

Basis of Presentation. The accompanying unaudited consolidated financial statements as of December 31, 2015 and for the three and nine months endedDecember 31, 2015 and 2014 have been prepared in accordance with the requirements of Quarterly Report on Form 10-Q and Article 10 of the Securities andExchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such consolidated financialstatements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financialstatements should be read in conjunction with the audited consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal yearended March 31, 2015. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for afair statement of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarilyindicative of results of operations to be expected for the full year.

Beginning in the first quarter of fiscal 2016, we presented certain components of revenue within the consolidated statements of comprehensive income in aformat intended to group like-kind products and services and disaggregate the other services category of revenue, which has continued to comprise a largerpercentage of total revenue. More specifically, the primary changes to the presentation of revenue included:

• Revenue from software-as-a-service (SaaS), hosting services, and other software related subscriptions are now aggregated into a new softwarerelated subscription services category of revenue. Previously, revenue from software related subscriptions services was reported within the otherservices category of revenue.

• Revenue from annual software licenses that was also previously reported within the other services category of revenue is now reported within thesoftware license and hardware category of revenue.

• Revenue from all other services, including implementation, training, and consulting, are now aggregated into a single professional services category ofrevenue that excludes software related subscription services and annual software licenses, as noted above.

Each of the corresponding components of cost of revenue has also been revised in a manner that is consistent with the new presentation of revenue describedabove.

For informational and comparability purposes, we have recast our previously reported consolidated statements of comprehensive income to provide historicalinformation on a basis consistent with the new reporting format of revenue and cost of revenue. The reclassification of revenue and cost of revenue within theconsolidated statements of comprehensive income has no impact on previously reported net income or earnings per share and no impact on the previouslyreported consolidated balance sheets, statements of stockholders' equity, and statements of cash flow.

References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified.

Significant Accounting Policies. There have been no material changes to the significant accounting policies from those disclosed in our Annual Report onForm 10-K for the fiscal year ended March 31, 2015.

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Share-Based Compensation. The following table shows total share-based compensation expense included in the consolidated statements of comprehensiveincome for the three and nine months ended December 31, 2015 and 2014:

Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014Costs and expenses:

Cost of revenue $ 101 $ 105 $ 300 $ 283Research and development costs 67 113 280 293Selling, general and administrative 575 752 1,748 2,051

Total share-based compensation 743 970 2,328 2,627

The total income tax benefit related to share-based compensation was $225 and $313 for the three months ended December 31, 2015 and 2014, respectively.For the nine months ended December 31, 2015 and 2014, total income tax benefit related to share-based compensation was $701 and $825, respectively.

Recent Accounting Standards. Recent accounting pronouncements requiring implementation in future periods are discussed below or in the notes, whereapplicable.

In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"), whichsimplifies the presentation of deferred income taxes by requiring deferred tax liabilities and assets to be classified as noncurrent in a classified statement offinancial position. The new guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periodswithin those annual periods. Early adoption is permitted and may be applied either prospectively or retrospectively. This guidance is effective for us for thequarter ending June 30, 2016. We are currently evaluating the timing of adoption and potential impact of implementation of this updated authoritative guidanceon our consolidated financial statements.

In September 2015, the FASB issued Accounting Standards Update No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments ("ASU2015-16"), which eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination.The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in thereporting period in which the adjustment is identified. ASU 2015-16 is effective for interim and annual periods beginning after December 15, 2015 and earlyadoption is permitted. This guidance is effective for us for the quarter ending March 31, 2016. We do not expect the adoption of this new standard to have amaterial impact on our consolidated financial statements.

In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"), which replaces theconcept of subsequently measuring inventory at 'lower of cost or market' with that of 'lower of cost and net realizable value'. The guidance only applies toinventories for which cost is determined by methods other than last-in first-out (LIFO) and the retail inventory method (RIM). ASU 2015-11 is effective for fiscalyears beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. This guidance is effective for us for fiscalyear ending March 31, 2018. We do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued Accounting Standards Update No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Arrangement ("ASU 2015-05"),which requires a customer to determine whether a cloud computing arrangement contains a software license that should be accounted for as internal-usesoftware or as a service contract. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoptionpermitted. Upon adoption, an entity has the option to apply the provisions of ASU 2015-05 either prospectively to all arrangements entered into or materiallymodified, or retrospectively. We do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a GoingConcern ("ASU 2014-15"), which incorporates and expands upon certain principles that currently exist in U.S. auditing standards. ASU 2014-15 providesguidance regarding management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concernand to provide related footnote disclosures. The new standard requires management to perform interim and annual evaluations and sets forth principles forconsidering the mitigating effect of management's plans. The standard mandates certain disclosures when conditions give rise to substantial doubt about acompany’s ability to continue as a going concern within one year from the financial statement issuance date. ASU 2014-15 is effective for annual reportingperiods ending after December 15, 2016, and all annual and interim periods thereafter. Early adoption is permitted. ASU 2014-15 is effective for us for fiscalyear ending March 31, 2017. We do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

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In May 2014, the FASB, along with the International Accounting Standards Board, issued Accounting Standards Update No. 2014-09, Revenue from Contractswith Customers ("ASU 2014-09"), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 providesenhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reportingusing International Financial Reporting Standards and GAAP. The core principle of this updated guidance is that an entity should recognize revenue to depictthe transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange forthose goods or services. The new standard also requires additional disclosure about revenue and provides improved guidance for multiple elementarrangements. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period,based on the July 2015 decision and issuance of Accounting Standards Update No. 2015-14, Deferral of Effective Date ("ASU 2015-14") by the FASB to delaythe effective date by one year. Companies are permitted to adopt this new guidance following either a full retrospective or modified retrospectiveapproach. ASU 2014-09 is effective for us in the first quarter of fiscal 2019. We are currently evaluating the potential impact of implementation of this updatedauthoritative guidance on our consolidated financial statements.

We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidatedfinancial statements.

2. Fair Value Measurements

The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basisat December 31, 2015 and March 31, 2015:

Balance at Quoted Prices inActive Markets for

Identical Assets (Level1)

Significant Other

Observable Inputs(Level 2)

Unobservable Inputs(Level 3)

December 31, 2015

ASSETS Cash and cash equivalents (1) $ 92,648 $ 92,648 $ — $ —Restricted cash and cash equivalents 4,452 4,452 — —Marketable securities (2) 12,165 12,165 — — $ 109,265 $ 109,265 $ — $ —

LIABILITIES Contingent consideration related to acquisitions $ 8,046 $ — $ — $ 8,046 $ 8,046 $ — $ — $ 8,046

Balance at Quoted Prices inActive Markets for

Identical Assets (Level1)

Significant Other

Observable Inputs(Level 2)

Unobservable Inputs(Level 3)

March 31, 2015

ASSETS Cash and cash equivalents (1) $ 118,993 $ 118,993 $ — $ —Restricted cash and cash equivalents 2,419 2,419 — —Marketable securities (2) 11,592 11,592 — — $ 133,004 $ 133,004 $ — $ —

LIABILITIES Contingent consideration related to acquisitions $ 16,155 $ — $ — $ 16,155 $ 16,155 $ — $ — $ 16,155___________________________________(1) Cash equivalents consist of money market funds.(2) Marketable securities consist of available-for-sale money market instruments and fixed-income securities, including certificates of deposit, corporate bondsand notes, and municipal securities.

Our contingent consideration liability is accounted for at fair value on a recurring basis and is adjusted to fair value when the carrying value differs from fairvalue. The fair value adjustments are reflected as a component of selling, general and administrative expense. Key assumptions include discount rates andprobability-adjusted achievement of strategic targets that are not observable in the market. The categorization of the framework used to measure fair value ofthe contingent consideration liability is considered Level 3 due to

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the subjective nature of the unobservable inputs used. The fair values of the contingent consideration liability were estimated based on the probability ofachieving certain business milestones.

The following table presents activity in our financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and forthe nine months ended December 31, 2015:

Total LiabilitiesBalance as of April 1, 2015 $ 16,155Settlement of contingent consideration related to acquisitions (9,310)Fair value adjustments 1,201Balance as of December 31, 2015 $ 8,046

Non-Recurring Fair Value Measurements

We have certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair valueonly if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered Level 3 due to thesubjective nature of the unobservable inputs used. During the nine months ended December 31, 2015, we recorded a $58 adjustment to Gennius goodwillbased on additional information that became available during the measurement period about certain liabilities that had existed as of the acquisition date. Therewere no other adjustments to fair value of such assets.

3. Business Combinations and DisposalsGennius AcquisitionOn March 11, 2015, we acquired Gennius, a provider of healthcare data analytics. The purchase price totaled $2,345. We accounted for the Genniusacquisition as a purchase business combination. The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed basedon their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fairvalue. The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approachesdepending on the type of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relieffrom royalty method approach. Goodwill arising from the acquisition of Gennius was determined as the excess of the purchase price over the net acquisitiondate fair values of the acquired assets and the liabilities assumed, and is not deductible for tax purposes. The Gennius goodwill represents the expected futuresynergies resulting from the integration of the Gennius healthcare data analytics technology, which will enhance our current enterprise analytics competenciesand broaden our business intelligence capabilities for addressing new value-based care requirements. Gennius operates under the NextGen Division.During the three months ended December 31, 2015, we recorded a $58 adjustment to goodwill based on additional information that became available duringthe measurement period about certain liabilities that had existed as of the acquisition date.

The total purchase price for the Gennius acquisition is summarized as follows:

GenniusTotal cash purchase price $ 2,345

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The following table summarizes the purchase price allocation for the Gennius acquisition:

GenniusFair value of the net tangible assets acquired and liabilities assumed:

Other assets $ 4Deferred revenues (37)Other liabilities (131)

Total net tangible assets acquired and liabilities assumed (164)Fair value of identifiable intangible assets acquired:

Software technology 1,800Goodwill 709

Total identifiable intangible assets acquired 2,509Total purchase price $ 2,345

The pro forma effects of the Gennius acquisition would not have been material to our results of operations and are therefore not presented.

Hospital Disposition

On October 22, 2015, we closed an Asset Purchase Agreement (the “Purchase Agreement”) with Quadramed Affinity Corporation in which we sold andassigned substantially all assets and liabilities of the Hospital Solutions Division. We believe that the Hospital disposition will allow us to focus our efforts andresources on our core ambulatory business. The financial terms of the transaction and the amount of consideration received were not significant. Since theHospital disposition did not and is not expected to have a major effect on our operations and financial results, separate discontinued operations reporting is notprovided.

We incurred a preliminary loss on the Hospital disposition of $1,366 in the three months ended December 31, 2015, which was recorded in our consolidatedstatements of comprehensive income as a component of selling, general and administrative expense. The loss was measured as the total considerationreceived and expected to be received less the lower of carrying value or fair value of the Hospital Solutions Division. Additionally, we incurred $387 in directincremental costs of disposition and $335 in severance and other employee-related costs in connection with the Hospital disposition during the three monthsended December 31, 2015.

Pursuant to the Purchase Agreement, the initial purchase price is subject to certain purchase price adjustments for changes in Net Tangible Assets (as definedin the Purchase Agreement) and future collections of the assigned accounts receivable through July 2016.

4. Goodwill

We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual testdates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. During the three months ended December 31,2015, we have not identified any events or circumstances that would require an interim goodwill impairment test.

We do not amortize goodwill as it has been determined to have an indefinite useful life.

Goodwill by reporting unit consists of the following:

March 31,

2015 December 31,

2015NextGen Division $ 33,992 $ 33,934RCM Services Division 32,290 32,290QSI Dental Division (1) 7,289 7,289

Total goodwill $ 73,571 $ 73,513___________________________________(1) QSI Dental Division goodwill is presented on a basis consistent with that of our management reporting structures. However, for the purposes of assessinggoodwill for impairment annually and as otherwise may be required, the QSI Dental Division goodwill is allocated to the reporting units that derive cash flowsfrom the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of the QSI DentalDivision goodwill being ascribed to the NextGen Division.

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5. Intangible Assets

Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows:

December 31, 2015

Customer

Relationships Trade Name and

Contracts Software

Technology TotalGross carrying amount $ 22,050 $ 3,368 $ 25,310 $ 50,728Accumulated amortization (17,270) (2,567) (8,604) (28,441)

Net intangible assets $ 4,780 $ 801 $ 16,706 $ 22,287

March 31, 2015

Customer

Relationships Trade Name and

Contracts Software

Technology TotalGross carrying amount $ 22,050 $ 3,368 $ 25,310 $ 50,728Accumulated amortization (14,986) (2,159) (5,894) (23,039)

Net intangible assets $ 7,064 $ 1,209 $ 19,416 $ 27,689

Amortization expense related to customer relationships and trade name and contracts that is included as operating expenses in the consolidated statements ofcomprehensive income was $898 and $905 for the three months ended December 31, 2015 and 2014, respectively. Amortization expense related to softwaretechnology that is included in cost of revenue for software license and hardware was $903 and $858 for the three months ended December 31, 2015 and 2014,respectively.

Amortization expense related to customer relationships and trade name and contracts that is included as operating expenses in the consolidated statements ofcomprehensive income was $2,692 and $2,811 for the nine months ended December 31, 2015 and 2014, respectively. Amortization expense related tosoftware technology that is included in cost of revenue for software license and hardware was $2,710 and $2,560 for the nine months ended December 31,2015 and 2014, respectively.The following table represents the remaining estimated amortization of definite-lived intangible assets as of December 31, 2015:

For the year ended March 31, 2016 (remaining three months) $ 1,8012017 6,7332018 4,4812019 3,6972020 3,3522021 and beyond 2,223

Total $ 22,287

6. Capitalized Software Costs

Our capitalized software costs are summarized as follows:

December 31,

2015 March 31,

2015Gross carrying amount $ 125,559 $ 113,955Accumulated amortization (80,986) (73,558)

Net capitalized software costs $ 44,573 $ 40,397

Amortization expense related to capitalized software costs was $2,499 and $3,073 for the three months ended December 31, 2015 and 2014, respectively.

Amortization expense related to capitalized software costs was $7,428 and $10,190 for the nine months ended December 31, 2015 and 2014, respectively.

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The following table presents the remaining estimated amortization of capitalized software costs as of December 31, 2015. The estimated amortization iscomprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimatedeconomic lives and projected general release dates.

For the year ended March 31, 2016 (remaining three months) $ 2,5002017 6,8002018 1,8002019 5,9002020 6,7002021 and beyond 20,873

Total $ 44,573

7. Composition of Certain Financial Statement Captions

Accounts receivable include amounts invoiced but not yet rendered at each period end. Undelivered products and services are included as a component of thedeferred revenue balance on the accompanying consolidated balance sheets.

December 31,

2015 March 31,

2015Accounts receivable, gross $ 103,009 $ 119,807Sales return reserve (7,128) (8,835)Allowance for doubtful accounts (3,289) (3,303)

Accounts receivable, net $ 92,592 $ 107,669

Inventories are summarized as follows:

December 31,

2015 March 31,

2015Computer systems and components $ 662 $ 622

Prepaid expenses and other current assets are summarized as follows:

December 31,

2015 March 31,

2015Prepaid expenses $ 10,469 $ 9,941Other current assets 3,642 1,594

Prepaid expenses and other current assets $ 14,111 $ 11,535

Equipment and improvements are summarized as follows:

December 31,

2015 March 31,

2015Computer equipment $ 40,773 $ 42,668Furniture and fixtures 9,505 10,408Leasehold improvements 10,783 9,767 61,061 62,843Accumulated depreciation and amortization (37,890) (42,036)

Equipment and improvements, net $ 23,171 $ 20,807

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Current and non-current deferred revenue are summarized as follows:

December 31,

2015 March 31,

2015Professional services $ 24,910 $ 30,340Software license, hardware and other 14,669 17,638Support and maintenance 10,239 15,077Software related subscription services 5,328 3,288

Deferred revenue $ 55,146 $ 66,343

Deferred revenue, net of current $ 1,127 $ 1,349

Accrued compensation and related benefits are summarized as follows:

December 31,

2015 March 31,

2015Payroll, bonus and commission $ 8,044 $ 13,505Vacation 8,301 10,546

Accrued compensation and related benefits $ 16,345 $ 24,051

Other current and non-current liabilities are summarized as follows:

December 31,

2015 March 31,

2015Contingent consideration and other liabilities related to acquisitions $ 8,313 $ 9,124Customer credit balances and deposits 4,700 4,760Care services liabilities 4,467 2,381Accrued legal expense 3,266 3,527Accrued acquisition costs 3,252 —Accrued royalties 2,650 2,063Accrued EDI expense 2,327 2,322Accrued consulting 2,225 2,603Self insurance reserve 2,165 2,290Other accrued expenses 5,210 4,854

Other current liabilities $ 38,575 $ 33,924

Contingent consideration and other liabilities related to acquisitions $ — $ 7,581Deferred rent 6,012 3,122Uncertain tax position and related liabilities 3,906 4,095

Other non-current liabilities $ 9,918 $ 14,798

8. Income Taxes

The provision for income taxes for the three months ended December 31, 2015 and 2014 was approximately $1,141 and $1,452, respectively. The effective taxrates were 13.5% and 17.9% for the three months ended December 31, 2015 and 2014, respectively, and both periods reflect approximately three quarters of afull fiscal year impact of the research and development tax credit due to the timing of the expiration and retroactive reinstatement of the credit. The effectiverate for the three months ended December 31, 2015 decreased as compared to the prior year period primarily due to a favorable impact of the qualifyingproduction activity deduction in the three months ended December 31, 2015.

The provision for income taxes for the nine months ended December 31, 2015 and 2014 was approximately $8,233 and $6,659, respectively. The effective taxrates were 27.3% and 28.6% for the nine months ended December 31, 2015 and 2014, respectively. The effective rate for the nine monthsended December 31, 2015 decreased as compared to the prior year period primarily due to a favorable impact of the qualifying production activity deduction inthe nine months ended December 31, 2015.

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The deferred tax assets and liabilities have been shown net in the accompanying consolidated balance sheets based on the long-term or short-term nature ofthe items that give rise to the deferred amount. We expect to receive the full benefit of the deferred tax assets recorded with the exception of a specific statetax credit for which we have recorded a valuation allowance.

Uncertain tax positions

As of December 31, 2015, we had recorded a liability of $3,836 for unrecognized tax benefits related to various federal, state and local income tax matters. Ifrecognized, this amount would reduce our effective tax rate. The tax liability for the nine months ended December 31, 2015 increased from the prior year periodby $3,059 due to changes in reserves for state and local income tax benefit related to prior year tax positions.

We are no longer subject to U.S. federal income tax examinations for tax years before 2012. With few exceptions, we are no longer subject to state income taxexaminations for tax years before 2011. We do not anticipate that total unrecognized tax benefits will significantly change due to the settlement of audits or theexpiration of statute of limitations within the next twelve months.

9. Earnings per Share

The dual presentation of “basic” and “diluted” earnings per share (“EPS”) is provided below. Shares discussed below are in thousands.

Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014Net income $ 7,302 $ 6,676 $ 21,979 $ 16,589Basic net income per share:

Weighted-average shares outstanding — Basic 60,867 60,272 60,548 60,250Basic net income per common share $ 0.12 $ 0.11 $ 0.36 $ 0.28

Net income $ 7,302 $ 6,676 $ 21,979 $ 16,589Diluted net income per share:

Weighted-average shares outstanding — Basic 60,867 60,272 60,548 60,250Effect of potentially dilutive securities 412 583 642 563Weighted-average shares outstanding — Diluted 61,279 60,855 61,190 60,813

Diluted net income per common share $ 0.12 $ 0.11 $ 0.36 $ 0.27

The computation of diluted net income per share does not include 1,839 and 1,789 options to acquire shares of common stock for the three and nine monthsended December 31, 2015, respectively, because their inclusion would have an anti-dilutive effect on net income per share.

The computation of diluted net income per share does not include 1,731 and 1,653 options to acquire shares of common stock for the three and nine monthsended December 31, 2014, respectively, because their inclusion would have an anti-dilutive effect on net income per share.

10. Share-Based Awards

Employee Stock Option and Incentive Plans

In October 2005, our shareholders approved a stock option and incentive plan (the “2005 Plan”) under which 4,800,000 shares of common stock were reservedfor the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock,restricted stock units, performance shares, performance units (including performance options) and other share-based awards. The 2005 Plan provides that ouremployees and directors may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted certain share-basedawards. In the case of option awards granted under the 2005 Plan, the exercise price of each option is determined based on the date of grant and expire nolater than 10 years from the date of grant. Awards granted pursuant to the 2005 Plan are subject to the vesting schedule or performance metrics set forth in theagreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the 2005 Plan, awards under the 2005Plan will fully vest under certain circumstances. The 2005 Plan expired on May 25, 2015. As of December 31, 2015, there were 1,702,326 outstanding optionsand 26,279 outstanding shares of restricted stock, restricted stock units and performance based restricted stock under the 2005 Plan.

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In August 2015, our shareholders approved a stock option and incentive plan (the “2015 Plan”) under which 11,500,000 shares of common stock were reservedfor the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock awards and restrictedstock unit awards, performance stock awards and other share-based awards. The 2015 Plan provides that our employees and directors may, at the discretionof the Board of Directors or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted underthe 2015 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awardsgranted pursuant to the 2015 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted.Upon a change of control of our Company, as such term is defined in the 2015 Plan, awards under the 2015 Plan will fully vest under certain circumstances. Asof December 31, 2015, there were 150,000 outstanding options, 92,934 outstanding shares of restricted stock awards and 11,551,215 shares available forfuture grant under the 2015 Plan.

A summary of stock option transactions during the nine months ended December 31, 2015 follows:

Number of

Shares

Weighted-AverageExercise

Priceper Share

Weighted-Average

RemainingContractualLife (years)

AggregateIntrinsicValue

(in thousands)Outstanding, April 1, 2015 1,636,176 $ 24.82 5.5

Granted 564,000 15.44 7.5 Exercised (300) 15.99 6.4 $ —Forfeited/Canceled (497,550) 24.75 4.8

Outstanding, December 31, 2015 1,702,326 $ 21.79 5.6 $ 552

Vested and expected to vest, December 31, 2015 1,570,577 $ 22.11 5.6 $ 485

Exercisable, December 31, 2015 633,116 $ 28.16 4.2 $ 10

We utilize the Black-Scholes valuation model for estimating the fair value of share-based compensation with the following assumptions:

Nine Months Ended December 31, 2015 2014Expected term 3.8 - 3.9 years 4.8 yearsExpected volatility 38.3% - 38.9% 36.4% - 36.6%Expected dividends 4.1% - 5.3% 4.3% - 4.4%Risk-free rate 1.3% - 1.6% 1.7%

The weighted-average grant date fair value of stock options granted during the nine months ended December 31, 2015 and 2014 was $3.33 and $3.50 pershare, respectively.

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During the nine months ended December 31, 2015, a total of 564,000 options to purchase shares of common stock were granted under the 2005 and 2015Plans at an exercise price equal to the market price of our common stock on the date of grant. A summary of stock options granted under the 2005 and 2015Plans during fiscal years 2016 and 2015 is as follows:

Option Grant Date Number of

Shares Exercise Price Vesting Terms

(1) Expires

August 17, 2015 150,000 $ 12.80 Five years August 17, 2023May 22, 2015 414,000 $ 16.64 Five years May 22, 2023

Fiscal year 2016 option grants 564,000

March 11, 2015 10,000 $ 15.84 Five years March 11, 2023September 2, 2014 20,000 $ 15.63 Five years September 2, 2022June 3, 2014 439,650 $ 15.99 Five years June 3, 2022

Fiscal year 2015 option grants 469,650 __________________________________(1) Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant with the exception of the August17, 2015 grant which vests in five equal annual installments beginning on July 1, 2016.

Employee Share Purchase Plan

On August 11, 2014, our shareholders approved an Employee Share Purchase Plan (the “Purchase Plan”) under which 4,000,000 shares of common stockwere reserved for future grant. The Purchase Plan allows eligible employees to purchase shares through payroll deductions of up to 15% of total base salaryat a price equal to 90% of the lower of the fair market values of the shares as of the beginning or the end of the corresponding offering period. Any sharespurchased under the Purchase Plan are subject to a six-month holding period. Employees are limited to purchasing no more than 1,500 shares on any singlepurchase date and no more than $25,000 in total fair market value of shares during any one calendar year. As of December 31, 2015, we have issued 95,190shares under the Purchase Plan and 3,904,810 shares are available for future issuance.

Share-based compensation expense recorded for the employee share purchase plan was $70 for the three months ended December 31, 2015 and $50 for thethree months ended December 31, 2014

Share-based compensation expense recorded for the employee share purchase plan was $216 for the nine months ended December 31, 2015 and $59 for thenine months ended December 31, 2014.

Performance-Based Awards

On May 14, 2015, the Compensation Committee approved our fiscal year 2016 Executive Compensation Program (the "Program") for our named executiveofficers for fiscal year 2016, on May 20, 2015, our Compensation Committee approved the Program for our Interim Chief Financial Officer, and on June 3,2015, our Compensation Committee approved the Program for our Chief Executive Officer (effective July 1, 2015). Under the incentive portion of the Program,the executive officers are eligible to receive cash bonuses based on meeting certain target increases in revenue and non-GAAP earnings per share for fiscalyear 2016 and certain equity incentive awards, including a potential award of up to an aggregate of 320,000 restricted performance shares of our commonstock vesting over a three year period based on the achievement of target average daily share prices for the thirty calendar day period ending April 30th ofeach of the subsequent three fiscal years. In addition, under the Program, a target pool of up to 400,000 options is available for new hires, promotions, and forcertain high-performing, non-executive employees based on achievement in performance targets.

Share-based compensation expense associated with the restricted performance shares with market conditions under the Program is based on the grant datefair value measured at the underlying closing share price on the date of grant using a Monte Carlo-based valuation model.

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Share-based compensation expense associated with the target pool of options under our equity incentive programs are initially based on the number of optionsexpected to vest after assessing the probability that the performance criteria will be met. Cumulative adjustments are recorded quarterly to reflect subsequentchanges in the estimated outcome of performance-related conditions. We utilize the Black-Scholes option valuation model with the assumptions in the tablebelow to calculate the share-based compensation expense related to the options.

Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014Expected term 3.8 years 4.8 years 3.8 - 3.9 years 4.8 yearsExpected volatility 39.2% 36.2% 37.7% - 39.2% 36.2% - 36.5%Expected dividends —% 4.4% 0.0% - 5.5% 4.3% - 5.0%Risk-free rate 1.5% 1.7% 1.1% - 1.6% 1.6% - 1.8%

Share-based compensation expense recorded for our performance-based awards was $143 for the three months ended December 31, 2015 and $133 for thethree months ended December 31, 2014

Share-based compensation expense recorded for our performance-based awards was $290 for the nine months ended December 31, 2015 and $345 for thenine months ended December 31, 2014.

Non-vested stock option award activity, including employee stock options and performance-based awards, during the nine months ended December 31, 2015is summarized as follows:

Non-VestedNumber of

Shares

Weighted-Average

Grant-DateFair Valueper Share

Outstanding, April 1, 2015 1,068,290 $ 5.81Granted 564,000 3.33Vested (274,400) 5.70Forfeited/Canceled (288,680) 5.34

Outstanding, December 31, 2015 1,069,210 $ 4.39

As of December 31, 2015, $3,459 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted-averageperiod of 3.4 years. This amount does not include the cost of new options that may be granted in future periods or any changes in our forfeiture percentage.The total fair value of options vested during the nine months ended December 31, 2015 and 2014 was $1,564 and $1,633, respectively.

Director Awards

On May 20, 2015, the Board of Directors approved our 2016 Director Compensation Program, pursuant to which each non-employee director is to be grantedshares of restricted stock upon election or re-election to the Board of Directors. The shares of restricted stock will be granted promptly following shareholderapproval and registration of our 2015 Equity Incentive Plan. The shares of restricted stock will be issued according to a standard form of restricted stock awardagreement and pursuant to our 2015 Equity Incentive Plan, will carry a restriction requiring that the restricted stock vest in two equal installments over twoconsecutive years with the vesting dates being the next two meeting dates of our annual shareholders’ meeting following election or re-election to the Board ofDirectors.

Share-based compensation expense related to restricted stock was $249 for the three months ended December 31, 2015 and $245 for the three months endedDecember 31, 2014

Share-based compensation expense related to restricted stock was $664 for the nine months ended December 31, 2015 and $637 for the nine months endedDecember 31, 2014.

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Restricted stock activity for the nine months ended December 31, 2015 is summarized as follows:

Number of

Shares

Weighted-Average

Grant-DateFair Valueper Share

Outstanding, April 1, 2015 78,205 $ 17.94Granted 92,934 12.86Vested (50,426) 19.98Canceled (1,500) 17.95

Outstanding, December 31, 2015 119,213 $ 13.88

The weighted-average grant date fair value for the restricted stock was estimated using the market price of the common stock on the date of grant. The fairvalue of the restricted stock is amortized on a straight-line basis over the vesting period.

As of December 31, 2015, $1,264 of total unrecognized compensation costs related to restricted stock is expected to be recognized over a weighted-averageperiod of 1.6 years. This amount does not include the cost of new restricted stock that may be granted in future periods.

11. Concentration of Credit Risk

We had cash deposits at U.S. banks and financial institutions which exceeded federally insured limits at December 31, 2015. We are exposed to credit loss foramounts in excess of insured limits in the event of non-performance by the institutions; however, we do not anticipate non-performance by these institutions.

12. Commitments, Guarantees and Contingencies

Commitments and Guarantees

Our software license agreements include a performance guarantee that our software products will substantially operate as described in the applicable programdocumentation for a period of 365 days after delivery. To date, we have not incurred any significant costs associated with our performance guarantee or otherrelated warranties and do not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated withthese warranties. Certain arrangements also include performance guarantees related to response time, availability for operational use, and other performance-related guarantees. Certain arrangements also include penalties in the form of maintenance credits should the performance of the software fail to meet theperformance guarantees. To date, we have not incurred any significant costs associated with these warranties and do not expect to incur significant warrantycosts in the future. Therefore, no accrual has been made for potential costs associated with these warranties.

We have historically offered short-term rights of return in certain sales arrangements. If we are able to estimate returns for these types of arrangements and allother criteria for revenue recognition have been met, revenue is recognized and these arrangements are recorded in the consolidated financial statements. Ifwe are unable to estimate returns for these types of arrangements, revenue is not recognized in the consolidated financial statements until the rights of returnexpire, provided also, that all other criteria of revenue recognition have been met.

Certain standard sales agreements contain a money back guarantee providing for a performance guarantee that is already part of the software licenseagreement as well as training and support. The money back guarantee also warrants that the software will remain robust and flexible to allow participation inthe federal health incentive programs. The specific elements of the performance guarantee pertain to aspects of the software, which we have already testedand confirmed to consistently meet using our existing software without any modifications or enhancements. To date, we have not incurred any costs associatedwith this guarantee and do not expect to incur significant costs in the future. Therefore, no accrual has been made for potential costs associated with thisguarantee.

Our standard sales agreements contain an indemnification provision pursuant to which we shall indemnify, hold harmless, and reimburse the indemnified partyfor losses suffered or incurred by the indemnified party in connection with any United States patent, any copyright or other intellectual property infringementclaim by any third-party with respect to our software. As we have not incurred any significant costs to defend lawsuits or settle claims related to theseindemnification agreements, we believe that our estimated exposure on these agreements is currently minimal. Accordingly, we have no liabilities recorded forthese indemnification obligations.

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Hussein Litigation

On October 7, 2013, a complaint was filed against our Company and certain of our officers and directors in the Superior Court of the State of California for theCounty of Orange, captioned Ahmed D. Hussein v. Sheldon Razin, Steven Plochocki, Quality Systems, Inc. and Does 1-10, inclusive, No. 30-2013-00679600-CU-NP-CJC, by Ahmed Hussein, a former director and significant shareholder of our Company. We filed a demurrer to the complaint, which the court grantedon April 10, 2014. An amended complaint was filed on April 25, 2014. The amended complaint generally alleges fraud and deceit, constructive fraud, negligentmisrepresentation and breach of fiduciary duty in connection with statements made to our shareholders regarding our financial condition and projected futureperformance. The amended complaint seeks actual damages, exemplary and punitive damages and costs. We filed a demurrer to the amended complaint. OnJuly 29, 2014, the court sustained the demurrer with respect to the breach of fiduciary duty claim, and overruled the demurrer with respect to the fraud anddeceit claims. On August 28, 2014, we filed an answer and also filed a cross-complaint against the plaintiff, alleging that the plaintiff breached fiduciary dutiesowed to the Company, Mr. Razin and Mr. Plochocki. On June 26, 2015, we filed a motion for summary judgment, which the court granted on September 16,2015, dismissing all claims against us. On September 23, 2015, the plaintiff filed an application for reconsideration of the Court's summary judgment order,which the court denied. On October 28, 2015, the plaintiff filed a motion for summary judgment, seeking to dismiss our cross-complaint. The hearing on theplaintiff's motion for summary judgment is set for February 18, 2016. At this time, we are unable to estimate the probability or the amount of liability, if any,related to this claim.

Federal Securities Class Action

On November 19, 2013, a putative class action complaint was filed on behalf of the shareholders of our Company other than the defendants against us andcertain of our officers and directors in the United States District Court for the Central District of California by one of our shareholders. After the court appointedlead plaintiffs and lead counsel for this action, and recaptioned the action In re Quality Systems, Inc. Securities Litigation, No. 8L13-cv-01818-CJC(JPRx), leadplaintiffs filed an amended complaint on April 7, 2014. The amended complaint, which is substantially similar to the litigation described above under the caption“Hussein Litigation,” generally alleges that statements made to our shareholders regarding our financial condition and projected future performance were falseand misleading in violation of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and that the individual defendants areliable for such statements because they are controlling persons under Section 20(a) of the Exchange Act. The complaint seeks compensatory damages, courtcosts and attorneys' fees. We filed a motion to dismiss the amended complaint on June 20, 2014, which the court granted on October 20, 2014, dismissing thecomplaint with prejudice. Plaintiffs filed a motion for reconsideration of the Court's order, which the court denied on January 5, 2015. On January 30, 2015,Plaintiffs filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit, captioned In re Quality Systems, Inc. Securities Litigation, No. 15-55173. Plaintiffs filed their opening brief and we answered. Oral argument is not yet scheduled. We believe that the plaintiffs' claims are without merit andcontinue to defend against them vigorously. At this time, we are unable to estimate the probability or the amount of liability, if any, related to this claim.

Shareholder Derivative Litigation

On January 24, 2014, a complaint was filed against our Company and certain of our officers and current and former directors in the United States District Courtfor the Central District of California, captioned Timothy J. Foss, derivatively on behalf of himself and all others similarly situated, vs. Craig A. Barbarosh,George H. Bristol, James C. Malone, Peter M. Neupert, Morris Panner, D. Russell Pflueger, Steven T. Plochocki, Sheldon Razin, Lance E. Rosenzweig andQuality Systems, Inc., No. SACV14-00110-DOC-JPPx, by Timothy J. Foss, a shareholder of ours. The complaint arises from the same allegations describedabove under the captions “Hussein Litigation” and “Federal Securities Class Action” and generally alleges breach of fiduciary duties, abuse of control and grossmismanagement by our directors, in addition to unjust enrichment and insider selling by individual directors. The complaint seeks compensatory damages,restitution and disgorgement of all profits, court costs, attorneys’ fees and implementation of enhanced corporate governance procedures. The parties haveagreed to stay this litigation until the United States Court of Appeals for the Ninth Circuit issues a ruling on the pending appeal described above under thecaption “Federal Securities Class Action”. We believe that the plaintiff’s claims are without merit and intend to defend against them vigorously. At this time, weare unable to estimate the probability or the amount of liability, if any, related to this claim.

13. Operating Segment Information

As of December 31, 2015, our Company has three reportable segments that are evaluated regularly by our chief decision making group (consisting of our ChiefExecutive Officer, Interim Chief Financial Officer and Chief Operating Officer) in deciding how to allocate resources and in assessing performance. TheHospital Solutions Division operating segment data for the three and nine months ended December 31, 2015 are reflected through the date of disposition onOctober 22, 2015.

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Operating segment data is as follows:

Three Months Ended December 31, Nine Months Ended December 31,

2015 2014 2015 2014Revenues:

NextGen Division $ 88,693 $ 92,054 $ 275,282 $ 276,914RCM Services Division 22,994 21,913 67,989 58,226QSI Dental Division 4,726 4,480 13,825 13,379Hospital Solutions Division 619 4,977 7,469 13,318

Consolidated revenue $ 117,032 $ 123,424 $ 364,565 $ 361,837

Income (loss) from operations: NextGen Division $ 42,012 $ 45,108 $ 134,510 $ 134,166RCM Services Division 4,838 4,681 13,334 9,583QSI Dental Division 1,783 1,523 4,369 3,859Hospital Solutions Division (2,103) 372 (927) (2,150)Corporate and unallocated (38,093) (43,474) (121,319) (122,234)

Consolidated operating income $ 8,437 $ 8,210 $ 29,967 $ 23,224

The major components of the Corporate and unallocated amounts are summarized in the table below:

Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014Research and development costs $ 14,518 $ 18,468 $ 49,584 $ 51,602Amortization of capitalized software costs 2,499 3,073 7,428 10,190Marketing expense 2,925 3,328 9,664 9,439Other Corporate and overhead costs 18,151 18,605 54,643 51,003

Total Corporate and unallocated 38,093 43,474 121,319 122,234

Assets by segment are not tracked or used by our chief decision making group to allocate resources or to assess performance, and thus not included in thetable above.The amounts classified as Corporate and unallocated consist primarily of corporate general and administrative costs, non-recurring acquisition and transaction-related costs, recurring post-acquisition amortization of certain acquired intangible assets and amortization of capitalized software costs, as well as costs ofother centrally managed overhead and shared-services functions, including accounting and finance, human resources, marketing, legal, and research anddevelopment, that are not controlled by segment level leadership. Although the segments may derive direct benefits as a result of such costs, our chiefdecision making group evaluates performance based upon stand-alone segment operating income, which excludes these Corporate and unallocated amounts.Effective April 1, 2015, as part of our ongoing efforts to refine the measurement of our segment data to better reflect an organizational structure wherebycertain expenses managed by functional area leadership are no longer classified within the operating segments but rather as a component of Corporate andunallocated, we no longer classify certain costs within the information services and credit granting and collections functional areas, such as bad debt expenseand other information services related general and administrative costs, within the operating segments. Such classification is consistent with the disaggregatedfinancial information used by our chief decision making group. We have retroactively reclassified the prior year operating income in the table above to presentall segment information on a comparable basis.

14. Subsequent Events

On January 4, 2016, we entered into a $250,000 revolving credit agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A., as administrativeagent, U.S. Bank National Association, as syndication agent, and certain other lenders. The initial draw down on the Credit Agreement was approximately$173,509. The Credit Agreement is secured by substantially all of our existing and future property and material domestic subsidiaries. The Credit Agreementprovides a subfacility of up to $10,000 for letters of credit and a subfacility of up to $10,000 for swing-line loans. The Credit Agreement matures on January 4,2021 and the full balance of the revolving loans and all other obligations under the agreement must be paid at that time.

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The revolving loans under the Credit Agreement bear interest at our option of either, (a) a base rate based on the highest of (i) the rate of interest per annumpublicly announced from time to time by JPMorgan Chase Bank, N.A., as its prime rate, (ii) the greater of (A) the federal funds effective rate and (B) theovernight bank funding rate (as determined by the Federal Reserve Bank of New York) plus 0.50% and (iii) the one-month LIBOR plus 1.00%) plus anapplicable margin based on our leverage ratio from time to time, ranging from 0.50% to 1.50%, or (b) a LIBOR-based rate (subject to a floor of 0.00%) plus anapplicable margin based on our leverage ratio from time to time, ranging from 1.50% to 2.50%. We will also pay a commitment fee of between 0.25% and0.45%, payable quarterly in arrears, on the average daily unused amount of the revolving facility based on our leverage ratio from time to time.The revolving loans are subject to customary representations, warranties and ongoing affirmative and negative covenants and agreements. The negativecovenants include, among other things, limitations on indebtedness, liens, asset sales, mergers and acquisitions, investments, transactions with affiliates,dividends and other restricted payments, subordinated indebtedness and amendments to subordinated indebtedness documents and sale and leasebacktransactions. The Credit Agreement also requires us to maintain a maximum leverage ratio and minimum fixed charge coverage ratio. The revolving loansunder the Credit Agreement will be available for letters of credit, working capital and general corporate purposes.

Also on January 4, 2016, we completed our acquisition of HealthFusion Holdings, Inc. ("HealthFusion") pursuant to the Agreement and Plan of Merger (the“Merger Agreement"), dated October 30, 2015. HealthFusion provides Web-based, cloud computing software for physicians, medical billing service providers,and hospitals. Its flagship product, MediTouch, is a fully-integrated, cloud-based software suite consisting of clearinghouse, practice management, electronichealth records, and patient portals with rich functionality to enable mobility, workflow automation, and advanced reporting and analytics aimed primarily atsmall-to-mid-size physician practices. The acquisition of HealthFusion is part of our strategy to expand its client base and cloud-based solution capabilities inthe ambulatory market. Over time, we plan to expand the HealthFusion platform to satisfy the needs of practices of increasing size and complexity.

Total cash consideration paid was $165,000, subject to certain adjustments in accordance with the Merger Agreement. In addition, we may pay up to anadditional $25,000 in cash in the form of an earnout, subject to HealthFusion achieving certain revenue targets through December 31, 2016. This acquisitionwas funded by our initial draw down of the Credit Agreement, a portion of which has been subsequently repaid from our cash on hand. We are in the process ofdetermining the purchase price allocation for this acquisition.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and certain information incorporated herein by reference contain forward-looking statements within the “safe harbor”provisions of the Private Securities Litigation Reform Act of 1995. All statements included or incorporated by reference in this Quarterly Report on Form 10-Q,other than statements that are purely historical, are forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,”“estimate,” “will,” “should,” “would,” “could,” “may,” and similar expressions also identify forward-looking statements. These forward-looking statements include,without limitation, discussions of our product development plans, business strategies, future operations, financial condition and prospects, developments in andthe impacts of government regulation and legislation, including, without limitation, The American Recovery and Reinvestment Act ("ARRA"), the PatientProtection and Affordable Care Act ("PPACA"), and the Medicare Access and CHIP Reauthorization Act of 2015 ("MACRA"), and market factors influencing ourresults. Our expectations, beliefs, objectives, intentions and strategies regarding our future results are not guarantees of future performance and are subject torisks and uncertainties, both foreseen and unforeseen, that could cause actual results to differ materially from results contemplated in our forward-lookingstatements. These risks and uncertainties include, but are not limited to, our ability to continue to develop new products and increase systems sales in marketscharacterized by rapid technological evolution, consolidation, and competition from larger, better-capitalized competitors. Many other economic, competitive,governmental and technological factors could affect our ability to achieve our goals, and interested persons are urged to review any risks that may bedescribed in “Item 1A. Risk Factors” as set forth herein and other risk factors appearing in our most recent Annual Report on Form 10-K for the fiscal yearended March 31, 2015 (“Annual Report”), as supplemented by additional risk factors, if any, in our interim filings on our Quarterly Reports on Form 10-Q, aswell as in our other public disclosures and filings with the Securities and Exchange Commission ("SEC"). Because of these risk factors, as well as othervariables affecting our financial condition and results of operations, past financial performance may not be a reliable indicator of future performance andhistorical trends should not be used to anticipate results or trends in future periods. We assume no obligation to update any forward-looking statements. Youare cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of the filing of this Quarterly Report on Form 10-Q.

This management's discussion and analysis of financial condition and results of operations ("MD&A") is provided as a supplement to the consolidated financialstatements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q in order to enhance your understanding of our results of operationsand financial condition and should be read in conjunction with, and is qualified in its entirety by, the consolidated financial statements and related notes theretoincluded elsewhere in this Quarterly Report on Form 10-Q. Historical results of operations, percentage margin fluctuations and any trends that may be inferredfrom the discussion below are not necessarily indicative of the operating results for any future period.

Our MD&A is organized as follows:

• Management Overview. This section provides a general description of our Company and operating segments, a discussion as to how we derive ourrevenue, background information on certain trends and developments affecting our Company and a discussion on management’s strategy fordriving revenue growth.

• Critical Accounting Policies and Estimates. This section discusses those accounting policies that are considered important to the evaluation andreporting of our financial condition and results of operations, and whose application requires us to exercise subjective or complex judgments inmaking estimates and assumptions. In addition, all of our significant accounting policies, including our critical accounting policies, aresummarized in Note 1, “Summary of Significant Accounting Policies,” of our notes to consolidated financial statements included elsewhere in thisQuarterly Report on Form 10-Q.

• Company Overview. This section provides a more detailed description of our Company, its operating segments, a summary of our recent acquisitiontransactions and the products and services we offer.

• Overview of Results of Operations and Results of Operations by Divisions. These sections provide our analysis and outlook for the significant lineitems on our consolidated statements of comprehensive income, as well as other information that we deem meaningful to understand our resultsof operations on both a consolidated basis and divisional basis.

• Liquidity and Capital Resources. This section provides an analysis of our liquidity and cash flows.

• New Accounting Pronouncements. This section provides a summary of the most recent authoritative accounting standards and guidance that haveeither been recently adopted by our Company or may be adopted in the future.

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Management Overview

Quality Systems, Inc. and its wholly-owned subsidiaries operate as three business divisions (each, a "Division") which are comprised of: (i) the NextGenDivision, (ii) the RCM Services Division, and (iii) the QSI Dental Division. The Hospital Solutions Division was sold to QuadraMed Affinity Corporation (part ofthe Harris Operating Group of Constellation Software Inc.) on October 22, 2015. We also have a captive entity in India called Quality Systems India HealthcarePrivate Limited (“QSIH”).

We primarily derive revenue by developing and marketing healthcare information systems that automate certain aspects of medical and dental practices,networks of practices such as physician hospital organizations (“PHOs”) and management service organizations (“MSOs”), accountable care organizations,ambulatory care centers, community health centers and medical and dental schools along with comprehensive systems implementation, maintenance andsupport and add-on complementary services such as revenue cycle management (“RCM”) and electronic data interchange (“EDI”). Our systems and servicesprovide our customers with the ability to redesign patient care and other workflow processes while improving productivity through the facilitation of managedaccess to patient information. Utilizing our proprietary software in combination with third party hardware and software solutions, our products enable theintegration of a variety of administrative and clinical information operations. Our scalable interoperability and population health offerings help to improve carecollaboration, quality and safety. Enabled by our interoperability and enterprise analytics solutions, data-driven patient population healthcare managementdecisions can assist in creating more desirable operational, clinical, and financial outcomes that substantiate the value of patient-centered and accountablecare models.

The turbulence in the worldwide economy has impacted almost all industries. While healthcare is not immune to economic cycles, we believe it is more heavilyinfluenced by U.S.-based regulatory and national health projects than by the cycles of our economy. The impact of the current economic conditions on ourexisting and prospective customers has been mixed. Various factors have had, and are anticipated to continue to have, a meaningful impact on the U.S.healthcare industry. Particularly, the healthcare industry has been significantly impacted by the Obama Administration's broad healthcare reform efforts,including the Health Information Technology for Economic and Clinical Health ("HITECH") portion of the American Recovery and Reinvestment Act ("ARRA")and the Patient Protection and Affordable Care Act ("PPACA") that provides significant incentives to health care organizations for "Meaningful Use" adoptionand interoperable electronic health record solutions, the mandate requiring individuals to obtain insurance, the individual state responses to the government-requested Medicaid expansion, the creation and operation of insurance exchanges, and the increasing focus of private businesses on moving their employeehealth benefit offerings to a more wellness-based health platform.

We have benefited and hope to continue to benefit from the increased demands on healthcare providers for greater efficiency and lower costs, financialincentives from the HITECH portion of the ARRA to physicians who adopt electronic health records, as well as increased adoption rates for electronic healthrecords and other technology in the healthcare arena. We also believe that healthcare reform, including the repeal of the sustainable growth rate (SGR)formula in April 2015 as part of the Medicare Access and CHIP Reauthorization Act of 2015 ("MACRA"), and a movement towards a value-based, pay forperformance model and quality initiative efforts will also stimulate demand for robust electronic health record solutions as well as new healthcare informationtechnology solutions from bundled billing capabilities to patient engagement and population health management.

While we expect to benefit from the increasing demands for greater efficiency as well as government support for increased adoption of electronic healthrecords systems, the market for physician based electronic health records software is becoming increasingly saturated while physician group practices arerapidly being consolidated by hospital, insurance payers and other entities. Hospital software providers are leveraging their position with their hospitalcustomers to gain market share with hospital owned physician practices. Insurance providers and large physician groups are also consolidating physicianoffices creating additional opportunity for ambulatory software providers like us. Our strategy is to focus on addressing the growing needs of accountable careorganizations around interoperability, patient engagements, population health and collaborative care management, and data analytics.

We believe that our core strength lies in the central role our software products and services play in the delivery of healthcare by the primary physician in anambulatory setting. We intend to remain at the forefront of upcoming new regulatory requirements including meaningful use requirements for stimuluspayments. We believe that the expanded requirements for continued eligibility for incentive payments under meaningful use rules will result in an expandedreplacement market for electronic health records software. We intend to continue the development and enhancement of our software solutions to supporthealthcare reform, such as the recently enacted MACRA, which promotes the transition from fee-for-service to value-based, pay-for-performance, and patient-centric care and quality initiatives such as accountable care organizations. Key elements of our future software development will be to expand ourinteroperability capabilities enhancing the competitiveness of our software offerings, make our products more intuitive and easy to use, and to enhance ourability to deliver our software over the cloud with the latest technology.

We also want to continue investments in our infrastructure, including but not limited to maintaining and expanding sales, marketing and product developmentactivities in order to improve patient care and reduce healthcare costs, providing industry-leading, integrated clinical and administrative healthcare datasystems, services and expertise to clinical, medical, technology, and healthcare business professionals while continuing our strong commitment of superbservice in support of our customer satisfaction programs. These investments in our infrastructure will continue while maintaining reasonable expense discipline.We strive to add new customers and expand our relationship with existing customers through delivery of add-on and complementary products and

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services and believe that our customer base that is using our software on a daily basis is a strategic asset. We intend to leverage this strategic asset byexpanding our product and service offerings towards this customer base.

On January 4, 2016, we completed our acquisition of HealthFusion Holdings, Inc. ("HealthFusion") pursuant to the Agreement and Plan of Merger, datedOctober 30, 2015. HealthFusion provides Web-based, cloud computing software for physicians, medical billing service providers, and hospitals. Its flagshipproduct, MediTouch, is a fully-integrated, cloud-based software suite consisting of clearinghouse, practice management, electronic health records, and patientportals with rich functionality to enable mobility, workflow automation, and advanced reporting and analytics aimed primarily at small-to-mid-size physicianpractices. The acquisition of HealthFusion is part of our strategy to expand its client base and cloud-based solution capabilities in the ambulatory market. Overtime, we plan to expand the HealthFusion platform to satisfy the needs of practices of increasing size and complexity. We are evaluating the impact ofHealthFusion’s existing cloud-based product on our ongoing efforts to develop and release our NextGen Now cloud-based platform. Our assessment may leadus to determine that the HealthFusion product, which is already a production-ready and sellable solution, may represent a more prudent investment in ourtechnical future than continuing with the NextGen Now development plans. If we decide to abandon further development of the previously capitalized NextGenNow platform or certain components thereof, a material impairment of the asset may result.

Critical Accounting Policies and Estimates

The discussion and analysis of our consolidated financial statements and results of operations is based upon our consolidated financial statements, which havebeen prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated financialstatements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosuresof contingent assets and liabilities. On an on-going basis, we evaluate estimates (including but not limited to those related to revenue recognition, accountsreceivable reserves, software development costs, contingent consideration liabilities, goodwill, and intangible assets) for reasonableness. We base ourestimates on historical experience and on various other assumptions that management believes to be reasonable under the circumstances, the results of whichform the basis for making judgments about the carrying values of assets and liabilities that may not be readily apparent from other sources. Actual results maydiffer from these estimates under different assumptions or conditions.

We describe our significant accounting policies in Note 2, “Summary of Significant Accounting Policies,” of our notes to consolidated financial statementsincluded in our Annual Report. We discuss our critical accounting policies and estimates in Part II, Item 7, “Management’s Discussion and Analysis of FinancialCondition and Results of Operations,” of our Annual Report. There have been no material changes in our significant accounting policies or critical accountingpolicies and estimates since the end of fiscal year 2015.

Company Overview

Quality Systems, Inc. was incorporated in California in 1974. Our principal offices are located at 18111 Von Karman Ave., Suite 700, Irvine, California, 92612.We operate on a fiscal year ending on March 31.

Our Company was founded with an early focus on providing information systems to dental group practices. This focus area would later become the QSI DentalDivision. In the mid-1980s, we capitalized on the increasing focus on medical cost containment and further expanded our information processing systems toserve the ambulatory market. In the mid-1990s, we made two acquisitions that accelerated our penetration of the ambulatory market and formed the basis forthe NextGen Division. In the last few years, we acquired ViaTrack Systems, LLC ("ViaTrack") and Matrix Management Solutions, LLC ("Matrix") as part of ourstrategy to enhance our EDI and RCM services capabilities. More recently, we acquired Mirth Corporation ("Mirth") and Gennius, Inc ("Gennius"), both of whichoperate under the NextGen Division. Mirth enhances our current enterprise interoperability initiatives and broadens our accountable and collaborative care,population health, disease management and clinical data exchange offerings. Gennius is expected to enhance our current enterprise healthcare data analyticscompetencies while broadening business intelligence capabilities for addressing new value-based care requirements. In October 2015, we sold our HospitalSolutions Division in an effort to focus on our core ambulatory business. Today, we serve the ambulatory, RCM services and dental markets through each ofour three business Divisions.

A growing number of customers are simultaneously utilizing software or services from more than one of our Divisions. In an effort to further enhance our abilityto cross sell products and services between Divisions, we are in the process of further integrating our products to provide a more robust and comprehensiveplatform to offer our customers. To achieve greater efficiency and integration within our operations, we have consolidated our divisional sales, marketing,information services, and software development responsibilities into single company-wide roles. The Divisions also share the resources of our “corporateoffice,” which includes a variety of accounting and other administrative functions. We continue to evaluate the organizational structure of the Company with theobjective of achieving greater synergies and further integration of our products and services, including software implementation and customer supportfunctions.

The NextGen Division and QSI Dental Division develop and market software that is designed to automate and streamline a number of the administrativefunctions required for operating a medical or dental, such as patient scheduling and billing. Since practice management software systems have already beenimplemented by the vast majority of both the medical and dental practices, we actively compete in a replacement market by leveraging the benefits of ourinteroperable electronic health records software. With

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the addition of Gennius and Mirth, our combined solutions enrich the already strong collaborative, connected care support and set the stage for datasynchronization and enterprise analytics, interoperability growth and expansion of our current accountable and collaborative care, population health, diseasemanagement and clinical data exchange offering. These Divisions also develop and market software that automates patient records in physician practices,community health centers and hospital settings. In this patient records area of our business, we are typically competing to replace paper-based patient recordalternatives as opposed to replacing previously purchased systems. The RCM Services Division provides technology solutions and outsourcing services tocover the full spectrum of healthcare providers' RCM needs, with a primary focus on outsourced billing and collection services.

QSIH, located in Bangalore, India, functions as our India-based captive entity to offshore technology application development and business processingservices. Our employee base in Bangalore has grown to over 450 employees with a primary focus on software development activities.

We continue to pursue product and service enhancement initiatives within each of our Divisions. The majority of such expenditures are currently targeted to theproduct lines and customer base of the NextGen Division.

The following table reflects our reported segment revenue breakdown by Division and segment revenue growth (decline) as compared to the prior year periodfor the three and nine months ended December 31, 2015 and 2014. Operating results for the Hospital Solutions Division are included in the table belowthrough the date of disposition.

Segment Revenue Breakdown Three Months Ended December 31, Nine Months Ended December 31,

2015 2014 2015 2014NextGen Division 75.9% 74.6% 75.6% 76.5%RCM Services Division 19.6% 17.8% 18.6% 16.1%QSI Dental Division 4.0% 3.6% 3.8% 3.7%Hospital Solutions Division 0.5% 4.0% 2.0% 3.7%

Consolidated 100.0% 100.0% 100.0% 100.0%

Segment Revenue Growth (Decline) Three Months Ended December 31, Nine Months Ended December 31,

2015 2014 2015 2014NextGen Division (3.7)% 8.7 % (0.6)% 66.6%RCM Services Division 4.9 % 30.9 % 16.8 % 70.7%QSI Dental Division 5.5 % (8.6)% 3.3 % 33.1%Hospital Solutions Division (87.6)% 5.1 % (43.9)% 30.6%

Consolidated (5.2)% 11.1 % 0.8 % 64.0%

NextGen Division. The NextGen Division, with headquarters in Horsham, Pennsylvania and significant locations in Atlanta, Georgia and Costa Mesa,California, provides integrated clinical, financial and connectivity solutions for ambulatory and dental provider organizations. The NextGen Division's majorproduct categories include the NextGen® ambulatory product suite and interoperability solutions.

The NextGen® ambulatory product suite features an integrated and interoperable solution that streamlines the business of running a practice as well as patientcare with standardized, real-time clinical and administrative workflows within a physician’s practice. Major ambulatory product lines include NextGen® EHR("Electronic Health Record"), NextGen® PM ("Practice Management"), NextGen® Population Health (including NextGen® Care), NextGen® Analytics,NextGen® Patient Portal ("NextMD.com"), NextGen® Document Management, NextGen® ePrescribing, NextGen® Mobile, and NextGen® NextPen. Theinteroperability solutions consist of NextGen® EHR Connect, NextGen® Health Information Exchange ("HIE"), and NextGen® Share. The NextGen Divisionalso offers hosting services, NextGuard data protection services, professional consulting services, such as strategic governance models and operationaltransformation, technical consulting services, such as data conversions or interface development, and physician consulting services. The NextGen Divisionproducts utilize Microsoft Windows technology and can operate in a client-server environment as well as via private intranet, the Internet, or in an ASPenvironment. The NextGen Division also provides EDI services, which include electronic submission of claims to insurance providers as well as automatedpatient statements.

On September 9, 2013, we acquired Mirth, a global leader in health information technology that helps customers achieve interoperability. Operating resultsassociated with Mirth products and services are included in the NextGen Division. The acquisition of Mirth enhances our current enterprise interoperabilityinitiatives and broadens our accountable and collaborative care, population

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health, disease management and clinical data exchange offerings. Mirth offers a wide variety of products and services utilized by both users of Mirth open codetechnology as well as a large base of domestic and international paying customers. Product offerings available from Mirth include Mirth Connect, Mirth Results,Mirth Match, Mirth Mail, Mirth Appliance, and Mirth Care Enterprise. As a direct result of the Mirth acquisition, we introduced NextGen® Share to our customerbase in November 2013. As our first offering that integrates technologies from both NextGen Healthcare and Mirth, NextGen® Share provides the ability tosecurely and easily share patient charts and other data with other practices using NextGen Internet based software.

On March 11, 2015, we acquired Gennius, a provider of healthcare data analytics. Gennius's operations are managed under the NextGen Division. Theacquisition of Gennius is expected to enhance our current enterprise analytics competencies while broadening business intelligence capabilities for addressingnew value-based care requirements.

RCM Services Division. The RCM Services Division, with locations in St. Louis, Missouri, North Canton, Ohio, South Jordan, Utah and Hunt Valley, Maryland,provides technology solutions and consulting services to cover the full spectrum of healthcare providers' RCM needs, from patient access through claimsdenials, with a primary focus on billing and collection services in order to optimize customers' revenue cycle results, improve cash flow, and decrease accountsreceivable days. The RCM Services Division combines a high-touch service model and the NextGen® PM software platform to execute its service offerings,which include billing and collections, claims submissions and reconciliation, coding services, electronic remittance and payment posting, accounts receivablemanagement, patient customer service, advance analytics, charge entry and capture, enrollment credentialing, and software setup, hosting and support.

QSI Dental Division. The QSI Dental Division, co-located with our corporate headquarters in Irvine, California, focuses on developing, marketing andsupporting software suites sold to dental group organizations located throughout the United States. The QSI Dental Division sells additional licenses to itslegacy products as existing customers expand their operations and also sells its practice management and clinical software solutions to new and existingcustomers primarily as a cloud-based SaaS model, known as QSIDental Web ("QDW"). QDW is marketed primarily to multi-location dental group practices inwhich the QSI Dental Division has historically been a dominant player. When sold under a SaaS model, QDW offers a lower cost of ownership as it is a cloud-based solution that provides users with access to vital data from any web-enabled device. Further, QSI Dental sells its electronic dental charting software inconjunction with NextGen® PM and EHR, which is marketed as NextGen® EDR (“Electronic Dental Record”) to federally qualified health centers (“FQHC”) andother safety-net clinics, as further defined below.

The QSI Dental Division participates jointly with the NextGen Division in providing software and services to safety-net clinics like FQHCs and other safety-nethealth centers, including public health centers, community health centers, free clinics, as well as rural and tribal health centers. FQHCs and other safety-netclinics are community-based organizations that are funded by the federal government, which provide medical and dental services to underprivileged andunderserved communities. The Patient Protection and Affordable Care Act, which was signed into law in March 2010, reserved $11 billion over a multi-yearperiod for FQHCs, creating unprecedented opportunities for FQHCs growth and the formation of new FQHCs. When combined and used in tandem, NextGen®EHR, NextGen® EDR, and NextGen® PM are capable of providing an integrated patient record, which is a unique product in this marketplace that isaccessible by both physicians and dentists. In May 2013, NextGen® EDR version 4.3 was ONC-ATCB certified by the Certification Commission for HealthInformation ("CCHIT®") as a complete EHR and demonstrated compliance with all clinical quality measures for eligible providers.

The QSI Dental Division's legacy practice management software suite, known as Clinical Product Suite (“CPS”), uses a UNIX® operating system and can befully integrated with the customer server-based practice management software offered by each of our Divisions. When integrated and delivered with theNextGen® PM solution, CPS is re-branded as NextGen® EDR and incorporates a wide range of clinical tools including, but not limited to, periodontal chartingand digital imaging of X-ray and inter-oral camera images, that are integrated as part of the electronic patient record. The QSI Dental Division also develops,markets, and provides EDI services to dental practices, including electronic submission of claims to insurance providers as well as automated patientstatements.

Overview of Our Results

• Consolidated revenue increased 0.8%, or $2.7 million, in the nine months ended December 31, 2015 as compared to the prior year period. The change isprimarily the result of a 16.4% increase in software related subscription services revenues, a 14.9% increase in RCM and related services revenues, and a9.1% increase in EDI and data services revenue, partially offset by a 14.0% decrease in software license and hardware revenue and a 19.8% decrease inprofessional services revenue. The increase in subscription services revenue reflects growth in subscriptions related to our interoperability and patientportal product offerings. The increase in RCM and related services revenues are the result of new customer additions and organic growth. The growth inEDI and data services revenue has come from new customers and from further penetration of our existing customer base. The decline in software licenseand hardware revenue reflects the increasingly saturated markets in which our core software products are sold, and the decline in professional servicesrevenue is due to lower implementation and training revenue resulting from the recent decline in system sales and lower consulting services revenue dueto reduced demand from customers.

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• Consolidated gross profit as a percentage of revenue increased to 54.4% for the nine months ended December 31, 2015 compared to 53.8% in the prioryear period primarily due to improved profitability from RCM and related services, EDI and data services, and professional services, resulting from moreeffective cost management.

• Consolidated operating income increased 29.0%, or $6.7 million, in the nine months ended December 31, 2015 as compared to the prior year period. Theincrease is mostly due to a 1.9%, or $3.7 million, increase in gross profit resulting from the increase in total revenues and improvements in profitabilitynoted above and a decrease of 3.9%, or $2.0 million, in research and development costs attributed mostly to higher rates of capitalization of software costsrelated to the development of enhancements to our ambulatory software products during the nine months ended December 31, 2015 as compared to theprior year period.

NextGen Division• NextGen Division revenue decreased by 0.6% in the nine months ended December 31, 2015, as compared to the prior year period. Divisional software

license and hardware revenue decreased by 11.8% and professional services revenue decreased by 22.9%, offset by an increase of 18.5% in softwarerelated subscription services revenue, an increase of 8.4% in EDI and data services revenue, and an increase of 1.7% in support and maintenancerevenue. As noted above, the increase in subscription services revenue reflects growth in interoperability subscriptions as well as subscriptions related toour NextGen® Patient Portal product offering while the decrease in software license and hardware revenue and professional services revenue reflects theincreasingly saturated markets in which our core software products and services are sold.

• NextGen Division operating income (excluding Corporate and unallocated amounts) increased by 0.3% in the nine months ended December 31, 2015, ascompared to the prior year period. Although overall operating expenses decreased by 11.4%, or $5.4 million, primarily as a result of lower salescommissions associated with a decline in new system sales and a decrease in other personnel related costs resulting from improved operational efficiency,such benefit was mostly offset by a $5.0 million decline in divisional gross profit caused primarily by a decrease in high-margin software license sales.

• Our goals for the NextGen Division include further enhancement of our existing products, including expansion of our software and service offerings thatsupport pay-for-performance initiatives around accountable care organizations, bringing greater ease of use and intuitiveness to our software products,enhancing our managed cloud and hosting services to lower our clients' total cost of ownership, expanding our interoperability and enterprise analyticscapabilities, and further development and enhancements of our portfolio of specialty focused templates within our electronic health records software. Weintend to remain at the forefront of upcoming new regulatory requirements, including meaningful use requirements for stimulus payments and recenthealthcare reform that is driving the transition towards pay-for-performance, value-based reimbursement models. We believe that the expandedrequirements for continued eligibility for incentive payments under meaningful use rules will result in an expanded replacement market for electronic healthrecords software. We also intend to continue selling additional software and services to existing customers, expanding penetration of connectivity and otherservices to new and existing customers, and capitalizing on growth and cross selling opportunities within the RCM Services Division. Our acquisitions ofMirth and Gennius improve our competitiveness in the markets and provide new customers and expanded markets for the NextGen Division and alsosupport our strategy to focus on accountable care organizations around interoperability, patient engagements, population health and collaborative caremanagement, and enterprise analytics. We believe we are well-positioned within the evolving healthcare market to deliver products and services thataddress the growing importance of quality collaborative care and shift from fee-for-service to value-based, pay-for-performance care.

• The NextGen Division’s growth is attributed to a strong brand name and reputation within the marketplace for healthcare information technology softwareand services and investments in sales and marketing activities, including new marketing campaigns, Internet advertising investments, tradeshowattendance and other expanded advertising and marketing expenditures.

RCM Services Division

• RCM Services Division revenue increased 16.8%, or $9.8 million, in the nine months ended December 31, 2015. The RCM Services Division benefitedmostly from new customer additions during the nine months ended December 31, 2015 as well as organic growth achieved through cross selling RCMservices to existing NextGen Division customers.

• Divisional operating income (excluding Corporate and unallocated amounts) increased 39.1%, or $3.8 million, in the nine months ended December 31,2015 as compared to the prior year period primarily due to an increase in divisional gross profit, offset by higher operating expense related mostly to highersales commissions associated with the growth in revenue noted above.

• The Company believes that a significant opportunity exists to continue cross selling RCM services to existing customers. The portion of existing NextGencustomers who are using the RCM Services Division's services is approximately 10%. Management is actively pursuing efforts to achieve faster growthfrom expanded efforts to leverage the existing NextGen Division's sales force towards selling RCM services. We also believe that ongoing increases in thecomplexity of medical billing and collections processes, including the migration to value-based reimbursement models, will create additional opportunitiesfor our RCM Services Division.

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QSI Dental Division

• QSI Dental Division revenue increased 3.3%, or $0.4 million in the nine months ended December 31, 2015 primarily due to a $0.3 million increase insoftware license and hardware revenue and a $0.3 million increase in software related subscription services, offset by a $0.3 million decrease in supportand maintenance revenue.

• Divisional operating income (excluding Corporate and unallocated amounts) increased 13.2%, or $0.5 million, in the nine months ended December 31,2015 as compared to the prior year period primarily due to the increase in divisional gross profit associated with the increase in higher-margin softwarelicense and software related subscription services revenue noted above.

• The QSI Dental Division is well-positioned to sell to the FQHCs market and intends to continue leveraging the NextGen Division's sales force to sell itsdental electronic medical records software to practices that provide both medical and dental services, such as FQHCs, which are receiving grants as partof the ARRA. Our goal for the QSI Dental Division is to continue to invest in the new cloud-based QDW platform while aggressively marketing QDW to bothnew and existing customers.

Hospital Solutions Division

• On October 22, 2015, we closed an Asset Purchase Agreement with Quadramed Affinity Corporation in which we sold and assigned substantially all assetsand liabilities of the Hospital Solutions Division (“Hospital disposition”). We believe that the Hospital disposition will allow us to focus our efforts andresources on our core ambulatory business. The results of operations included within this management's discussion and analysis reflect the operatingresults of the Hospital Solutions Division through the date of disposition.

• Hospital Solutions Division revenue decreased 43.9% in the nine months ended December 31, 2015. Revenue was primarily impacted by a 70.4%decrease in software, hardware and related revenue and a 48.2% decrease in professional services revenue. These decreases are primarily the result ofreduced demand for implementation, training, and consulting services due to a decline in new software sales and because software license and hardwaresales and software related subscriptions services revenue in the prior year period were favorably impacted by decreases in reserves for sales credits.Additionally, the Hospital disposition partially contributed to the overall decrease in revenue as compared to the prior year period.

• Divisional operating loss (excluding Corporate and unallocated amounts) was $0.9 million for the nine months ended December 31, 2015 as compared to a$2.2 million loss for the prior year period. The improvement in operating results is due mostly to a decrease in selling, general and administrative expensesassociated mostly to decline in divisional headcount.

• A $1.8 million loss (including related incremental direct costs) on the Hospital disposition was recorded in the nine months ended December 31, 2015 andis reflected as a component of selling, general and administrative expense on our consolidated statements of comprehensive income.

Corporate and unallocated amounts (costs not allocated to the operating segments)

• Research and development costs decreased by 3.9% to $49.6 million for the nine months ended December 31, 2015 as compared to $51.6 million for theprior year period attributed mostly to higher rates of capitalization of software costs related to the development of enhancements to our ambulatorysoftware products. Capitalized software costs increased to $11.6 million as compared to $9.5 million for the prior year period while gross expenditures,including both amounts expensed and capitalized, remained consistent with the prior year period. The table below provides a summary of the amount ofsoftware costs capitalized in proportion to the amount of gross expenditures for the three and nine months December 31, 2015 and 2014:

Nine Months Ended December 31, 2015 2014Gross expenditures $ 61,188 $ 61,137Capitalized software costs (11,604) (9,535)Research and development costs, as reported $ 49,584 $ 51,602 Capitalized software costs as a percentage of gross expenditures 19.0% 15.6%

• Amortization of capitalized software costs decreased by 27.1% to $7.4 million for the nine months ended December 31, 2015 as compared to $10.2 millionfor the prior year period. The decrease in amortization of capitalized software costs is due to certain products being fully amortized. Amortization ofcapitalized software costs are reflected as cost of revenue on our consolidated statements of comprehensive income. Refer to Note 6, “CapitalizedSoftware Costs” of our notes to the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for an estimate of futureamortization of capitalized software costs.

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• Other Corporate and overhead costs increased by $3.6 million to $54.6 million for the nine months ended December 31, 2015 as compared to $51.0 millionfor the prior year period primarily due to higher bad debt expense and acquisition related costs. In addition, higher utilization of online advertising andmedia placement has resulted in a 2.4% increase in marketing expense to $9.7 million for the nine months ended December 31, 2015 as compared to $9.4million for the prior year period.

Comparison of the Three Months Ended December 31, 2015 and December 31, 2014

Net Income. Our net income for the three months ended December 31, 2015 was $7.3 million, or $0.12 per share on both a basic and fully diluted basis. Incomparison, we had net income of $6.7 million, or $0.11 per share on both a basic and fully diluted basis for the three months ended December 31, 2014. The$0.6 million increase in net income for the three months ended December 31, 2015 as compared to the prior year period was primarily attributed to thefollowing:

• a $4.0 million decrease in research and development costs due to higher rates of capitalization of software costs related to the development ofenhancements to our ambulatory software products combined with lower gross expenditures, including both amounts expensed and capitalized,related to lower costs as a result of the Hospital disposition and lower third-party consulting costs, and

• a $2.1 million decrease in selling, general and administrative costs due primarily to lower shareholder litigation expense, offset by higher acquisitionrelated costs and the loss on Hospital disposition, partially offset by

• a $5.8 million decrease in gross profit due mostly to a decrease in high-margin software license sales.

Revenues. Revenue for the three months ended December 31, 2015 decreased 5.2% to $117.0 million from $123.4 million for the three months endedDecember 31, 2014. NextGen Division revenue decreased 3.7% to $88.7 million compared to $92.1 million in the three months ended December 31, 2014;RCM Services Division revenue increased 4.9% to $23.0 million from $21.9 million; QSI Dental Division revenue increased 5.5% to $4.7 million from $4.5million; and Hospital Solutions Division revenue decreased 87.6% to $0.6 million from $5.0 million in the three months ended December 31, 2014.

Software, Hardware and Related. Revenue from consolidated software, hardware and related sales for the three months ended December 31, 2015decreased 16.3% to $27.9 million from $33.3 million in the prior year period.

The following table summarizes software, hardware and related sales on a consolidated and divisional basis for the three months ended December 31, 2015and 2014 (in thousands):

Software License

and Hardware

Software RelatedSubscription

Services

Total Software,Hardware and

RelatedThree Months Ended December 31, 2015 NextGen Division $ 15,663 $ 11,220 $ 26,883RCM Services Division 3 — 3QSI Dental Division 526 395 921Hospital Solutions Division (42) 90 48

Consolidated $ 16,150 $ 11,705 $ 27,855

Three Months Ended December 31, 2014 NextGen Division $ 19,210 $ 10,645 $ 29,855RCM Services Division 143 222 365QSI Dental Division 435 284 719Hospital Solutions Division 1,640 713 2,353

Consolidated $ 21,428 $ 11,864 $ 33,292

Software, hardware and related sales for the NextGen Division decreased by $3.0 million in the three months ended December 31, 2015 compared to the prioryear period due primarily to a $3.5 million, or 18.5%, decrease in software license and hardware revenue, offset by an increase of $0.6 million, or 5.4%, insoftware related subscription services revenue resulting from growth in both our interoperability subscriptions and subscriptions related to our NextGen®Patient Portal product offering. The decline in NextGen Division software license and hardware revenue is principally due to increasing levels of marketsaturation for core electronic health record and practice management solutions. The NextGen Division’s software license and hardware revenue accounted for58.3% of divisional software, hardware and related revenue during the three months ended December 31, 2015 compared to 64.3% during the prior yearperiod.

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The RCM Services Division was not a significant contributor to consolidated software, hardware and related revenue for both the three months endedDecember 31, 2015 and 2014 as a result of the nature of the division's product and service offering.

Total software, hardware and related sales for the QSI Dental Division increased 28.1%, or $0.2 million, in the three months ended December 31, 2015 versusthe same period last year primarily due to higher software license sales and increases in software related subscription services, such as QDW, the Division'scloud-based software solution. QDW is sold primarily as a SaaS solution for which revenue is recognized over an extended period of time rather than upfront.

At the Hospital Solutions Division, software, hardware and related revenue decreased 98.0%, or $2.3 million in the three months ended December 31, 2015versus the same period last year primarily due to the Hospital disposition in October 2015.

We expect to benefit, over time, from growth in the replacement market, driven by an expected consolidation of electronic health records vendors. We alsoanticipate the creation of new opportunities in connection with the evolution of healthcare from a fee-for-services reimbursement model to a pay-for-performance model around the management of patient populations. Our acquisitions of Gennius and Mirth provided us with new products and services aroundpopulation health, collaborative care management, interoperability and enterprise analytics to address these market dynamics. While it remains difficult toassess the relative impact or the timing of positive and negative trends affecting the aforementioned market opportunities, we believe we are well positioned toremain a leader in serving the evolving market needs for healthcare information technology.

Support and Maintenance, RCM, EDI and Professional Services. For the three months ended December 31, 2015, our consolidated revenue from RCMand related services and EDI and data services increased by 5.9%, and 8.4%, respectively, compared to the prior year period. Consolidated revenue fromsupport and maintenance decreased by 8.2% compared to the prior year period as a result of increases in sales credits and related reserves and net customerattrition. Professional services revenue decreased by 2.9% compared to the prior year period due to lower demand for related system sales.

The following table summarizes support and maintenance, RCM and related services, EDI and data services and professional services revenue by category ona consolidated and divisional basis for the three months ended December 31, 2015 and 2014 (in thousands):

Support andMaintenance

RCM andRelated Services

EDI and DataServices

ProfessionalServices

Three Months Ended December 31, 2015 NextGen Division $ 36,984 $ — $ 18,806 $ 6,020RCM Services Division 55 21,594 422 920QSI Dental Division 2,006 — 1,395 404Hospital Solutions Division 474 — 20 77

Consolidated $ 39,519 $ 21,594 $ 20,643 $ 7,421

Three Months Ended December 31, 2014 NextGen Division $ 38,285 $ — $ 17,633 $ 6,281RCM Services Division 152 20,392 216 788QSI Dental Division 2,166 — 1,178 417Hospital Solutions Division 2,442 — 24 158

Consolidated $ 43,045 $ 20,392 $ 19,051 $ 7,644

Support and maintenance revenue at the NextGen Division for the three months ended December 31, 2015 decreased by 3.4% to $37.0 million from $38.3million as a result of increases in sales credits and related reserves and net customer attrition. NextGen Division EDI and data services revenue grew 6.7% to$18.8 million compared to $17.6 million in the prior year period. The growth in NextGen EDI revenue has come from new customers and from furtherpenetration of the division’s existing customer base. Professional services revenue for the NextGen Division, which consists primarily of implementation andtraining and consulting services, decreased 4.2% to $6.0 million in the three months ended December 31, 2015 from $6.3 million in the prior year period due tothe softening demand for related system sales, as noted above.

For the three months ended December 31, 2015, RCM and related services revenue increased to $21.6 million compared to $20.4 million in the prior yearperiod. The growth in RCM revenue is primarily attributable to organic growth achieved through cross selling RCM services to existing NextGen Divisioncustomers as well as the addition of new customers.

QSI Dental Division support and maintenance for the three months ended December 31, 2015 decreased by $0.2 million as compared to the prior year perioddue primarily to a shift in customer preference to subscription-based software services as opposed to software licenses that require support and maintenance.Professional services revenue remained consistent while EDI and data services revenue at the QSI Dental Division increased to $1.4 million for the threemonths ended December 31, 2015 from $1.2 million in the prior year period.

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For the Hospital Solutions Division, support and maintenance revenue decreased by $2.0 million, or 80.6%, and professional services revenue decreased by$0.1 million, or 68.9%, for the three months ended December 31, 2015 as compared to the prior year period primarily due to the Hospital disposition in October2015.

We intend to continue to promote support and maintenance, RCM and related services, and EDI and data services to both new and existing customers.

Cost of Revenue. Cost of revenue for the three months ended December 31, 2015 decreased to $53.8 million from $54.4 million in the prior year period andthe cost of revenue as a percentage of revenue increased to 46.0% from 44.0%. The increase in cost of revenue as a percentage of revenue principally reflectsthe decline in high-margin software license sales.

The following table details revenue and cost of revenue on a consolidated and divisional basis for the three months ended December 31, 2015 and 2014 (inthousands):

Three Months Ended December 31,

2015 % 2014 %NextGen Division

Revenue $ 88,693 100.0 % $ 92,054 100.0%Cost of revenue 32,497 36.6 % 30,678 33.3%Gross profit $ 56,196 63.4 % $ 61,376 66.7%

RCM Services Division Revenue $ 22,994 100.0 % $ 21,913 100.0%Cost of revenue 15,105 65.7 % 14,757 67.3%Gross profit $ 7,889 34.3 % $ 7,156 32.7%

QSI Dental Division Revenue $ 4,726 100.0 % $ 4,480 100.0%Cost of revenue 2,093 44.3 % 2,114 47.2%Gross profit $ 2,633 55.7 % $ 2,366 52.8%

Hospital Solutions Division Revenue $ 619 100.0 % $ 4,977 100.0%Cost of revenue 688 111.1 % 2,954 59.4%Gross profit (loss) $ (69) (11.1)% $ 2,023 40.6%

Unallocated cost of revenue $ 3,402 N/A $ 3,857 N/AConsolidated

Revenue $ 117,032 100.0 % $ 123,424 100.0%Cost of revenue 53,785 46.0 % 54,360 44.0%Gross profit $ 63,247 54.0 % $ 69,064 56.0%

Gross profit margin for the NextGen Division decreased to 63.4% for the three months ended December 31, 2015 as compared to 66.7% for the prior yearperiod due to a decrease in high-margin software sales. Gross profit margin for the RCM Services Division increased to 34.3% as compared to 32.7% for theprior year period primarily due to improved management of headcount and related costs. The Hospital Solutions Division experienced a gross loss of 11.1% forthe three months ended December 31, 2015 primarily due to the Hospital disposition in October 2015.

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The following table details the individual components of cost of revenue and gross profit (loss) as a percentage of total revenue on a consolidated anddivisional basis for the three months ended December 31, 2015 and 2014:

SoftwareLicense andHardware


Services Support andMaintenance

RCM andRelatedServices

EDI andData

Services Professional

Services Total Cost

of Revenue Gross Profit

(Loss)Three Months Ended December 31,2015

NextGen Division 3.3% 6.1% 7.1% 0.0% 12.7% 7.4% 36.6% 63.4 %

RCM Services Division 0.0% 0.0% 0.1% 62.5% 1.6% 1.5% 65.7% 34.3 %

QSI Dental Division 3.8% 1.7% 14.2% 0.0% 17.0% 7.6% 44.3% 55.7 %

Hospital Solutions Division 3.5% 12.7% 87.8% 0.0% 1.4% 5.7% 111.1% (11.1)%

Consolidated 5.6% 4.7% 6.4% 12.3% 10.6% 6.4% 46.0% 54.0 %Three Months Ended December 31,2014

NextGen Division 3.5% 5.3% 5.5% 0.0% 11.9% 7.1% 33.3% 66.7 %

RCM Services Division 0.0% 0.0% 0.3% 65.0% 0.8% 1.2% 67.3% 32.7 %

QSI Dental Division 3.9% 1.1% 14.6% 0.0% 18.2% 9.4% 47.2% 52.8 %

Hospital Solutions Division 0.1% 4.7% 32.4% 0.0% 0.4% 21.8% 59.4% 40.6 %

Consolidated 5.9% 4.2% 6.0% 11.5% 9.7% 6.7% 44.0% 56.0 %

Cost of software license and hardware decreased to 5.6% of total revenue during the three months ended December 31, 2015 as compared to 5.9% for theprior year period, which is mainly the result of the full amortization of certain software products, leading to a decrease in related amortization of capitalizedsoftware costs. The decline in cost of software license and hardware was offset by an increase in cost of support and maintenance, which increased to 6.4% oftotal revenue for the three months ended December 31, 2015 as compared to 6.0% for the prior year period, attributable to headcount growth and higherrelated payroll and benefits expense associated with delivering our products and services at the NextGen Division.Cost of RCM and related services increased to 12.3% of total revenue and cost of EDI and data services increased to 10.6% of total revenue for the threemonths ended December 31, 2015 as compared to 11.5% and 9.7%, respectively, for the prior year period. The increase in such costs as a percentage of totalrevenue is attributed to RCM and related services revenue and EDI and data services revenue each comprising a larger proportion of total revenues incomparison to the prior year period.Cost of software related subscription services also increased to 4.7% of total revenue for the three months ended December 31, 2015 compared to 4.2% forthe prior year period, which is primarily a result of an increase in the absolute level of payroll and benefit expenses associated with delivering our products andservices due to headcount additions required to support revenue growth.We experienced a decline in cost of professional services, which decreased to 6.4% of total revenue during the three months ended December 31, 2015 ascompared to 6.7% for the prior year period, due to lower headcount in the Hospital Solutions Division as a result of the disposition and improved cost andutilization management in the NextGen Division.As a result of the foregoing events and activities, our gross profit percentage decreased to 54.0% for the three months ended December 31, 2015 versus56.0% for the prior year period.

Selling, General and Administrative Expenses. Selling, general and administrative expenses for the three months ended December 31, 2015 decreased5.0% to $39.4 million as compared to $41.5 million for the prior year period. The decrease in selling, general and administrative expenses consists primarily of:

• $4.6 million decrease in legal expense related mostly to lower shareholder litigation defense costs;

• $0.8 million decrease in sales commissions expense related to the recent decline in new system sales;

• $0.6 million decrease in equipment and depreciation expense;

• $0.5 million decrease in consulting and outside services costs; and

• $1.1 million net decrease in other selling, general and administrative expenses, offset by

• $3.7 million increase in acquisition related costs; and

• $1.8 million loss (including related incremental direct costs) on the Hospital disposition.

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Share-based compensation expense was approximately $0.6 million for both of the three months ended December 31, 2015 and 2014 and is included in theaforementioned amounts. Selling, general and administrative expenses as a percentage of revenue decreased from 33.6% in the three months endedDecember 31, 2014 to 33.7% in the three months ended December 31, 2015.

Research and Development Costs. Research and development costs for the three months ended December 31, 2015 and 2014 were $14.5 million and$18.5 million, respectively. Research and development costs as a percentage of revenue decreased to 12.4% in the three months ended December 31, 2015from 15.0% for the prior year period. The decrease in research and development expenses is primarily due to higher rates of capitalization of software costsrelated to the development of enhancements to our ambulatory software products combined with lower gross expenditures, including both amounts expensedand capitalized, related to lower costs as a result of the Hospital disposition and lower third-party consulting costs.

The capitalization of software development costs results in a reduction to reported research and development costs. For the three months ended December 31,2015 and 2014, our additions to capitalized software were $4.9 million and $3.2 million, respectively. For the three months ended December 31, 2015 and2014, total gross research and development expenditures, including both amounts expensed and capitalized, was $19.4 million and $21.7 million, respectively.

We intend to continue to invest heavily in research and development to enhance our software to meet the Meaningful Use definitions under the ARRA andcontinue to bring additional functionality and features to the medical community.

Amortization of Acquired Intangible Assets. Amortization included in operating expenses related to acquired intangible assets remained consistent at $0.9million for the three months ended December 31, 2015 compared to the prior year period.

Provision for Income Taxes. The provision for income taxes for the three months ended December 31, 2015 and 2014 was $1.1 million and $1.5 million,respectively. The effective tax rates were 13.5% and 17.9% for the three months ended December 31, 2015 and 2014, respectively. Both periods reflectapproximately three quarters of a full fiscal year impact of the federal research and development tax credit due to the timing of the expiration and retroactivereinstatement of the credit. The effective rate for the three months ended December 31, 2015 decreased as compared to the prior year period primarily due toa favorable impact of the qualifying production activity deduction in the three months ended December 31, 2015.

Comparison of the Nine Months Ended December 31, 2015 and December 31, 2014

Net Income. Our net income for the nine months ended December 31, 2015 was $22.0 million, or $0.36 on both a basic and fully diluted basis. In comparison,we earned $16.6 million, or $0.28 and $0.27 per share on a basic and fully diluted basis, respectively, for the nine months ended December 31, 2014. The $5.4million increase in net income for the nine months ended December 31, 2015 as compared to the prior year period was primarily attributed to the following:

• a $3.7 million increase in consolidated gross profit due to improved profitability from software related subscription services, RCM and relatedservices, EDI and data services, and professional services, and

• a $2.0 million decrease in research and development expenses due to higher rates of capitalization of software costs related to the development ofenhancements to our ambulatory software products, and

• a $0.9 million decrease in selling, general and administrative costs due primarily to lower shareholder litigation expense, offset by higher acquisitionrelated costs and the loss on Hospital disposition, partially offset by

• an increase of $1.6 million in the provision for income taxes, principally reflecting the increase in pretax income.

Revenue. Revenue for the nine months ended December 31, 2015 increased 0.8% to $364.6 million from $361.8 million for the nine months endedDecember 31, 2014. NextGen Division revenue decreased 0.6% to $275.3 million from $276.9 million in the nine months ended December 31, 2014, RCMServices Division revenue increased 16.8% to $68.0 million from $58.2 million, QSI Dental Division revenue increased 3.3% to $13.8 million from $13.4 million,and Hospital Solutions Division revenue decreased 43.9% to $7.5 million from $13.3 million in the prior year period.

Software, Hardware and Related. Revenue from consolidated software, hardware and related sales for the nine months ended December 31, 2015decreased 3.7% to $88.4 million from $91.8 million in the prior year period.

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The following table summarizes software, hardware and related sales on a consolidated and divisional basis for the nine months ended December 31, 2015and 2014 (in thousands):

Software License

and Hardware


Services

Total Software,Hardware and

RelatedNine Months Ended December 31, 2015 NextGen Division $ 49,861 $ 33,505 $ 83,366RCM Services Division 234 743 977QSI Dental Division 1,863 996 2,859Hospital Solutions Division 68 1,144 1,212

Consolidated $ 52,026 $ 36,388 $ 88,414

Nine Months Ended December 31, 2014 NextGen Division $ 56,544 $ 28,284 $ 84,828RCM Services Division 345 242 587QSI Dental Division 1,590 677 2,267Hospital Solutions Division 2,026 2,063 4,089

Consolidated $ 60,505 $ 31,266 $ 91,771

NextGen Division software, hardware and related sales decreased by $1.5 million primarily due to a $6.7 million, or 11.8%, decrease in software license andhardware sales during the nine months ended December 31, 2015 versus the same period last year, which is the result of lower sales to both new and existingcustomers and reflects the increasing levels of market saturation for core electronic health record and practice management solutions. The decrease insoftware license and hardware sales was partially offset by a $5.2 million, or 18.5%, increase in software related subscription services during the nine monthsended December 31, 2015 versus the same period last year as a result of the growth in both our interoperability subscriptions and subscriptions related to ourNextGen® Patient Portal product offering. The NextGen Division’s software license and hardware revenue accounted for 59.8% of divisional software,hardware and related revenue during the nine months ended December 31, 2015 compared to 66.7% during the prior year period.

The RCM Services Division was not a significant contributor to consolidated software, hardware and related revenue for both the nine months endedDecember 31, 2015 and 2014 as a result of the nature of the division's product and service offering.

Total software, hardware and related sales for the QSI Dental Division increased 26.1%, or $0.6 million, in the nine months ended December 31, 2015compared to the same period last year, driven mostly by a 47.1% growth in sales of software related subscription services. The growth in software relatedsubscription services versus the same period last year is primarily due to a shift in customer preference from software licenses to software related subscriptionservices, such as QDW, the Division's cloud-based software solution. QDW is sold primarily as a SaaS solution for which revenue is recognized over anextended period of time rather than upfront.

At the Hospital Solutions Division, total software, hardware and related sales decreased 70.4%, or $2.9 million, to $1.2 million in the nine months endedDecember 31, 2015 as compared to $4.1 million in the prior year period. This decrease is primarily the result of the Hospital disposition in October 2015 as wellas higher volume of sales credits for both software license and hardware sales and software related subscriptions services in the nine months endedDecember 31, 2015 as compared the prior year period.

Support and Maintenance, RCM, EDI and Professional Services. For the nine months ended December 31, 2015, our consolidated revenue from RCM andrelated services and EDI and data services increased by 14.9%, and 9.1%, respectively compared to the prior year period. Consolidated revenue from supportand maintenance decreased by 0.5% compared to the prior year period as a result of net customer attrition. Professional services revenue decreased by19.8% compared to the prior year period due to lower demand for related system sales.

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The following table summarizes support and maintenance, RCM and related services, EDI and data services and professional services revenue by category ona consolidated and divisional basis for the nine months ended December 31, 2015 and 2014 (in thousands):

Support andMaintenance

RCM and RelatedServices

EDI and DataServices

ProfessionalServices

Nine Months Ended December 31, 2015 NextGen Division $ 113,957 $ — $ 56,195 $ 21,764RCM Services Division 263 62,630 1,262 2,857QSI Dental Division 5,925 — 3,895 1,146Hospital Solutions Division 5,263 — 61 933

Consolidated $ 125,408 $ 62,630 $ 61,413 $ 26,700

Nine Months Ended December 31, 2014 NextGen Division $ 112,014 $ — $ 51,862 $ 28,212RCM Services Division 430 54,517 596 2,095QSI Dental Division 6,209 — 3,724 1,180Hospital Solutions Division 7,332 — 94 1,801

Consolidated $ 125,985 $ 54,517 $ 56,276 $ 33,288

Support and maintenance revenue at the NextGen Division for the nine months ended December 31, 2015 increased by 1.7% to $114.0 million from $112.0million for the prior year period primarily due to additional revenues from both new and existing customers as well as declines in sales credits and relatedreserves. NextGen Division EDI and data services revenue grew 8.4% to $56.2 million compared to $51.9 million in the prior year period. The growth inNextGen EDI revenue has come from new customers and from further penetration of the division’s existing customer base. Professional services revenue forthe NextGen Division, which consists primarily of implementation and training and consulting services, decreased 22.9% to $21.8 million in the nine monthsended December 31, 2015 from $28.2 million in the prior year period due to the softening demand for related system sales, as noted above.For the nine months ended December 31, 2015, RCM and related services revenue increased to $62.6 million compared to $54.5 million in the prior yearperiod. The growth in RCM revenue is primarily attributable to organic growth achieved through cross selling RCM services to existing NextGen Divisioncustomers as well as the addition of new customers.QSI Dental Division support and maintenance revenue for the nine months ended December 31, 2015 decreased by $0.3 million as compared to the prior yearperiod due primarily to a shift in customer preference to subscription-based software services as opposed to software licenses that require support andmaintenance. EDI and data services revenue and professional services revenue at the QSI Dental Division remained consistent for the nine months endedDecember 31, 2015 compared to the prior year period.For the Hospital Solutions Division, support and maintenance revenue for the nine months ended December 31, 2015 decreased by $2.1 million, or 28.2%, ascompared to the prior year period. Professional services revenue decreased by $0.9 million, or 48.2%, as compared to the prior year period due to lowerdemand for system sales and related implementation, training, and consulting services. The Hospital disposition in October 2015 also partially contributed tothe overall decrease in revenue as compared to the prior year period.

Cost of Revenue. Cost of revenue for the nine months ended December 31, 2015 decreased by 0.6% to $166.4 million from $167.3 million in the prior yearperiod and the cost of revenue as a percentage of revenue decreased to 45.6% from 46.2%. The decrease in cost of revenue as a percentage of revenuereflects a $2.8 million decrease in amortization of capitalized software costs as compared to the prior year period due to certain software products becomingfully amortized.

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The following table details revenue and cost of revenue on a consolidated and divisional basis for the nine months ended December 31, 2015 and 2014 (inthousands):

Nine Months Ended December 31,

2015 % 2014 %NextGen Division

Revenue $ 275,282 100.0% $ 276,914 100.0%Cost of revenue 98,866 35.9% 95,459 34.5%Gross profit $ 176,416 64.1% $ 181,455 65.5%

RCM Services Division Revenue $ 67,989 100.0% $ 58,226 100.0%Cost of revenue 45,630 67.1% 41,633 71.5%Gross profit $ 22,359 32.9% $ 16,593 28.5%

QSI Dental Division Revenue $ 13,825 100.0% $ 13,379 100.0%Cost of revenue 6,825 49.4% 6,818 51.0%Gross profit $ 7,000 50.6% $ 6,561 49.0%

Hospital Solutions Division Revenue $ 7,469 100.0% $ 13,318 100.0%Cost of revenue 4,901 65.6% 10,723 80.5%Gross profit $ 2,568 34.4% $ 2,595 19.5%

Unallocated cost of revenue $ 10,138 N/A $ 12,690 N/AConsolidated

Revenue $ 364,565 100.0% $ 361,837 100.0%Cost of revenue 166,360 45.6% 167,323 46.2%Gross profit $ 198,205 54.4% $ 194,514 53.8%

Gross profit margin for the NextGen Division decreased to 64.1% for the nine months ended December 31, 2015 compared to 65.5% for the prior year periodprimarily due to a decrease in high-margin software license sales. Gross profit margin for the RCM Services Division increased to 32.9% as compared to28.5% for the prior year period primarily due to improved management of headcount and related costs. The gross profit margin for the Hospital SolutionsDivision of 34.4% for the nine months ended December 31, 2015 benefited from a significant decline in cost of revenue due mostly to lower payroll and relatedbenefits costs, in connection with reductions in headcount and the Hospital disposition in October 2015.

The following table details the individual components of cost of revenue and gross profit as a percentage of total revenue on a consolidated and divisionalbasis for the nine months ended December 31, 2015 and 2014:

SoftwareLicense andHardware


Services Support andMaintenance

RCM andRelatedServices

EDI andData

Services Professional

Services Total Cost

of Revenue GrossProfit

Nine Months Ended December 31,2015

NextGen Division 3.4% 6.0% 6.6% 0.0% 12.3% 7.6% 35.9% 64.1%

RCM Services Division 0.0% 0.0% 0.1% 64.1% 1.5% 1.4% 67.1% 32.9%

QSI Dental Division 4.1% 1.9% 14.5% 0.0% 17.8% 11.1% 49.4% 50.6%

Hospital Solutions Division 2.7% 8.3% 48.8% 0.0% 0.3% 5.5% 65.6% 34.4%

Consolidated 5.5% 4.8% 6.5% 12.0% 10.2% 6.6% 45.6% 54.4%Nine Months Ended December 31,2014

NextGen Division 3.2% 5.0% 5.0% 0.0% 11.9% 9.4% 34.5% 65.5%

RCM Services Division 0.0% 0.0% 0.2% 69.0% 0.9% 1.4% 71.5% 28.5%

QSI Dental Division 4.9% 2.2% 14.9% 0.0% 17.8% 11.2% 51.0% 49.0%

Hospital Solutions Division 0.2% 6.8% 38.9% 0.0% 0.4% 34.2% 80.5% 19.5%

Consolidated 6.2% 4.2% 5.8% 11.1% 9.9% 9.0% 46.2% 53.8%

During the nine months ended December 31, 2015, cost of software license and hardware decreased to 5.5% of revenue compared to 6.2% for the prior yearperiod, which is mainly the result of the full amortization of certain software products, leading to a decrease in related amortization of capitalized software costs.The decline in cost of software license and hardware was offset by a increases in cost of software related subscription services and support and maintenance,which increased to

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4.8% and 6.5%, respectively, for the nine months ended December 31, 2015 as compared to 4.2% and 5.8%, respectively, for the prior year period, attributableto headcount growth and higher related payroll and benefits expense associated with delivering our products and services at the NextGen Division.Cost of RCM and related services increased to 12.0% of total revenue and cost of EDI and data services increased to 10.2% of total revenue for the ninemonths ended December 31, 2015 as compared to 11.1% and 9.9%, respectively, for the prior year period. The increase in such costs as a percentage of totalrevenue is attributed to RCM and related services revenue and EDI and data services revenue each comprising a larger proportion of total revenues incomparison to the prior year period.

For the Hospital Solutions Division, gross profit as a percentage of total revenue increased significantly to 34.4% for the nine months ended December 31,2015 from 19.5% for the prior year period primarily attributed to a significant decline in cost of professional services, which decreased to 5.5% of revenueduring the nine months ended December 31, 2015 compared to 34.2% for the prior year period, due to lower headcount and improved cost and utilizationmanagement. The NextGen Division also experienced a decline in cost of professional services to 7.6% of revenue during the nine months endedDecember 31, 2015 compared to 9.4% for the prior year period also due to lower headcount and improved cost and utilization management. The absolute levelof professional services costs decreased by $8.8 million, of which $4.8 million of the decrease is related to the NextGen Division and $4.1 million relates to theHospital Solutions Division.

As a result of the foregoing events and activities, our gross profit percentage increased to 54.4% for the nine months ended December 31, 2015 versus 53.8%for the same prior year period.

Selling, General and Administrative Expenses. Selling, general and administrative expenses for the nine months ended December 31, 2015 decreased0.8% to $116.0 million as compared to $116.9 million for the prior year period. The decrease in selling, general and administrative expenses consists primarilyof:

• $3.1 million decrease in legal expense related mostly lower shareholder litigation defense costs;

• $1.6 million decrease in sales commission expense related to the recent decline in new system sales;

• $1.3 million decrease in consulting and outside services costs;

• $0.9 million decrease in equipment and depreciation expense;

• $0.8 million decrease in facilities costs as the prior year period included certain lease termination fees; and

• $0.3 million net decrease in other selling and administrative expenses, offset by

• $3.2 million increase in acquisition related costs;

• $2.1 million increase in bad debt expense because the prior year period included a net bad debt benefit (i.e., a credit) to earnings, related toaggressive working capital management in that period; and

• $1.8 million loss (including related incremental direct costs) on the Hospital disposition.

Share-based compensation expense was approximately $1.7 million and $2.1 million for the nine months ended December 31, 2015 and 2014, respectively,and is included in the aforementioned amounts. Selling, general and administrative expenses as a percentage of revenue decreased from 32.3% in the ninemonths ended December 31, 2014 to 31.8% in the nine months ended December 31, 2015.

Research and Development Costs. Research and development costs for the nine months ended December 31, 2015 and 2014 were $49.6 million and $51.6million, respectively. Research and development costs as a percentage of revenue decreased to 13.6% in the nine months ended December 31, 2015 from14.3% for the prior year period. The decrease in research and development expenses is primarily due to higher rates of capitalization of software costs relatedto the development of enhancements to our ambulatory software products.

The capitalization of software development costs results in a reduction to reported research and development costs. For the nine months ended December 31,2015 and 2014, our additions to capitalized software were $11.6 million and $9.5 million, respectively. For the nine months ended December 31, 2015 and2014, total gross research and development expenditures including both amounts expensed and capitalized was $61.2 million and $61.1 million, respectively.

Amortization of Acquired Intangible Assets. Amortization included in operating expenses related to acquired intangible assets decreased to $2.7 million forthe nine months ended December 31, 2015 from $2.8 million in the prior year period.

Provision for Income Taxes. The provision for income taxes for the nine months ended December 31, 2015 and 2014 was $8.2 million and $6.7 million,respectively. The effective tax rate was 27.3% and 28.6% for the nine months ended December 31, 2015 and 2014, respectively. The effective rate for the ninemonths ended December 31, 2015 decreased as compared to the prior year period primarily due to a favorable impact of the qualifying production activitydeduction in the nine months ended December 31, 2015.

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Liquidity and Capital Resources

The following table presents selected financial statistics and information for the nine months ended December 31, 2015 and 2014 (in thousands):


2015 2014Cash and cash equivalents and marketable securities $ 104,813 $ 124,822Net increase (decrease) in cash and cash equivalents and marketable securities $ (25,772) $ 11,021Net income $ 21,979 $ 16,589Net cash provided by operating activities $ 27,292 $ 58,706Number of days of sales outstanding (1) 72 78_________________________(1) Days sales outstanding is equal to accounts receivable divided by average daily revenue.

Cash Flows from Operating Activities

The following table summarizes our consolidated statements of cash flows for the nine months ended December 31, 2015 and 2014 (in thousands):


2015 2014Net income $ 21,979 $ 16,589

Non-cash expenses 27,426 26,577Cash from net income (as adjusted) 49,405 43,166Change in accounts receivable 11,313 8,779Change in other assets and liabilities (33,426) 6,761Net cash provided by operating activities $ 27,292 $ 58,706

For the nine months ended December 31, 2015, cash provided by operating activities declined by $31.4 million to $27.3 million from $58.7 million for the prioryear period, which was caused by a $40.2 million decline attributed to changes in other assets and liabilities, partially offset by an increase of $5.4 million incash flows due to higher net income in the current year. The reduction in cash flows due to changes in other assets and liabilities for the nine months endedDecember 31, 2015 is mostly attributed to payments of accrued bonuses related to the fiscal 2015 incentive compensation plans, payments of income taxesduring the period, a decline in professional services deferred revenue due to the softening demand for related system sales, as previously noted, and a declinein support and maintenance deferred revenue due to the timing of invoicing as compared to the rendering of such services. Although net cash provided byoperating activities for the nine months ended December 31, 2015 declined as compared to the prior year period, cash provided by operating activities hashistorically been, and is expected to continue to be, our primary source of cash, driven by our net income and working capital management.

A key component of working capital management involves the collection of accounts receivable. Changes in accounts receivable provided $11.3 million and$8.8 million in net cash from operating activities for the nine months ended December 31, 2015 and 2014, respectively. Further, the effectiveness of workingcapital management can be measured by days sales outstanding (“DSO”) of accounts receivable. DSO decreased to 72 days during the nine months endedDecember 31, 2015, as compared to 78 days during the prior year period, reflecting continued improvement of our accounts receivable management.

Cash Flows from Investing Activities

Net cash used in investing activities for the nine months ended December 31, 2015 and 2014 was approximately $22.2 million and $15.6 million, respectively.The $6.6 million increase in net cash used in investing activities is primarily due to a $2.1 million increase in additions to capitalized software costs, $4.5 millionincrease in cash used for additions to equipment and improvements, and $5.0 million decrease in proceeds from sales and maturities of marketable securities,offset by a $5.0 million decrease in purchases of marketable securities.

Cash Flows from Financing Activities

Net cash used in financing activities for the nine months ended December 31, 2015 and 2014 was $31.4 million and $32.6 million, respectively. During the ninemonths ended December 31, 2015, we paid $32.1 million in dividends to shareholders, the impact of which was offset by proceeds of $0.7 million from theissuance of shares under employee plans. In comparison, during the prior

39

year period, we also paid $32.1 million in dividends to shareholders and $0.7 million in contingent consideration related to prior acquisitions.

Cash and Cash Equivalents and Marketable Securities

At December 31, 2015, our combined cash and cash equivalents and marketable securities balance of $104.8 million reflects a decrease of $25.8 million fromthe comparable balance as of March 31, 2015. This decrease principally reflects: a) significant cash payments made in the current fiscal year related to fiscal2015 accruals for incentive compensation plans and income taxes owing from such year; b) increases in cash used for investing activities, including additionsto capitalized software costs and equipment and improvements; and c) the distribution of significant dividend payments, the aggregate amount of whichexceeded our cash flow provided by operating activities.

We intend to expend some of our available funds for the development of products complementary to our existing product line as well as new versions of certainof our products. These developments are intended to take advantage of more powerful technologies and to increase the integration of our products. Suchexpenditures will be funded from cash on hand and cash flows from operations.

Our investment policy is determined by our Board of Directors. We currently maintain our cash in very liquid short term assets including tax exempt and taxablemoney market funds, certificates of deposit and short term municipal bonds with average maturities of 365 days or less at the time of purchase. Our Board ofDirectors continues to review alternate uses for our cash including an expansion of our investment policy and other items. Any or all of these programs couldsignificantly impact our investment income in future periods.

On January 4, 2016, we entered into a $250.0 million revolving credit agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A., as administrativeagent, U.S. Bank National Association, as syndication agent, and certain other lenders. The initial draw down on the Credit Agreement was approximately$173.5 million. Also on January 4, 2016, we completed our acquisition of HealthFusion Holdings, Inc. ("HealthFusion") pursuant to the Agreement and Plan ofMerger dated October 30, 2015, which is part of our strategy to expand the HealthFusion client base and cloud-based solution capabilities in the ambulatorymarket. This acquisition was funded by our initial draw down of the Credit Agreement, a portion of which has been subsequently repaid from our cash on hand.We may continue to use a portion of our funds in connection with future acquisitions or other similar business activities, although the specific timing and amountof funds to be used is not currently determinable.

Our future practice concerning the payment of dividends is uncertain. The Credit Agreement contains restrictions on our ability to declare and pay dividendssubsequent to the previously declared January 4, 2016 dividend payment, and management does not expect to pay additional dividends for at least the nexttwelve months. Payment of future dividends, if any, will be at the discretion of our Board of Directors after taking into account various factors, including withoutlimitation, the Credit Agreement, operating cash flows, financial condition, operating results, and sufficiency of funds based on our current and anticipated cashneeds and capital requirements.

Management believes that its cash, cash equivalents and marketable securities on hand at December 31, 2015, together with its cash flows from operationsand liquidity provided by the Credit Agreement, will be sufficient to meet its working capital and capital expenditure requirements for the next twelve months.

Contractual Obligations

The following table summarizes our significant contractual obligations at December 31, 2015 and the effect that such obligations are expected to have on ourliquidity and cash in future periods (in thousands):

For the year ended March 31,

Contractual Obligations Total2016 (remainingthree months) 2017 2018 2019 2020

2021 andbeyond

Operating lease obligations $ 59,968 $ 1,687 $ 7,954 $ 8,529 $ 7,516 $ 6,540 $ 27,742Contingent consideration and other acquisition relatedliabilities (excluding share-based payments) $ 900 200 $ 700 $ — — — —

Total $ 60,868 $ 1,887 $ 8,654 $ 8,529 $ 7,516 $ 6,540 $ 27,742

The deferred compensation liability as of December 31, 2015 was $6.7 million, which is not included in the table above as the timing of future benefit paymentsto employees is not determinable.

The uncertain tax position liability as of December 31, 2015 was $3.8 million, which is not included in the table above as the timing of expected payments is notdeterminable.

Subsequent to December 31, 2015, we entered into the Credit Agreement, which matures on January 4, 2021 and the full balance of the revolving loans andall other obligations under the agreement must be paid at that time. Contractual obligations related to the Credit Agreement are not reflected in the table above.

40

Recent Accounting Pronouncements

Refer to Note 1, “Summary of Significant Accounting Policies,” of our notes to consolidated financial statements included elsewhere in this Quarterly Report onForm 10-Q for a discussion of new accounting standards.

41

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There is little to no market risk as we currently maintain our cash in very liquid short term assets including tax exempt and taxable money market funds,certificates of deposits and short term municipal bonds with average maturities of 365 days or less at the time of purchase.

Although we have international operations, the impact of foreign currency fluctuations has not been material to our financial position or operating results.

ITEM 4. CONTROLS AND PROCEDURES.Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the Chief Executive Officer and Interim Chief Financial Officer (our principal executive officer and principal financialofficer, respectively) have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under theSecurity Exchange Act of 1934, as amended, the "Exchange Act") as of December 31, 2015, the end of the period covered by this Quarterly Report on Form10-Q (the “Evaluation Date”). They have concluded that, as of the Evaluation Date, these disclosure controls and procedures were effective to ensure thatmaterial information relating to the Company and its consolidated subsidiaries would be made known to them by others within those entities and would bedisclosed on a timely basis. The Chief Executive Officer and Interim Chief Financial Officer have concluded that our disclosure controls and procedures aredesigned, and are effective, to give reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act isrecorded, processed, summarized and reported within the time period specified in the rules and forms of the SEC. They have also concluded that the ourdisclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that are filed or submitted under theExchange Act are accumulated and communicated to our management, including the Chief Executive Officer and Interim Chief Financial Officer, to allow timelydecisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the quarter ended December 31, 2015, there were no changes in our “internal control over financial reporting” (as defined in Rule 13a-15(f) under theExchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

42

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Hussein LitigationOn October 7, 2013, a complaint was filed against our Company and certain of our officers and directors in the Superior Court of the State of California for theCounty of Orange, captioned Ahmed D. Hussein v. Sheldon Razin, Steven Plochocki, Quality Systems, Inc. and Does 1-10, inclusive, No. 30-2013-00679600-CU-NP-CJC, by Ahmed Hussein, a former director and significant shareholder of our Company. We filed a demurrer to the complaint, which the court grantedon April 10, 2014. An amended complaint was filed on April 25, 2014. The amended complaint generally alleges fraud and deceit, constructive fraud, negligentmisrepresentation and breach of fiduciary duty in connection with statements made to our shareholders regarding our financial condition and projected futureperformance. The amended complaint seeks actual damages, exemplary and punitive damages and costs. We filed a demurrer to the amended complaint. OnJuly 29, 2014, the court sustained the demurrer with respect to the breach of fiduciary duty claim, and overruled the demurrer with respect to the fraud anddeceit claims. On August 28, 2014, we filed an answer and also filed a cross-complaint against the plaintiff, alleging that the plaintiff breached fiduciary dutiesowed to the Company, Mr. Razin and Mr. Plochocki. On June 26, 2015, we filed a motion for summary judgment, which the court granted on September 16,2015, dismissing all claims against us. On September 23, 2015, the plaintiff filed an application for reconsideration of the Court’s summary judgment order,which the court denied. On October 28, 2015, the plaintiff filed a motion for summary judgment, seeking to dismiss our cross-complaint. The hearing on theplaintiff's motion for summary judgment is set for February 18, 2016. At this time, we are unable to estimate the probability or the amount of liability, if any,related to this claim.

Federal Securities Class ActionOn November 19, 2013, a putative class action complaint was filed on behalf of the shareholders of our Company other than the defendants against us andcertain of our officers and directors in the United States District Court for the Central District of California by one of our shareholders. After the court appointedlead plaintiffs and lead counsel for this action, and recaptioned the action In re Quality Systems, Inc. Securities Litigation, No. 8L13-cv-01818-CJC(JPRx), leadplaintiffs filed an amended complaint on April 7, 2014. The amended complaint, which is substantially similar to the litigation described above under the caption“Hussein Litigation,” generally alleges that statements made to our shareholders regarding our financial condition and projected future performance were falseand misleading in violation of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and that the individual defendants areliable for such statements because they are controlling persons under Section 20(a) of the Exchange Act. The complaint seeks compensatory damages, courtcosts and attorneys' fees. We filed a motion to dismiss the amended complaint on June 20, 2014, which the court granted on October 20, 2014, dismissing thecomplaint with prejudice. Plaintiffs filed a motion for reconsideration of the Court's order, which the court denied on January 5, 2015. On January 30, 2015,Plaintiffs filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit, captioned In re Quality Systems, Inc. Securities Litigation, No. 15-55173. Plaintiffs filed their opening brief and we answered. Oral argument is not yet scheduled. We believe that the plaintiffs’ claims are without merit andcontinue to defend against them vigorously. At this time, we are unable to estimate the probability or the amount of liability, if any, related to this claim.

Shareholder Derivative LitigationOn January 24, 2014, a complaint was filed against our Company and certain of our officers and current and former directors in the United States District Courtfor the Central District of California, captioned Timothy J. Foss, derivatively on behalf of himself and all others similarly situated, vs. Craig A. Barbarosh,George H. Bristol, James C. Malone, Peter M. Neupert, Morris Panner, D. Russell Pflueger, Steven T. Plochocki, Sheldon Razin, Lance E. Rosenzweig andQuality Systems, Inc., No. SACV14-00110-DOC-JPPx, by Timothy J. Foss, a shareholder of ours. The complaint arises from the same allegations describedabove under the captions “Hussein Litigation” and “Federal Securities Class Action” and generally alleges breach of fiduciary duties, abuse of control and grossmismanagement by our directors, in addition to unjust enrichment and insider selling by individual directors. The complaint seeks compensatory damages,restitution and disgorgement of all profits, court costs, attorneys’ fees and implementation of enhanced corporate governance procedures. The parties haveagreed to stay this litigation until the United States Court of Appeals for the Ninth Circuit issues a ruling on the pending appeal described above under thecaption “Federal Securities Class Action”. We believe that the plaintiff’s claims are without merit and intend to defend against them vigorously. At this time, weare unable to estimate the probability or the amount of liability, if any, related to this claim.

In addition to the above, we have experienced legal claims by customers regarding product and contract disputes and from time to time, claims by other thirdparties asserting that we have infringed their intellectual property rights. We believe that these claims, including those filed by Mr. Hussein, the Deerfield BeachPolice Pension Fund and the shareholder derivative action, are without merit and intend to defend against them vigorously; however, we could incur substantialcosts and diversion of management resources even if we are ultimately successful in the defense of such claims. Litigation is inherently uncertain and alwaysdifficult to predict. We refer you to the discussion of infringement and litigation risks in our “Item 1A. Risk Factors” section of our Annual Report.

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ITEM 1A. RISK FACTORS.

Our business is subject to many risks and uncertainties, which may materially and adversely affect our future business, prospects, financial condition andresults of operations. These risk factors are disclosed in “Item 1A. Risk Factors” in our Annual Report and the risk factors set forth below, which supplement therisk factors previously disclosed.We are outsourcing our internal audit function, which involves a number of risks that may adversely affect our business and results of operations.We are currently transitioning our internal audit function to a third-party provider. Although we believe that outsourcing this function will ultimately result in lowercosts and increased efficiencies, this may not be the case immediately or ever. The transition process to an outsourced internal audit function is complex andtime-consuming, which may result in a diversion of management’s time and attention away from business operations. This diversion could have an adverseeffect on our business, results of operations and financial condition. In addition, outsourcing our internal audit function means we will be relying upon a thirdparty to meet our needs. Because this third party may not be as responsive to our needs as we would be ourselves, we may increase the risk of disruption toour operations. If our third-party provider terminates its agreement with us and we are unable to replace it with another service provider, our operations may beinterrupted. Even a temporary disruption in services could result in significant risk of noncompliance with our duties as a public company, which could have anadverse effect on our business. Moreover, there can be no assurance that a replacement service provider will provide its services at the same or a lower costthan the service provider it replaces. Our business and results of operations may be adversely affected if we experience operating problems and/or costoverruns during the outsourcing transition process or if our outsourced internal audit function does not function as expected or give rise to the expectedbenefits.

Our new credit agreement contains restrictive and financial covenants that may limit our operational flexibility. If we fail to meet our obligationsunder the credit agreement, our operations may be interrupted and our business and financial results could be adversely affected. In order to fundour acquisition of HealthFusion, on January 4, 2016, we entered into a revolving credit agreement with various lenders, secured by substantially all of our andour material domestic subsidiaries’ existing and future property. The credit agreement includes certain customary covenants that impose restrictions on ourbusiness and financing activities that could limit our operations or flexibility to take certain actions. The credit agreement also contains certain customaryaffirmative covenants requiring us to maintain specified levels of financial performance. Our ability to comply with these covenants may be affected by eventsthat could be beyond our control. A breach of these covenants could result in an event of default under the credit agreement which, if not cured or waived,could result in the indebtedness becoming immediately due and payable, which in turn could result in material adverse consequences that negatively impactour business, the market price for our common stock, and our ability to obtain financing in the future.

We may not be successful in integrating and operating our HealthFusion acquisition, and in implementing our post-acquisition business strategy.Potential shifts in product focus that may occur as a result of the acquisition may lead to an impairment of previously capitalized developmentwork. We acquired HealthFusion on January 4, 2016. As a result of the acquisition, we will need to devote significant management attention and resources tointegrating HealthFusion’s business and product platform into our business, and we may experience problems associated with the acquired company and itspersonnel, processes, product, technology, and other matters. There is no assurance that we will be able to successfully integrate the HealthFusion businessor realize synergies and benefits from the transaction. Furthermore, the acquisition is anticipated to substantially alter our business strategy, increasing ourfocus on efforts to expand our client base and cloud-based solution capabilities in the ambulatory market. We continue to evaluate the impact of HealthFusion’sexisting cloud-based product on our ongoing efforts to develop and release our NextGen Now cloud-based platform. Our assessment may lead us to determinethat the HealthFusion product, which is already a production-ready and sellable solution, may represent a more prudent investment in our technical future thancontinuing with the NextGen Now development plans. If we decide to abandon further development of the previously capitalized NextGen Now platform orcertain components thereof, a material impairment of the asset may result. If we are unable to successfully integrate HealthFusion and implement post-acquisition revisions to our business strategy and product focus, our business, financial condition, and results of operations may suffer.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not Applicable

ITEM 5. OTHER INFORMATION.

None.

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ITEM 6. EXHIBITS.

Exhibit Number Exhibit Description Filed Herewith

10.1 Credit Agreement, dated as of January 4, 2016, among Quality Systems, Inc., JPMorgan Chase Bank, N.A., asadministrative agent, U.S. Bank National Association, as syndication agent, and Bank of the West, KeyBankNational Association and Wells Fargo Bank, National Association, as co-documentation agents

X

31.1 Certification of Principal Executive Officer Required by Rule 13a-14(a) of the Securities Exchange Act of 1934,as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. X

31.2 Certification of Principal Financial Officer Required by Rule 13a-14(a) of the Securities Exchange Act of 1934,as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. X

32.1 Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, asAdopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. X

101.INS* XBRL Instance

101.SCH* XBRL Taxonomy Extension Schema

101.CAL* XBRL Taxonomy Extension Calculation

101.DEF* XBRL Taxonomy Extension Definition

101.LAB* XBRL Taxonomy Extension Label

101.PRE* XBRL Taxonomy Extension Presentation

* XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of section 11 or 12 of the Securities and ExchangeAct of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise is not subjectto liability under these section.

45

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersignedthereunto duly authorized.

QUALITY SYSTEMS, INC.Date: January 28, 2016 By: /s/ John R. Frantz John R. Frantz Chief Executive Officer (Principal Executive Officer)

Date: January 28, 2016 By: /s/ John K. Stumpf John K. Stumpf Interim Chief Financial Officer (Principal Accounting Officer)

46

EXHIBIT 10.1

EXECUTION COPY

J.P.Morgan

CREDIT AGREEMENT

dated as of

January 4, 2016

among

QUALITY SYSTEMS, INC.

The Lenders Party Hereto

JPMORGAN CHASE BANK, N.A. as Administrative Agent

U.S. BANK NATIONAL ASSOCIATION as Syndication Agent

and

BANK OF THE WEST, KEYBANK NATIONAL ASSOCIATION and WELLS FARGO BANK, NATIONAL ASSOCIATION

as Co-Documentation Agents

J.P. MORGAN SECURITIES LLC and U.S. BANK NATIONAL ASSOCIATION as Joint Bookrunners and Joint Lead Arrangers

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TABLE OF CONTENTSPage

ARTICLE I Definitions 1

SECTION 1.01. Defined Terms 1SECTION 1.02. Classifications of Loans and Borrowings 24SECTION 1.03. Terms Generally 24SECTION 1.04. Accounting Terms; GAAP; Pro Forma Calculations 25SECTION 1.05. Status of Obligations 26

ARTICLE II The Credits 26

SECTION 2.01. Commitments 26SECTION 2.02. Loans and Borrowings 26SECTION 2.03. Requests for Borrowings 27SECTION 2.04. Intentionally Omitted 27SECTION 2.05. Swingline Loans 27SECTION 2.06. Letters of Credit 28SECTION 2.07. Funding of Borrowings 33SECTION 2.08. Interest Elections 34SECTION 2.09. Termination and Reduction of Commitments 35SECTION 2.10. Repayment of Loans; Evidence of Debt 35SECTION 2.11. Prepayment of Loans 36SECTION 2.12. Fees 37SECTION 2.13. Interest 37SECTION 2.14. Alternate Rate of Interest 38SECTION 2.15. Increased Costs 39SECTION 2.16. Break Funding Payments 40SECTION 2.17. Taxes 40SECTION 2.18. Payments Generally; Allocations of Proceeds; Pro Rata Treatment; Sharing of Set-offs 44SECTION 2.19. Mitigation Obligations; Replacement of Lenders 45SECTION 2.20. Expansion Option 46SECTION 2.21. Defaulting Lenders 47

ARTICLE III Representations and Warranties 49

SECTION 3.01. Organization; Powers; Subsidiaries 49SECTION 3.02. Authorization; Enforceability 49SECTION 3.03. Governmental Approvals; No Conflicts 49SECTION 3.04. Financial Condition; No Material Adverse Change 50SECTION 3.05. Properties 50

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Table of Contents(continued)

Page

SECTION 3.06. Litigation, Environmental and Labor Matters 50SECTION 3.07. Compliance with Laws and Agreements 51SECTION 3.08. Investment Company Status 51SECTION 3.09. Taxes 51SECTION 3.10. ERISA 51SECTION 3.11. Disclosure 51SECTION 3.12. Federal Reserve Regulations 51SECTION 3.13. Liens 51SECTION 3.14. No Default 51SECTION 3.15. No Burdensome Restrictions 52SECTION 3.16. Solvency 52SECTION 3.17. Insurance 52SECTION 3.18. Security Interest in Collateral 52SECTION 3.19. Anti-Corruption Laws and Sanctions 52SECTION 3.20. Use of Proceeds 52

ARTICLE IV Conditions 53

SECTION 4.01. Effective Date 53SECTION 4.02. Each Credit Event 56

ARTICLE V Affirmative Covenants 57

SECTION 5.01. Financial Statements and Other Information 57SECTION 5.02. Notices of Material Events 58SECTION 5.03. Existence; Conduct of Business 58SECTION 5.04. Payment of Obligations 58SECTION 5.05. Maintenance of Properties; Insurance 59SECTION 5.06. Books and Records; Inspection Rights 59SECTION 5.07. Compliance with Laws and Material Contractual Obligations 59SECTION 5.08. Use of Proceeds 60SECTION 5.09. Subsidiary Guarantors; Pledges; Additional Collateral; Further Assurances 60

ARTICLE IV Negative Covenants 61

SECTION 6.01. Indebtedness 61SECTION 6.02. Liens 62SECTION 6.03. Fundamental Changes and Asset Sales 63SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions 65SECTION 6.05. Swap Agreements 66SECTION 6.06. Transactions with Affiliates 66SECTION 6.07. Restricted Payments 67SECTION 6.08. Restrictive Agreements 67

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Page

SECTION 6.09. Subordinated Indebtedness and Amendments to Subordinated Indebtedness Documents and HealthFusionMerger Agreement

67

SECTION 6.10. Sale and Leaseback Transactions 69SECTION 6.11. Financial Covenants 69

ARTICLE VII Events of Default 69

ARTICLE VIII The Administrative Agent 71

ARTICLE IX Miscellaneous 75

SECTION 9.01. Notices 75SECTION 9.02. Waivers; Amendments 77SECTION 9.03. Expenses; Indemnity; Damage Waiver 79SECTION 9.04. Successors and Assigns 80SECTION 9.05. Survival 84SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution 84SECTION 9.07. Severability 85SECTION 9.08. Right of Setoff 85SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process 85SECTION 9.10. WAIVER OF JURY TRIAL; Reference Proceeding 85SECTION 9.11. Headings 87SECTION 9.12. Confidentiality 87SECTION 9.13. USA PATRIOT Act 88SECTION 9.14. Appointment for Perfection 88SECTION 9.15. Releases of Subsidiary Guarantors 88SECTION 9.16. Interest Rate Limitation 89SECTION 9.17 No Advisory or Fiduciary Responsibility 89

ARTICLE X Borrower Guarantee 89

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SCHEDULES:

Schedule 2.01 – CommitmentsSchedule 2.02 – Letter of Credit CommitmentsSchedule 3.01 – SubsidiariesSchedule 6.01 – Existing IndebtednessSchedule 6.02 – Existing LiensSchedule 6.04 – Existing Investments

EXHIBITS:

Exhibit A – Form of Assignment and AssumptionExhibit B – Form of Solvency CertificateExhibit C – Form of Increasing Lender SupplementExhibit D – Form of Augmenting Lender SupplementExhibit E-1 – Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)Exhibit E-2 – Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)Exhibit E-3 – Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)Exhibit E-4 – Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)Exhibit F-1 – Form of Borrowing RequestExhibit F-2 – Form of Interest Election Request

ivOC\2116458.1

CREDIT AGREEMENT (this “Agreement”) dated as of January 4, 2016 among QUALITY SYSTEMS, INC., a Californiacorporation, the LENDERS from time to time party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent, U.S. BANKNATIONAL ASSOCIATION, as Syndication Agent, and BANK OF THE WEST, KEYBANK NATIONAL ASSOCIATION and WELLSFARGO BANK, NATIONAL ASSOCIATION, as Co-Documentation Agents.

The parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below:

“ABR” when used in reference to any Loan or Borrowing, refers to such Loan, or the Loans comprising such Borrowing,bearing interest at a rate determined by reference to the Alternate Base Rate.

“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum(rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the StatutoryReserve Rate.

“Adjusted One Month LIBO Rate” means, with respect to any Swingline Loan for any day, an interest rate per annum equal tothe Adjusted LIBO Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding BusinessDay); provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the LIBOR Screen Rate atapproximately 11:00 a.m., London time, on such day; provided further, that, if the LIBOR Screen Rate at such time shall be less than zero, suchrate shall be deemed to be zero for purposes of this Agreement.

“Administrative Agent” means JPMorgan Chase Bank, N.A. (including its branches and affiliates), in its capacity asadministrative agent for the Lenders hereunder.

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or moreintermediaries, Controls or is Controlled by or is under common Control with the Person specified.

“Agent Party” has the meaning assigned to such term in Section 9.01(d).

“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day,(b) the FRBNY Rate in effect on such day plus ½ of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if suchday is not a Business Day, the immediately preceding Business Day) plus 1%, provided that the Adjusted LIBO Rate for any day shall be basedon the LIBO Rate at approximately 11:00 a.m. London time on such day, subject to the interest rate floors set forth therein. Any change in theAlternate Base Rate due to a change in the Prime Rate, the FRBNY Rate or the Adjusted LIBO Rate shall be effective from and including theeffective date of such change in the Prime

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Rate, the FRBNY Rate or the Adjusted LIBO Rate, respectively. For the avoidance of doubt, if the Alternate Base Rate shall be less than zero,such rate shall be deemed to be zero for purposes of this Agreement.

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiariesfrom time to time concerning or relating to bribery or corruption.

“Applicable Percentage” means, with respect to any Lender, the percentage equal to a fraction the numerator of which is suchLender’s Commitment and the denominator of which is the aggregate Commitments of all Lenders (if the Commitments have terminated orexpired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to anyassignments); provided that in the case of Section 2.21 when a Defaulting Lender shall exist, any such Defaulting Lender’s Commitment shallbe disregarded in the calculation.

“Applicable Pledge Percentage” means 100% but 65% in the case of a pledge by the Borrower or any Subsidiary Guarantor ofits Equity Interests in a Foreign Subsidiary.

“Applicable Rate” means, for any day, with respect to any Eurodollar Loan, any ABR Loan or with respect to the commitmentfees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “Eurodollar Spread”, “ABRSpread” or “Commitment Fee Rate”, as the case may be, based upon the Leverage Ratio applicable on such date:

Leverage Ratio: Eurodollar Spread ABR Spread

Commitment FeeRate

Category 1: < 0.75 to 1.00 1.50% 0.50% 0.25%

Category 2: ≥ 0.75 to 1.00 but < 1.25 to 1.00

1.75% 0.75% 0.30%


2.00% 1.00% 0.35%


2.25% 1.25% 0.40%

Category 5: > 2.25 to 1.00 2.50% 1.50% 0.45%

For purposes of the foregoing,

(i) if at any time the Borrower fails to deliver the Financials on or before the date the Financials are due pursuant toSection 5.01(a) or (b), as applicable, Category 5 shall be deemed applicable for the period commencing three (3) Business Days afterthe required date of delivery and ending on the date which is three (3) Business Days after the Financials are actually delivered, afterwhich the Category shall be determined in accordance with the table above as applicable;

(ii) adjustments, if any, to the Category then in effect shall be effective three (3) Business Days after the AdministrativeAgent has received the applicable Financials (it being understood and agreed that each change in Category shall apply during the periodcommencing on the effective date of such change and ending on the date immediately preceding the effective date of the next suchchange); and

(iii) notwithstanding the foregoing, Category 3 shall be deemed to be applicable until the Administrative Agent’s receipt ofthe applicable Financials for the Borrower’s first fiscal quarter

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ending after the Effective Date and adjustments to the Category then in effect shall thereafter be effected in accordance with thepreceding paragraphs.

“Approved Fund” has the meaning assigned to such term in Section 9.04(b).

“Assignment and Assumption” means an assignment and assumption agreement entered into by a Lender and an assignee (withthe consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or anyother form approved by the Administrative Agent.

“Augmenting Lender” has the meaning assigned to such term in Section 2.20.

“Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Dateand the date of termination of the Commitments in accordance with this Agreement.

“Available Revolving Commitment” means, at any time with respect to any Lender, the Commitment of such Lender then ineffect minus the Revolving Credit Exposure of such Lender at such time; it being understood and agreed that any Lender’s Swingline Exposureshall not be deemed to be a component of the Revolving Credit Exposure for purposes of calculating the commitment fee under Section 2.12(a).

“Banking Services” means each and any of the following bank services provided to the Borrower or any Subsidiary by anyLender or any of its Affiliates: (a) credit cards for commercial customers (including, without limitation, commercial credit cards and purchasingcards), (b) stored value cards, (c) merchant processing services and (d) treasury management services (including, without limitation, controlleddisbursement, automated clearinghouse transactions, return items, any direct debit scheme or arrangement, overdrafts and interstate depositorynetwork services).

“Banking Services Agreement” means any agreement entered into by the Borrower or any Subsidiary in connection withBanking Services.

“Banking Services Obligations” means any and all obligations of the Borrower or any Subsidiary, whether absolute orcontingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereofand substitutions therefor) in connection with Banking Services.

“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a bankruptcy or insolvencyproceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person chargedwith the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Administrative Agent, has takenany action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment, provided that aBankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by aGovernmental Authority or instrumentality thereof, unless such ownership interest results in or provides such Person with immunity from thejurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permits such Person(or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by suchPerson.

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“Board” means the Board of Governors of the Federal Reserve System of the United States of America.

“Borrower” means Quality Systems, Inc., a California corporation.

“Borrower Audited Financial Statements” has the meaning assigned to such term in Section 4.01(i)(i).

“Borrower Unaudited Financial Statements” has the meaning assigned to such term in Section 4.01(i)(iii).

“Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued on the same date and, in the case ofEurodollar Loans, as to which a single Interest Period is in effect or (b) a Swingline Loan.

“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03 in the form attachedhereto as Exhibit F-1.

“Burdensome Restrictions” means any consensual encumbrance or restriction of the type described in clause (a) or (b) ofSection 6.08.

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City orLos Angeles, California are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, theterm “Business Day” shall also exclude any day on which banks are not open for dealings in Dollars in the London interbank market.

“Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any leaseof (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to beclassified and accounted for as capital lease obligations on a balance sheet of such Person under GAAP, and the amount of such obligationsshall be the capitalized amount thereof determined in accordance with GAAP.

“CFC” means a controlled foreign corporation as defined in Section 957 of the Code.

“Change in Control” means (a) any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rulesof the SEC thereunder as in effect on the date hereof, but excluding any employee benefit plan of such person or its subsidiaries, and anyperson or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (asdefined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934), directly or indirectly, of Equity Interests representing more than35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower entitled to vote formembers of the board of directors or equivalent governing body of the Borrower; (b) occupation of a majority of the seats (other than vacantseats) on the board of directors of the Borrower by Persons who were not (i) directors of the Borrower on the date of this Agreement or (ii)nominated or appointed by the board of directors of the Borrower; or (c) the occurrence of a change in control, or other similar provision, asdefined in any agreement or instrument evidencing any Material Indebtedness (triggering a default or mandatory prepayment, which default ormandatory prepayment has not been waived in writing).

“Change in Law” means the occurrence, after the date of this Agreement (or with respect to any Lender, if later, the date onwhich such Lender becomes a Lender), of any of the following: (a) the

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adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration,interpretation, implementation or application thereof by any Governmental Authority, or (c) the making or issuance of any request, rules,guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; provided however, thatnotwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules,guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof, and (ii) all requests, rules,guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision(or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in eachcase be deemed to be a “Change in Law” regardless of the date enacted, adopted, issued or implemented.

“Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising suchBorrowing, are Revolving Loans or Swingline Loans.

“Code” means the Internal Revenue Code of 1986, as amended.

“Co-Documentation Agent” means each of Bank of the West, KeyBank National Association and Wells Fargo Bank, NationalAssociation in its capacity as a co-documentation agent for the credit facility evidenced by this Agreement.

“Collateral” means any and all property owned, leased or operated by a Person covered by the Collateral Documents and anyand all other property of any Loan Party, now existing or hereafter acquired, that may at any time be or become subject to a security interest orLien in favor of Administrative Agent, on behalf of itself and the Secured Parties, to secure the Secured Obligations.

“Collateral Documents” means, collectively, the Security Agreement and all other agreements, instruments and documentsexecuted in connection with this Agreement that are intended to create, perfect or evidence Liens to secure the Secured Obligations, including,without limitation, all other security agreements, pledge agreements, loan agreements, notes, guarantees, subordination agreements, pledges,powers of attorney, consents, assignments, contracts, fee letters, notices, leases, financing statements and all other written matter whetherheretofore, now, or hereafter executed by the Borrower or any of its Subsidiaries and delivered to the Administrative Agent.

“Commitment” means, with respect to each Lender, the commitment of such Lender to make Revolving Loans and to acquireparticipations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount ofsuch Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) reduced or terminated from time to time pursuant toSection 2.09, (b) increased from time to time pursuant to Section 2.20 and (c) reduced or increased from time to time pursuant to assignmentsby or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in theAssignment and Assumption or other documentation contemplated hereby pursuant to which such Lender shall have assumed its Commitment,as applicable.

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, andany successor statute.

“Communications” has the meaning assigned to such term in Section 9.01(d).

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (howeverdenominated) or that are franchise Taxes or branch profits Taxes.

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“Consolidated Capital Expenditures” means, without duplication, any expenditures for any purchase or other acquisition of anyasset which would be classified as a fixed or capital asset on a consolidated balance sheet of the Borrower and its Subsidiaries prepared inaccordance with GAAP.

“Consolidated EBITDA” means, with reference to any period, (a) Consolidated Net Income plus, (b) without duplication and tothe extent deducted in determining Consolidated Net Income, the sum of (i) Consolidated Interest Expense, (ii) expense for income taxes paidor accrued, (iii) depreciation, (iv) amortization, (v) extraordinary or non-recurring (A) non-cash charges, expenses or losses incurred other thanin the ordinary course of business and (B) cash charges, expenses or losses incurred other than in the ordinary course of business (including,without limitation, any fees and expenses incurred in connection with Permitted Acquisitions and incurrence of Indebtedness or otherinvestments, in each case, permitted by this Agreement and whether or not such transactions are consummated); provided that such charges,expenses or losses added back pursuant to this clause (v)(B) may not exceed $5,000,000 during any rolling four-quarter period, (vi) non-cashexpenses (including stock based compensation), (vii) fees and expenses paid to the Credit Parties under the Loan Documents; (viii) losses fromcurrency exchange transactions and (ix) fees and expenses incurred in connection with the HealthFusion Acquisition, minus, (xi) to the extentincluded in determining Consolidated Net Income, the sum of (1) interest income, (2) income tax credits and refunds (to the extent not nettedfrom tax expense), (3) any cash payments made during such period in respect of items described in clauses (v) or (vi) above subsequent to thefiscal quarter in which the relevant non-cash expenses or losses were incurred, to the extent and only to the extent that, for any rolling fourquarter period, such cash payments exceed an amount equal to $5,000,000 minus the amount added back to EBITDA pursuant to clause (v)(B)above, (4) extraordinary, unusual or non-recurring income or gains realized other than in the ordinary course of business and (5) gains fromcurrency exchange transactions, all calculated for the Borrower and its Subsidiaries in accordance with GAAP on a consolidated basis. For thepurposes of calculating Consolidated EBITDA (other than in connection with any calculation of the Fixed Charge Coverage Ratio) for anyperiod of four consecutive fiscal quarters (each such period, a “Reference Period”), (i) if at any time during such Reference Period theBorrower or any Subsidiary shall have made any Material Disposition, Consolidated EBITDA for such Reference Period shall be calculatedafter giving effect thereto on a pro forma basis as if such Material Disposition occurred on the first day of such Reference Period, and (ii) ifduring such Reference Period the Borrower or any Subsidiary shall have made a Material Acquisition, Consolidated EBITDA for suchReference Period shall be calculated after giving effect thereto on a pro forma basis as if such Material Acquisition occurred on the first day ofsuch Reference Period. In addition, for purposes of determining Consolidated EBITDA under this Agreement for any Reference Period(i) Consolidated EBITDA for the fiscal quarter ended December 31, 2014, shall be deemed to be $17,900,000, (ii) Consolidated EBITDA forthe fiscal quarter ended March 31, 2015, shall be deemed to be $21,900,000, (iii) Consolidated EBITDA for the fiscal quarter ended June 30,2015, shall be deemed to be $18,500,000 and (iv) Consolidated EBITDA for the fiscal quarter ended September 30, 2015, shall be deemed tobe $22,500,000.

“Consolidated Interest Expense” means, with reference to any period, the interest expense (including without limitation interestexpense under Capital Lease Obligations that is treated as interest in accordance with GAAP) of the Borrower and its Subsidiaries calculated ona consolidated basis for such period in accordance with GAAP (including, without limitation, all commissions, discounts and other fees andcharges owed with respect to letters of credit and bankers acceptance financing and net costs under interest rate Swap Agreements to the extentsuch net costs are allocable to such period in accordance with GAAP). In the event that the Borrower or any Subsidiary shall have completed aMaterial Acquisition or a Material Disposition since the beginning of the relevant period, Consolidated Interest Expense (other than inconnection with any calculation of the Fixed Charge Coverage Ratio) shall be determined for such period

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on a pro forma basis as if such acquisition or disposition, and any related incurrence or repayment of Indebtedness, had occurred at thebeginning of such period.

“Consolidated Net Income” means, with reference to any period, the net income (or loss) of the Borrower and its Subsidiariescalculated in accordance with GAAP on a consolidated basis (without duplication) for such period; provided that there shall be excluded anyincome (or loss) of any Person other than the Borrower or a Subsidiary, but any such income so excluded may be included in such period or anylater period to the extent of any cash dividends or distributions actually paid in the relevant period to the Borrower or a Subsidiary of theBorrower.

“Consolidated Total Assets” means, as of the date of any determination thereof, total assets of the Borrower and itsSubsidiaries calculated in accordance with GAAP on a consolidated basis as of such date.

“Consolidated Total Indebtedness” means at any date the sum, without duplication, of (a) the aggregate Indebtedness(excluding Earnout Obligations and deferred compensation) of the Borrower and its Subsidiaries calculated on a consolidated basis as of suchdate in accordance with GAAP, (b) the aggregate amount of Indebtedness of the Borrower and its Subsidiaries relating to the maximumdrawing amount of all letters of credit and bankers acceptances outstanding and (c) the aggregate amount of Indebtedness of the type referred toin clauses (a) or (b) hereof of a Person (other than the Borrower or any Subsidiary) guaranteed by the Borrower or any of its Subsidiaries.

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management orpolicies of a Person, whether through the ability to exercise voting power, by contract or otherwise. The terms “Controlling” and “Controlled”have meanings correlative thereto.

“Credit Event” means a Borrowing, the issuance, amendment, renewal or extension of a Letter of Credit, an LC Disbursementor any of the foregoing.

“Credit Party” means the Administrative Agent, each Issuing Bank, the Swingline Lender or any other Lender.

“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or bothwould, unless cured or waived, become an Event of Default.

“Defaulting Lender” means any Lender that (a) has failed, within two (2) Business Days of the date required to be funded orpaid, to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or Swingline Loans or (iii) pay over toany Credit Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies theAdministrative Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding(specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower or any Credit Party inwriting, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under thisAgreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that acondition precedent (specifically identified and including the particular default, if any) to funding a Loan under this Agreement cannot besatisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three (3) Business Days after requestby a Credit Party or the Borrower, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it willcomply with its obligations (and is financially able to meet such obligations) to fund prospective Loans and participations in then outstandingLetters of Credit and Swingline Loans under

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this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon the receipt by such CreditParty or the Borrower, as applicable, of such certification in form and substance satisfactory to the Administrative Agent, or (d) has become, orhas a Lender Parent that has become, the subject of a Bankruptcy Event.

“Dollars” or “$” refers to lawful money of the United States of America.

“Domestic Subsidiary” means a Subsidiary organized under the laws of a jurisdiction located in the United States of America,excluding (a) any Foreign Subsidiary Holding Corporation and (b) any direct or indirect Subsidiary, organized under the laws of a jurisdictionlocated in the United States of America, of a Foreign Subsidiary that is a CFC.

“Earnout Obligations” means, in connection with any acquisition, the obligation of the Borrower or any Subsidiary to pay aportion of the purchase price after the closing date thereof that is structured as an earnout or similar contingent payment or arrangement. Theamount of any Earnout Obligation at any time shall be the amount reasonably estimated by the Borrower at such time to be or become payablepursuant to such obligation.

“ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or anyregulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.

“Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance withSection 9.02).

“Electronic Signature” means an electronic sound, symbol, or process attached to, or associated with, a contract or other recordand adopted by a Person with the intent to sign, authenticate or accept such contract or record.

“Electronic System” means any electronic system, including e-mail, e-fax, Intralinks®, ClearPar®, Debt Domain, Syndtrak andany other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent and any ofits respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.

“Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices orbinding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservationor reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters.

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs ofenvironmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or basedupon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any HazardousMaterials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or(e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of theforegoing.

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company,beneficial interests in a trust or other equity ownership interests in a Person,

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and any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing from such Person.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as asingle employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, istreated as a single employer under Section 414 of the Code.

“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunderwith respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the failure to satisfy the “minimum fundingstandard” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(c) ofthe Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) theincurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan;(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminateany Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of anyliability with respect to the withdrawal or partial withdrawal of the Borrower or any of its ERISA Affiliates from any Plan or MultiemployerPlan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower orany ERISA Affiliate of any notice, concerning the imposition upon the Borrower or any of its ERISA Affiliates of Withdrawal Liability or adetermination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

“Eurodollar” when used in reference to any Loan or Borrowing, means that such Loan, or the Loans comprising suchBorrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate.

“Event of Default” has the meaning assigned to such term in Article VII.

“Excluded Swap Obligation” means, with respect to any Loan Party, any Specified Swap Obligation if, and to the extent that,all or a portion of the Guarantee of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Specified SwapObligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of theCommodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Party’s failure forany reason to constitute an ECP at the time the Guarantee of such Loan Party or the grant of such security interest becomes effective withrespect to such Specified Swap Obligation. If a Specified Swap Obligation arises under a master agreement governing more than one swap,such exclusion shall apply only to the portion of such Specified Swap Obligation that is attributable to swaps for which such Guarantee orsecurity interest is or becomes illegal.

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld ordeducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branchprofits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in thecase of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) thatare Other Connection Taxes, (b) in the case of a Lender, U.S. Federal

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withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan, Letter ofCredit or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan, Letter of Credit orCommitment (other than pursuant to an assignment request by the Borrower under Section 2.19(b)) or (ii) such Lender changes its lendingoffice, except in each case to the extent that, pursuant to Section 2.17, amounts with respect to such Taxes were payable either to such Lender’sassignor immediately before such Lender acquired the applicable interest in a Loan, Letter of Credit or Commitment or to such Lenderimmediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.17(f) and (d) anyU.S. Federal withholding Taxes imposed under FATCA.

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successorversion that is substantively comparable and not materially more onerous to comply with), any current or future regulations or officialinterpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code, and any intergovernmental agreemententered into in connection with the implementation of such Sections of the Code and any law, regulation or practice adopted pursuant to anysuch intergovernmental agreement.

“Federal Funds Effective Rate” means, for any day, the rate calculated by the FRBNY based on such day’s federal fundstransactions by depository institutions (as determined in such manner as the FRBNY shall set forth on its public website from time to time) andpublished on the next succeeding Business Day by the FRBNY as the federal funds effective rate. For the avoidance of doubt, if the FederalFunds Effective Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

“Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Borrower.

“Financials” means the annual or quarterly financial statements, and accompanying certificates and other documents, of theBorrower and its Subsidiaries required to be delivered pursuant to Section 5.01(a) or 5.01(b).

“First Tier Foreign Subsidiary” means each Foreign Subsidiary with respect to which the Borrower and the SubsidiaryGuarantors directly owns or Controls more than 50% of such Foreign Subsidiary’s issued and outstanding Equity Interests.

“Fixed Charge Coverage Ratio” means, at any date, the ratio of (a) Consolidated EBITDA minus Consolidated CapitalExpenditures minus 75% of capitalized software capital expenditures minus expenses for taxes paid in cash to (b) Consolidated InterestExpense paid in cash, in each case, for the period of four (4) consecutive fiscal quarters ended on such date (or, if such date is not the last dayof a fiscal quarter, ended on the last day of the fiscal quarter most recently ended prior to such date for which financial statements have beendelivered pursuant to Section 5.01(a) or (b) (or, if prior to the date of the delivery of the first financial statements to be delivered pursuant toSection 5.01(a) or (b), the most recent financial statements referred to in Section 3.04(a)), all calculated for the Borrower and its Subsidiaries ona consolidated basis.

“Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not aU.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for taxpurposes.

“Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.

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“Foreign Subsidiary Holding Corporation” means any Domestic Subsidiary of the Borrower that holds no other assets otherthan equity or Indebtedness of one or more Foreign Subsidiaries that are CFCs and other de minimis assets related thereto.

“FRBNY” means the Federal Reserve Bank of New York.

“FRBNY Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) theOvernight Bank Funding Rate in effect on such day; provided that if both such rates are not so published for any day that is a Business Day, theterm “FRBNY Rate” means the rate quoted for such day for a federal funds transaction at 11:00 a.m. on such day received by theAdministrative Agent from a Federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates shallbe less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

“GAAP” means generally accepted accounting principles in the United States of America.

“Governmental Authority” means the government of the United States of America, any other nation or any politicalsubdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entityexercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantorguaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) inany manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advanceor supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for thepurchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the ownerof such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statementcondition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as anaccount party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term“Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business.

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes orother pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

“HealthFusion” means HealthFusion Holdings, Inc., a Delaware corporation.

“HealthFusion Acquisition” means the acquisition by the Borrower of HealthFusion pursuant to the terms of the HealthFusionMerger Agreement.

“HealthFusion Audited Financial Statements” has the meaning assigned to such term in Section 4.01(i)(ii).

“HealthFusion Material Adverse Effect” means a change, event or circumstance, the effect of which is both material andadverse to the Current Company Business, results of operations or condition (financial or otherwise) of the Group Companies, taken as awhole; provided, however, that none of the following shall be deemed, either alone or in combination, to constitute, and none of the followingshall be

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taken into account in determining whether there has been or will be, a Company Material Adverse Effect: (i) conditions affecting (A) any of theindustries in which the Group Companies operate or participate or (B) the U.S. economy or financial or capital markets (including interestrates) or political conditions in the U.S.; (ii) any failure by a Group Company to meet internal or other estimates, predictions, projections orforecasts, including as provided to Parent by the Company or any of the Company’s representatives (provided, that the facts giving rise orcontributing to any such failure may be deemed to constitute, or be taken into account in determining whether there has been, a CompanyMaterial Adverse Effect); (iii) any changes arising from the announcement or pendency of any of the transactions contemplated by thisAgreement or any other related transaction document or the identity or involvement of Parent; (iv) the taking of any action by Parent or any ofParent’s Subsidiaries, or the taking of any action by the Company approved in writing by Parent or that are otherwise expressly required underthe terms of this Agreement; (v) any change in accounting requirements or principles or any change in Laws or the interpretation thereof; or(vi) acts of war, hostilities or terrorism or any escalation or material worsening of any such acts of war, hostilities or terrorism, or theoccurrence or escalation of any other calamity or crisis, except, for purposes of clauses (i), (v) and (vi), to the extent, and only to the extent, thatsuch conditions have a materially disproportionate impact on the Company as compared to other Persons engaged in the same industry. Solelyfor purposes of this definition, (i) each reference to “this Agreement” shall mean the HealthFusion Merger Agreement without giving effect toany amendment, restatement, supplement or other modification thereof and (ii) each other capitalized term in this definition shall have themeaning given to such term in the HealthFusion Merger Agreement without giving effect to any amendment, restatement, supplement or othermodification thereof.

“HealthFusion Merger Agreement” means the Agreement and Plan of Merger dated October 30, 2015 among the Borrower,Ivory Merger Sub, Inc., HealthFusion and Seth Flam, Sol Lizerbram and Jonathan Flam, including all exhibits, schedules and annexes thereto,in each case as amended pursuant to the terms hereof.

“HealthFusion Unaudited Financial Statements” has the meaning assigned to such term in Section 4.01(i)(iii).

“Hostile Acquisition” means (a) the acquisition of the Equity Interests of a Person through a tender offer or similar solicitationof the owners of such Equity Interests which has not been approved (prior to such acquisition) by the board of directors (or any other applicablegoverning body) of such Person or by similar action if such Person is not a corporation and (b) any such acquisition as to which such approvalhas been withdrawn.

“Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate”.

“Increasing Lender” has the meaning assigned to such term in Section 2.20.

“Incremental Term Loan” has the meaning assigned to such term in Section 2.20.

“Incremental Term Loan Amendment” has the meaning assigned to such term in Section 2.20.

“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money or withrespect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments,(c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale orother title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect

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of the deferred purchase price of property or services (excluding accounts payable and other current accrued expenses incurred and paid in theordinary course of business), including, for the avoidance of doubt, any Earnout Obligations, (f) all Indebtedness of others secured by (or forwhich the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquiredby such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person of Indebtedness ofothers, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party inrespect of letters of credit and letters of guaranty and (j) all obligations, contingent or otherwise, of such Person in respect of bankers’acceptances. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Personis a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with suchentity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or onaccount of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a) hereof, OtherTaxes.

“Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).

“Information Memorandum” means the Confidential Information Memorandum dated November 12, 2015 relating to theBorrower and the Transactions.

“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance withSection 2.08 in the form attached hereto as Exhibit F-2.

“Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and Decemberand the Maturity Date, (b) with respect to any Eurodollar Loan (other than a Swingline Loan), the last day of the Interest Period applicable tothe Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of suchInterest Period and the Maturity Date and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid and theMaturity Date.

“Interest Period” means, with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing andending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower may elect;provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the nextsucceeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Periodshall end on the next preceding Business Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences on the lastBusiness Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such InterestPeriod) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowinginitially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion orcontinuation of such Borrowing.

“Interpolated Rate” means, at any time, for any Interest Period, the rate per annum determined by the Administrative Agent(which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linearbasis between: (a) the LIBOR Screen Rate for the longest period (for which the LIBOR Screen Rate is available for the applicable currency)that is shorter than the Impacted Interest Period and (b) the LIBOR Screen Rate for the shortest period (for which the

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LIBOR Screen Rate is available for the applicable currency) that exceeds the Impacted Interest Period, in each case, at such time.

“IRS” means the United States Internal Revenue Service.

“Issuing Bank” means each of (a) JPMorgan Chase Bank, N.A., (b) U.S. Bank National Association and (c) and each otherLender designated by the Borrower as an “Issuing Bank” hereunder that has agreed to such designation (and is reasonably acceptable to theAdministrative Agent), each in its capacity as an issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section2.06(i). Any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, inwhich case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

“LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).

“LC Disbursement” means a payment made by an Issuing Bank pursuant to a Letter of Credit.

“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at suchtime plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time.The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

“Lead Arranger” means each of J.P. Morgan Securities LLC and U.S. Bank National Association in its capacity as a joint leadarranger and joint bookrunner for the credit facility evidenced by this Agreement.

“Lender Parent” means, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.

“Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a Lender hereunder pursuantto Section 2.20 or pursuant to an Assignment and Assumption or other documentation contemplated hereby, other than any such Person thatceases to be a party hereto pursuant to an Assignment and Assumption or other documentation contemplated hereby. Unless the contextotherwise requires, the term “Lenders” includes the Swingline Lender and each Issuing Bank.

“Letter of Credit” means any letter of credit issued pursuant to this Agreement.

“Letter of Credit Commitment” means, with respect to each Issuing Bank, the commitment of such Issuing Bank to issueLetters of Credit hereunder. The initial amount of each Issuing Bank’s Letter of Credit Commitment is set forth on Schedule 2.02, or if anIssuing Bank has entered into an Assignment and Assumption, the amount set forth for such Issuing Bank as its Letter of Credit Commitmentin the Register maintained by the Administrative Agent; each Issuing Bank’s Letter of Credit Commitment may be decreased or increased fromtime to time with the written consent of the Borrower, the Administrative Agent and the Issuing Banks; provided that any increase in the Letterof Credit Commitment with respect to any Issuing Bank, or any decrease in the Letter of Credit Commitment with respect to any Issuing Bankto an amount not less than such Issuing Bank’s Letter of Credit Commitment as of the Effective Date or the date of its initial Letter of CreditCommitment, shall only require the consent of the Borrower and such Issuing Bank.

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“Leverage Ratio” means, at any date, the ratio of (a) Consolidated Total Indebtedness as of such date to (b) ConsolidatedEBITDA for the period of four (4) consecutive fiscal quarters ended on such date (or, if such date is not the last day of a fiscal quarter, ended onthe last day of the fiscal quarter most recently ended prior to such date for which financial statements have been delivered pursuant to Section5.01(a) or (b) (or, if prior to the date of the delivery of the first financial statements to be delivered pursuant to Section 5.01(a) or (b), the mostrecent financial statements referred to in Section 3.04(a)), all calculated for the Borrower and its Subsidiaries on a consolidated basis.

“LIBO Rate” means, with respect to any Eurodollar Borrowing for any applicable Interest Period, the London interbank offeredrate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for Dollars for aperiod equal in length to such Interest Period as displayed on page LIBOR01 of the Reuters screen or, in the event such rate does not appear onsuch Reuters page, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such otherinformation service that publishes such rate as shall be selected by the Administrative Agent from time to time in its reasonable discretion (ineach case the “LIBOR Screen Rate”) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of suchInterest Period; provided that, if the LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of thisAgreement; provided, further, that if a LIBOR Screen Rate shall not be available at such time for such Interest Period (the “Impacted InterestPeriod”), then the LIBO Rate for such Interest Period shall be the Interpolated Rate; provided, that, if any Interpolated Rate shall be less thanzero, such rate shall be deemed to be zero for the purposes of this Agreement. It is understood and agreed that all of the terms and conditions ofthis definition of “LIBO Rate” shall be subject to Section 2.14.

“LIBOR Screen Rate” has the meaning assigned to such term in the definition of “LIBO Rate”.

“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge orsecurity interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or titleretention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and(c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

“Loan Documents” means this Agreement, any promissory notes issued pursuant to Section 2.10(e), any Letter of Creditapplications, the Collateral Documents, the Subsidiary Guaranty, and all other agreements, instruments and documents identified inSection 4.01 executed and delivered to, or in favor of, the Administrative Agent or any Lenders and including all other pledges, powers ofattorney, consents, assignments, contracts, letter of credit agreements, UCC filings, letter of credit applications and any agreements between theBorrower and any Issuing Bank regarding such Issuing Bank’s Letter of Credit Commitment or the respective rights and obligations betweenthe Borrower and such Issuing Bank in connection with the issuance of Letters of Credit, and any other documents prepared in connection withthe other Loan Documents, if any. Any reference in this Agreement or any other Loan Document to a Loan Document shall include allappendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to thisAgreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative.

“Loan Parties” means, collectively, the Borrower and the Subsidiary Guarantors.

“Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.

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“Long-Term Deferred Items” means as of any date the amount of non-current deferred revenue and non-current deferred rent ofthe Borrower and its Subsidiaries on such date, all determined on a consolidated basis in accordance with GAAP.

“Material Acquisition” means any acquisition of property or series of related acquisitions of property that (a) constitutes(i) assets comprising all or substantially all or any significant portion of a business or operating unit of a business, or (ii) all or substantially allof the common stock or other Equity Interests of a Person, and (b) involves the payment of consideration by the Borrower and its Subsidiariesin excess of $20,000,000.

“Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations or condition (financial orotherwise) of the Borrower and the Subsidiaries taken as a whole, (b) the ability of the Borrower to perform any of its obligations under thisAgreement or any other Loan Document or (c) the validity or enforceability of this Agreement or any and all other Loan Documents or therights or remedies of the Administrative Agent and the Lenders thereunder.

“Material Disposition” means any sale, transfer or disposition of property or series of related sales, transfers, or dispositions ofproperty that yields gross proceeds to the Borrower or any of its Subsidiaries in excess of $20,000,000.

“Material Domestic Subsidiary” means each Domestic Subsidiary (a) which, as of the most recent fiscal quarter of theBorrower, for the period of four consecutive fiscal quarters then ended, for which financial statements have been delivered pursuant to Section5.01(a) or (b) (or, if prior to the date of the delivery of the first financial statements to be delivered pursuant to Section 5.01(a) or (b), the mostrecent financial statements referred to in Section 3.04(a)), contributed greater than five percent (5%) of Consolidated EBITDA for such periodor (b) which contributed greater than five percent (5%) of Consolidated Total Assets as of such date; provided that, if at any time the aggregateamount of Consolidated EBITDA or Consolidated Total Assets attributable to all Domestic Subsidiaries that are not Material DomesticSubsidiaries exceeds ten percent (10%) of Consolidated EBITDA for any such period or ten percent (10%) of Consolidated Total Assets as ofthe end of any such fiscal quarter, the Borrower (or, in the event the Borrower has failed to do so within ten (10) Business Days, theAdministrative Agent) shall designate sufficient Domestic Subsidiaries as “Material Domestic Subsidiaries” to eliminate such excess, and suchdesignated Subsidiaries shall for all purposes of this Agreement constitute Material Domestic Subsidiaries.

“Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one ormore Swap Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $15,000,000. Forpurposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of anySwap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or suchSubsidiary would be required to pay if such Swap Agreement were terminated at such time.

“Maturity Date” means January 4, 2021.

“Moody’s” means Moody’s Investors Service, Inc.

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

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“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC Exposure, all accrued andunpaid fees and all expenses, reimbursements, indemnities and other obligations and indebtedness (including interest and fees accruing duringthe pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in suchproceeding), obligations and liabilities of any of the Borrower and its Subsidiaries to any of the Lenders, the Administrative Agent, any IssuingBank or any indemnified party, individually or collectively, existing on the Effective Date or arising thereafter, direct or indirect, joint orseveral, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law orotherwise, arising or incurred under this Agreement or any of the other Loan Documents or in respect of any of the Loans made orreimbursement or other obligations incurred or any of the Letters of Credit or other instruments at any time evidencing any thereof.

“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury.

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connectionbetween such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered,become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in anyother transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan, Letter of Credit or Loan Document).

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arisefrom any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of asecurity interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed withrespect to an assignment (other than an assignment made pursuant to Section 2.19(b)).

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnightEurodollar borrowings by U.S.–managed banking offices of depository institutions (as such composite rate shall be determined by the FRBNYas set forth on its public website from time to time) and published on the next succeeding Business Day by the FRBNY as an overnight bankfunding rate (from and after such date as the FRBNY shall commence to publish such composite rate).

“Participant” has the meaning assigned to such term in Section 9.04(c).

“Participant Register” has the meaning assigned to such term in Section 9.04(c).

“Patriot Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entityperforming similar functions.

“Permitted Acquisition” means any acquisition (whether by purchase, merger, consolidation or otherwise but excluding in anyevent a Hostile Acquisition) or series of related acquisitions by the Borrower or any Subsidiary of (i) all or substantially all the assets of or(ii) all or substantially all the Equity Interests in, a Person or division or line of business of a Person, if, at the time of and immediately aftergiving effect thereto, (a) no Default has occurred and is continuing or would arise after giving effect (including giving effect on a pro formabasis) thereto, (b) such Person or division or line of business is engaged in the same or a similar line of business as the Borrower and theSubsidiaries or business reasonably related thereto,

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(c) all actions required to be taken with respect to such acquired or newly formed Subsidiary under Section 5.09 shall have been taken or shallbe taken concurrently with the closing of such Acquisition, (d) the Borrower and the Subsidiaries are in compliance, on a pro forma basis, withthe covenants contained in Section 6.11 recomputed as of the last day of the most recently ended fiscal quarter of the Borrower for whichfinancial statements are available, as if such acquisition (and any related incurrence or repayment of Indebtedness, with any new Indebtednessbeing deemed to be amortized over the applicable testing period in accordance with its terms) had occurred on the first day of each relevantperiod for testing such compliance and, if the aggregate consideration paid in respect of such acquisition exceeds $25,000,000, the Borrowershall have delivered to the Administrative Agent a certificate of a Financial Officer or other executive officer of the Borrower to such effect,together with all relevant financial information, statements and projections requested by the Administrative Agent and (e) in the case of amerger or consolidation involving (I) the Borrower, the Borrower is the surviving entity of such merger and/or consolidation and (II) anySubsidiary and not the Borrower, a Subsidiary is the surviving entity of such merger and/or consolidation.

“Permitted Encumbrances” means:

(a) Liens imposed by law for Taxes that are not yet delinquent or are being contested in compliance with Section 5.04;

(b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s and other like Liens imposed by law,arising in the ordinary course of business and securing obligations that are not overdue by more than sixty (60) days or are beingcontested in compliance with Section 5.04;

(c) pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemploymentinsurance and other social security laws or regulations;

(d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds,performance bonds and other obligations of a like nature, in each case in the ordinary course of business;

(e) judgment Liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII;

(f) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in theordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affectedproperty or interfere with the ordinary conduct of business of the Borrower or any Subsidiary;

(g) Liens arising by virtue of any contractual, statutory or common law provision relating to banker’s liens, rights of set-offor similar rights and remedies as to deposit of cash and securities in favor of bank, other depository institutions, and brokerage firms;and

(h) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties inconnection with the importation of goods in the ordinary course of business of the Borrower or any Subsidiary;

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.

“Permitted Investments” means:

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(a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the UnitedStates of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States ofAmerica), in each case maturing within one year from the date of acquisition thereof;

(b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or anypublic instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition, having oneof the two highest ratings obtainable from either S&P or Moody’s;

(c) investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such dateof acquisition, the highest credit rating obtainable from S&P or from Moody’s;

(d) investments in certificates of deposit, banker’s acceptances and time deposits maturing within one year from the date ofacquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domesticoffice of any commercial bank organized under the laws of the United States of America or any State thereof which has a combinedcapital and surplus and undivided profits of not less than $500,000,000;

(e) fully collateralized repurchase agreements with a term of not more than thirty (30) days for securities described inclause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above; and

(f) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of1940 and (ii) have portfolio assets of at least $5,000,000,000.

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company,partnership, Governmental Authority or other entity.

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV ofERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such planwere terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Platform” means Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system.

“Pledge Subsidiary” means (i) each Domestic Subsidiary and (ii) each First Tier Foreign Subsidiary.

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as itsprime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date suchchange is publicly announced as being effective.

“Recipient” means (a) the Administrative Agent, (b) any Lender and (c) any Issuing Bank, as applicable.

“Register” has the meaning assigned to such term in Section 9.04(b).

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“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers,employees, agents, advisors and representatives of such Person and such Person’s Affiliates.

“Required Lenders” means, subject to Section 2.21, at any time, Lenders having Revolving Credit Exposures and unusedCommitments representing more than 50% of the sum of the Total Revolving Credit Exposure and unused Commitments at such time; providedthat, for purposes of declaring the Loans to be due and payable pursuant to Article VII, and for all purposes after the Loans become due andpayable pursuant to Article VII or the Commitments expire or terminate, then, as to each Lender, clause (a) of the definition of SwinglineExposure shall only be applicable for purposes of determining its Revolving Credit Exposure to the extent such Lender shall have funded itsparticipation in the outstanding Swingline Loans.

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect toany Equity Interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinkingfund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interestsin the Borrower or any Subsidiary or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any Subsidiary.

“Restricted Payment Requirements” means, with respect to any Restricted Payment made by the Borrower or any Subsidiary inreliance upon Section 6.07(e), the following:

(a) no Default or Event of Default has occurred and is continuing prior to making such Restricted Payment or would ariseafter giving effect (including giving effect on a pro forma basis) thereto;

(b) the amount of unrestricted and unencumbered (other than pursuant to the Loan Documents) cash and PermittedInvestments of the Loan Parties that is denominated in Dollars and maintained in the United States shall not be less than $25,000,000immediately after giving effect to any such Restricted Payment;

(c) no more than $11,500,000 in Restricted Payments shall have been made in reliance upon Section 6.07(e) during any fourconsecutive fiscal quarter period occurring from the Effective Date through and including March 31, 2017; provided that RestrictedPayments made prior to the Effective Date shall not be included in any determination of compliance with this clause (c); and

(d) with respect to any Restricted Payment made in reliance upon Section 6.07(e) on or after April 1, 2017, (i) there shall beno dollar limit on Restricted Payments made when the Leverage Ratio is less than 1.50 to 1.00 immediately before and after givingeffect (including giving effect on a pro forma basis) to such Restricted Payment (based on the most recently delivered financials underSection 5.01(a) or (b), as applicable), and (ii) there shall be an aggregate dollar limit of $11,500,000 beginning on the date on whichsuch Restricted Payment is made and ending twelve months thereafter if the Leverage Ratio equals or exceeds 1.50 to 1.00 immediatelybefore and after giving effect (including giving effect on a pro forma basis) to such Restricted Payment (based on the most recentlydelivered financials under Section 5.01(a) or (b), as applicable); provided, that if the Leverage Ratio falls below 1.50 to 1.00 in asubsequent reporting period, such $11,500,000 limitation shall cease; provided, further, if the Leverage Ratio shall return to being equalto or greater than 1.50 to 1.00, a new twelve-month period shall begin with a new $11,500,000 cap on Restricted Payments under thisclause.

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“Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount ofsuch Lender’s Revolving Loans, its LC Exposure and its Swingline Exposure at such time.

“Revolving Loan” means a Loan made pursuant to Section 2.01.

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

“Sale and Leaseback Transaction” means any sale or other transfer of any property or asset by any Person with the intent tolease such property or asset as lessee.

“Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (atthe time of this Agreement, Crimea, Cuba, Iran, North Korea, Sudan and Syria).

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained byOFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state havingjurisdiction over the Borrower or any Subsidiary, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Personowned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).

“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to timeby (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council,the European Union, any European Union member state having jurisdiction over the Borrower or any Subsidiary or Her Majesty’s Treasury ofthe United Kingdom.

“SEC” means the United States Securities and Exchange Commission.

“Secured Obligations” means all Obligations, together with all Swap Obligations and Banking Services Obligations owing toone or more Lenders or their respective Affiliates; provided that the definition of “Secured Obligations” shall not create or include anyguarantee by any Loan Party of (or grant of security interest by any Loan Party to support, as applicable) any Excluded Swap Obligations ofsuch Loan Party for purposes of determining any obligations of any Loan Party.

“Secured Parties” means the holders of the Secured Obligations from time to time and shall include (a) each Lender and eachIssuing Bank in respect of its Loans and LC Exposure respectively, (b) the Administrative Agent, the Issuing Banks and the Lenders in respectof all other present and future obligations and liabilities of the Borrower and each Subsidiary of every type and description arising under or inconnection with this Agreement or any other Loan Document, (c) each Lender and Affiliate of such Lender in respect of Swap Agreements andBanking Services Agreements entered into with such Person by the Borrower or any Subsidiary, (d) each indemnified party under Section 9.03in respect of the obligations and liabilities of the Borrower to such Person hereunder and under the other Loan Documents, and (e) theirrespective successors and (in the case of a Lender or an Issuing Bank, permitted) transferees and assigns.

“Security Agreement” means that certain Pledge and Security Agreement (including any and all supplements thereto), dated asof the date hereof, between the Loan Parties and the Administrative Agent, for the benefit of the Administrative Agent and the other SecuredParties, and any other pledge or security agreement entered into, after the date of this Agreement by any other Loan Party (as required by

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this Agreement or any other Loan Document), or any other Person, as the same may be amended, restated or otherwise modified from time totime.

“Solvent” means, in reference to any Person, (a) the fair value of the assets of such Person and its Subsidiaries, taken as awhole, at a fair valuation, will exceed their debts and liabilities, subordinated, contingent or otherwise; (b) the present fair saleable value of theproperty of such Person and its Subsidiaries, taken as a whole, will be greater than the amount that will be required to pay the probable liabilityof their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured;(c) such Person and its Subsidiaries, taken as a whole, will be able to pay their debts and liabilities, subordinated, contingent or otherwise, assuch debts and liabilities become absolute and matured; and (d) such Person and its Subsidiaries, taken as a whole, will not have unreasonablysmall capital with which to conduct the business in which they are engaged as such business is now conducted and is proposed to be conductedafter the Effective Date.

“Specified Ancillary Obligations” means all obligations and liabilities (including interest and fees accruing during thependency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in suchproceeding) of any of the Subsidiaries, existing on the Effective Date or arising thereafter, direct or indirect, joint or several, absolute orcontingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise, to theLenders or any of their Affiliates under any Swap Agreement or any Banking Services Agreement.

“Specified Dividend” means the payment by the Borrower on January 4, 2016 of the dividend publicly declared by theBorrower on October 21, 2015 in an aggregate amount not to exceed $10,700,000.

“Specified Representations” means those representations and warranties made in Sections 3.01(a), 3.02, 3.03(b) (solely withrespect to each Loan Party), 3.03(c)(i) (solely with respect to the Loan Documents), 3.08, 3.12, 3.16(a), 3.18 (subject to the final paragraph setforth in Section 4.01(f)), 3.19 and 3.20.

“Specified Swap Obligation” means, with respect to any Loan Party, any obligation to pay or perform under any agreement,contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act or any rules orregulations promulgated thereunder.

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and thedenominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergencyor supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject for eurocurrencyfunding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include thoseimposed pursuant to such Regulation D of the Board. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject tosuch reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to anyLender under such Regulation D of the Board or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on andas of the effective date of any change in any reserve percentage.

“Subordinated Indebtedness” means any Indebtedness of the Borrower or any Subsidiary the payment of which is subordinatedto payment of the obligations under the Loan Documents.

“Subordinated Indebtedness Documents” means any document, agreement or instrument evidencing any SubordinatedIndebtedness or entered into in connection with any Subordinated Indebtedness.

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“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company,partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidatedfinancial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation,limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnershipinterests are, as of such date, owned, Controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or moresubsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

“Subsidiary” means any subsidiary of the Borrower.

“Subsidiary Guarantor” means each Material Domestic Subsidiary that is a party to the Subsidiary Guaranty. The SubsidiaryGuarantors on the Effective Date are identified as such in Schedule 3.01 hereto.

“Subsidiary Guaranty” means that certain Guaranty dated as of the Effective Date (including any and all supplements thereto)and executed by each Subsidiary Guarantor party thereto, as amended, restated, supplemented or otherwise modified from time to time.

“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option orsimilar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, oreconomic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combinationof these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current orformer directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.

“Swap Obligations” means any and all obligations of the Borrower or any Subsidiary, whether absolute or contingent andhowsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof andsubstitutions therefor), under (a) any and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a Lender, and (b) any andall cancellations, buy backs, reversals, terminations or assignments of any such Swap Agreement transaction.

“Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. TheSwingline Exposure of any Lender at any time shall be the sum of (a) its Applicable Percentage of the total Swingline Exposure at such timeother than with respect to any Swingline Loans made by such Lender in its capacity as a Swingline Lender and (b) the aggregate principalamount of all Swingline Loans made by such Lender as a Swingline Lender outstanding at such time (less the amount of participations fundedby the other Lenders in such Swingline Loans).

“Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of Swingline Loans hereunder.

“Swingline Loan” means a Loan made pursuant to Section 2.05.

“Syndication Agent” means U.S. Bank National Association in its capacity as syndication agent for the credit facilityevidenced by this Agreement.

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“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding),assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicablethereto.

“Total Revolving Credit Exposure” means the sum of the outstanding principal amount of all Lenders’ Revolving Loans, theirLC Exposure and their Swingline Exposure at such time; provided, that, clause (a) of the definition of Swingline Exposure shall only beapplicable to the extent Lenders shall have funded their respective participations in the outstanding Swingline Loans.

“Transactions” means (a) the HealthFusion Acquisition, (b) the refinancing of certain Indebtedness of HealthFusion and itsSubsidiaries as contemplated by Section 4.01(h), (c) the execution, delivery and performance by the Loan Parties of this Agreement and theother Loan Documents, (d) the borrowing of Loans and other credit extensions, the use of the proceeds thereof and the issuance of Letters ofCredit hereunder and (e) the payment of fees, commissions, transaction costs and expenses incurred in connection with each of the foregoing.

“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loanscomprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

“UCC” or “Uniform Commercial Code” means the Uniform Commercial Code as in effect from time to time in the State ofNew York or any other state the laws of which are required to be applied in connection with the issue of perfection of security interests.

“Unliquidated Obligations” means, at any time, any Secured Obligations (or portion thereof) that are contingent in nature orunliquidated at such time, including any Secured Obligation that is: (a) an obligation to reimburse a bank for drawings not yet made under aletter of credit issued by it; (b) any other obligation (including any guarantee) that is contingent in nature at such time; or (c) an obligation toprovide collateral to secure any of the foregoing types of obligations.

“U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30) of the Code.

“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.17(f)(ii)(B)(3).

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from suchMultiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

“Withholding Agent” means any Loan Party and the Administrative Agent.

SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified andreferred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar RevolvingLoan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “EurodollarBorrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of theterms defined. Whenever the context may require, any pronoun shall

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include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to befollowed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Theword “law” shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretationsthereunder having the force of law or with which affected Persons customarily comply), and all judgments, orders and decrees, of allGovernmental Authorities. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or otherdocument herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated,supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forthherein), (b) any definition of or reference to any statute, rule or regulation shall be construed as referring thereto as from time to time amended,supplemented or otherwise modified (including by succession of comparable successor laws), (c) any reference herein to any Person shall beconstrued to include such Person’s successors and assigns (subject to any restrictions on assignment set forth herein) and, in the case of anyGovernmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the words “herein”,“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particularprovision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,and Exhibits and Schedules to, this Agreement and (f) the words “asset” and “property” shall be construed to have the same meaning and effectand to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

SECTION 1.04. Accounting Terms; GAAP; Pro Forma Calculations. (a) Except as otherwise expressly provided herein, allterms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if theBorrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of anychange occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agentnotifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether anysuch notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis ofGAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn orsuch provision amended in accordance herewith. Notwithstanding any other provision contained herein, all terms of an accounting or financialnature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect toany election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial AccountingStandard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at “fair value”, asdefined therein and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under AccountingStandards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result oreffect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valuedat the full stated principal amount thereof.

(b) All pro forma computations required to be made hereunder giving effect to any acquisition or disposition, or issuance,incurrence or assumption of Indebtedness, or other transaction shall in each case be calculated giving pro forma effect thereto (and, in the caseof any pro forma computation made hereunder to determine whether such acquisition or disposition, or issuance, incurrence or assumption ofIndebtedness, or other transaction is permitted to be consummated hereunder, to any other such transaction consummated since the first day ofthe period covered by any component of such pro forma computation and on or prior to the date of such computation) as if such transaction hadoccurred on the first day of the

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period of four consecutive fiscal quarters ending with the most recent fiscal quarter for which financial statements shall have been deliveredpursuant to Section 5.01(a) or 5.01(b) (or, prior to the delivery of any such financial statements, ending with the last fiscal quarter included inthe financial statements referred to in Section 3.04(a)), and, to the extent applicable, to the historical earnings and cash flows associated withthe assets acquired or disposed of (but without giving effect to any synergies or cost savings) and any related incurrence or reduction ofIndebtedness. If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on such Indebtedness shall becalculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account any SwapAgreement applicable to such Indebtedness).

SECTION 1.05. Status of Obligations. In the event that the Borrower or any other Loan Party shall at any time issue or haveoutstanding any Subordinated Indebtedness, the Borrower shall take or cause such other Loan Party to take all such actions as shall benecessary to cause the Secured Obligations to constitute senior indebtedness (however denominated) in respect of such SubordinatedIndebtedness and to enable the Administrative Agent on behalf of the Lenders to have and exercise any payment blockage or other remediesavailable or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness. Without limiting theforegoing, the Secured Obligations are hereby designated as “senior indebtedness” and as “designated senior indebtedness” and words ofsimilar import under and in respect of any indenture or other agreement or instrument under which such Subordinated Indebtedness isoutstanding and are further given all such other designations as shall be required under the terms of any such Subordinated Indebtedness inorder that the Administrative Agent on behalf of the Lenders may have and exercise any payment blockage or other remedies available orpotentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.

ARTICLE II

The Credits

SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each Lender (severally and not jointly)agrees to make Revolving Loans to the Borrower in Dollars from time to time during the Availability Period in an aggregate principal amountthat will not result in (a) the amount of such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment or (b) the TotalRevolving Credit Exposure exceeding the aggregate Commitments. Within the foregoing limits and subject to the terms and conditions set forthherein, the Borrower may borrow, prepay and reborrow Revolving Loans.

SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as part of a Borrowing consisting ofRevolving Loans of the same Type made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender tomake any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of theLenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required. Any Swingline Loan shall bemade in accordance with the procedures set forth in Section 2.05.

(b) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as theBorrower may request in accordance herewith. Each Swingline Loan shall be a Eurodollar Loan. Each Lender at its option may make any Loanby causing any domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an Affiliate, the provisions ofSections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate to the same extent as to such Lender); provided that any exercise of such optionshall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

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(c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such Borrowing shall be in anaggregate amount that is an integral multiple of $500,000 and not less than $1,000,000. At the time that each ABR Revolving Borrowing ismade, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $500,000; provided that anABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the aggregate Commitments or that isrequired to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e). Each Swingline Loan shall be in an amountthat is an integral multiple of $100,000 and not less than $100,000. Borrowings of more than one Type and Class may be outstanding at thesame time; provided that there shall not at any time be more than a total of ten (10) Eurodollar Borrowings (other than Swingline Loans)outstanding.

(d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect toconvert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.

SECTION 2.03. Requests for Borrowings. To request a Borrowing (other than Swingline Loans, which shall be madepursuant to Section 2.05), the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a EurodollarBorrowing, not later than 1:00 p.m., New York City time, three (3) Business Days before the date of the proposed Borrowing or (b) in the caseof an ABR Borrowing, not later than 12:00 noon, New York City time, on the date of the proposed Borrowing; provided that no such notice ofan ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e) shall be required. Eachsuch telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery, telecopy or other electroniccommunication to the Administrative Agent of a written Borrowing Request signed by the Borrower. Each such telephonic and writtenBorrowing Request shall specify the following information in compliance with Section 2.02:

(i) the aggregate principal amount of the requested Borrowing;

(ii) the date of such Borrowing, which shall be a Business Day;

(iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

(iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a periodcontemplated by the definition of the term “Interest Period”; and

(v) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with therequirements of Section 2.07.

If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving Borrowing shall be an ABR Borrowing. If noInterest Period is specified with respect to any requested Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have selectedan Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section, theAdministrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of therequested Borrowing.

SECTION 2.04. Intentionally Omitted.

SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth herein, from time to time during theAvailability Period the Swingline Lender may in its sole discretion make Swingline Loans in Dollars to the Borrower, in an aggregate principalamount at any time outstanding that

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will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $10,000,000, (ii) the Swingline Lender’sRevolving Credit Exposure exceeding its Commitment, or (iii) the Total Revolving Credit Exposure exceeding the aggregate Commitments;provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Within theforegoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans.

(b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telephone (confirmedby telecopy or other electronic communication), not later than 12:00 noon, New York City time, on the day of a proposed Swingline Loan. Eachsuch notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested SwinglineLoan. The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the Borrower. The SwinglineLender shall make each Swingline Loan available to the Borrower by transfer of immediately available funds to an account of the Borrowerdesignated by the Borrower in the applicable request, by 3:00 p.m., New York City time, on the requested date of such Swingline Loan.

(c) The Swingline Lender may by written notice given to the Administrative Agent not later than 10:00 a.m., New York Citytime, on any Business Day require the Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loansoutstanding. Such notice shall specify the aggregate amount of Swingline Loans in which Lenders will participate. Promptly upon receipt ofsuch notice, the Administrative Agent will give notice thereof to each Lender, specifying in such notice such Lender’s Applicable Percentage ofsuch Swingline Loan or Loans. Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay tothe Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans.Each Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute andunconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction ortermination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reductionwhatsoever. Each Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the samemanner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the paymentobligations of the Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from theLenders. The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph,and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Anyamounts received by the Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan afterreceipt by the Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; anysuch amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall havemade their payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear; provided that any such payment soremitted shall be repaid to the Swingline Lender or to the Administrative Agent, as applicable, if and to the extent such payment is required tobe refunded to the Borrower for any reason. The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve theBorrower of any default in the payment thereof.

SECTION 2.06. Letters of Credit. (a) General. Subject to the terms and conditions set forth herein, the Borrower may requestthe issuance of Letters of Credit denominated in Dollars as the applicant thereof for the support of its or its Subsidiaries’ obligations, in a formreasonably acceptable to the Administrative Agent and the applicable Issuing Bank, at any time and from time to time during the

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Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of anyform of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the applicableIssuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. Notwithstanding anything herein to thecontrary, no Issuing Bank shall have any obligation hereunder to issue, and shall not issue, any Letter of Credit the proceeds of which would bemade available to any Person (i) to fund any activity or business of or with any Sanctioned Person, or in any country or territory that, at thetime of such funding, is the subject of any Sanctions or (ii) in any manner that would result in a violation of any Sanctions by any party to thisAgreement. The Borrower unconditionally and irrevocably agrees that, in connection with any Letter of Credit issued for the support of anySubsidiary’s obligations as provided in the first sentence of this paragraph, the Borrower will be fully responsible for the reimbursement of LCDisbursements in accordance with the terms hereof, the payment of interest thereon and the payment of fees due under Section 2.12(b) to thesame extent as if the Borrower were the sole account party in respect of such Letter of Credit (the Borrower hereby irrevocably waiving anydefenses that might otherwise be available to it as a guarantor or surety of the obligations of such a Subsidiary that is an account party inrespect of any such Letter of Credit).

(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit(or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit byelectronic communication, if arrangements for doing so have been approved by the applicable Issuing Bank) to the applicable Issuing Bank andthe Administrative Agent (not later than three (3) Business Days (or such shorter period as the applicable Issuing Lender shall agree) inadvance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, oridentifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension(which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section),the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary toprepare, amend, renew or extend such Letter of Credit. If requested by an Issuing Bank, the Borrower also shall submit a letter of creditapplication on such Issuing Bank’s standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued,amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall bedeemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the amount of the LC Exposureshall not exceed $10,000,000, (ii) no Lender’s Revolving Credit Exposure shall exceed its Commitment, (iii) the Total Revolving CreditExposure shall not exceed the aggregate Commitments and (iv) with respect to any Issuing Bank, the sum of the aggregate undrawn amount ofall outstanding Letters of Credit issued by such Issuing Bank at such time plus the aggregate amount of all LC Disbursements made by suchIssuing Bank that have not yet been reimbursed by or on behalf of the Borrower at such time shall not exceed the Letter of Credit Commitmentof such Issuing Bank. The Borrower may, at any time and from time to time, reduce or increase the Letter of Credit Commitment of any IssuingBank as provided in the definition of Letter of Credit Commitment; provided that the Borrower shall not reduce or increase the Letter of CreditCommitment of any Issuing Bank if, after giving effect of such reduction or increase, the conditions set forth in clauses (i) through (iv) aboveshall not be satisfied.

(c) Expiration Date. Each Letter of Credit shall expire (or be subject to termination by notice from the applicable IssuingBank to the beneficiary thereof) at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of suchLetter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five(5) Business Days prior to the Maturity Date. Notwithstanding the foregoing, any Letter of Credit issued in the final year prior to the MaturityDate may expire no later than one year after the Maturity Date so long as the Borrower

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cash collateralizes an amount equal to 103% of the face amount of such Letter of Credit, by no later than five (5) Business Days prior to theMaturity Date, in the manner described in Section 2.06(j) and otherwise on terms and conditions reasonably acceptable to the applicable IssuingBank and the Administrative Agent.

(d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof)and without any further action on the part of the applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Lender, andeach Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage ofthe aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lenderhereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such Lender’sApplicable Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrower on the date due as providedin paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Lenderacknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute andunconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter ofCredit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall bemade without any offset, abatement, withholding or reduction whatsoever.

(e) Reimbursement.

(i) If any Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit issued by such Issuing Bank, theBorrower shall reimburse such LC Disbursement by paying to the Administrative Agent in Dollars the amount equal to such LCDisbursement, calculated as of the date such Issuing Bank made such LC Disbursement not later than 1:00 p.m., New York City time,on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to10:00 a.m., New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date,then not later than 1:00 p.m., New York City time, on the Business Day immediately following the day that the Borrower receives suchnotice, if such notice is not received prior to such time on the day of receipt.

(ii) If the Borrower fails to make such payment described in the foregoing clause (e)(i) when due, then the AdministrativeAgent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof andsuch Lender’s Applicable Percentage thereof and, promptly following receipt of such notice:

(A) subject to the conditions to borrowing set forth in this Agreement (other than (I) delivery of a BorrowingRequest, (II) the condition that no Default shall have occurred and be continuing and (III) the bring down of the representationand warranty that no Default shall have occurred and be continuing; provided that, notwithstanding the foregoing, noBorrowing may be made pursuant to this Section 2.06(e)(ii)(A) at any time an Event of Default has occurred and iscontinuing), (x) the Borrower shall be deemed to have requested an ABR Revolving Borrowing in accordance withSection 2.03 in an equivalent amount of such LC Disbursement, (y) each Lender shall fund its Applicable Percentage of suchdeemed ABR Revolving Borrowing as provided in Section 2.07 with respect to Loans made by such Lender and (z) to theextent so financed, the Administrative Agent shall promptly pay to the applicable Issuing Bank the amounts so received by itfrom the Lenders and the Borrower’s obligation to reimburse such amount of the LC Disbursement

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so financed shall be discharged and replaced by the resulting ABR Revolving Borrowing; and

(B) to the extent such LC Disbursement is not financed pursuant to an ABR Revolving Borrowing made pursuant toclause (A) above, (x) each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then duefrom the Borrower, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender (andSection 2.07 shall apply, mutatis mutandis, to the payment obligations of the Lenders) and (y) the Administrative Agent shallpromptly pay to the applicable Issuing Bank the amounts so received by it from the Lenders; provided that any payment madeby a Lender pursuant to this clause (B) to reimburse any Issuing Bank for any LC Disbursement shall not constitute a Loan andshall not relieve the Borrower of its obligation to reimburse such LC Disbursement.

(iii) Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this Section2.06(e), the Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the extent that Lenders have madean ABR Revolving Borrowing pursuant to clause (ii)(A) above, then to such Lenders as their interests may appear or, to the extent thatLenders have made payments pursuant to clause (ii)(B) above to reimburse any Issuing Bank, then to such Lenders and the applicableIssuing Bank as their interests may appear.

(f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of thisSection shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement underany and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, orany term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid inany respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by any Issuing Bank under a Letter of Creditagainst presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event orcircumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal orequitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder. Neither the Administrative Agent, the Lendersnor the Issuing Banks, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuanceor transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referredto in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or othercommunication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error ininterpretation of technical terms or any consequence arising from causes beyond the control of any Issuing Bank; provided that the foregoingshall not be construed to excuse any Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to special,indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted byapplicable law) suffered by the Borrower that are caused by an Issuing Bank’s failure to exercise care when determining whether drafts andother documents presented under a Letter of Credit comply with the terms thereof (the parties hereto expressly agree that, in the absence ofgross negligence or willful misconduct on the part of any Issuing Bank (as finally determined by a court of competent jurisdiction), suchIssuing Bank shall be deemed to have exercised care in each such determination). In furtherance of the foregoing and without limiting thegenerality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance withthe terms of a Letter of Credit issued by any Issuing Bank, such Issuing Bank may, in its sole discretion, either accept and make payment uponsuch documents without responsibility

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for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents ifsuch documents are not in strict compliance with the terms of such Letter of Credit.

(g) Disbursement Procedures. The applicable Issuing Bank shall, promptly following its receipt thereof, examine alldocuments purporting to represent a demand for payment under a Letter of Credit issued by such Issuing Bank. Each Issuing Bank shallpromptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy or other electronic communication) of suchdemand for payment and whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to giveor delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Banks and the Lenders with respect toany such LC Disbursement.

(h) Interim Interest. If an Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LCDisbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and includingthe date such LC Disbursement is made to but excluding the date that the reimbursement is due and payable, at the rate per annum thenapplicable to ABR Revolving Loans and such interest shall be due and payable on the date when such reimbursement is payable; provided that,if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(d) shall apply.Interest accrued pursuant to this paragraph shall be for the account of the applicable Issuing Bank, except that interest accrued on and after thedate of payment by any Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank shall be for the account of such Lenderto the extent of such payment.

(i) Replacement of an Issuing Bank and Designation of a new Issuing Bank. Any Issuing Bank may be replaced or any newIssuing Bank (which new Issuing Bank shall be a Lender that has agreed to such designation and is reasonably acceptable to the AdministrativeAgent) may be designated at any time by written agreement among the Borrower, the Administrative Agent and either the new Issuing Bank orthe replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement oraddition of an Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for theaccount of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the effective date of any such addition, (i) the new IssuingBank shall have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafterand (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such new or to any previous Issuing Bank, or to such successorand all previous Issuing Banks, as the context shall require. From and after the effective date of any such replacement, (A) the successor IssuingBank shall have all the rights and obligations of the replaced Issuing Bank under this Agreement with respect to Letters of Credit to be issuedthereafter and (B) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or tosuch successor and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replacedIssuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement withrespect to Letters of Credit then outstanding and issued by it prior to such replacement, but shall not be required to issue additional Letters ofCredit. In addition, in connection with any addition of a new Issuing Bank, each Issuing Bank may, with the consent of the Borrower and theAdministrative Agent change its Letter of Credit Commitment.

(j) Cash Collateralization. If any Event of Default shall occur and be continuing, on the Business Day immediately followingthe Business Day that the Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans hasbeen accelerated, Lenders with LC Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash

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collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the AdministrativeAgent and for the benefit of the Lenders (the “LC Collateral Account”), an amount in cash equal to 103% of the amount of the LC Exposure asof such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effectiveimmediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence ofany Event of Default with respect to the Borrower described in clause (h) or (i) of Article VII. Such deposit shall be held by the AdministrativeAgent as collateral for the payment and performance of the Secured Obligations. The Administrative Agent shall have exclusive dominion andcontrol, including the exclusive right of withdrawal, over such account and the Borrower hereby grants the Administrative Agent a securityinterest in the LC Collateral Account. Other than any interest earned on the investment of such deposits, which investments shall be made at theoption and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest. Interest orprofits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent toreimburse any applicable Issuing Bank (ratably in the case of more than one Issuing Bank) for LC Disbursements for which it has not beenreimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LCExposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders with LC Exposurerepresenting greater than 50% of the total LC Exposure), be applied to satisfy other Secured Obligations. If the Borrower is required to providean amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid)shall be returned to the Borrower within three (3) Business Days after all Events of Default have been cured or waived.

(k) Issuing Bank Agreements. Unless otherwise requested by the Administrative Agent, each Issuing Bank shall report inwriting to the Administrative Agent (i) promptly following the end of each calendar month, the aggregate amount of Letters of Credit issued byit and outstanding at the end of such month, (ii) on or prior to each Business Day on which such Issuing Bank expects to issue, amend, renew orextend any Letter of Credit, the date of such issuance, amendment, renewal or extension, and the aggregate face amount of the Letter of Creditto be issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal or extensionoccurred (and whether the amount thereof changed), it being understood that such Issuing Bank shall not permit any issuance, renewal,extension or amendment resulting in an increase in the amount of any Letter of Credit to occur without first obtaining written confirmationfrom the Administrative Agent that it is then permitted under this Agreement, (iii) on each Business Day on which such Issuing Bank makesany payment under any Letter of Credit, the date of such payment under such Letter of Credit and the amount of such payment, (iv) on anyBusiness Day on which the Borrower fails to reimburse any payment under any Letter of Credit required to be reimbursed to such Issuing Bankon such day, the date of such failure and the amount of such payment and (v) on any other Business Day, such other information as theAdministrative Agent shall reasonably request.

SECTION 2.07. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposeddate thereof by wire transfer of immediately available funds by 2:00 p.m., New York City time, to the account of the Administrative Agentmost recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as provided inSection 2.05. The Administrative Agent will make such Loans available to the Borrower by transfer of immediately available funds, to anaccount of the Borrower designated by the Borrower in the applicable Borrowing Request; provided that ABR Revolving Loans made tofinance the reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent to theapplicable Issuing Bank.

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(b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowingthat such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent mayassume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance uponsuch assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of theapplicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to theAdministrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date suchamount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender,the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules oninterbank compensation or (ii) in the case of the Borrower, the interest rate applicable to the applicable Loans. If such Lender pays such amountto the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing. If both the Borrower and suchLender pay such amount to the Administrative Agent, then the Administrative Agent shall refund the payment made by the Borrower.

SECTION 2.08. Interest Elections. (a) Each Revolving Borrowing initially shall be of the Type specified in the applicableBorrowing Request and, in the case of a Eurodollar Revolving Borrowing, shall have an initial Interest Period as specified in such BorrowingRequest. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of aEurodollar Revolving Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different optionswith respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lendersholding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. ThisSection shall not apply to Swingline Borrowings, which may not be converted or continued.

(b) To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election bytelephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Revolving Borrowingof the Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shallbe irrevocable and shall be confirmed promptly by hand delivery or telecopy or other electronic communication to the Administrative Agent ofa written Interest Election Request signed by the Borrower. Notwithstanding any contrary provision herein, this Section shall not be construedto permit the Borrower to (i) elect an Interest Period for Eurodollar Loans that does not comply with Section 2.02(d) or (ii) convert anyBorrowing to a Borrowing of a Type not available under the Class of Commitments pursuant to which such Borrowing was made.

(c) Each telephonic and written Interest Election Request shall specify the following information in compliance withSection 2.02:

(i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect todifferent portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to bespecified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

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(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect tosuch election, which Interest Period shall be a period contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall bedeemed to have selected an Interest Period of one month’s duration.

(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of thedetails thereof and of such Lender’s portion of each resulting Borrowing.

(e) If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Revolving Borrowing priorto the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period,such Borrowing shall be continued as a Eurodollar Borrowing having an Interest Period of one month. Notwithstanding any contrary provisionhereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifiesthe Borrower, then, so long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted to or continued as aEurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at the end of theInterest Period applicable thereto.

SECTION 2.09. Termination and Reduction of Commitments. (a) Unless previously terminated, the Commitments shallterminate on the Maturity Date.

(b) The Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each reductionof the Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shallnot terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.11, theTotal Revolving Credit Exposure would exceed the aggregate Commitments.

(c) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments underparagraph (b) of this Section at least three (3) Business Days prior to the effective date of such termination or reduction, specifying suchelection and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of thecontents thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination ofthe Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities or othertransactions specified therein, in which case the effective date of such termination may be delayed or such termination may be revoked by theBorrower (by notice to the Administrative Agent on or prior to the specified effective date (as such effective date is previously delayedhereunder)) if such condition is not satisfied or that satisfaction of such condition will be delayed. Any termination or reduction of theCommitments shall be permanent. Each reduction of the Commitments shall be made ratably among the Lenders in accordance with theirrespective Commitments.

SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay (i) to theAdministrative Agent for the account of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date and (ii) tothe Swingline Lender the then unpaid principal amount of each Swingline Loan on the fifth Business Day after such Swingline Loan is madeand on the Maturity Date; provided that on each date that a Revolving Borrowing is made, the

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Borrower shall repay all Swingline Loans then outstanding and the proceeds of any such Borrowing shall be applied by the AdministrativeAgent to repay any Swingline Loans outstanding.

(b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness ofthe Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paidto such Lender from time to time hereunder.

(c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder,the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to becomedue and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunderfor the account of the Lenders and each Lender’s share thereof.

(d) Subject to the entries in the Register, which shall be controlling, the entries made in the accounts maintained pursuant toparagraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided thatthe failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect theObligations.

(e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrower shallprepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to suchLender and its registered assigns) and in a form reasonably acceptable to the Administrative Agent and the Borrower. Thereafter, the Loansevidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be representedby one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note,to such payee and its registered assigns).

SECTION 2.11. Prepayment of Loans.

(a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subjectto prior notice in accordance with the provisions of this Section 2.11(a). The Borrower shall notify the Administrative Agent (and, in the case ofprepayment of a Swingline Loan, the Swingline Lender) by written notice (promptly followed by telephonic confirmation of such request) ofany prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing (other than Swingline Loans), not later than 1:00 p.m., NewYork City time, three (3) Business Days before the date of prepayment, (ii) in the case of prepayment of an ABR Borrowing, not later than1:00 p.m., New York City time, one (1) Business Day before the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, notlater than 1:00 p.m., New York City time, on the date of prepayment. Each such notice shall be irrevocable and shall specify the prepaymentdate and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given inconnection with a conditional notice of termination of the Commitments as contemplated by Section 2.09, then such notice of prepayment maybe revoked or delayed if such notice of termination is revoked or delayed in accordance with Section 2.09. Promptly following receipt of anysuch notice relating to a Revolving Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partialprepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing ofthe same Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be applied ratably to the Loans included in theprepaid Borrowing. Prepayments shall be accompanied by (i) accrued interest to the extent required by Section 2.13 and (ii) break fundingpayments, if any, pursuant to Section 2.16.

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(b) If at any time the sum of the aggregate principal amount of all of the Revolving Credit Exposures exceeds the aggregateCommitments, the Borrower shall immediately repay Borrowings or cash collateralize LC Exposure in an account with the AdministrativeAgent pursuant to Section 2.06(j), as applicable, in an aggregate principal amount sufficient to cause the aggregate principal amount of allRevolving Credit Exposures minus the amount of LC Exposure that has been cash collateralized to be less than or equal to the aggregateCommitments.

SECTION 2.12. Fees. (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender acommitment fee, which shall accrue at the Applicable Rate on the average daily Available Revolving Commitment of such Lender during theperiod from and including the Effective Date to but excluding the date on which the Commitment of such Lender terminates. Accruedcommitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which theCommitments terminate, commencing on the first such date to occur after the date hereof. All commitment fees shall be computed on the basisof a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

(b) The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respectto its participations in Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable toEurodollar Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable tounreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which suchLender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure and (ii) to each Issuing Bank for its ownaccount a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding anyportion thereof attributable to unreimbursed LC Disbursements) attributable to Letters of Credit issued by such Issuing Bank during the periodfrom and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which thereceases to be any LC Exposure, as well as such Issuing Bank’s reasonable and standard fees and commissions with respect to the issuance,amendment, cancellation, negotiation, transfer, presentment, renewal or extension of any Letter of Credit or processing of drawings thereunder.Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall bepayable in arrears on the third (3rd) Business Day following such last day, commencing on the first such date to occur after the Effective Date;provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on whichthe Commitments terminate shall be payable on demand. Any other fees payable to any Issuing Bank pursuant to this paragraph shall bepayable within ten (10) days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days andshall be payable for the actual number of days elapsed (including the first day but excluding the last day).

(c) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the timesseparately agreed upon between the Borrower and the Administrative Agent.

(d) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (orto the applicable Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees and participation fees, to theLenders. Fees paid shall not be refundable under any circumstances.

SECTION 2.13. Interest. (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plusthe Applicable Rate.

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(b) The Loans comprising each Eurodollar Borrowing (other than Swingline Loans) shall bear interest at the Adjusted LIBORate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

(c) The Swingline Loans shall bear interest at the Adjusted One Month LIBO Rate plus the Applicable Rate.

(d) Notwithstanding the foregoing, (i) during the occurrence and continuance of any Event of Default described in paragraph(a) of Article VII, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (x) in the case ofoverdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or(y) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section and (ii) during theoccurrence and continuance of any other Event of Default, the Required Lenders may, at their option, by notice to the Borrower (which noticemay be revoked at the option of the Required Lenders notwithstanding any provision of Section 9.02 requiring the consent of “each Lenderdirectly affected thereby” for reductions in interest rates), declare that (x) all Loans shall bear interest at 2% plus the rate otherwise applicableto such Loans as provided in the preceding paragraphs of this Section or (y) in the case of any other amount outstanding hereunder, suchamount shall accrue at 2% plus the rate applicable to such fee or other obligation as provided hereunder.

(e) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and upontermination of the Commitments; provided that (i) interest accrued pursuant to paragraph (d) of this Section shall be payable on demand, (ii) inthe event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the AvailabilityPeriod), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in theevent of any conversion of any Eurodollar Revolving Loan prior to the end of the current Interest Period therefor, accrued interest on such Loanshall be payable on the effective date of such conversion.

(f) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference tothe Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days(or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding thelast day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and suchdetermination shall be conclusive absent manifest error.

SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

(a) the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) thatadequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period;or

(b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the LIBO Rate, asapplicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans includedin such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy or other electroniccommunication as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that thecircumstances giving rise to such notice no longer exist,

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(i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a EurodollarBorrowing shall be ineffective and any such Eurodollar Borrowing shall be repaid on the last day of the then current Interest Period applicablethereto and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing.

SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

(i) impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including anycompulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or creditextended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or any Issuing Bank;

(ii) impose on any Lender or any Issuing Bank or the London interbank market any other condition, cost or expense (otherthan Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein; or

(iii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) ofthe definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or otherobligations, or its deposits, reserves, other liabilities or capital attributable thereto;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, continuing, converting intoor maintaining any Loan or of maintaining its obligation to make any such Loan or to increase the cost to such Lender, such Issuing Bank orsuch other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivableby such Lender, such Issuing Bank or such other Recipient hereunder, whether of principal, interest or otherwise, then the Borrower will pay tosuch Lender, such Issuing Bank or such other Recipient, as the case may be, such additional amount or amounts as will compensate suchLender, such Issuing Bank or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

(b) If any Lender or any Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has orwould have the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or suchIssuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit heldby, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or suchLender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s orsuch Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy andliquidity), then from time to time the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount oramounts as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any suchreduction suffered.

(c) A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary to compensate such Lender orsuch Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to theBorrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or such Issuing Bank, as the case may be, theamount shown as due on any such certificate within ten (10) days after receipt thereof.

(d) Failure or delay on the part of any Lender or any Issuing Bank to demand compensation pursuant to this Section shall notconstitute a waiver of such Lender’s or such Issuing Bank’s

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right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Bank pursuant tothis Section for any increased costs or reductions incurred more than 180 days prior to the date that such Lender or such Issuing Bank, as thecase may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or such IssuingBank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions isretroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan (otherthan Swingline Loans) other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or as aresult of any prepayment pursuant to Section 2.11), (b) the conversion of any Eurodollar Loan (other than Swingline Loans) other than on thelast day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan (other thanSwingline Loans) on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked or extendedunder Section 2.11 and is revoked or extended in accordance therewith but not including any such failure that results from a notice underSection 2.14) or (d) the assignment of any Eurodollar Loan (other than Swingline Loans) other than on the last day of the Interest Periodapplicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensateeach Lender for the loss, cost and expense attributable to such event. Such loss, cost or expense to any Lender shall be deemed to include anamount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount ofsuch Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the dateof such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the periodthat would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for suchperiod at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for deposits in Dollars of acomparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting forth any amount or amounts thatsuch Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. TheBorrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

SECTION 2.17. Taxes. (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of any LoanParty under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If anyapplicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of anyTax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction orwithholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicablelaw and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after suchdeduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section2.17) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

(b) Payment of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Governmental Authority inaccordance with applicable law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes.

(c) Evidence of Payments. As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authoritypursuant to this Section 2.17, such Loan Party shall deliver to the

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Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy ofthe return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

(d) Indemnification by the Loan Parties. The Loan Parties shall indemnify each Recipient, within 10 days after demandtherefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payableunder this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and anyreasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed orasserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by aLender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall beconclusive absent manifest error.

(e) Indemnification by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within 10 days afterdemand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not alreadyindemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) anyTaxes attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant Registerand (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection withany Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legallyimposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lenderby the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off andapply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent tothe Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

(f) Status of Lenders. (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect topayments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonablyrequested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by theBorrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. Inaddition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribedby applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the AdministrativeAgent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstandinganything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than suchdocumentation set forth in Section 2.17(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment suchcompletion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudicethe legal or commercial position of such Lender.

(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person:

(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to thedate on which such Lender becomes a Lender under

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this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. Federal backup withholding tax;

(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and theAdministrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which suchForeign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of theBorrower or the Administrative Agent), whichever of the following is applicable:

(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party(x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRSForm W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. Federal withholding Taxpursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under anyLoan Document, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, orreduction of, U.S. Federal withholding Tax pursuant to the “business profits” or “other income” article of such taxtreaty;

(2) in the case of a Foreign Lender claiming that its extension of credit will generate U.S. effectively connectedincome, executed originals of IRS Form W-8ECI;

(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) ofthe Code, (x) a certificate substantially in the form of Exhibit E-1 to the effect that such Foreign Lender is not a “bank”within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within themeaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C)of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable; or

(4) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompaniedby IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, a U.S. Tax Compliance Certificatesubstantially in the form of Exhibit E-2 or Exhibit E-3, IRS Form W-9, and/or other certification documents from eachbeneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirectpartners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S.Tax Compliance Certificate substantially in the form of Exhibit E-4 on behalf of each such direct and indirect partner;

(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and theAdministrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which suchForeign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of theBorrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis forclaiming exemption from or a reduction in U.S. Federal withholding Tax, duly completed, together with such supplementarydocumentation as may

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be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deductionrequired to be made; and

(D) if a payment made to a Lender under any Loan Document would be subject to U.S. Federal withholding Taximposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (includingthose contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and theAdministrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower orthe Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as maybe necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determinethat such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct andwithhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCAafter the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, itshall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

(g) Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received arefund of any Taxes as to which it has been indemnified pursuant to this Section 2.17 (including by the payment of additional amounts pursuantto this Section 2.17), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments madeunder this Section 2.17 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of suchindemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Suchindemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to thisparagraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnifiedparty is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (g), in noevent will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of whichwould place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject toindemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments oradditional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party tomake available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any otherPerson.

(h) Survival. Each party’s obligations under this Section 2.17 shall survive the resignation or replacement of theAdministrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment,satisfaction or discharge of all obligations under any Loan Document.

(i) Administrative Agent. If the Administrative Agent is a U.S. Person, it shall deliver two executed originals of IRS FormW-9 certifying that it is exempt from U.S. federal backup withholding tax. Otherwise, the Administrative Agent (including any successorAdministrative Agent that is not a U.S. Person) shall deliver two duly completed copies of IRS Form W-8 and any other requireddocumentation to

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establish that the Loan Parties can make payments to the Administrative Agent without deduction or withholding of any Taxes imposed by theUnited States.

(j) Defined Terms. For purposes of this Section 2.17, the term “Lender” includes any Issuing Bank and the term “applicablelaw” includes FATCA.

SECTION 2.18. Payments Generally; Allocations of Proceeds; Pro Rata Treatment; Sharing of Set-offs.

(a) The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees orreimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to 1:00 p.m., New York Citytime on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any datemay, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes ofcalculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at 10 South Dearborn Street, Chicago,Illinois 60603, except payments to be made directly to an Issuing Bank or the Swingline Lender as expressly provided herein and except thatpayments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shalldistribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeedingBusiness Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All paymentshereunder shall be made in Dollars.

(b) Any proceeds of Collateral received by the Administrative Agent (i) not constituting a specific payment of principal,interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower) or (ii) after an Event ofDefault has occurred and is continuing and the Administrative Agent so elects or the Required Lenders so direct, such funds shall be appliedratably first, to pay any fees, indemnities, or expense reimbursements including amounts then due to the Administrative Agent and each IssuingBank from the Borrower, second, to pay any fees or expense reimbursements then due to the Lenders from the Borrower, third, to pay interestthen due and payable on the Loans ratably, fourth, to prepay principal on the Loans and unreimbursed LC Disbursements and any otheramounts owing with respect to Banking Services Obligations and Swap Obligations ratably, fifth, to pay an amount to the Administrative Agentequal to one hundred three percent (103%) of the aggregate undrawn face amount of all outstanding Letters of Credit, to be held as cashcollateral for such Obligations, and sixth, to the payment of any other Secured Obligation due to the Administrative Agent or any Lender by theBorrower. Notwithstanding the foregoing, amounts received from any Loan Party shall not be applied to any Excluded Swap Obligation of suchLoan Party. Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower, or unless a Default is inexistence, none of the Administrative Agent or any Lender shall apply any payment which it receives to any Eurodollar Loan of a Class (otherthan Swingline Loans), except (a) on the expiration date of the Interest Period applicable to any such Eurodollar Loan or (b) in the event, andonly to the extent, that there are no outstanding ABR Loans of the same Class and, in any event, the Borrower shall pay the break fundingpayment required in accordance with Section 2.16. The Administrative Agent and the Lenders shall have the continuing and exclusive right toapply and reverse and reapply any and all such proceeds and payments to any portion of the Secured Obligations.

(c) Intentionally Omitted.

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(d) If, except as expressly provided herein, any Lender shall, by exercising any right of set-off or counterclaim or otherwise,obtain payment in respect of any principal of or interest on any of its Revolving Loans or participations in LC Disbursements or SwinglineLoans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans and participations inLC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other similarly situated Lender, thenthe Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans and participations inLC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by allsuch Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Revolving Loans andparticipations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of thepayment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery,without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to andin accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of aparticipation in any of its Loans or participations in LC Disbursements and Swingline Loans to any assignee or participant, other than to theBorrower or any Subsidiary or Affiliate thereof unless consented to by the Required Lenders (as to which the provisions of this paragraph shallapply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lenderacquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim withrespect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

(e) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment isdue to the Administrative Agent for the account of the Lenders or the applicable Issuing Bank hereunder that the Borrower will not make suchpayment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, inreliance upon such assumption, distribute to the Lenders or the applicable Issuing Bank, as the case may be, the amount due. In such event, ifthe Borrower has not in fact made such payment, then each of the Lenders or the applicable Issuing Bank, as the case may be, severally agreesto repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or such Issuing Bank with interest thereon,for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, atthe greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules oninterbank compensation.

(f) If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e), 2.07(b),2.18(e) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any amountsthereafter received by the Administrative Agent for the account of such Lender and for the benefit of the Administrative Agent, the SwinglineLender or the applicable Issuing Bank to satisfy such Lender’s obligations to it under such Section until all such unsatisfied obligations arefully paid and/or (ii) hold any such amounts in a segregated account over which the Administrative Agent shall have exclusive control as cashcollateral for, and application to, any future funding obligations of such Lender under any such Section; in the case of each of clauses (i) and(ii) above, in any order as determined by the Administrative Agent in its discretion.

SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests compensation underSection 2.15, or the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority forthe account of any Lender pursuant to Section 2.17, then, at the request of the Borrower, such Lender shall use reasonable efforts to designate

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a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices,branches or Affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payablepursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expenseand would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred byany Lender in connection with any such designation or assignment.

(b) If (i) any Lender requests compensation under Section 2.15, (ii) the Borrower is required to pay any Indemnified Taxes oradditional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17 or (iii) any Lenderbecomes a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent,require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), allits interests, rights (other than its existing rights to payments pursuant to Sections 2.15 or 2.17) and obligations under the Loan Documents toan assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that(i) the Borrower shall have received the prior written consent (which consent shall not unreasonably be withheld, delayed or conditioned) of theAdministrative Agent (and if a Commitment is being assigned, each Issuing Bank and the Swingline Lender), in each case to the extent thatsuch consent would be required for such assignment pursuant to Section 9.04, (ii) such Lender shall have received payment of an amount equalto the outstanding principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued feesand all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) orthe Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation underSection 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation orpayments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lenderor otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

SECTION 2.20. Expansion Option. The Borrower may from time to time elect to increase the Commitments or enter into oneor more tranches of term loans (each an “Incremental Term Loan”), in each case in minimum increments of $10,000,000; provided that, as ofthe Effective Date, the aggregate amount of all such increases and all such Incremental Term Loans shall not exceed $0. The Borrower mayarrange for any such increase or Incremental Term Loans to be provided by one or more Lenders (each Lender so agreeing to an increase in itsCommitment, or to participate in such Incremental Term Loans, an “Increasing Lender”), or by one or more new banks, financial institutions orother entities (each such new bank, financial institution or other entity, an “Augmenting Lender”; provided that no Ineligible Institution may bean Augmenting Lender), which agree to increase their existing Commitments, or to participate in or provide such Incremental Term Loans, orprovide new Commitments, as the case may be; provided that (i) each Augmenting Lender, shall be subject to the approval of the Borrower andthe Administrative Agent (such approval not to be unreasonably withheld, delayed or conditioned) and (ii) (x) in the case of an IncreasingLender, the Borrower and such Increasing Lender execute an agreement substantially in the form of Exhibit C hereto, and (y) in the case of anAugmenting Lender, the Borrower and such Augmenting Lender execute an agreement substantially in the form of Exhibit D hereto. Noconsent of any Lender (other than the Lenders participating in the increase or any Incremental Term Loan) shall be required for any increase inCommitments or Incremental Term Loans pursuant to this Section 2.20. Increases and new Commitments and Incremental Term Loans createdpursuant to this Section 2.20 shall become effective on the date agreed by the Borrower, the Administrative Agent and the relevant IncreasingLenders or Augmenting Lenders, and the Administrative Agent shall notify each Lender thereof. Notwithstanding the foregoing, no increase inthe Commitments (or in the Commitment of any Lender) or tranche of Incremental Term Loans shall become

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effective under this paragraph unless, (i) on the proposed date of the effectiveness of such increase or Incremental Term Loans, (A) theconditions set forth in paragraphs (a) and (b) of Section 4.02 shall be satisfied or waived by the Required Lenders and the Administrative Agentshall have received a certificate to that effect dated such date and executed by a Financial Officer or other executive officer of the Borrower and(B) the Borrower shall be in compliance (immediately before and after giving effect (including giving effect on a pro forma basis after givingeffect to the application on such date of the proceeds of any Loans funded on such date) to such increase or Incremental Term Loans, asapplicable) with the covenants contained in Section 6.11 and (ii) the Administrative Agent shall have received documents and opinionsconsistent with those delivered on the Effective Date as to the organizational power and authority of the Borrower (including, withoutlimitation, resolutions with respect to borrowing such increase). On the effective date of any increase in the Commitments or any IncrementalTerm Loans being made, (i) each relevant Increasing Lender and Augmenting Lender shall make available to the Administrative Agent suchamounts in immediately available funds as the Administrative Agent shall determine, for the benefit of the other Lenders, as being required inorder to cause, after giving effect to such increase and the use of such amounts to make payments to such other Lenders, each Lender’s portionof the outstanding Revolving Loans of all the Lenders to equal its Applicable Percentage of such outstanding Revolving Loans, and (ii) exceptin the case of any Incremental Term Loans, the Borrower shall be deemed to have repaid and reborrowed all outstanding Revolving Loans as ofthe date of any increase in the Commitments (with such reborrowing to consist of the Types of Revolving Loans, with related Interest Periods ifapplicable, specified in a notice delivered by the Borrower, in accordance with the requirements of Section 2.03). The deemed payments madepursuant to clause (ii) of the immediately preceding sentence shall be accompanied by payment of all accrued interest on the amount prepaidand, in respect of each Eurodollar Loan (other than Swingline Loans), shall be subject to indemnification by the Borrower pursuant to theprovisions of Section 2.16 if the deemed payment occurs other than on the last day of the related Interest Periods. The Incremental Term Loans(a) shall rank pari passu in right of payment with the Revolving Loans, (b) shall not mature earlier than the Maturity Date (but may haveamortization prior to such date) and (c) shall be treated substantially the same as (and in any event no more favorably than) the RevolvingLoans; provided that (i) the terms and conditions applicable to any tranche of Incremental Term Loans maturing after the Maturity Date mayprovide for material additional or different financial or other covenants or prepayment requirements applicable only during periods after theMaturity Date and (ii) the Incremental Term Loans may be priced differently than the Revolving Loans. Incremental Term Loans may be madehereunder pursuant to an amendment or restatement (an “Incremental Term Loan Amendment”) of this Agreement and, as appropriate, theother Loan Documents, executed by the Borrower, each Increasing Lender participating in such tranche, each Augmenting Lender participatingin such tranche, if any, and the Administrative Agent. The Incremental Term Loan Amendment may, without the consent of any other Lenders,effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of theAdministrative Agent, to effect the provisions of this Section 2.20. Nothing contained in this Section 2.20 shall constitute, or otherwise bedeemed to be, a commitment on the part of any Lender to increase its Commitment hereunder, or provide Incremental Term Loans, at any time.In connection with any increase of the Commitments or Incremental Term Loans pursuant to this Section 2.20, any Augmenting Lenderbecoming a party hereto shall (1) execute such documents and agreements as the Administrative Agent may reasonably request and (2) in thecase of any Augmenting Lender that is organized under the laws of a jurisdiction outside of the United States of America, provide to theAdministrative Agent, its name, address, tax identification number and/or such other information as shall be necessary for the AdministrativeAgent to comply with “know your customer” and anti-money laundering rules and regulations, including without limitation, the Patriot Act.

SECTION 2.21. Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lenderbecomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

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(a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant toSection 2.12(a);

(b) the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whetherthe Required Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modificationpursuant to Section 9.02); provided, that, except as otherwise provided in Section 9.02, this clause (b) shall not apply to the vote of a DefaultingLender in the case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender directly affectedthereby;

(c) if any Swingline Exposure or LC Exposure exists at the time such Lender becomes a Defaulting Lender then:

(i) all or any part of the Swingline Exposure and LC Exposure of such Defaulting Lender (other than the portion of suchSwingline Exposure referred to in clause (b) of the definition of such term) shall be reallocated among the non-Defaulting Lenders inaccordance with their respective Applicable Percentages but only to the extent that such reallocation does not, as to any non-DefaultingLender, cause such non-Defaulting Lender’s Revolving Credit Exposure to exceed its Commitment;

(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one(1) Business Day following notice by the Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cashcollateralize for the benefit of the applicable Issuing Banks only the Borrower’s obligations corresponding to such Defaulting Lender’sLC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth inSection 2.06(j) for so long as such LC Exposure is outstanding;

(iii) the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect tosuch Defaulting Lender’s LC Exposure;

(iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to theLenders pursuant to Section 2.12(a) and Section 2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ ApplicablePercentages; and

(v) if all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated nor cash collateralized pursuant toclause (i) or (ii) above, then, without prejudice to any rights or remedies of any Issuing Bank or any other Lender hereunder, all letter ofcredit fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be payable ratably to theapplicable Issuing Banks until and to the extent that such LC Exposure is reallocated and/or cash collateralized; and

(d) so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loanand no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure and theDefaulting Lender’s then outstanding LC Exposure will be 100% covered by the Commitments of the non‑Defaulting Lenders and/or cashcollateral will be provided by the Borrower in accordance with Section 2.21(c), and participating interests in any such newly made SwinglineLoan or any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent withSection 2.21(c)(i) (and such Defaulting Lender shall not participate therein).

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In the event that the Administrative Agent, the Borrower, the Swingline Lender and each Issuing Bank each agrees that a DefaultingLender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposureof the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at parsuch of the Loans of the other Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be necessary in order forsuch Lender to hold such Loans in accordance with its Applicable Percentage.

ARTICLE III

Representations and Warranties

The Borrower represents and warrants to the Lenders that:

SECTION 3.01. Organization; Powers; Subsidiaries. (a) Each of the Borrower and its Subsidiaries is duly organized, validlyexisting and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its businessas now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in aMaterial Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. (b)Schedule 3.01 hereto identifies, as of the Effective Date, each Subsidiary, noting whether such Subsidiary is a Material Domestic Subsidiary,the jurisdiction of its incorporation or organization, as the case may be, the percentage of issued and outstanding shares of each class of itscapital stock or other equity interests owned by the Borrower and the other Subsidiaries and, if such percentage is not 100% (excludingdirectors’ qualifying shares as required by law), a description of each class issued and outstanding. (c) All of the outstanding shares of capitalstock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable and, as of the EffectiveDate, all such shares and other equity interests indicated on Schedule 3.01 as owned by the Borrower or another Subsidiary are owned,beneficially and of record, by the Borrower or any Subsidiary free and clear of all Liens, other than Liens permitted pursuant to this Agreement.(d) As of the Effective Date, there are no outstanding commitments or other obligations of the Borrower or any Subsidiary to issue, and nooptions, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of the Borrower orany Subsidiary.

SECTION 3.02. Authorization; Enforceability. The execution, delivery and performance by the Loan Parties of thisAgreement and the other Loan Documents, and, in the case of the Borrower, the borrowing of Loans and other credit extensions, the use ofproceeds thereof and the issuance of Letters of Credit hereunder, in each case, are within each Loan Party’s organizational powers and havebeen duly authorized by all necessary organizational actions and, if required, actions by equity holders of such Loan Party. The LoanDocuments to which each Loan Party is a party have been duly executed and delivered by such Loan Party and constitute a legal, valid andbinding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,moratorium or other laws affecting creditors’ rights and subject to general principles of equity, regardless of whether considered in a proceedingin equity or at law.

SECTION 3.03. Governmental Approvals; No Conflicts. The execution, delivery and performance by the Loan Parties of thisAgreement and the other Loan Documents, and, in the case of the Borrower, the borrowing of Loans and other credit extensions, the use ofproceeds thereof and the issuance of Letters of Credit hereunder, in each case, (a) do not require any consent or approval of, registration orfiling with, or any other action by, any Governmental Authority, except such as have been obtained or made

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and are in full force and effect and except for filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will not violate thecharter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries, (c) will not violate in any material respect (i) anyapplicable law or regulation binding on the Borrower or any of its Subsidiaries or their respective properties or (ii) any order of anyGovernmental Authority, (d) will not violate or result in a default under any indenture, instrument or other agreement evidencing any MaterialIndebtedness (or involving aggregate consideration payable to or by the Borrower or any of its Subsidiaries in excess of $15,000,000) bindingupon the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borroweror any of its Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of itsSubsidiaries, other than Liens created under the Loan Documents.

SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Borrower Audited Financial Statements and theBorrower Unaudited Financial Statements and, to the knowledge of the Borrower, the HealthFusion Audited Financial Statements and theHealthFusion Unaudited Financial Statements, in each case present fairly, in all material respects, the financial position and results ofoperations and cash flows of the Borrower and its consolidated Subsidiaries or HealthFusion and its consolidated Subsidiaries, as the case maybe, for the periods covered thereby in accordance with GAAP, subject to year-end adjustments and the absence of footnotes in the case of theBorrower Unaudited Financial Statements and the HealthFusion Unaudited Financial Statements.

(b) Since March 31, 2015, there has been no material adverse change in the business, assets, operations or condition(financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole.

SECTION 3.05. Properties. (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, allits real and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its businessas currently conducted or to utilize such properties for their intended purposes.

(b) Each of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents andother intellectual property material to its business, and the use thereof by the Borrower and its Subsidiaries does not infringe upon the rights ofany other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in aMaterial Adverse Effect.

SECTION 3.06. Litigation, Environmental and Labor Matters. (a) There are no actions, suits, proceedings or investigationsby or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting theBorrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and that, if adverselydetermined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve thisAgreement or any other Loan Documents.

(b) Except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to resultin a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain,maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to anyEnvironmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any reasonable basisfor any Environmental Liability.

(c) Except as would not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect (a)there are no strikes, lockouts or slowdowns against the Borrower or

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any of its Subsidiaries pending or, to their knowledge, threatened and (b) the hours worked by and payments made to employees of theBorrower and its Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or foreignlaw relating to such matters. The consummation of the HealthFusion Acquisition will not give rise to any right of termination or right ofrenegotiation on the part of any union under any collective bargaining agreement under which the Borrower or any of its Subsidiaries is bound.

SECTION 3.07. Compliance with Laws and Agreements. Each of the Borrower and its Subsidiaries is in compliance with alllaws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instrumentsbinding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in aMaterial Adverse Effect.

SECTION 3.08. Investment Company Status. Neither the Borrower nor any of its Subsidiaries is an “investment company”as defined in, or required to register under, the Investment Company Act of 1940.

SECTION 3.09. Taxes. Each of the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns andreports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are beingcontested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its booksadequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.

SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with allother such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material AdverseEffect.

SECTION 3.11. Disclosure. The Borrower has disclosed to the Lenders all agreements, instruments and corporate or otherrestrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, couldreasonably be expected to result in a Material Adverse Effect. Neither the Information Memorandum nor any of the other reports, financialstatements, certificates or other information furnished by or on behalf of the Borrower or any Subsidiary to the Administrative Agent or anyLender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information sofurnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, at the time ofand in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financialinformation, the Borrower represents only that such information was prepared in good faith based upon assumptions believed by the Borrowerto be reasonable at the time prepared.

SECTION 3.12. Federal Reserve Regulations. No part of the proceeds of any Loan have been used or will be used, whetherdirectly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

SECTION 3.13. Liens. There are no Liens on any of the real or personal properties of the Borrower or any Subsidiary exceptfor Liens permitted by Section 6.02.

SECTION 3.14. No Default. No Default or Event of Default has occurred and is continuing.

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SECTION 3.15. No Burdensome Restrictions. No Subsidiary is subject to any Burdensome Restrictions except BurdensomeRestrictions permitted under Section 6.08.

SECTION 3.16. Solvency.

(a) Immediately after the consummation of the Transactions to occur on the Effective Date, the Borrower and its Subsidiaries,on a consolidated basis, are and will be Solvent.

(b) The Borrower does not intend to, nor will it permit any of its Subsidiaries to, and the Borrower does not believe that it orany of its Subsidiaries will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts ofcash to be received by it or any such Subsidiary and the timing of the amounts of cash to be payable on or in respect of its Indebtedness or theIndebtedness of any such Subsidiary.

SECTION 3.17. Insurance. The Borrower maintains, and has caused each Subsidiary to maintain, with financially sound andreputable insurance companies, insurance on all their real and personal property in such amounts, subject to such deductibles and self-insuranceretentions and covering such properties and risks as are adequate and customarily maintained by companies engaged in the same or similarbusinesses operating in the same or similar locations.

SECTION 3.18. Security Interest in Collateral. The provisions of this Agreement and the other Loan Documents create legaland valid perfected Liens on all the Collateral in favor of the Administrative Agent, for the benefit of the Secured Parties, and such Liensconstitute perfected and continuing Liens on the Collateral, securing the Secured Obligations, enforceable against the applicable Loan Party andall third parties, and having priority over all other Liens on the Collateral except in the case of (a) Permitted Encumbrances, to the extent anysuch Permitted Encumbrances would have priority over the Liens in favor of the Administrative Agent pursuant to any applicable law, (b) Liensperfected only by possession (including possession of any certificate of title) to the extent the Administrative Agent has not obtained or doesnot maintain possession of such Collateral, and (c) Liens permitted pursuant to Section 6.02, to the extent any such Liens would have priorityover the Liens in favor of the Administrative Agent pursuant to any applicable law.

SECTION 3.19. Anti-Corruption Laws and Sanctions. The Borrower has implemented and maintains in effect policies andprocedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents withAnti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and their respective officers and employees and to theknowledge of the Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all materialrespects. None of (a) the Borrower, any Subsidiary or to the knowledge of the Borrower or such Subsidiary any of their respective directors,officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that will act in any capacity inconnection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, use of proceedsor other Transactions will violate any Anti-Corruption Law or applicable Sanctions.

SECTION 3.20. Use of Proceeds. The proceeds of the Loans and Letters of Credit have been used and will be used solely forthe purposes provided in Section 5.08.

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ARTICLE IV

Conditions

SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and of each Issuing Bank to issue Letters ofCredit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance withSection 9.02):

(a) Loan Documents. The Administrative Agent (or its counsel) shall have received from each party hereto and thereto either(i) a counterpart of this Agreement and each other Loan Document signed on behalf of such party or (ii) written evidence satisfactory to theAdministrative Agent (which may include telecopy or electronic transmission of a signed signature page of this Agreement) that such party hassigned a counterpart of this Agreement and each other Loan Document to which it is a party.

(b) Organization Documents, Resolutions, Etc. The Administrative Agent shall have received (x) a good standing certificate(or analogous documentation if applicable) for each Loan Party from the Secretary of State (or analogous governmental entity) of thejurisdiction of its organization, to the extent generally available in such jurisdiction and (y) a certificate of the Secretary or an AssistantSecretary of each Loan Party certifying the following:

(i) that there have been no changes in the Certificate of Incorporation or other charter document of such Loan Party, asattached thereto and as certified as of a recent date by the Secretary of State (or analogous governmental entity) of the jurisdiction of itsorganization, since the date of the certification thereof by such governmental entity;

(ii) the By-Laws or other applicable organizational document, as attached thereto, of such Loan Party is in effect on the dateof such certification;

(iii) the resolutions of the Board of Directors or other governing body of such Loan Party authorizing the execution, deliveryand performance of each Loan Document to which it is a party; and

(iv) the names and true signatures of the incumbent officers of each Loan Party authorized to sign the Loan Documents towhich it is a party, and (in the case of the Borrower) authorized to request a Borrowing or the issuance of a Letter of Credit hereunder.

(c) Opinions of Counsel. The Administrative Agent shall have received favorable written opinions (addressed to theAdministrative Agent and the Lenders and dated the Effective Date) of (i) Latham & Watkins LLP, counsel for the Loan Parties, and (ii)Jocelyn A. Leavitt, General Counsel of the Borrower, in each case, covering such matters relating to the Loan Parties and the Loan Documentsas the Administrative Agent shall reasonably request. The Borrower hereby requests such counsel to deliver such opinions.

(d) Closing Certificate. The Administrative Agent shall have received a certificate signed by the President, a Vice Presidentor a Financial Officer of the Borrower certifying that (i) the Specified Representations are true and correct in all material respects (or in allrespects if the applicable representation and warranty is qualified by materiality or Material Adverse Effect), (ii) since August 31, 2015, nostate of facts, condition, change, development or event with respect to HealthFusion has occurred which, individually or in the aggregate, hashad or could reasonably be expected to have a HealthFusion Material Adverse Effect, (iii) the HealthFusion Acquisition has beenconsummated, or substantially simultaneously with the initial

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Borrowings hereunder, shall be consummated, in all material respects in accordance with the terms of the HealthFusion Merger Agreement and(iv) the Borrower and its Subsidiaries have available cash in an amount not less than $50,000,000 for purposes of financing a portion of theHealthFusion Acquisition and the related fees and expenses with respect to the Transactions.

(e) Solvency Certificate. The Administrative Agent shall have received a certificate of the chief financial officer of theBorrower substantially in the form of Exhibit B.

(f) Perfection and Priority of Liens. The Administrative Agent (or its counsel) shall have received the following:

(i) results of lien searches with respect to the Loan Parties and their respective Subsidiaries (including a search as tojudgments, bankruptcy, tax and UCC matters) in each jurisdiction and filing office in which filings or recordations under applicableUniform Commercial Code or other applicable law should be made to evidence or perfect a security interest with respect to suchmatters along with copies of the financing statements on file referenced in such searches and, in each case, indicating that the assets ofsuch Loan Party or such Subsidiary are free and clear of all Liens (other than Liens permitted hereunder);

(ii) UCC financing statements for each appropriate jurisdiction as is necessary, in the Administrative Agent’s sole discretion,to perfect the Administrative Agent’s security interest in the Collateral;

(iii) all certificates evidencing any certificated Equity Interests and all other instruments pledged to the Administrative Agentpursuant to the Security Agreement, together with duly executed in blank and undated stock powers, allonges, pledge instructions andacknowledgments, as appropriate, attached thereto;

(iv) evidence that all other actions that the Administrative Agent may deem necessary or desirable in order to perfect theLiens created under the Security Agreement have been taken (including, without limitation, duly executed short-form filings with theUnited States Patent and Trademark Office and the United States Copyright Office, receipt of duly executed payoff letters and UCC-3termination statements); and

(v) certificates of insurance listing the Administrative Agent as (A) lender loss payee for the property casualty insurancepolicies of the Borrower and the Subsidiary Guarantors, together with separate lender loss payable endorsements and (B) additionalinsured with respect to the liability insurance of the Borrower and the Subsidiary Guarantors, together with separate additional insuredendorsements.

Notwithstanding anything to the contrary in this clause (f), to the extent any security interest in any Collateral is not or cannot be providedand/or perfected on the Effective Date (other than the pledge and perfection of the security interests (1) in the certificated Equity Interests ofany Domestic Subsidiaries of the Borrower (to the extent required by the Loan Documents), (2) in other assets with respect to which a Lienmay be perfected by the filing of a financing statement under the Uniform Commercial Code) and (3) short-form filings with the United StatesPatent and Trademark Office or United States Copyright Office) after the Borrower’s use of commercially reasonable efforts to do so or withoutundue burden or expense, then the provision and/or perfection of a security interest in such Collateral shall not constitute a condition precedentto the availability of the credit facility evidenced by this Agreement on the Effective Date, but instead shall be required to be delivered withinsixty (60) days after the Effective Date, subject to such extensions as are

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reasonably agreed by the Administrative Agent, pursuant to arrangements to be mutually agreed by the Administrative Agent and the Borroweracting reasonably).

(g) HealthFusion Acquisition. The HealthFusion Acquisition shall have been consummated, or substantially simultaneouslywith the initial Borrowings hereunder, shall be consummated, in all material respects in accordance with the terms of the HealthFusion MergerAgreement, without giving effect to any modifications, amendments, consents or waivers by the Borrower that are materially adverse to theinterests of the Lenders or the Lead Arrangers, unless consented to in writing by the Lead Arrangers (such consent not to be unreasonablywithheld, delayed or conditioned).

(h) Borrowing Request; Funding Indemnification Letter. The Administrative Agent shall have received (i) a BorrowingRequest in accordance with Section 2.03 and (ii) if the Borrower requests a Eurodollar Borrowing for the initial Loans to be made on theEffective Date, a customary funding indemnification letter in form and substance reasonably satisfactory to the Administrative Agent.

(i) Existing Indebtedness. The Administrative Agent shall have received evidence reasonably satisfactory to it that (i) aftergiving effect to the HealthFusion Acquisition, the Borrower and its Subsidiaries shall have outstanding no third party Indebtedness forborrowed money, other than the credit facility evidenced by this Agreement and other Indebtedness permitted hereunder and (ii) allIndebtedness to be repaid on the Effective Date has been, or substantially concurrently with the Effective Date will be, repaid, and all Liens(other than Liens permitted to remain outstanding under this Agreement) have been, or substantially concurrently with the Effective Date willbe, discharged.

(j) Financial Matters. The Administrative Agent and the Lenders shall have received:

(i) audited financial statements of the Borrower for the three most recent fiscal years of the Borrower ended at least 90 daysprior to the Effective Date (the “Borrower Audited Financial Statements”);

(ii) audited financial statements of HealthFusion for the two most recent fiscal years of HealthFusion ended at least 90 daysprior to the Effective Date (the “HealthFusion Audited Financial Statements”);

(iii) unaudited interim consolidated financial statements of the Borrower and of HealthFusion for each quarterly period endedafter the latest fiscal year referred to in clause (i) or clause (ii) above, as applicable, and ended at least 60 days prior to the EffectiveDate (such unaudited financial statement of the Borrower being referred to as the “Borrower Unaudited Financial Statements” and suchunaudited financial statement of HealthFusion being referred to as the “HealthFusion Unaudited Financial Statements”);

(iv) annual management prepared financial projections that are reasonably acceptable to the Lead Arrangers (includingbalance sheets, income statements and cash flow statements) for the Borrower and its Subsidiaries for the five-year period ending (andincluding) fiscal year 2020 of the Borrower. The Administrative Agent and the Lead Arrangers acknowledge that the managementprepared financial projections delivered prior to the date hereof are acceptable; and

(v) a pro forma consolidated balance sheet of the Borrower and its Subsidiaries as of the date of the most recent consolidatedbalance sheet delivered pursuant to clause (i) or (ii) above and a pro forma statement of operations for the most recent 12-month periodending on the last day of such period, in each case adjusted to give effect to the consummation of the Transactions and the

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financings contemplated hereby as if such transactions, with respect to the pro forma balance sheet, had occurred on such date or withrespect to the pro forma statements of operations, had occurred on the first day of the most recently completed fiscal year, andconsistent in all material respects with the forecasts previously provided to the Administrative Agent and the Lead Arrangers.

(k) PATRIOT Act. The Administrative Agent and the Lead Arrangers shall have received all documentation and otherinformation about the Borrower, the Subsidiary Guarantors and their Subsidiaries that shall have been reasonably requested by theAdministrative Agent or any Lead Arranger in writing at least 10 days prior to the Effective Date and that the Administrative Agent and theLead Arrangers determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules andregulations, including without limitation the Patriot Act.

(l) Fees; Expenses. The Administrative Agent shall have received all fees due and payable to the Administrative Agent, theLead Arrangers and the Lenders on or prior to the Effective Date, and all expenses to be paid or reimbursed to the Administrative Agent and theLead Arrangers that have been invoiced prior to the Effective Date shall have been paid, which amounts may be paid, in each case, from theproceeds of the initial Borrowings hereunder.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date (and shall distribute a fully executed copy of theCredit Agreement to the Lenders and an executed promissory note to each Lender requesting a promissory note pursuant to Section 2.10(e)),and such notice shall be conclusive and binding.

Notwithstanding the foregoing, the Borrower shall be deemed to remake the representations and warranties set forth in Article III (giving effectto the HealthFusion Acquisition) immediately after the funding of the initial Borrowings hereunder on the Effective Date and theconsummation of the HealthFusion Acquisition, except to the extent that such representations and warranties expressly relate to an earlier date,in which case such representations and warranties shall be deemed remade as of such earlier date.

SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan subsequent to the Effective Date on theoccasion of any Borrowing, and of each Issuing Bank to issue, amend, renew or extend any Letter of Credit subsequent to the Effective Date, issubject to the satisfaction of the following conditions:

(a) The representations and warranties of the Borrower set forth in this Agreement shall be true and correct in all materialrespects (or in all respects if the applicable representation and warranty is qualified by materiality or Material Adverse Effect) on and as of thedate of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extentthat such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true andcorrect in all material respects (or in all respects if the applicable representation and warranty is qualified by materiality or Material AdverseEffect) as of such earlier date.

(b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension ofsuch Letter of Credit, as applicable, no Default or Event of Default shall have occurred and be continuing.

Each Borrowing subsequent to the Effective Date and each issuance, amendment, renewal or extension of a Letter of Credit subsequent to theEffective Date shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified inparagraphs (a) and (b) of this Section.

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ARTICLE V

Affirmative Covenants

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payablehereunder shall have been paid in full and all Letters of Credit shall have expired or terminated, in each case, without any pending draw, and allLC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:

SECTION 5.01. Financial Statements and Other Information. The Borrower will furnish to the Administrative Agent andeach Lender:

(a) within ninety (90) days after the end of each fiscal year of the Borrower (or, if earlier, by two (2) Business Days after thedate that the Annual Report on Form 10-K of the Borrower for such fiscal year would be required to be filed under the rules and regulations ofthe SEC, giving effect to any automatic extension available thereunder for the filing of such form), its audited consolidated balance sheet andrelated statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case incomparative form the figures for the previous fiscal year, all reported on by PricewaterhouseCoopers LLP or other independent publicaccountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification orexception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects thefinancial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance withGAAP consistently applied;

(b) within forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower (or, ifearlier, by two (2) Business Days after the date that the Quarterly Report on Form 10-Q of the Borrower for such fiscal quarter would berequired to be filed under the rules and regulations of the SEC, giving effect to any automatic extension available thereunder for the filing ofsuch form), its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and forsuch fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for thecorresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of itsFinancial Officers or other executive officers as presenting fairly in all material respects the financial condition and results of operations of theBorrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to year-end andaudit adjustments and the absence of footnotes;

(c) concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer orother executive officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the detailsthereof and any action taken or proposed to be taken with respect thereto and (ii) setting forth reasonably detailed calculations demonstratingcompliance with Section 6.11;

(d) as soon as available, but in any event not more than ninety (90) days after the end of each fiscal year of the Borrower, acopy of the plan and forecast (including a projected consolidated and consolidating balance sheet, income statement and funds flow statement)of the Borrower for each quarter of the upcoming fiscal year in form reasonably satisfactory to the Administrative Agent;

(e) promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and othermaterials filed by the Borrower or any Subsidiary with the SEC, or any Governmental Authority succeeding to any or all of the functions of theSEC or such Governmental Authority,

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as applicable, or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be; and

(f) promptly following any request therefor, such other information regarding the operations, business affairs and financialcondition of the Borrower or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender mayreasonably request.

Documents required to be delivered pursuant to clauses (a), (b) and (e) of this Section 5.01 may be delivered electronically and if so delivered,shall be deemed to have been delivered on the date on which such documents are filed for public availability on the SEC’s Electronic DataGathering and Retrieval System; provided that the Borrower shall notify (which may be by facsimile or electronic mail) the AdministrativeAgent (which notice the Administrative Agent shall promptly provide to each Lender) of the filing of any such documents and, if requested bythe Administrative Agent, promptly provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of suchdocuments. Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper copies of thecompliance certificates required by clause (c) of this Section 5.01 to the Administrative Agent.

SECTION 5.02. Notices of Material Events. The Borrower will furnish to the Administrative Agent (which theAdministrative Agent shall promptly distribute to each Lender) prompt written notice of the following:

(a) the occurrence of any Default;

(b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authorityagainst or affecting the Borrower or any Affiliate thereof that could reasonably be expected to be adversely determined and, if adverselydetermined, could reasonably be expected to result in a Material Adverse Effect;

(c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, couldreasonably be expected to result in a Material Adverse Effect; and

(d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrowersetting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

SECTION 5.03. Existence; Conduct of Business. The Borrower will, and will cause each of its Subsidiaries to, do or cause tobe done all things necessary to preserve, renew and keep in full force and effect (a) its legal existence and good standing in its jurisdiction oforganization and (b) the rights, qualifications, licenses, permits, privileges, franchises, governmental authorizations and intellectual propertyrights material to the conduct of business of the Borrower and its Subsidiaries, and maintain all requisite authority to conduct its business ineach other jurisdiction in which its business is conducted, except, in the case of this clause (b), as could not reasonably be expected to have aMaterial Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted underSection 6.03.

SECTION 5.04. Payment of Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay its obligations,including Tax liabilities, that, if not paid, could reasonably be expected

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to result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the validity or amount thereof isbeing contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves withrespect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to resultin a Material Adverse Effect.

SECTION 5.05. Maintenance of Properties; Insurance. The Borrower will, and will cause each of its Subsidiaries to, (a) keepand maintain all property material to the conduct of business of the Borrower and its Subsidiaries in good working order and condition,ordinary wear and tear excepted, and (b) maintain with financially sound and reputable carriers insurance in such amounts (with no greater riskretention) and against such risks (including loss or damage by fire and loss in transit; theft, burglary, pilferage, larceny, embezzlement, andother criminal activities; business interruption; and general liability) and such other hazards, as is customarily maintained by companies ofestablished repute engaged in the same or similar businesses operating in the same or similar locations. The Borrower will furnish to theAdministrative Agent (for distribution to the Lenders), upon request of the Administrative Agent, information in reasonable detail as to theinsurance so maintained. The Borrower shall deliver to the Administrative Agent endorsements (x) to all “All Risk” physical damage insurancepolicies on all of the tangible personal property and assets insurance policies of the Borrower and the Subsidiary Guarantors naming theAdministrative Agent as lender loss payee, and (y) to all general liability and other liability policies of the Borrower and the SubsidiaryGuarantors naming the Administrative Agent an additional insured. In the event the Borrower or any of its Subsidiaries at any time or timeshereafter shall fail to obtain or maintain any of the policies or insurance required herein or to pay any premium in whole or in part relatingthereto, then the Administrative Agent, without waiving or releasing any obligations or resulting Default hereunder, may at any time or timesthereafter (but shall be under no obligation to do so) obtain and maintain such policies of insurance and pay such premiums and take any otheraction with respect thereto which the Administrative Agent deems advisable. All sums so disbursed by the Administrative Agent shallconstitute part of the Obligations, payable as provided in this Agreement. The Borrower will furnish to the Administrative Agent and theLenders prompt written notice of any casualty or other insured damage to any material portion of the Collateral or the commencement of anyaction or proceeding for the taking of any material portion of the Collateral or interest therein under power of eminent domain or bycondemnation or similar proceeding.

SECTION 5.06. Books and Records; Inspection Rights. The Borrower will, and will cause each of its Subsidiaries to, keepproper books of record and account in which entries which are full, true and correct in all material respects are made of all dealings andtransactions in relation to its business and activities. The Borrower will, and will cause each of its Subsidiaries to, permit any representativesdesignated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its properties, to examine and makeextracts from its books and records, including environmental assessment reports and Phase I or Phase II studies, and to discuss its affairs,finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested;provided, however, that (a) a representative of the Borrower shall be given the opportunity to be present for any discussion with its independentpublic accountants and (b) so long as no Event of Default has occurred and is continuing, (i) no more than one visit per fiscal year may be madeand (ii) the Borrower shall not be required to pay for more than one such visit per fiscal year. The Borrower acknowledges that theAdministrative Agent, after exercising its rights of inspection, may prepare and distribute to the Lenders certain reports pertaining to theBorrower and its Subsidiaries’ assets for internal use by the Administrative Agent and the Lenders.

SECTION 5.07. Compliance with Laws and Material Contractual Obligations. The Borrower will, and will cause each of itsSubsidiaries to, (i) comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property (includingwithout limitation

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Environmental Laws) and (ii) perform in all material respects its obligations under material agreements to which it is a party, except in eachcase under this Section 6.07 where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a MaterialAdverse Effect. The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, itsSubsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

SECTION 5.08. Use of Proceeds. The proceeds of the Loans will be used for general corporate purposes of the Borrower andits Subsidiaries (including acquisitions permitted hereunder, to finance the HealthFusion Acquisition, to refinance certain Indebtedness ofHealthFusion and its Subsidiaries as contemplated by Section 4.01(i) and to pay fees, commissions, transaction costs and expenses incurred inconnection with the Transactions). No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entailsa violation of any of the Regulations of the Board, including Regulations T, U and X. The Borrower will not request any Borrowing or Letter ofCredit, and the Borrower shall not use, and shall ensure that its Subsidiaries and its or their respective directors, officers, employees and agentsshall not use, the proceeds of any Borrowing or Letter of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization of thepayment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding,financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extentsuch activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the United States or ina European Union member state or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

SECTION 5.09. Subsidiary Guarantors; Pledges; Additional Collateral; Further Assurances.

(a) As promptly as possible but in any event but not later than the delivery of the certificate required to be delivered underSection 5.01(c) (or such later date as may be agreed upon by the Administrative Agent) in respect of the fiscal quarter immediately followingthe date on which any Person becomes a Subsidiary or any Subsidiary qualifies independently as, or is designated by the Borrower or theAdministrative Agent as, a Material Domestic Subsidiary pursuant to the definition of “Material Domestic Subsidiary”, the Borrower shallprovide the Administrative Agent with written notice thereof and shall cause each such Subsidiary which also qualifies as a Material DomesticSubsidiary to deliver to the Administrative Agent a joinder to the Subsidiary Guaranty and the Security Agreement (in each case in the formcontemplated thereby) pursuant to which such Subsidiary agrees to be bound by the terms and provisions thereof, such Subsidiary Guarantyand the Security Agreement to be accompanied by appropriate corporate resolutions, other corporate documentation and legal opinionsconsistent with those delivered on the Effective Date and otherwise in form and substance reasonably satisfactory to the Administrative Agentand its counsel.

(b) The Borrower will cause, and will cause each other Loan Party to cause, all of its owned property (whether personal,tangible, intangible, or mixed) to be subject at all times to perfected Liens in favor of the Administrative Agent for the benefit of the SecuredParties to secure the Secured Obligations in accordance with the terms and conditions of the Collateral Documents, subject in any case to Lienspermitted by Section 6.02. Without limiting the generality of the foregoing, the Borrower will cause the Applicable Pledge Percentage of theissued and outstanding Equity Interests of each Pledge Subsidiary directly owned by the Borrower or any other Loan Party to be subject at alltimes to a first priority, perfected Lien in favor of the Administrative Agent to secure the Secured Obligations in accordance with the terms andconditions of the Collateral Documents or such other pledge and security documents as the Administrative Agent shall reasonably request.Notwithstanding the foregoing, (i) no Loan Party shall be required to provide

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any mortgage or deed of trust with respect to any real property, (ii) no Loan Party shall be required to provide any pledge or security agreementthat is governed by any law other than the laws of the State of New York, and (iii) no such pledge agreement in respect of the Equity Interestsof a Foreign Subsidiary shall be required hereunder to the extent the Administrative Agent or its counsel determines that such pledge would notprovide material credit support for the benefit of the Secured Parties pursuant to legally valid, binding and enforceable pledge agreements.

(c) Without limiting the foregoing, but subject to the limitations in the last sentence of Section 5.09(b), the Borrower will,and will cause each Subsidiary to, execute and deliver, or cause to be executed and delivered, to the Administrative Agent such documents,agreements and instruments, and will take or cause to be taken such further actions (including the filing and recording of financing statements,fixture filings and other documents and such other actions or deliveries of the type required by Section 4.01, as applicable), which may berequired by law or which the Administrative Agent may, from time to time, reasonably request to carry out the terms and conditions of thisAgreement and the other Loan Documents and to ensure perfection and priority of the Liens created by the Collateral Documents (including,for the avoidance of doubt, in connection with the disclosure of any additional assets constituting Collateral pursuant to any updates of theexhibits to the Security Agreement as required thereby), all at the expense of the Borrower.

ARTICLE VI

Negative Covenants

Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payablehereunder have been paid in full and all Letters of Credit have expired or terminated, in each case, without any pending draw, and all LCDisbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:

SECTION 6.01. Indebtedness. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permitto exist any Indebtedness, except:

(a) the Secured Obligations;

(b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 and refinancings, extensions, renewals andreplacements of any such Indebtedness with Indebtedness of a similar type that does not increase the outstanding principal amount thereof(except to the extent of prepayment premiums and fees owing in connection with such refinancing, extension, renewal or replacement);

(c) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary, in eachcase, to the extent the related investment, loan or advance is permitted pursuant to Section 6.04(d);

(d) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of the Borrower orany other Subsidiary; provided that, in the case of any Guarantee made for the benefit of any Subsidiary that is not a Loan Party, suchGuarantee must also be permitted pursuant to Section 6.04(d);

(e) Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition, construction or improvement of anyfixed or capital assets, including Capital Lease Obligations and any

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Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisitionthereof, and refinancings, extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principalamount thereof (except to the extent of prepayment premiums and fees owing in connection with such refinancing, extension, renewal orreplacement); provided that (i) such Indebtedness is incurred prior to or within ninety (90) days after such acquisition or the completion of suchconstruction or improvement and (ii) the aggregate principal amount of Indebtedness permitted by this clause (e) shall not exceed $25,000,000at any time outstanding;

(f) Indebtedness of the Borrower or any Subsidiary as an account party in respect of trade letters of credit and letters of creditissued in connection with self-insured workers’ compensation liabilities or as otherwise required by applicable law;

(g) (i) Indebtedness the proceeds of which are used to finance or to repay Loans used to fund, (ii) Indebtedness assumed inconnection with, and (iii) Indebtedness of any subsidiary acquired in connection with, any Permitted Acquisition; provided that, (x) after givingpro forma effect to such Permitted Acquisition and the incurrence of such Indebtedness, the Leverage Ratio at the time such PermittedAcquisition is consummated, is less than 0.25 less than the maximum Leverage Ratio permitted at such time pursuant to Section 6.11(a) for themost recent fiscal quarter for which financial statements shall have been delivered pursuant to Section 5.01(a) or 5.01(b) (or, prior to thedelivery of any such financial statements, the last fiscal quarter included in the financial statements of the Borrower referred to in Section3.04(a)), (y) no Event of Default shall exist and be continuing immediately prior to or after giving effect to any incurrence of such Indebtednessand (z) the aggregate principal amount of secured Indebtedness permitted by this clause (g) shall not exceed $15,000,000 at any timeoutstanding;

(h) Indebtedness owed to any Person providing workers’ compensation, health, disability or other employee benefits orproperty, casualty or liability insurance, pursuant to reimbursement or indemnification obligations to such Person, in each case incurred in theordinary course of business;

(i) Indebtedness consisting of financing of insurance premiums in the ordinary course of business;

(j) Indebtedness of the Borrower or any Subsidiary secured by a Lien on any asset (not constituting Collateral) of theBorrower or any Subsidiary; provided that the aggregate outstanding principal amount of Indebtedness permitted by this clause (j) shall not inthe aggregate exceed $10,000,000 at any time;

(k) deferred compensation incurred in the ordinary course of business; and

(l) unsecured Indebtedness in an aggregate principal amount not exceeding $50,000,000 at any time outstanding; providedthat the aggregate principal amount of Indebtedness of the Borrower’s Subsidiaries that are not Subsidiary Guarantors permitted by this clause(l) shall not exceed $10,000,000 at any time outstanding.

SECTION 6.02. Liens. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to existany Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accountsreceivable) or rights in respect of any thereof, except:

(a) Liens created pursuant to any Loan Document;

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(b) Permitted Encumbrances;

(c) any Lien on any property or asset of the Borrower or any Subsidiary existing on the date hereof and set forth inSchedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary and (ii) such Lienshall secure only those obligations which it secures on the date hereof and refinancings, extensions, renewals and replacements thereof that donot increase the outstanding principal amount thereof (except to the extent of prepayment premiums and fees owing in connection with suchrefinancing, extension, renewal or replacement);

(d) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existingon any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary;provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, asthe case may be, (ii) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary and (iii) such Lien shall secureonly those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, andrefinancings, extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof (except to the extentof prepayment premiums and fees owing in connection with such refinancing, extension, renewal or replacement);

(e) Liens on fixed or capital assets acquired, constructed or improved by the Borrower or any Subsidiary; provided that(i) such security interests secure Indebtedness permitted by clause (e) of Section 6.01, (ii) such security interests and the Indebtedness securedthereby are incurred prior to or within ninety (90) days after such acquisition or the completion of such construction or improvement, (iii) theIndebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such Lienshall not apply to any other property or assets of the Borrower or any Subsidiary;

(f) Liens on any property or asset acquired pursuant to a Permitted Acquisition provided that (i) such Liens secureIndebtedness permitted by clause (g) of Section 6.01, (ii) such Liens and the Indebtedness secured thereby are incurred prior to or within ninety(90) after such Permitted Acquisition, (iii) the Indebtedness secured thereby does not exceed the consideration paid for such PermittedAcquisition and (iv) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary; and

(g) Liens on assets (not constituting Collateral) of the Borrower and its Subsidiaries not otherwise permitted above so long asthe aggregate principal amount of the Indebtedness and other obligations subject to such Liens does not at any time exceed $10,000,000.

SECTION 6.03. Fundamental Changes and Asset Sales. (a) The Borrower will not, and will not permit any Subsidiary to,merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease orotherwise dispose of (in one transaction or in a series of transactions) any of its assets (including pursuant to a Sale and LeasebackTransaction), or any of the Equity Interests of any of its Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate ordissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing:

(i) the Borrower and its wholly-owned Subsidiaries may consummate the HealthFusion Acquisition;

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(ii) any Subsidiary may merge into or consolidate with the Borrower or any Subsidiary; provided that (A) if the Borrower is aparty in such transaction, the Borrower is the surviving corporation; and (B) if any Subsidiary Guarantor is a party in such transactionand the Borrower is not, the surviving entity shall be or become a Subsidiary Guarantor;

(iii) any Subsidiary that is not a Loan Party may sell, transfer, lease or otherwise dispose of its assets (A) to the Borrower orany other Subsidiary or (B) in any transaction permitted pursuant to Section 6.04;

(iv) any Subsidiary Guarantor may sell, transfer, lease or otherwise dispose of its assets (A) to a Loan Party or (B) in anytransaction permitted pursuant to Section 6.04;

(v) Borrower or any Subsidiary may merge into or consolidate with another Person in order to consummate a transactionwhat is otherwise permitted pursuant to Section 6.04; provided that (A) if the Borrower is a party in such transaction, the Borrower isthe surviving corporation; and (B) if any Subsidiary Guarantor is a party in such transaction and the Borrower is not, the survivingentity shall be or become a Subsidiary Guarantor;

(vi) the Borrower and its Subsidiaries may (A) sell inventory in the ordinary course of business, (B) effect sales, trade-ins ordispositions of used equipment for value in the ordinary course of business, (C) enter into licenses of technology or other intellectualproperty in the ordinary course of business, and (D) make any other sales, transfers, leases or dispositions (and any merger orconsolidation with another Person in order to consummate such sale, transfer, lease or disposition) that, together with all other propertyof the Borrower and its Subsidiaries previously leased, sold or disposed of as permitted by this clause (D) during any fiscal year of theBorrower, does not exceed an amount equal to 5% of Consolidated Total Assets as of the end of the most recent fiscal quarter for whichfinancial statements shall have been delivered pursuant to Section 5.01(a) or 5.01(b) (or, prior to the delivery of any such financialstatements, the last fiscal quarter included in the financial statements of the Borrower referred to in Section 3.04(a));

(vii) the use or transfer of cash or cash equivalents in a manner that is not prohibited by the terms of the Agreement;

(viii) sales, transfers or dispositions of accounts in the ordinary course of business for purposes of collection or settlement ofdisputed claims;

(ix) sales, transfers or dispositions of assets resulting from any casualty or other insured damage to, or any taking underpower of eminent domain or by condemnation or similar proceeding of, any property or asset of; and

(x) any Subsidiary may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is inthe best interests of the Borrower and is not materially disadvantageous to the Lenders; provided that, if any such dissolved orliquidated Subsidiary is a Loan Party, such Subsidiary shall sell, transfer or otherwise dispose of its assets to another Loan Party priorto or concurrently with such dissolution or liquidation;

provided that any such merger or consolidation involving a Person that is not a wholly-owned Subsidiary immediately prior to suchmerger or consolidation shall not be permitted unless it is also permitted by Section 6.04.

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(b) The Borrower will not, and will not permit any of its Subsidiaries to, engage to any material extent in any business otherthan businesses of the type conducted by the Borrower and its Subsidiaries on the date of execution of this Agreement and businessesreasonably related thereto or reasonable extensions thereof.

(c) The Borrower will not, nor will it permit any of its Subsidiaries to, change its fiscal year from the basis in effect on theEffective Date, in each case other than to match the fiscal year of any Subsidiary to the fiscal year of the Borrower.

SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The Borrower will not, and will not permit anyof its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger or consolidation with any Person that was not a whollyowned Subsidiary prior to such merger or consolidation) any capital stock, evidences of indebtedness or other securities (including any option,warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, ormake or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or aseries of transactions) any Person or any assets of any other Person constituting a business unit, except:

(a) cash and Permitted Investments;

(b) Permitted Acquisitions;

(c) investments by the Borrower and its Subsidiaries existing on the date hereof in the capital stock of its Subsidiaries;

(d) investments, loans or advances made by the Borrower in or to any Subsidiary and made by any Subsidiary in or to theBorrower or any other Subsidiary and Guarantees by the Borrower or any Subsidiary for the benefit of the Borrower or any other Subsidiary;provided that at the time of any such investment, loan, advance by any Loan Party in, or Guarantee by any Loan Party for the benefit of, anySubsidiary that is not a Loan Party the aggregate amount outstanding of all such investments, loans, advances, and Guarantees shall not exceed10% of Consolidated Total Assets as of the end of the most recent fiscal quarter for which financial statements shall have been deliveredpursuant to Section 5.01(a) or 5.01(b) (or, prior to the delivery of any such financial statements, the last fiscal quarter included in the financialstatements of the Borrower referred to in Section 3.04(a));

(e) the HealthFusion Acquisition;

(f) Guarantees constituting Indebtedness permitted by Section 6.01;

(g) cash and marketable securities held in Deposit Accounts (as defined in the Security Agreement) or Securities Accounts(as defined in the Security Agreement), which are subject to control agreements to the extent required by the Security Agreement;

(h) investments in negotiable instruments for collection in the ordinary course of business;

(i) advances made in connection with purchases of goods or services in the ordinary course of business;

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(j) investments received in settlement of delinquent obligations to the Borrower or any Subsidiary effected in the ordinarycourse of business or owing to the Borrower or any Subsidiary as a result of any bankruptcy or insolvency proceeding involving an accountdebtor or upon the foreclosure or enforcement of any Lien in favor of the Borrower or any Subsidiary;

(k) investments, loans, advances and Guarantees existing on the Effective Date and set forth on Schedule 6.04;

(l) investments arising under Swap Agreements entered into in compliance with Section 6.05;

(m) loans or advances made by Borrower or any Subsidiary to its employees in the ordinary course of business consistent fortravel and entertainment expenses, relocation costs and similar purposes up to a maximum of $1,000,000 in the aggregate at any one timeoutstanding;

(n) investments, loans and advances owned by, and Guarantees made by, any Person existing at the time such Personbecomes a Subsidiary of a Borrower or consolidates or merges with a Borrower or any of its Subsidiaries (including in connection with aPermitted Acquisition) so long as such investments, loans, advances and Guarantee were not made in contemplation of such Person becoming aSubsidiary or of such consolidation or merger;

(o) extensions of trade credit in the ordinary course of business;

(p) any endorsement of a check or other medium of payment for deposit or collection, or any similar transaction, in each casein the ordinary course of business;

(q) any other investment, loan, advance or Guarantee (other than acquisitions) so long as during the term of this Agreement,at the time of making any such Investment, loan, advance or Guarantee, the aggregate amount of all such investments, loans, advances andGuarantees which are outstanding do not exceed an amount equal to 10% of Consolidated Total Assets as of the end of the most recent fiscalquarter for which financial statements shall have been delivered pursuant to Section 5.01(a) or 5.01(b) (or, prior to the delivery of any suchfinancial statements, the last fiscal quarter included in the financial statements of the Borrower referred to in Section 3.04(a)).

SECTION 6.05. Swap Agreements. The Borrower will not, and will not permit any of its Subsidiaries to, enter into any SwapAgreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure(other than those in respect of Equity Interests of the Borrower or any of its Subsidiaries), and (b) Swap Agreements entered into in order toeffectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) withrespect to any interest-bearing liability or investment of the Borrower or any Subsidiary.

SECTION 6.06. Transactions with Affiliates. The Borrower will not, and will not permit any of its Subsidiaries to, sell, leaseor otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in anyother transactions with, any of its Affiliates, except (a) at prices and on terms and conditions not less favorable to the Borrower or suchSubsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Borrower and itswholly owned Subsidiaries not involving any other Affiliate, (c) any Restricted Payment permitted by Section 6.07 and (d) any transactionsbetween or among the Borrower and its Subsidiaries involving the provision of cash management or general corporate services.

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SECTION 6.07. Restricted Payments. The Borrower will not, and will not permit any of its Subsidiaries to, declare or make,or agree to pay or make, directly or indirectly, any Restricted Payment, except:

(a) the Borrower or any Subsidiary may declare and pay dividends with respect to its Equity Interests payable solely inadditional shares of its common stock;

(b) Subsidiaries may make Restricted Payments ratably with respect to their Equity Interests so long as such RestrictedPayment is not prohibited by Sections 6.03 and 6.04;

(c) the Borrower may make Restricted Payments pursuant to and in accordance with stock option or equity-based plans orother benefit plans for directors, employees or consultants of the Borrower and its Subsidiaries;

(d) the Specified Dividend; and

(e) the Borrower and its Subsidiaries may make any other Restricted Payment so long as the Restricted PaymentRequirements are satisfied in connection with such Restricted Payment.

SECTION 6.08. Restrictive Agreements. The Borrower will not, and will not permit any of its Subsidiaries to, directly orindirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) theability of the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets to secure the SecuredObligations, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to holders of its Equity Interests or to makeor repay loans or advances to the Borrower or any other Subsidiary or to Guarantee the Secured Obligations; provided that (i) the foregoingshall not apply to restrictions and conditions imposed by law or by any Loan Document, (ii) the foregoing shall not apply to customaryrestrictions and conditions contained in agreements relating to the sale of a Subsidiary or any other asset pending such sale, provided suchrestrictions and conditions apply only to the Subsidiary that is, or the assets that are, to be sold and such sale is permitted hereunder or acondition to the closing of such sale is the payment in full of this Agreement or a consent under this Agreement (it being understood and agreedthat neither the Administrative Agent nor any Lender shall be required to grant any such consent), (iii) clause (a) of the foregoing shall notapply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictionsor conditions apply only to the property or assets securing such Indebtedness, (iv) clause (a) of the foregoing shall not apply to customaryprovisions in leases and other contracts restricting the assignment thereof, (v) the foregoing shall not apply to restrictions and conditionscontained in other Indebtedness permitted under this Agreement so long as such restrictions and conditions are not more onerous for theBorrower and the Subsidiaries than the restrictions and conditions contained in the Loan Documents, and (vi) the foregoing shall not apply tocustomary provisions contained in joint venture agreements and related to the organizational documents of non-wholly owned Subsidiaries;provided that the Borrower or the applicable Subsidiary shall use reasonable efforts to exclude any such limitations or restrictions from suchjoint venture agreements and organizational documents.

SECTION 6.09. Subordinated Indebtedness and Amendments to Subordinated Indebtedness Documents and HealthFusionMerger Agreement.

(a) At any time (i) the Leverage Ratio is greater than 2.00 to 1.00 or (ii) an Event of Default has occurred and is continuing orwould result therefrom, the Borrower will not, and will not permit any Subsidiary to, directly or indirectly voluntarily prepay, defease or insubstance defease, purchase, redeem, retire or otherwise acquire, any Subordinated Indebtedness or any Indebtedness from time to timeoutstanding

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under the Subordinated Indebtedness Documents, in each case other than in connection with any refinancings, extensions, renewals andreplacements thereof that do not decrease the outstanding principal amount thereof.

(b) The Borrower will not, and will not permit any Subsidiary to, amend the Subordinated Indebtedness Documents or anydocument, agreement or instrument evidencing any Indebtedness incurred pursuant to the Subordinated Indebtedness Documents (or anyrefinancings, replacements, substitutions, extensions or renewals thereof) or pursuant to which such Indebtedness is issued where suchamendment, modification or supplement provides for the following or which has any of the following effects:

(i) increases the overall principal amount of any such Indebtedness (other than as permitted pursuant to Section 6.01) orincreases the amount of any single scheduled installment of principal or interest that is required to be made prior to the Maturity Date;

(ii) shortens or accelerates the date upon which any installment of principal or interest becomes due or adds any additionalmandatory redemption provisions, in each case, prior to the Maturity Date;

(iii) shortens the final maturity date of such Indebtedness or otherwise accelerates the amortization schedule with respect tosuch Indebtedness, in each case prior to the Maturity Date;

(iv) increases the rate of interest accruing on such Indebtedness;

(v) provides for the payment of additional fees or increases existing fees;

(vi) amends or modifies any financial or negative covenant (or covenant which prohibits or restricts the Borrower or anySubsidiary from taking certain actions) in a manner which is more onerous or more restrictive in any material respect to the Borroweror such Subsidiary or which is otherwise materially adverse to the Borrower, any Subsidiary and/or the Lenders or, in the case of anysuch covenant, which places material additional restrictions on the Borrower or such Subsidiary or which requires the Borrower or suchSubsidiary to comply with more restrictive financial ratios or which requires the Borrower to better its financial performance, in eachcase from that set forth in the existing applicable covenants in the Subordinated Indebtedness Documents or the applicable covenants inthis Agreement, unless, in each case, such amendment or modification is intended to match an amendment or modification to the LoanDocuments and maintain the same cushion as is in the existing Subordinated Indebtedness Documents and the Loan Documents; or

(vii) amends, modifies or adds any affirmative covenant in a manner which (i) when taken as a whole, is materially adverseto the Borrower, any Subsidiary and/or the Lenders or (ii) is more onerous than the existing applicable covenant in the SubordinatedIndebtedness Documents or the applicable covenant in this Agreement, unless, in each case, such amendment, modification or additionis intended to match an amendment, modification or addition to the Loan Documents and maintain the same cushion as is in theexisting Subordinated Indebtedness Documents and the Loan Documents.

(c) The Borrower will not, and will not permit any Subsidiary to, agree to, enter into or otherwise permit any amendment,modification, consent or waiver in respect of the HealthFusion Merger Agreement that is materially adverse to the interests of the SecuredParties or the Lead Arrangers, unless consented to in writing by the Lead Arrangers (such consent not to be unreasonably withheld, delayed orconditioned).

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SECTION 6.10. Sale and Leaseback Transactions. The Borrower will not, nor will it permit any Subsidiary to, enter into anySale and Leaseback Transaction, other than Sale and Leaseback Transactions in respect of which the Net Proceeds received in connectiontherewith does not exceed $25,000,000 in the aggregate during the term of this Agreement, determined on a consolidated basis for the Borrowerand its Subsidiaries.

SECTION 6.11. Financial Covenants.

(a) Maximum Leverage Ratio. The Borrower will not permit the Leverage Ratio, determined as of the end of each of its fiscalquarters ending after the Effective Date, to be greater than or equal to (x) 3.00 to 1.00 for any such fiscal quarter ending on or prior toSeptember 30, 2016, (y) 2.75 to 1.00 for any such fiscal quarter ending after September 30, 2016 and on or prior to September 30, 2017 and (z)2.50 to 1.00 for any such fiscal quarter ending after September 30, 2017.

(b) Minimum Fixed Charge Coverage Ratio. The Borrower will not permit the Fixed Charge Coverage Ratio, determined asof the end of each of its fiscal quarters ending after the Effective Date, to be less than 3.00 to 1.00.

ARTICLE VII

Events of Default

If any of the following events (“Events of Default”) shall occur:

(a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LCDisbursement or shall fail to make any payment required under Article X when and as the same shall become due and payable, whether at thedue date thereof or at a date fixed for prepayment thereof or otherwise;

(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred toin clause (a) of this Article) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable,and such failure shall continue unremedied for a period of five (5) Business Days;

(c) any representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in or inconnection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder orthereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement orany other Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any materialrespect when made or deemed made;

(d) the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 4.01(f), 5.02,5.03 (with respect to the Borrower’s existence), 5.08 or 5.09, in Article VI;

(e) the Borrower or any Subsidiary Guarantor, as applicable, shall fail to observe or perform any covenant, condition oragreement contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Article) or any other Loan Document, andsuch failure shall continue unremedied for a period of thirty (30) days after notice thereof from the Administrative Agent to the Borrower(which notice will be given at the request of the Required Lenders);

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(f) the Borrower or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount)in respect of any Material Indebtedness, when and as the same shall become due and payable;

(g) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity orthat enables or permits the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any MaterialIndebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity;provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the propertyor assets securing such Indebtedness;

(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation,reorganization or other relief in respect of the Borrower or any Material Domestic Subsidiary or its debts, or of a substantial part of its assets,under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of areceiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Domestic Subsidiary or for asubstantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order ordecree approving or ordering any of the foregoing shall be entered;

(i) the Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation,reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect,(ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of thisArticle, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for theBorrower or any Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed againstit in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any ofthe foregoing;

(j) the Borrower or any Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as theybecome due;

(k) one or more judgments for the payment of money in an aggregate amount in excess of $15,000,000 shall be renderedagainst the Borrower, any Subsidiary or any combination thereof or any action shall be legally taken by a judgment creditor to attach or levyupon any assets of the Borrower or any Subsidiary to enforce any such judgment and in each case, the judgment or attachment shall remainundischarged, not dismissed and unsatisfied for a period of thirty (30) consecutive days during which execution shall not be effectively stayed;provided, that any such amount shall be calculated after deducting from the sum so payable any amount of such judgment that is covered by avalid and binding policy of insurance in favor of the Borrower or such Subsidiary (but only if the applicable insurer shall have been advised ofsuch judgment and of the intent of the Borrower or such Subsidiary to make a claim in respect of any amount payable by it in connectiontherewith and such insurer shall not have disputed coverage);

(l) an ERISA Event shall have occurred that when taken together with all other ERISA Events that have occurred, couldreasonably be expected to result in a Material Adverse Effect;

(m) a Change in Control shall occur;

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(n) the occurrence of any “Event of Default” as defined in the Security Agreement or the failure of any Subsidiary Guarantorto make any payment required under the Subsidiary Guaranty;

(o) any material provision of any Loan Document for any reason ceases to be valid, binding and enforceable in accordancewith its terms (or the Borrower or any Subsidiary shall challenge the enforceability of any Loan Document or shall assert in writing, or engagein any action or inaction based on any such assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is notvalid, binding and enforceable in accordance with its terms); or

(p) any Collateral Document shall for any reason fail to create a valid and perfected security interest having the priorityrequired pursuant to such Collateral Document in all or any material portion of the Collateral purported to be covered thereby, except aspermitted by the terms of any Loan Document;

then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Article), and at any timethereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice tothe Borrower, take any or all of the following actions, at the same or different times: (i) terminate the Commitments (including the Letter ofCredit Commitments of each Issuing Bank), and thereupon the Commitments shall terminate immediately, (ii) declare the Loans thenoutstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter bedeclared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interestthereon and all fees and other Secured Obligations of the Borrower accrued hereunder and under the other Loan Documents, shall become dueand payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowerand (iii) require cash collateral for the LC Exposure in accordance with Section 2.06(j) hereof; and in case of any event with respect to theBorrower described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans thenoutstanding and cash collateral for the LC Exposure, together with accrued interest thereon and all fees and other Secured Obligations accruedhereunder and under the other Loan Documents, shall automatically become due and payable, without presentment, demand, protest or othernotice of any kind, all of which are hereby waived by the Borrower. Upon the occurrence and during the continuance of an Event of Default,the Administrative Agent may, and at the request of the Required Lenders shall, exercise any rights and remedies provided to theAdministrative Agent under the Loan Documents or at law or equity, including all remedies provided under the UCC.

ARTICLE VIII

The Administrative Agent

Each of the Lenders, on behalf of itself and any of its Affiliates that are Secured Parties, and each Issuing Bank herebyirrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf, includingexecution of the other Loan Documents, and to exercise such powers as are delegated to the Administrative Agent by the terms of the LoanDocuments, together with such actions and powers as are reasonably incidental thereto. In addition, to the extent required under the laws of anyjurisdiction other than the United States of America, each of the Lenders, on behalf of itself and any of its Affiliates that are Secured Parties,and each Issuing Bank hereby grants to the Administrative Agent any required powers of attorney to execute any Collateral Documentgoverned by the laws of such jurisdiction on such Lender’s or such Issuing Bank’s behalf. The provisions of this Article are solely for thebenefit of the Administrative Agent and the Lenders (including the Swingline Lender and the

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Issuing Banks), and neither the Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions. It isunderstood and agreed that the use of the term “agent” as used herein or in any other Loan Documents (or any similar term) with reference tothe Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of anyapplicable law. Instead, such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationshipbetween independent contracting parties.

The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender asany other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may acceptdeposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if itwere not the Administrative Agent hereunder.

The Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents.Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties,regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionaryaction or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that theAdministrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lendersas shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth in the Loan Documents, theAdministrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to theBorrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates inany capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of theRequired Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided inSection 9.02) or in the absence of its own gross negligence or willful misconduct as determined by a final nonappealable judgment of a court ofcompetent jurisdiction. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereofis given to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent shall not be responsible for or have any duty toascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents ofany certificate, report or other document delivered hereunder or in connection with any Loan Document, (iii) the performance or observance ofany of the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness orgenuineness of any Loan Document or any other agreement, instrument or document, (v) the creation, perfection or priority of Liens on theCollateral or the existence of the Collateral or (vi) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document,other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the properPerson. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by theproper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may becounsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken byit in accordance with the advice of any such counsel, accountants or experts.

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The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or moresub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties andexercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply toany such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activitiesin connection with the syndication of the credit facility provided for herein as well as activities as Administrative Agent.

Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, theAdministrative Agent may resign at any time by notifying the Lenders, the Issuing Banks and the Borrower. Upon any such resignation, theRequired Lenders shall have the right, with consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned andnot to be required if an Event of Default has occurred and is continuing), to appoint a successor. If no successor shall have been so appointed bythe Required Lenders and, to the extent required, consented to by the Borrower, and shall have accepted such appointment within thirty(30) days after the retiring Administrative Agent gives notice of its resignation (the “Resignation Effective Date”), then the retiringAdministrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent which shall be a bankwith an office in New York, New York, or an Affiliate of any such bank; provided that in no event shall any such successor AdministrativeAgent be a Defaulting Lender. Whether or not a successor Administrative Agent has been appointed, such resignation shall become effective inaccordance with such notice on the Resignation Effective Date. Upon the acceptance of its appointment as Administrative Agent hereunder by asuccessor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring AdministrativeAgent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower toa successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and suchsuccessor. After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for thebenefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to betaken by any of them while it was acting as Administrative Agent.

Each Lender acknowledges and agrees that the extensions of credit made hereunder are commercial loans and letters of creditand not investments in a business enterprise or securities. Each Lender further represents that it is engaged in making, acquiring or holdingcommercial loans in the ordinary course of its business and has, independently and without reliance upon the Administrative Agent or any otherLender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into thisAgreement as a Lender, and to make, acquire or hold Loans hereunder. Each Lender shall, independently and without reliance upon theAdministrative Agent or any other Lender and based on such documents and information (which may contain material, non-public informationwithin the meaning of the United States securities laws concerning the Borrower and its Affiliates) as it shall from time to time deemappropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any related agreement orany document furnished hereunder or thereunder and in deciding whether or to the extent to which it will continue as a Lender or assign orotherwise transfer its rights, interests and obligations hereunder.

None of the Lenders, if any, identified in this Agreement as a Syndication Agent or Co-Documentation Agent shall have anyright, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders as such. Withoutlimiting the foregoing, none of such Lenders shall have or be deemed to have a fiduciary relationship with any Lender. Each Lender herebymakes the same acknowledgments with respect to the relevant Lenders in their respective capacities as

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Syndication Agent or Co-Documentation Agents, as applicable, as it makes with respect to the Administrative Agent in the precedingparagraph.

The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwiseset forth herein in case of the Administrative Agent) authorized to act for, any other Lender. The Administrative Agent shall have the exclusiveright on behalf of the Lenders to enforce the payment of the principal of and interest on any Loan after the date such principal or interest hasbecome due and payable pursuant to the terms of this Agreement.

In its capacity, the Administrative Agent is a “representative” of the Secured Parties within the meaning of the term “securedparty” as defined in the New York Uniform Commercial Code. Each Lender authorizes the Administrative Agent to enter into each of theCollateral Documents to which it is a party and to take all action contemplated by such documents. Each Lender agrees that no Secured Party(other than the Administrative Agent) shall have the right individually to seek to realize upon the security granted by any Collateral Document,it being understood and agreed that such rights and remedies may be exercised solely by the Administrative Agent for the benefit of theSecured Parties upon the terms of the Collateral Documents. In the event that any Collateral is hereafter pledged by any Person as collateralsecurity for the Secured Obligations, the Administrative Agent is hereby authorized, and hereby granted a power of attorney, to execute anddeliver on behalf of the Secured Parties any Loan Documents necessary or appropriate to grant and perfect a Lien on such Collateral in favor ofthe Administrative Agent on behalf of the Secured Parties. The Lenders hereby authorize the Administrative Agent, at its option and in itsdiscretion, to release any Lien granted to or held by the Administrative Agent upon any Collateral (i) as described in Section 9.02(d); (ii) aspermitted by, but only in accordance with, the terms of the applicable Loan Document; or (iii) if approved, authorized or ratified in writing bythe Required Lenders, unless such release is required to be approved by all of the Lenders hereunder. Upon request by the Administrative Agentat any time, the Lenders will confirm in writing the Administrative Agent’s authority to release particular types or items of Collateral pursuanthereto. Upon any sale or transfer of assets constituting Collateral which is permitted pursuant to the terms of any Loan Document, or consentedto in writing by the Required Lenders or all of the Lenders, as applicable, and upon at least five (5) Business Days’ prior written request by theBorrower to the Administrative Agent, the Administrative Agent shall (and is hereby irrevocably authorized by the Lenders to) execute suchdocuments as may be necessary to evidence the release of the Liens granted to the Administrative Agent for the benefit of the Secured Partiesherein or pursuant hereto upon the Collateral that was sold or transferred; provided, however, that (i) the Administrative Agent shall not berequired to execute any such document on terms which, in the Administrative Agent’s opinion, would expose the Administrative Agent toliability or create any obligation or entail any consequence other than the release of such Liens without recourse or warranty, and (ii) suchrelease shall not in any manner discharge, affect or impair the Secured Obligations or any Liens upon (or obligations of the Borrower or anySubsidiary in respect of) all interests retained by the Borrower or any Subsidiary, including (without limitation) the proceeds of the sale, all ofwhich shall continue to constitute part of the Collateral. Any execution and delivery by the Administrative Agent of documents in connectionwith any such release shall be without recourse to or warranty by the Administrative Agent.

In case of the pendency of any proceeding with respect to any Loan Party under any Federal, state or foreign bankruptcy,insolvency, receivership or similar law now or hereafter in effect, the Administrative Agent (irrespective of whether the principal of any Loanor any LC Disbursement shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether theAdministrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention insuch proceeding or otherwise:

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(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of theLoans, LC Exposure and all other Secured Obligations that are owing and unpaid and to file such other documents as may be necessaryor advisable in order to have the claims of the Lenders, the Issuing Banks and the Administrative Agent (including any claim underSections 2.12, 2.13, 2.15, 2.16, 2.17 and 9.03) allowed in such judicial proceeding; and

(b) collect and receive any monies or other property payable or deliverable on any such claims and to distribute thesame;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such proceeding is hereby authorized byeach Lender, each Issuing Bank and each other Secured Party to make such payments to the Administrative Agent and, in the event that theAdministrative Agent shall consent to the making of such payments directly to the Lenders, the Issuing Banks or the other Secured Parties, topay to the Administrative Agent any amount due to it, in its capacity as the Administrative Agent, under the Loan Documents (including underSection 9.03).

ARTICLE IX

Miscellaneous

SECTION 9.01. Notices. (a) Except in the case of notices and other communications expressly permitted to be given bytelephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall bedelivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

(i) if to the Borrower, to it at Quality Systems, Inc., 18111 Von Karman Avenue, Suite 700, Irvine, California 92612,Attention of Jocelyn A. Leavitt (Telecopy No. (949) 769-5822; Telephone No. (949) 265-6922), with a copy to Latham & Watkins LLP,355 South Grand Avenue, Los Angeles, California 90071-1560, Attention Glen B. Collyer (Telecopy No. (213) 891-8763; TelephoneNo. (213) 891-8701);

(ii) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., 10 South Dearborn St., Floor L2, Chicago, Illinois 60603,[email protected], Attention of Loan and Agency Services (Telecopy No. (888) 292-9533),with a copy toJPMorgan Chase Bank, N.A., 3 Park Plaza, Suite 900, Irvine, California 92614, Attention of Ling F. Li (Telecopy No. (714) 917-4866);

(iii) if to JPMorgan Chase Bank, N.A. in its capacity as an Issuing Bank, to it at JPMorgan Chase Bank, N.A.,[email protected], Attention of LC Team (Telecopy No. (214) 307-6874);

(iv) if to the Swingline Lender, to it at JPMorgan Chase Bank, N.A., 10 South Dearborn St., Floor L2, Chicago, Illinois60603, [email protected], Attention of Loan and Agency Services (Telecopy No. (888) 292-9533); and

(v) if to any other Lender or Issuing Bank, to it at its address (or telecopy number) set forth in its AdministrativeQuestionnaire.

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Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received;notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient,shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through ElectronicSystems, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

(b) Notices and other communications to the Lenders and the Issuing Banks hereunder may be delivered or furnished byusing Electronic Systems pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to noticespursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or theBorrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant toprocedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall bedeemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested”function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranetwebsite shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoingclause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for bothclauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such noticeor communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

(c) Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice tothe other parties hereto.

(d) Electronic Systems.

(i) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make Communications (asdefined below) available to the Issuing Banks and the other Lenders by posting the Communications on Debt Domain, Intralinks,Syndtrak, ClearPar or a substantially similar Electronic System.

(ii) Any Electronic System used by the Administrative Agent is provided “as is” and “as available.” The AgentParties (as defined below) do not warrant the adequacy of such Electronic Systems and expressly disclaim liability for errors oromissions in the Communications. No warranty of any kind, express, implied or statutory, including any warranty of merchantability,fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by anyAgent Party in connection with the Communications or any Electronic System. In no event shall the Administrative Agent or any of itsRelated Parties (collectively, the “Agent Parties”) have any liability to any Loan Party, any Lender, any Issuing Bank or any otherPerson or entity for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses(whether in tort, contract or otherwise) arising out of any Loan Party’s or the Administrative Agent’s transmission of Communicationsthrough an Electronic System, except for damages, losses and expenses which are determined by a court of competent jurisdiction byfinal and nonappealable judgment to have resulted from the bad faith, gross negligence or willful misconduct of any Agent Party.“Communications” means, collectively, any notice, demand, communication, information, document or other material provided by oron

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behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by theAdministrative Agent, any Lender or any Issuing Bank by means of electronic communications pursuant to this Section, includingthrough an Electronic System.

SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Administrative Agent, any Issuing Bank or any Lenderin exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partialexercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other orfurther exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Banks andthe Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they wouldotherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event beeffective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in thespecific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of aLetter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any IssuingBank may have had notice or knowledge of such Default at the time.

(b) Except as provided in Section 2.20 with respect to an Incremental Term Loan Amendment or pursuant to any fee letterentered into by the Borrower in connection with this Agreement and subject to clauses (c) and (f) below, neither this Agreement nor anyprovision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrowerand the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no suchagreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of anyLoan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of eachLender directly affected thereby ((x) other than any reduction of any rate of interest accrued pursuant to Section 2.13(d) and (y) except that anyamendment or modification of the financial covenants in this Agreement (or defined terms used in the financial covenants in this Agreement)shall not constitute a reduction in the rate of interest or fees for purposes of this clause (ii)), (iii) postpone the scheduled date of payment of theprincipal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive orexcuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lenderdirectly affected thereby (other than any reduction of the amount of, or any extension of the payment date for, the mandatory prepaymentsrequired under Section 2.11, in each case which shall only require the approval of the Required Lenders), (iv) change Section 2.18(b) or (d) in amanner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) change any of theprovisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lendersrequired to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the writtenconsent of each Lender (it being understood that, solely with the consent of the parties prescribed by Section 2.20 to be parties to anIncremental Term Loan Amendment, Incremental Term Loans may be included in the determination of Required Lenders on substantially thesame basis as the Commitments and the Revolving Loans are included on the Effective Date), (vi) (x) release the Borrower from its obligationsunder Article X or (y) release all or substantially all of the Subsidiary Guarantors from their obligations under the Subsidiary Guaranty, in eachcase, without the written consent of each Lender, or (vii) except as provided in clause (d) of this Section or in any Collateral Document, releaseall or substantially all of the Collateral, without the written consent of each Lender; provided further that no such agreement shall amend,modify or otherwise affect the rights or duties of the Administrative Agent, any Issuing Bank or the Swingline Lender hereunder without theprior written consent of the Administrative Agent, such Issuing Bank or the

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Swingline Lender, as the case may be (it being understood that any change to Section 2.21 shall require the consent of the AdministrativeAgent, each Issuing Bank and the Swingline Lender). Notwithstanding the foregoing, no consent with respect to any amendment, waiver orother modification of this Agreement shall be required of any Defaulting Lender, except with respect to any amendment, waiver or othermodification referred to in clause (i), (ii) or (iii) of the first proviso of this paragraph and then only in the event such Defaulting Lender shall bedirectly affected by such amendment, waiver or other modification.

(c) Notwithstanding the foregoing, this Agreement and any other Loan Document may be amended (or amended andrestated) with the written consent of the Required Lenders, the Administrative Agent and the Borrower (x) to add one or more credit facilities(in addition to the Incremental Term Loans pursuant to an Incremental Term Loan Amendment) to this Agreement and to permit extensions ofcredit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of thisAgreement and the other Loan Documents with the Revolving Loans, Incremental Term Loans and the accrued interest and fees in respectthereof and (y) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders and Lenders.

(d) The Lenders hereby irrevocably authorize the Administrative Agent, at its option and in its sole discretion, to release, andthe Administrative Agent hereby agrees to release, any Liens granted to the Administrative Agent by the Loan Parties on any Collateral(i) upon the termination of all the Commitments, payment and satisfaction in full in cash of all Secured Obligations (other than UnliquidatedObligations), and the cash collateralization of all Unliquidated Obligations under clause (a) of the definition thereof in a manner satisfactory tothe Administrative Agent, (ii) constituting property being sold or disposed of if the Borrower certifies to the Administrative Agent that the saleor disposition is made in compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on any suchcertificate, without further inquiry), (iii) constituting property leased to the Borrower or any Subsidiary under a lease which has expired or beenterminated in a transaction permitted under this Agreement, or (iv) as required to effect any sale or other disposition of such Collateral inconnection with any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article VII. Any such release shall not inany manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of theLoan Parties in respect of) all interests retained by the Loan Parties, including the proceeds of any sale, all of which shall continue to constitutepart of the Collateral. In addition, each of the Lenders, on behalf of itself and any of its Affiliates that are Secured Parties, irrevocablyauthorizes the Administrative Agent, at its option and in its discretion, (i) to subordinate any Lien on any assets granted to or held by theAdministrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 6.02(e) orSection 6.02(f) or (ii) in the event that the Borrower shall have advised the Administrative Agent that, notwithstanding the use by the Borrowerof commercially reasonable efforts to obtain the consent of such holder (but without the requirement to pay any sums to obtain such consent) topermit the Administrative Agent to retain its liens (on a subordinated basis as contemplated by clause (i) above), the holder of such otherIndebtedness requires, as a condition to the extension of such credit, that the Liens on such assets granted to or held by the AdministrativeAgent under any Loan Document be released, to release the Administrative Agent’s Liens on such assets.

(e) If, in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or “eachLender directly affected thereby,” the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained(any such Lender whose consent is necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the Borrower mayelect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently with such replacement, (i) anotherbank or other entity which is reasonably satisfactory to the Borrower and the Administrative Agent shall agree, as of such date, to purchase forcash the Loans and other Obligations

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due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender for all purposes under this Agreementand to assume all obligations of the Non-Consenting Lender to be terminated as of such date and to comply with the requirements of clause (b)of Section 9.04, and (ii) the Borrower shall pay or cause to be paid to such Non-Consenting Lender in same day funds on the day of suchreplacement (1) the outstanding principal amount of its Loans and participations in LC Disbursements and all interest, fees and other amountsthen accrued but unpaid to such Non-Consenting Lender by the Borrower hereunder to and including the date of termination, including withoutlimitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal to the payment whichwould have been due to such Lender on the day of such replacement under Section 2.16 had the Loans of such Non-Consenting Lender beenprepaid on such date rather than sold to the replacement Lender.

(f) Notwithstanding anything to the contrary herein the Administrative Agent may, with the consent of the Borrower only,amend, modify or supplement this Agreement or any of the other Loan Documents to cure any ambiguity, omission, mistake, defect orinconsistency.

SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable and documented fees, charges anddisbursements of one primary external counsel and one local counsel in each relevant jurisdiction for the Administrative Agent, in connectionwith the syndication and distribution (including, without limitation, via the internet or through a service such as Intralinks) of the credit facilityprovided for herein, the preparation and administration of this Agreement and the other Loan Documents or any amendments, modifications orwaivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) allreasonable and documented out-of-pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment, renewal orextension of any Letter of Credit by such Issuing Bank or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent, any Issuing Bank or any Lender, including the reasonable fees, charges anddisbursements of any counsel for the Administrative Agent, any Issuing Bank or any Lender, in connection with the enforcement or protectionof its rights in connection with this Agreement and any other Loan Document, including its rights under this Section, or in connection with theLoans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring ornegotiations in respect of such Loans or Letters of Credit; provided that, for purposes of this clause (iii), the Borrower shall only be required topay the fees, disbursements and other charges of one primary external counsel for the Administrative Agent and all Lenders and, if reasonablynecessary, a single local counsel for the Administrative Agent and all Lenders in each relevant jurisdiction (which may be a single local counselacting in multiple jurisdictions) or, solely in the case of an actual or perceived conflict of interest between the Administrative Agent and theLenders where the Lenders affected by such conflict inform the Borrower of such conflict, one additional primary external counsel and oneadditional local counsel in each relevant jurisdiction to each group of similarly situated affected Lenders).

(b) The Borrower shall indemnify the Administrative Agent, each Issuing Bank and each Lender, and each Related Party ofany of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and alllosses, claims, damages, liabilities and related expenses, including the reasonable and documented fees, charges and disbursements of oneprimary external counsel for all Indemnitees (and, if reasonably necessary, a single local counsel for all Indemnitees in each relevantjurisdiction (which may be a single local counsel acting in multiple jurisdictions) or, solely in the case of an actual or perceived conflict ofinterest between any of the Indemnitees where the Indemnitees affected by such conflict inform the Borrower of such conflict, one additionalprimary external counsel and one additional local counsel in each relevant jurisdiction to each group of similarly

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situated affected Indemnitees), incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) theexecution or delivery of any Loan Document or any agreement or instrument contemplated thereby, the performance by the parties hereto oftheir respective obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan orLetter of Credit or the use of the proceeds therefrom (including any refusal by any Issuing Bank to honor a demand for payment under a Letterof Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) anyactual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of itsSubsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospectiveclaim, litigation, investigation or proceeding relating to any of the foregoing, whether or not such claim, litigation, investigation or proceedingis brought by the Borrower or any other Loan Party or its or their respective equity holders, Affiliates, creditors or any other third Person andwhether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnityshall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by acourt of competent jurisdiction by final and nonappealable judgment to have resulted from (x) the bad faith, gross negligence or willfulmisconduct of such Indemnitee or the bad faith, gross negligence or willful misconduct of such Indemnitee’s Controlled Affiliates or any of itsor their directors, officers, employees or principals (each a “Related Party”), (y) without limiting clause (z) below, a material breach by suchIndemnitee or its Related Parties of its express obligations under this Agreement pursuant to a claim initiated by the Borrower or any otherLoan Party or (z) any dispute among Indemnitees or their Related Parties other than claims against the Administrative Agent, any LeadArranger or any of the Lenders in its capacity as an agent, arranger, bookrunner, Issuing Bank, Swing Line Lender or similar capacity. ThisSection 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Taxclaim.

(c) To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent, any IssuingBank or the Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent, andeach Lender severally agrees to pay to the applicable Issuing Bank or the Swingline Lender, as the case may be, such Lender’s ApplicablePercentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount (itbeing understood that the Borrower’s failure to pay any such amount shall not relieve the Borrower of any default in the payment thereof);provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by orasserted against the Administrative Agent, such Issuing Bank or the Swingline Lender in its capacity as such.

(d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against anyIndemnitee (i) for any damages arising from the use by others of information or other materials obtained through telecommunications,electronic or other information transmission systems (including the Internet), or (ii) on any theory of liability, for special, indirect,consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,any other Loan Document or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or theuse of the proceeds thereof.

(e) All amounts due under this Section shall be payable not later than fifteen (15) days after written demand therefor.

SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefitof the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues anyLetter of Credit), except that (i) the

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Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (andany attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwisetransfer its rights or obligations hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall beconstrued to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including anyAffiliate of any Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to theextent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Banks and the Lenders) any legal orequitable right, remedy or claim under or by reason of this Agreement.

(b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (otherthan an Ineligible Institution) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitmentand the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld, delayed or conditioned) of:

(A) the Borrower (provided that the Borrower shall be deemed to have consented to any such assignment unless itshall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received noticethereof); provided, further, that no consent of the Borrower shall be required for (x) an assignment to a Lender, an Affiliate of aLender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee or (y) any assignmentmade to a lender reasonably acceptable to the Borrower in connection with the primary syndication of the credit facilityevidenced by this Agreement and during the period commencing on the Effective Date and ending on the date separatelyagreed by the Borrower and the Lead Arrangers;

(B) the Administrative Agent;

(C) each Issuing Bank; and

(D) the Swingline Lender.

(ii) Assignments shall be subject to the following additional conditions:

(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund or anassignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of any Class, the amount of theCommitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment andAssumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unlesseach of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall berequired if an Event of Default has occurred and is continuing;

(B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’srights and obligations under this Agreement, provided that this clause shall not be construed to prohibit the assignment of aproportionate part of all the assigning Lender’s rights and obligations in respect of one Class of Commitments or Loans;

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(C) the parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment andAssumption or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuantto a Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, togetherwith a processing and recordation fee of $3,500, such fee to be paid by either the assigning Lender or the assignee Lender orshared between such Lenders; and

(D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an AdministrativeQuestionnaire in which the assignee designates one or more credit contacts to whom all syndicate-level information (whichmay contain material non-public information about the Borrower and its Affiliates and their Related Parties or their respectivesecurities) will be made available and who may receive such information in accordance with the assignee’s complianceprocedures and applicable laws, including Federal and state securities laws.

For the purposes of this Section 9.04(b), the terms “Approved Fund” and “Ineligible Institution” have the following meanings:

“Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investingin bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) anAffiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

“Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender or its Lender Parent, (c) the Borrower, any of itsSubsidiaries or any of its Affiliates, or (d) a company, investment vehicle or trust for, or owned and operated for the primary benefit of, anatural person or relative(s) thereof.

(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effectivedate specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interestassigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigningLender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligationsunder this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligationsunder this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.15,2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply withthis Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights andobligations in accordance with paragraph (c) of this Section.

(iv) The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of itsoffices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of theLenders, and the Commitment of, and principal amount (and stated interest) of the Loans and LC Disbursements owing to, each Lenderpursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error,and the Borrower, the Administrative Agent, the Issuing Banks and the Lenders shall treat each Person whose name is recorded in theRegister pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice

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to the contrary. The Register shall be available for inspection by the Borrower, any Issuing Bank and any Lender, at any reasonabletime and from time to time upon reasonable prior notice.

(v) Upon its receipt of (x) a duly completed Assignment and Assumption executed by an assigning Lender and an assignee or(y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to a Platform as towhich the Administrative Agent and the parties to the Assignment and Assumption are participants, the assignee’s completedAdministrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred toin paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, theAdministrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register;provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant toSection 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(e) or 9.03(c), the Administrative Agent shall have no obligation to accept such Assignmentand Assumption and record the information therein in the Register unless and until such payment shall have been made in full, togetherwith all accrued interest thereon. No assignment shall be effective for purposes of this Agreement unless it has been recorded in theRegister as provided in this paragraph.

(c) Any Lender may, without the consent of the Borrower, the Administrative Agent, any Issuing Bank or the SwinglineLender, sell participations to one or more banks or other entities other than an Ineligible Institution (a “Participant”), in all or a portion of suchLender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that(A) such Lender’s obligations under this Agreement shall remain unchanged; (B) such Lender shall remain solely responsible to the otherparties hereto for the performance of such obligations; and (C) the Borrower, the Administrative Agent, the Issuing Banks and the otherLenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under thisAgreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain thesole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided thatsuch agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment,modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant. The Borrower agrees that each Participantshall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 (subject to the requirements and limitations therein, including the requirementsunder Section 2.17(f) (it being understood that the documentation required under Section 2.17(f) shall be delivered to the participating Lender))to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided thatsuch Participant (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it were an assignee under paragraph (b) of thisSection; and (B) shall not be entitled to receive any greater payment under Sections 2.15 or 2.17, with respect to any participation, than itsparticipating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from aChange in Law that occurs after the Participant acquired the applicable participation. To the extent permitted by law, each Participant also shallbe entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.18(d) asthough it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower,maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of eachParticipant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shallhave any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any informationrelating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under any Loan Document) to anyPerson except to the extent that such disclosure is necessary to establish that such

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Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States TreasuryRegulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whosename is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice tothe contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility formaintaining a Participant Register.

(d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement tosecure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shallnot apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall releasea Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

SECTION 9.05. Survival. All covenants, agreements, representations and warranties made by the Loan Parties in the LoanDocuments and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Documentshall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents andthe making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalfand notwithstanding that the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default orincorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as theprincipal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement or any other Loan Document isoutstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisionsof Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of thetransactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments orthe termination of this Agreement or any other Loan Document or any provision hereof or thereof.

SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution. This Agreement may be executed incounterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when takentogether shall constitute a single contract. This Agreement, the other Loan Documents and any separate letter agreements with respect to (i)fees payable to the Administrative Agent and the Lead Arrangers and (ii) the reductions or increases of the Letter of Credit Commitment of anyIssuing Bank constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previousagreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shallbecome effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have receivedcounterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon andinure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page ofthis Agreement by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall beeffective as delivery of a manually executed counterpart of this Agreement. The words “execution,” “signed,” “signature,” “delivery,” andwords of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated herebyshall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the samelegal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeepingsystem, as the case may be, to the extent and as provided for in any

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applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signaturesand Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

SECTION 9.07. Severability. Any provision of any Loan Document held to be invalid, illegal or unenforceable in anyjurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting thevalidity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdictionshall not invalidate such provision in any other jurisdiction.

SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Secured Party is herebyauthorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special,time or demand, provisional or final and in whatever currency denominated) at any time held and other obligations at any time owing by suchSecured Party to or for the credit or the account of the Borrower or any Subsidiary Guarantor against any of and all of the Secured Obligationsheld by such Secured Party, irrespective of whether or not such Secured Party shall have made any demand under the Loan Documents andalthough such obligations may be unmatured. The rights of each Secured Party under this Section are in addition to other rights and remedies(including other rights of setoff) which such Secured Party may have.

SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed inaccordance with and governed by the law of the State of New York.

(b) Each of the parties to this Agreement hereby irrevocably and unconditionally submits, for itself and its property, to theexclusive jurisdiction of the Supreme Court of the State of New York sitting in the Borough of Manhattan, and of the United States DistrictCourt for the Southern District of New York sitting in the Borough of Manhattan, and any appellate court from any thereof, in any action orproceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each of the parties heretohereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in suchNew York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any suchaction or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided bylaw. Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, any Issuing Bank or anyLender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Loan Partyor its properties in the courts of any jurisdiction.

(c) Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally andeffectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of orrelating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties heretohereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action orproceeding in any such court.

(d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices inSection 9.01. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process inany other manner permitted by law.

SECTION 9.10. WAIVER OF JURY TRIAL; Reference Proceeding. (a) EACH PARTY HERETO HEREBY WAIVES, TOTHE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY

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RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF ORRELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY ORTHEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THATNO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENTBY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

(b) In the event that any legal proceeding is filed in a court of the State of California (the “Court”) by or against any partyhereto in connection with any controversy, dispute or claim directly or indirectly arising out of or relating to this Agreement or any other LoanDocument or the transactions contemplated hereby (whether based on contract, tort or any other theory) (each, a “Claim”) and the waiver setforth in clause (a) above is not enforceable in such action or proceeding, the parties hereto agree as follows:

(i) With the exception of the matters specified in sub-paragraph (ii) below, any Claim will be determined by a generalreference proceeding in accordance with the provisions of California Code of Civil Procedure Sections 638 through 645.1. The partiesintend this general reference agreement to be specifically enforceable in accordance with California Code of Civil Procedure Section638. Except as otherwise provided in the Loan Documents, venue for the reference proceeding will be in the state or federal Court inthe county or district where venue is otherwise appropriate under applicable law.

(ii) The following matters shall not be subject to a general reference proceeding: (w) non-judicial foreclosure of any securityinterests in real or personal property, (x) exercise of self-help remedies (including, without limitation, set-off), (y) appointment of areceiver and (z) temporary, provisional or ancillary remedies (including, without limitation, writs of attachment, writs of possession,temporary restraining orders or preliminary injunctions). This Agreement does not limit the right of any party to exercise or oppose anyof the rights and remedies described in clauses (w) - (z), and any such exercise or opposition does not waive the right of any party to areference proceeding pursuant to this Agreement.

(iii) Upon the written request of any party, the parties shall select a single referee, who shall be a retired judge or justice. Ifthe parties do not agree upon a referee within 10 days of such written request, then, any party may request the Court to appoint areferee pursuant to California Code of Civil Procedure Section 640(b).

(iv) All proceedings and hearings conducted before the referee, except for trial, shall be conducted without a court reporter,except when any party so requests, a court reporter will be used and the referee will be provided a courtesy copy of the transcript. Theparty making such request shall have the obligation to arrange for and pay costs of the court reporter, provided that such costs, alongwith the referee’s fees, shall ultimately be borne by the party who does not prevail, as determined by the referee.

(v) The referee may require one or more pre-hearing conferences. The parties hereto shall be entitled to discovery, and thereferee shall oversee discovery in accordance with the rules

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of discovery, and may enforce all discovery orders in the same manner as any trial court judge in proceedings at law in the State ofCalifornia. The referee shall apply the rules of evidence applicable to proceedings at law in the State of California and shall determineall issues in accordance with applicable state and federal law. The referee shall be empowered to enter equitable as well as legal reliefand rule on any motion which would be authorized in a trial, including, without limitation, motions for default judgment or summaryjudgment. The referee shall report his decision, which report shall also include findings of fact and conclusions of law.

(vi) The parties recognize and agree that all Claims resolved in a general reference proceeding pursuant hereto will bedecided by a referee and not by a jury.

(vii) Any party may appeal the final decision of a referee to a court of competent jurisdiction.

SECTION 9.11. Headings. Article and Section headings and the Table of Contents used herein are for convenience ofreference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, thisAgreement.

SECTION 9.12. Confidentiality. Each of the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain theconfidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers,employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure ismade will be informed of the confidential nature of such Information and who are subject to customary confidentiality obligations ofprofessional practice or who agree to be bound by the terms of this paragraph (or language substantially similar to this paragraph) (with suchCredit Party being responsible for such Person’s compliance with this paragraph)), (b) to the extent requested by any Governmental Authority(including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicablelaws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise ofany remedies under this Agreement or any other Loan Document or any suit, action or proceeding relating to this Agreement or any other LoanDocument or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same asthose of this Section, to (1) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligationsunder this Agreement or (2) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to theBorrower and its obligations, (g) on a confidential basis to (1) any rating agency in connection with rating the Borrower or its Subsidiaries orthe credit facility provided for herein or (2) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring ofCUSIP numbers with respect to the credit facility provided for herein, (h) with the prior written consent of the Borrower or (i) to the extent suchInformation (1) becomes publicly available other than as a result of a breach of this Section or (2) becomes available to the AdministrativeAgent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower and the Subsidiaries. For the purposesof this Section, “Information” means all information received from the Borrower relating to the Borrower, the Subsidiaries or its or theirbusiness, other than any such information that is available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidentialbasis prior to disclosure by the Borrower or any Subsidiary and other than information pertaining to this Agreement routinely provided byarrangers to data service providers, including league table providers, that serve the lending industry. Any Person required to maintain theconfidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person hasexercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidentialinformation.

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EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THE IMMEDIATELY PRECEDINGPARAGRAPH FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLICINFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES,AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCEWITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THEBORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THISAGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLICINFORMATION ABOUT THE BORROWER, THE OTHER LOAN PARTIES AND THEIR RELATED PARTIES OR THEIRRESPECTIVE SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND THEADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACTWHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCEWITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

SECTION 9.13. USA PATRIOT Act. Each Lender that is subject to the requirements of the Patriot Act hereby notifies eachLoan Party that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies such LoanParty, which information includes the name and address of such Loan Party and other information that will allow such Lender to identify suchLoan Party in accordance with the Patriot Act.

SECTION 9.14. Appointment for Perfection. Each Lender hereby appoints each other Lender as its agent for the purpose ofperfecting Liens, for the benefit of the Administrative Agent and the Secured Parties, in assets which, in accordance with Article 9 of the UCCor any other applicable law can be perfected only by possession or control. Should any Lender (other than the Administrative Agent) obtainpossession or control of any such Collateral, such Lender shall notify the Administrative Agent thereof, and, promptly upon the AdministrativeAgent’s request therefor shall deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in accordance with theAdministrative Agent’s instructions.

SECTION 9.15. Releases of Subsidiary Guarantors.

(a) A Subsidiary Guarantor shall automatically be released from its obligations under the Subsidiary Guaranty upon theconsummation of any transaction permitted by this Agreement as a result of which such Subsidiary Guarantor ceases to be a Subsidiary;provided that, if so required by this Agreement, the Required Lenders shall have consented to such transaction and the terms of such consentshall not have provided otherwise. In connection with any termination or release pursuant to this Section, the Administrative Agent shall (and ishereby irrevocably authorized by each Lender to) execute and deliver to any Loan Party, at such Loan Party’s expense, all documents that suchLoan Party shall reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this Sectionshall be without recourse to or warranty by the Administrative Agent.

(b) Further, the Administrative Agent shall (and is hereby irrevocably authorized by each Lender to), upon the request of theBorrower, release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty if such Subsidiary Guarantor is no longer aMaterial Domestic Subsidiary.

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(c) At such time as the principal and interest on the Loans, all LC Disbursements, the fees, expenses and other amountspayable under the Loan Documents and the other Secured Obligations (other than Banking Services Obligations, Swap Obligations, and otherObligations expressly stated to survive such payment and termination) shall have been paid in full in cash, the Commitments shall have beenterminated and no Letters of Credit shall be outstanding, the Subsidiary Guaranty and all obligations (other than those expressly stated tosurvive such termination) of each Subsidiary Guarantor thereunder shall automatically terminate, all without delivery of any instrument orperformance of any act by any Person.

SECTION 9.16. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rateapplicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law(collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken,received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loanhereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest andCharges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall becumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above theMaximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date ofrepayment, shall have been received by such Lender.

SECTION 9.17. No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplatedhereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borroweracknowledges and agrees that: (i) (A) the arranging and other services regarding this Agreement provided by the Lenders are arm’s-lengthcommercial transactions between the Borrower and its Affiliates, on the one hand, and the Lenders and their Affiliates, on the other hand, (B)the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borroweris capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the otherLoan Documents; (ii) (A) each of the Lenders and their Affiliates is and has been acting solely as a principal and, except as expressly agreed inwriting by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of itsAffiliates, or any other Person and (B) no Lender or any of its Affiliates has any obligation to the Borrower or any of its Affiliates with respectto the transactions contemplated hereby except, in the case of a Lender, those obligations expressly set forth herein and in the other LoanDocuments; and (iii) each of the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve intereststhat differ from those of the Borrower and its Affiliates, and no Lender or any of its Affiliates has any obligation to disclose any of suchinterests to the Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that itmay have against each of the Lenders and their Affiliates with respect to any breach or alleged breach of agency or fiduciary duty in connectionwith any aspect of any transaction contemplated hereby.

ARTICLE X

Borrower Guarantee

In order to induce the Lenders to extend credit to the Borrower hereunder and for other good and valuable consideration (thereceipt and sufficiency of which are hereby acknowledged), the Borrower hereby absolutely and irrevocably and unconditionally guarantees, asa primary obligor and not merely as

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a surety, the payment when and as due of the Specified Ancillary Obligations of the Subsidiaries. The Borrower further agrees that the due andpunctual payment of such Specified Ancillary Obligations may be extended or renewed, in whole or in part, without notice to or further assentfrom it, and that it will remain bound upon its guarantee hereunder notwithstanding any such extension or renewal of any such SpecifiedAncillary Obligation.

The Borrower waives presentment to, demand of payment from and protest to any Subsidiary of any of the Specified AncillaryObligations, and also waives notice of acceptance of its obligations and notice of protest for nonpayment. The obligations of the Borrowerhereunder shall not be affected by (a) the failure of any applicable Lender (or any of its Affiliates) to assert any claim or demand or to enforceany right or remedy against any Subsidiary under the provisions of any Banking Services Agreement, any Swap Agreement or otherwise; (b)any extension or renewal of any of the Specified Ancillary Obligations; (c) any rescission, waiver, amendment or modification of, or releasefrom, any of the terms or provisions of this Agreement, any other Loan Document, any Banking Services Agreement, any Swap Agreement orother agreement; (d) any default, failure or delay, willful or otherwise, in the performance of any of the Specified Ancillary Obligations; (e) thefailure of any applicable Lender (or any of its Affiliates) to take any steps to perfect and maintain any security interest in, or to preserve anyrights to, any security or collateral for the Specified Ancillary Obligations, if any; (f) any change in the corporate, partnership or otherexistence, structure or ownership of any Subsidiary or any other guarantor of any of the Specified Ancillary Obligations; (g) the enforceabilityor validity of the Specified Ancillary Obligations or any part thereof or the genuineness, enforceability or validity of any agreement relatingthereto or with respect to any collateral securing the Specified Ancillary Obligations or any part thereof, or any other invalidity orunenforceability relating to or against any Subsidiary or any other guarantor of any of the Specified Ancillary Obligations, for any reasonrelated to this Agreement, any other Loan Document, any Banking Services Agreement, any Swap Agreement, or any provision of applicablelaw, decree, order or regulation of any jurisdiction purporting to prohibit the payment by such Subsidiary or any other guarantor of theSpecified Ancillary Obligations, of any of the Specified Ancillary Obligations or otherwise affecting any term of any of the Specified AncillaryObligations; or (h) any other act, omission or delay to do any other act which may or might in any manner or to any extent vary the risk of theBorrower or otherwise operate as a discharge of a guarantor as a matter of law or equity or which would impair or eliminate any right of theBorrower to subrogation.

Without limiting any other waiver or provision, the Borrower waives, to the maximum extent permitted by law, all benefits ordefenses directly or indirectly arising under California Civil Code §§ 2787, 2799, 2808, 2815, 2819, 2820, 2821, 2822, 2838, 2839, 2847, 2848,and 2855, Chapter 2 of Title 14 of the California Civil Code, and California Code of Civil Procedure §§ 580a, 580b, 580c, 580d, and 726 or anysimilar laws of any other applicable jurisdiction. The reference to certain provisions of California law is not intended to imply any applicationof California law to this Agreement.

The Borrower further agrees that its agreement hereunder constitutes a guarantee of payment when due (whether or not anybankruptcy or similar proceeding shall have stayed the accrual or collection of any of the Specified Ancillary Obligations or operated as adischarge thereof) and not merely of collection, and waives any right to require that any resort be had by any applicable Lender (or any of itsAffiliates) to any balance of any deposit account or credit on the books of the Administrative Agent, any Issuing Bank or any Lender in favor ofany Subsidiary or any other Person.

The obligations of the Borrower hereunder shall not be subject to any reduction, limitation, impairment or termination for anyreason, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever, by reason of the invalidity,illegality or unenforceability of any of

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the Specified Ancillary Obligations, any impossibility in the performance of any of the Specified Ancillary Obligations or otherwise.

The Borrower further agrees that its obligations hereunder shall constitute a continuing and irrevocable guarantee of allSpecified Ancillary Obligations now or hereafter existing and shall continue to be effective or be reinstated, as the case may be, if at any timepayment, or any part thereof, of any Specified Ancillary Obligation (including a payment effected through exercise of a right of setoff) isrescinded, or is or must otherwise be restored or returned by any applicable Lender (or any of its Affiliates) upon the insolvency, bankruptcy orreorganization of any Subsidiary or otherwise (including pursuant to any settlement entered into by a holder of Specified Ancillary Obligationsin its discretion).

In furtherance of the foregoing and not in limitation of any other right which any applicable Lender (or any of its Affiliates)may have at law or in equity against the Borrower by virtue hereof, upon the failure of any Subsidiary to pay any Specified AncillaryObligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, the Borrowerhereby promises to and will, upon receipt of written demand by any applicable Lender (or any of its Affiliates), forthwith pay, or cause to bepaid, to such applicable Lender (or any of its Affiliates) in cash an amount equal to the unpaid principal amount of such Specified AncillaryObligations then due, together with accrued and unpaid interest thereon. The Borrower further agrees that if payment in respect of anySpecified Ancillary Obligation shall be due in a currency other than Dollars and/or at a place of payment other than New York, Chicago or anyother Eurocurrency Payment Office and if, by reason of any Change in Law, disruption of currency or foreign exchange markets, war or civildisturbance or other event, payment of such Specified Ancillary Obligation in such currency or at such place of payment shall be impossible or,in the reasonable judgment of any applicable Lender (or any of its Affiliates), disadvantageous to such applicable Lender (or any of itsAffiliates) in any material respect, then, at the election of such applicable Lender, the Borrower shall make payment of such Specified AncillaryObligation in Dollars (based upon the applicable Equivalent Amount in effect on the date of payment) and/or in New York, Chicago or suchother Eurocurrency Payment Office as is designated by such applicable Lender (or its Affiliate) and, as a separate and independent obligation,shall indemnify such applicable Lender (and any of its Affiliates) against any losses or reasonable out-of-pocket expenses that it shall sustain asa result of such alternative payment.

Upon payment by the Borrower of any sums as provided above, all rights of the Borrower against any Subsidiary arising as aresult thereof by way of right of subrogation or otherwise shall in all respects be subordinated and junior in right of payment to the priorindefeasible payment in full in cash of all the Specified Ancillary Obligations owed by such Subsidiary to the applicable Lender (or itsapplicable Affiliates).

Nothing shall discharge or satisfy the liability of the Borrower hereunder except the full performance and payment in cash ofthe Secured Obligations.

The Borrower hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may beneeded from time to time by each Subsidiary Guarantor to honor all of its obligations under the Subsidiary Guaranty in respect of SpecifiedSwap Obligations (provided, however, that the Borrower shall only be liable under this paragraph for the maximum amount of such liabilitythat can be hereby incurred without rendering its obligations under this paragraph or otherwise under this Article X voidable under applicablelaw relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The Borrower intends that this paragraphconstitute, and this paragraph shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each SubsidiaryGuarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respectiveauthorized officers as of the day and year first above written.

QUALITY SYSTEMS, INC.,as the Borrower

By /s/ Jocelyn A. LeavittName: Jocelyn A. LeavittTitle: Executive Vice President, General Counsel and Secretary

JPMORGAN CHASE BANK, N.A., individually as a Lender, as the Swingline Lender, as anIssuing Bank and as Administrative Agent

By /s/ Ling LiName: Ling LiTitle: Vice President

U.S. BANK NATIONAL ASSOCIATION, individually as a Lender, as an Issuing Bank and asSyndication Agent

By /s/ Andrew WilliamsName: Andrew WilliamsTitle: Vice President

BANK OF THE WEST, individually as a Lender and as a Co-Documentation Agent

By /s/ Lee Merkle-RaymondName: Lee Merkle-RaymondTitle: Managing Director

KEYBANK NATIONAL ASSOCIATION, individually as a Lender and as a Co-Documentation Agent

By /s/ Sanya ValevaName: Sanya ValevaTitle: Senior vice President

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WELLS FARGO BANK, NATIONAL ASSOCIATION, individually as a Lender and as a Co-Documentation Agent

By /s/ Brian WeberName: Brian WeberTitle: Senior Vice President

CITIZENS BANK, N.A., as a Lender

By /s/ Prasanna ManyemName: Prasanna ManyemTitle: Vice President

FIFTH THIRD BANK, as a Lender

By /s/ Thomas AveryName: Thomas AveryTitle: Relationship Manager

CALIFORNIA BANK & TRUST, as a Lender

By /s/ Brian KnappName: Brian KnappTitle: 1st Vice President

MANUFACTURERS BANK, as a Lender

By /s/ Charles JouName: Charles JouTitle: Vice President

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EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER REQUIRED BYRULE 13A-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John R. Frantz, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Quality Systems, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) forthe registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscalquarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likelyto adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control overfinancial reporting.

Date: January 28, 2016 By: /s/ John R. Frantz _________________________ John R. Frantz Chief Executive Officer (Principal Executive Officer)

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER REQUIRED BYRULE 13A-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John K. Stumpf, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Quality Systems, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) forthe registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscalquarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likelyto adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control overfinancial reporting.

Date: January 28, 2016 By: /s/ John K. Stumpf __________________________ John K. Stumpf Interim Chief Financial Officer (Principal Accounting Officer)

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICERPURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Quality Systems, Inc. (the “Company”) for the quarterly period ended December 31, 2015(the “Report”), the undersigned hereby certify in their capacities as Chief Executive Officer and Interim Chief Financial Officer of the Company, respectively,pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of theCompany.

Date: January 28, 2016 By: /s/ John R. Frantz John R. Frantz Chief Executive Officer (Principal Executive Officer)

Date: January 28, 2016 By: /s/ John K. Stumpf John K. Stumpf Interim Chief Financial Officer (Principal Accounting Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting thesignatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and willbe retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

QUALITY SYSTEMS, INC.

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