Full Press Release Details
FOURTH AMENDED AND RESTATED RECEIVABLES
dated as of October 28, 2015
QUEST DIAGNOSTICS INCORPORATED AND EACH
OF ITS DIRECT OR INDIRECT SUBSIDIARIES WHO IS OR HEREAFTER BECOMES A SELLER HEREUNDER,
QUEST DIAGNOSTICS RECEIVABLES INC.,
| ARTICLE I. AMOUNTS AND TERMS OF THE PURCHASES | 2 |
| Section 1.1 [Reserved] | 2 |
| Section 1.2 Purchases of Private Receivables and Participation Interests | 2 |
| Section 1.3 Payment for the Purchases | 4 |
| Section 1.4 Purchase Price Credit Adjustments | 5 |
| Section 1.5 Payments and Computations, Etc. | 6 |
| Section 1.6 Transfer of Records | 6 |
| Section 1.7 Characterization; Granting Clause | 7 |
| ARTICLE II. REPRESENTATIONS AND WARRANTIES | 8 |
| Section 2.1 Representations of the Sellers | 8 |
| (a) Ownership of such Seller | 8 |
| (b) Existence; Due Qualification; Permits | 8 |
| (c) Action | 8 |
| (d) Title to Receivables; Valid Security Interest | 8 |
| (e) Absence of Change of Control | 9 |
| (f) Noncontravention | 9 |
| (g) No Proceedings | 9 |
| (h) Taxes | 10 |
| (i) Government Approvals | 10 |
| (j) Financial Statements and Absence of Certain Material Adverse Changes | 10 |
| (k) Nature of Receivables | 11 |
| (l) Margin Regulations | 11 |
| (m) Title to Receivables and Quality of Title | 12 |
| (n) Accurate Reports | 12 |
| (o) Jurisdiction of Organization; Locations of Records | 12 |
| (p) Collection Accounts | 13 |
| (q) Eligible Receivables and Eligible Participation Interests | 13 |
| (r) Names | 13 |
| (s) Credit and Collection Policy | 13 |
| (t) Payments to Sellers | 13 |
| (u) Volcker Rule; Investment Company Act; Other Restrictions | 13 |
| (v) Solvency | 14 |
| (w) ERISA | 14 |
| (x) Bulk Sales Act | 14 |
| (y) Reliance on Separate Legal Identity | 14 |
| (z) Risk Retention | 14 |
| (aa) Anti-Corruption Laws and Sanctions | 14 |
| (bb) Anti-Terrorism; Anti-Money Laundering | 14 |
| ARTICLE III. CONDITIONS OF PURCHASES | 14 |
| Section 3.1 Conditions Precedent to the Initial Purchase under this Agreement | 14 |
| Section 3.2 Conditions Precedent to All Purchases | 15 |
| Section 3.3 Reaffirmation of Representations and Warranties | 16 |
| ARTICLE IV. COVENANTS | 16 |
| Section 4.1 Affirmative Covenants | 16 |
| (a) Compliance With Laws, Etc | 16 |
| (b) Preservation of Existence | 16 |
| (c) Audits | 16 |
| (d) Keeping of Records and Books of Account | 17 |
| (e) Performance and Compliance with Receivables and Contracts | 17 |
| (f) Location of Records | 17 |
| (g) Credit and Collection Policies | 17 |
| (h) Separate Corporate Existence of the Buyer | 17 |
| (i) Collections | 17 |
| (j) Anti-Corruption Laws and Sanctions | 17 |
| (k) Further Assurances | 18 |
| Section 4.2 Reporting Requirements | 18 |
| (a) Proceedings | 18 |
| (b) Change in Business or Credit and Collection Policy | 18 |
| (c) Other | 18 |
| Section 4.3 Negative Covenants | 18 |
| (a) Sales, Liens, Etc. | 18 |
| (b) Extension or Amendment of Receivables | 18 |
| (c) Change in Business or Credit and Collection Policy | 19 |
| (d) Change in Payment Instructions to Obligors | 19 |
| (e) Deposits to Collection Accounts | 19 |
| (f) Changes to Other Documents | 19 |
| (g) Change of Name, State of Organization, or Records Locations | 19 |
| (h) Mergers, Consolidations and Acquisitions | 19 |
| (i) Disposition of Receivables and Related Assets | 20 |
| (j) Receivables Not to be Evidenced by Promissory Notes | 20 |
| (k) Accounting for Purchases | 20 |
| (l) Anti-Corruption Laws and Sanctions | 20 |
| ARTICLE V. JOINDER OF ADDITIONAL SELLERS | 20 |
| Section 5.1 Addition of New Sellers | 20 |
| Section 5.2 Documentation | 20 |
| ARTICLE VI. ADDITIONAL RIGHTS AND OBLIGATIONS IN RESPECT OF THE RECEIVABLES | 21 |
| Section 6.1 Rights of the Buyer | 21 |
| Section 6.2 Responsibilities of the Sellers | 21 |
| (a) Collection Procedures | 21 |
| (b) Performance Under Contract | 21 |
| (c) Power of Attorney | 21 |
| Section 6.3 Further Action Evidencing Purchases | 21 |
| Section 6.4 Application of Collections | 22 |
| ARTICLE VII. INDEMNIFICATION | 22 |
| Section 7.1 Indemnities by the Sellers | 22 |
| Section 7.2 Contribution | 24 |
| ARTICLE VIII. MISCELLANEOUS | 24 |
| Section 8.1 Waivers and Amendments | 24 |
| Section 8.2 Notices, Etc. | 25 |
| Section 8.3 Cumulative Remedies | 25 |
| Section 8.4 Binding Effect; Assignability | 25 |
| Section 8.5 Governing Law | 25 |
| Section 8.6 Costs, Expenses and Taxes | 25 |
| Section 8.7 Submission to Jurisdiction | 26 |
| Section 8.8 Waiver of Jury Trial | 26 |
| Section 8.9 Captions and Cross References; Incorporation by Reference | 26 |
| Section 8.10 Execution in Counterparts | 26 |
| Section 8.11 Acknowledgment and Agreement | 26 |
| Section 8.12 No Proceedings | 27 |
| Section 8.13 Subordinated Notes | 27 |
| ANNEX A DEFINITIONS | 33 |
| EXHIBIT A PURCHASE REPORT | 39 |
| EXHIBIT B [AMENDED AND RESTATED] SUBORDINATED NOTE | 41 |
| EXHIBIT C CREDIT AND COLLECTION POLICIES | 47 |
| EXHIBIT D FORM OF JOINDER AGREEMENT | 68 |
| SCHEDULE 2.1(O) SELLERS' FEDERAL TAXPAYER ID NUMBERS; AND LOCATION OF RECORDS | 71 |
Amended AND RESTATED RECEIVABLES SALE AGREEMENT
AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT (as amended, supplemented, restated or otherwise modified from time to
time, this "Agreement"), dated as of October 28, 2015 is entered into by and between:
(1) Quest Diagnostics
Incorporated, a Delaware corporation ("Quest Diagnostics"), Quest Diagnostics Nichols Institute, a California
corporation, Quest Diagnostics Incorporated, a Michigan corporation, Quest Diagnostics Incorporated, a Maryland corporation, Quest
Diagnostics LLC, a Connecticut limited liability company, Quest Diagnostics LLC, a Massachusetts limited liability company, Quest
Diagnostics of Pennsylvania Inc., a Delaware corporation, MetWest Inc., a Delaware corporation, Quest Diagnostics LLC, an Illinois
limited liability company, Quest Diagnostics Clinical Laboratories, Inc., a Delaware corporation, Unilab Corporation, a Delaware
corporation ("Unilab"), Quest Diagnostics Nichols Institute, Inc., a Virginia corporation ("Quest-Nichols"),
Quest Diagnostics Incorporated, a Nevada corporation ("Quest-Nevada"), LabOne, LLC, a Missouri limited
liability company ("LabOne"), ExamOne World Wide, Inc., a Pennsylvania corporation ("ExamOne"),
LabOne of Ohio, Inc., a Delaware corporation ("LabOne Ohio"), Specialty Laboratories, Inc., a California
corporation ("Specialty"), Solstas Lab Partners Group, LLC, a North Carolina limited liability company
("Solstas Group"), Solstas Lab Partners, LLC, a Virginia limited liability company ("Solstas"),
Summit Health, Inc., a Michigan corporation ("Summit"), Athena Diagnostics, Inc., a Delaware corporation
("Athena"), Focus Diagnostics Inc., a Delaware corporation ("Focus"), and MedPlus,
Inc., an Ohio corporation ("MedPlus"), and each of the other direct or indirect, subsidiaries of Quest
Diagnostics who hereafter becomes a party hereto by executing a joinder agreement in the form of Exhibit D hereto (each, a "Joinder
Agreement"), as sellers, and
(2) Quest Diagnostics
Receivables Inc., a Delaware corporation, as purchaser (the "Buyer"),
and amends and restates in its entirety
that certain Third Amended and Restated Receivables Sale Agreement, dated as of December 12, 2008, by and among the parties hereto
other than Solstas Group, Solstas, Summit, Athena, Focus and MedPlus (as heretofore amended and restated from time to time, the
"Existing Agreement").
indicated, capitalized terms used in this Agreement are defined in Annex A hereto
or, if not defined therein, in that certain Fifth Amended and Restated Credit and Security Agreement dated as of October 28, 2015,
by and among the Buyer, as borrower, Quest Diagnostics, as initial servicer, the Lenders and Co-Agents from time to time party
thereto, PNC Bank National Association, as LC Issuer, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent, as amended,
supplemented, restated, joined or otherwise modified from time to time in accordance with the terms thereof (the "Credit
and Security Agreement").
W I T N E S S E T H :
Quest Diagnostics owns, directly or indirectly all or substantially all of the issued and outstanding Equity Interests of each
of the other Sellers;
the Buyer is a limited purpose corporation, all of the issued and outstanding Equity Interests of which are owned by Quest Diagnostics;
Quest Diagnostics contributed to the Buyer's capital all of its Receivables in existence as of the Initial Cut-Off
Date, together with all Related Assets associated therewith;
the Sellers desire to sell Private Receivables and the Related Assets with respect thereto and Participation Interests in Specified
Government Receivables and the Related Assets with respect thereto, in each case owned from time to time by the Sellers to the
Buyer, and the Buyer is willing, on the terms and subject to the conditions set forth herein, to purchase such Private Receivables,
Participation Interests and Related Assets from the Sellers;
the Buyer has pledged the Private Receivables, the Participation Interests and the Related Assets received from the Sellers
hereunder to secure its Obligations under the Credit and Security Agreement, including, without limitation, its obligations to
repay Loans made and draws under Letters of Credit issued thereunder; and
at the request of the Buyer and its assigns, Quest Diagnostics has agreed to continue to act as Servicer for the Private
Receivables and to act as Servicer for the Specified Government Receivables subject to Participation Interests, although Quest
Diagnostics has informed the Buyer and its assigns that it may, subject to their approval and to satisfaction of the Rating Agency
Condition, if required, transfer that function to an Affiliate;
in consideration of the premises and the mutual covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
AMOUNTS AND TERMS OF THE PURCHASES
Section 1.2 Purchases
of Private Receivables and Participation Interests.
the Applicable Closing Date for each Seller that has not already sold or contributed Private Receivables and Related Assets or
Participation Interests and Related Assets under the Previous Agreements (including by operation of Section 1.1 of the Existing
Agreement), in consideration for the Purchase Price and upon the terms and subject to the conditions set forth herein, each such
Seller does hereby sell, assign, transfer, set-over and otherwise convey to the Buyer, without recourse (except to the extent expressly
provided herein), and the Buyer does hereby purchase from
such Seller, all of such Seller's right, title and interest in
and to such Seller's Initial Private Receivables and all Related Assets with respect thereto and such Seller's Initial
Participation Interests and all Related Assets with respect thereto.
each Business Day after each Seller's Applicable Closing Date and prior to the Sale Termination Date, in consideration for
the Purchase Price and upon the terms and subject to the conditions set forth herein, such Seller does hereby sell, assign, transfer,
set-over and otherwise convey to the Buyer, without recourse (except to the extent expressly provided herein), and the Buyer does
hereby purchase from such Seller, all of such Seller's right, title and interest in and to such Seller's Additional
Private Receivables and all Related Assets with respect thereto and such Seller's Additional Participation Interests and
all Related Assets with respect thereto.
(c) It is the intention
of the parties hereto that each conveyance of Private Receivables and Participation Interests made under this Agreement shall constitute
an outright "sale of accounts" (as such terms are used in Article 9 of the UCC) or other absolute transfer, which is
absolute and irrevocable and shall provide the Buyer with the full benefits of ownership of the Private Receivables, Participation
Interests and the associated Related Assets. Except for the Purchase Price Credits owed pursuant to Section 1.4, each conveyance
of Private Receivables and Participation Interests hereunder is made without recourse to the applicable Seller; provided,
however, that (i) each Seller shall be liable to the Buyer for all representations, warranties, covenants and indemnities
made by such Seller pursuant to the terms of the Transaction Documents to which such Seller is a party, and (ii) such conveyance
does not constitute and is not intended to result in an assumption by the Buyer or any assignee thereof of any obligation of such
Seller or any other Person arising in connection with the Participation Interests, the Private Receivables, the related Contracts,
and/or other Related Assets or any other obligations of such Seller. In view of the intention of the parties hereto that the conveyances
of Private Receivables and Participation Interests made hereunder shall constitute outright sales of such Private Receivables and
Participation Interests rather than loans secured thereby, each Seller agrees that it will, on or prior to its Applicable Closing
Date, mark its master data processing records relating to its Receivables with the following legend (or the substantive equivalent
DESCRIBED HEREIN, TOGETHER WITH CERTAIN RELATED ASSETS, ARE EITHER THE PROPERTY OF Quest
Diagnostics Receivables Inc. OR SUBJECT TO RIGHTS OF QUEST DIAGNOSTICS RECEIVABLES INC."
Upon the request of the Buyer or the
Administrative Agent, each Seller will file such financing or continuation statements, or amendments thereto or assignments thereof,
and such other instruments or notices, as may be necessary or appropriate to perfect and maintain the perfection of the Buyer's
ownership interest in the Private Receivables, the Participation Interests and the respective Related Assets or as the Buyer or
the Administrative Agent may reasonably request.
shall be deemed to preclude Quest Diagnostics from contributing to the Buyer's capital, in lieu of selling, Private Receivables
and Participation Interests in Specified Government Receivables, in each case originated by Quest Diagnostics together with the
Related Assets associated therewith, and any such contribution is made with the intention that each such contribution, if any,