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ANNEXES | | | | | | | |
| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | | |
| | | | D-1 | | |
Reference Price Per Share
|
| |
Implied Premium
(Discount) Represented by the Merger Consideration of $43.50 Per Share |
| |||
October 3, 2016 Closing Price of $32.80
|
| | | | 32.6% | | |
October 28, 2016 Closing Price of $36.80
|
| | | | 18.2% | | |
30-day VWAP of $33.00
|
| | | | 31.8% | | |
90-day VWAP of $36.28
|
| | | | 19.9% | | |
52-week high of $59.71
|
| | | | (27.1)% | | |
Implied Transaction Enterprise Value as a multiple of TeamHealth’s:
|
| |
Multiples
|
| |||
PF LTM 6/30 Adjusted EBITDA
|
| | | | 12.7x | | |
PF LTM 9/30 Adjusted EBITDA
|
| | | | 12.9x | | |
2016E Adjusted EBITDA
|
| | | | 12.2x | | |
PF 2016E Adjusted EBITDA
|
| | | | 11.7x | | |
Announcement Date
|
| |
Target
|
| |
Acquiror
|
| |
EV/LTM
EBITDA |
|
October 11, 2005
|
| | Team Health, Inc. | | | The Blackstone Group L.P. | | |
8.8x
|
|
May 21, 2007 | | | Sheridan Healthcare, Inc. | | | Hellman & Friedman LLC | | |
12.1x
|
|
February 14, 2011
|
| | Emergency Medical Services Corporation | | | Clayton, Dubilier & Rice, Inc. | | |
9.7x
|
|
May 21, 2012 | | |
Healthcare Partners Holdings, LLC
|
| | Davita Inc. | | |
8.4x
|
|
October 22, 2012
|
| | CHG Healthcare Services, Inc. | | | Leonard Green & Partners, L.P.; Ares Management LLC | | |
12.6x
|
|
May 29, 2014 | | | Sheridan Healthcare, Inc. | | | Amsurg Corp. | | |
12.2x
|
|
August 4, 2015 | | | IPC Healthcare, Inc. | | | Team Health Holdings, Inc. | | |
22.2x
|
|
June 17, 2016 | | | Envision Healthcare Holdings, Inc. | | | Amsurg Corp. | | |
12.6x
|
|
| | |
Enterprise
Value/NTM EBITDA Multiple(1) |
| |||
Envision Healthcare Holdings, Inc.
|
| | | | 8.1x | | |
Amsurg Corp.
|
| | | | 8.9x | | |
MEDNAX, Inc.
|
| | | | 9.3x | | |
Team Health Holdings, Inc.
|
| | | | 8.9x | | |
| | |
August Projections
|
| |||||||||||||||||||||||||||||||||
(US$ in millions)
|
| |
2016E
|
| |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||||||||
Revenue
|
| | | $ | 4,656 | | | | | $ | 5,166 | | | | | $ | 5,685 | | | | | $ | 6,254 | | | | | $ | 6,873 | | | | | $ | 7,551 | | |
Adjusted EBITDA(1)
|
| | | $ | 514 | | | | | $ | 597 | | | | | $ | 671 | | | | | $ | 737 | | | | | $ | 809 | | | | | $ | 888 | | |
Unlevered Free Cash Flow(2)
|
| | | $ | 119(3) | | | | | $ | 290 | | | | | $ | 232 | | | | | $ | 272 | | | | | $ | 334 | | | | | $ | 382 | | |
(US$ in millions)
|
| |
2016E
|
| |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||||||||
Net Income
|
| | | $ | 92 | | | | | $ | 154 | | | | | $ | 187 | | | | | $ | 221 | | | | | $ | 258 | | | | | $ | 303 | | |
Net Interest Expense
|
| | | $ | 127 | | | | | $ | 126 | | | | | $ | 122 | | | | | $ | 118 | | | | | $ | 109 | | | | | $ | 94 | | |
Income Taxes
|
| | | $ | 65 | | | | | $ | 98 | | | | | $ | 120 | | | | | $ | 141 | | | | | $ | 165 | | | | | $ | 194 | | |
Depreciation
|
| | | $ | 33 | | | | | $ | 37 | | | | | $ | 41 | | | | | $ | 45 | | | | | $ | 49 | | | | | $ | 54 | | |
Amortization
|
| | | $ | 100 | | | | | $ | 126 | | | | | $ | 137 | | | | | $ | 148 | | | | | $ | 160 | | | | | $ | 174 | | |
Transaction-Related Costs
|
| | | $ | 56 | | | | | $ | 27 | | | | | $ | 34 | | | | | $ | 33 | | | | | $ | 32 | | | | | $ | 32 | | |
Equity-Based Compensation
|
| | | $ | 28 | | | | | $ | 30 | | | | | $ | 32 | | | | | $ | 34 | | | | | $ | 36 | | | | | $ | 39 | | |
Insurance Subsidiary Income
|
| | | $ | 2 | | | | | $ | 2 | | | | | $ | 3 | | | | | $ | 3 | | | | | $ | 3 | | | | | $ | 3 | | |
Other Non-Operating and Non-Recurring Items
|
| | | $ | 11 | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | |
Adjusted EBITDA
|
| | | $ | 514 | | | | | $ | 597 | | | | | $ | 671 | | | | | $ | 737 | | | | | $ | 809 | | | | | $ | 888 | | |
| | |
2016E(1)
|
| |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||||||||
Net Income
|
| | | $ | 53 | | | | | $ | 154 | | | | | $ | 187 | | | | | $ | 221 | | | | | $ | 258 | | | | | $ | 303 | | |
Net Interest Expense
|
| | | $ | 63 | | | | | $ | 126 | | | | | $ | 122 | | | | | $ | 118 | | | | | $ | 109 | | | | | $ | 94 | | |
Depreciation and
Amortization |
| | | $ | 66 | | | | | $ | 163 | | | | | $ | 177 | | | | | $ | 192 | | | | | $ | 209 | | | | | $ | 227 | | |
Difference in Taxes for Elimination of Interest Expense
|
| | | $ | (35) | | | | | $ | (51) | | | | | $ | (50) | | | | | $ | (48) | | | | | $ | (45) | | | | | $ | (40) | | |
Transaction Costs
|
| | | $ | 15 | | | | | $ | 5 | | | | | $ | 6 | | | | | $ | 6 | | | | | $ | 7 | | | | | $ | 7 | | |
Maintenance Capital Expenditures
|
| | | $ | (14) | | | | | $ | (31) | | | | | $ | (34) | | | | | $ | (38) | | | | | $ | (42) | | | | | $ | (47) | | |
Acquisition Spend
|
| | | $ | (55) | | | | | $ | (125) | | | | | $ | (165) | | | | | $ | (167) | | | | | $ | (150) | | | | | $ | (150) | | |
Change in Net Working Capital
|
| | | $ | 26 | | | | | $ | 50 | | | | | $ | (10) | | | | | $ | (11) | | | | | $ | (12) | | | | | $ | (13) | | |
Other Investing Cash Flow
|
| | | $ | 1 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Unlevered Free Cash Flow
|
| | | $ | 119 | | | | | $ | 290 | | | | | $ | 232 | | | | | $ | 272 | | | | | $ | 334 | | | | | $ | 382 | | |
| | |
Management Projections
|
| |||||||||||||||||||||||||||||||||
(US$ in millions)
|
| |
2016E
|
| |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||||||||
Revenue
|
| | | $ | 4,637 | | | | | $ | 5,164 | | | | | $ | 5,685 | | | | | $ | 6,255 | | | | | $ | 6,873 | | | | | $ | 7,551 | | |
Adjusted EBITDA(1)
|
| | | $ | 503 | | | | | $ | 591 | | | | | $ | 668 | | | | | $ | 735 | | | | | $ | 807 | | | | | $ | 886 | | |
Unlevered Free Cash Flow(2)
|
| | | $ | 52(3) | | | | | $ | 265 | | | | | $ | 264 | | | | | $ | 304 | | | | | $ | 350 | | | | | $ | 402 | | |
(US$ in millions)
|
| |
2016E
|
| |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||||||||
Net Income
|
| | | $ | 68 | | | | | $ | 139 | | | | | $ | 180 | | | | | $ | 218 | | | | | $ | 258 | | | | | $ | 304 | | |
Net Interest Expense
|
| | | $ | 127 | | | | | $ | 126 | | | | | $ | 120 | | | | | $ | 113 | | | | | $ | 100 | | | | | $ | 82 | | |
Income Taxes
|
| | | $ | 46 | | | | | $ | 89 | | | | | $ | 115 | | | | | $ | 140 | | | | | $ | 165 | | | | | $ | 195 | | |
Depreciation
|
| | | $ | 33 | | | | | $ | 37 | | | | | $ | 41 | | | | | $ | 45 | | | | | $ | 49 | | | | | $ | 54 | | |
Amortization
|
| | | $ | 102 | | | | | $ | 128 | | | | | $ | 138 | | | | | $ | 149 | | | | | $ | 162 | | | | | $ | 175 | | |
Transaction-Related Costs
|
| | | $ | 88 | | | | | $ | 45 | | | | | $ | 43 | | | | | $ | 38 | | | | | $ | 37 | | | | | $ | 37 | | |
Equity-Based Compensation
|
| | | $ | 28 | | | | | $ | 30 | | | | | $ | 32 | | | | | $ | 34 | | | | | $ | 36 | | | | | $ | 39 | | |
Insurance Subsidiary Income
|
| | | $ | 2 | | | | | $ | 2 | | | | | $ | 3 | | | | | $ | 3 | | | | | $ | 3 | | | | | $ | 3 | | |
Other Non-Operating and Non-Recurring Items
|
| | | $ | 8 | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | |
Adjusted EBITDA
|
| | | $ | 503 | | | | | $ | 591 | | | | | $ | 668 | | | | | $ | 735 | | | | | $ | 807 | | | | | $ | 886 | | |
| | |
2016E(1)
|
| |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||||||||
Net Income
|
| | | $ | 49 | | | | | $ | 139 | | | | | $ | 180 | | | | | $ | 218 | | | | | $ | 258 | | | | | $ | 304 | | |
Net Interest Expense
|
| | | $ | 63 | | | | | $ | 126 | | | | | $ | 120 | | | | | $ | 113 | | | | | $ | 100 | | | | | $ | 82 | | |
Depreciation and
Amortization |
| | | $ | 68 | | | | | $ | 165 | | | | | $ | 179 | | | | | $ | 194 | | | | | $ | 211 | | | | | $ | 229 | | |
Difference in Taxes for Elimination of Interest Expense
|
| | | $ | (41) | | | | | $ | (51) | | | | | $ | (49) | | | | | $ | (46) | | | | | $ | (42) | | | | | $ | (35) | | |
Transaction Costs
|
| | | $ | 25 | | | | | $ | 5 | | | | | $ | 6 | | | | | $ | 6 | | | | | $ | 7 | | | | | $ | 7 | | |
Maintenance Capital Expenditures
|
| | | $ | (14) | | | | | $ | (31) | | | | | $ | (34) | | | | | $ | (38) | | | | | $ | (42) | | | | | $ | (47) | | |
Acquisition Spend
|
| | | $ | (41) | | | | | $ | (139) | | | | | $ | (124) | | | | | $ | (128) | | | | | $ | (125) | | | | | $ | (120) | | |
Changes in Operating Assets/ Liabilities
|
| | | $ | (58) | | | | | $ | 52 | | | | | $ | (13) | | | | | $ | (15) | | | | | $ | (16) | | | | | $ | (19) | | |
Other Investing Cash Flow
|
| | | $ | 2 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Unlevered Free Cash Flow
|
| | | $ | 52 | | | | | $ | 265 | | | | | $ | 264 | | | | | $ | 304 | | | | | $ | 350 | | | | | $ | 402 | | |
(US$ in millions)
|
| |
2016E
|
| |
2017E
|
| |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||||||||
Net Income
|
| | | $ | 91 | | | | | $ | 167 | | | | | $ | 209 | | | | | $ | 247 | | | | | $ | 290 | | | | | $ | 341 | | |
Net Interest Expense
|
| | | $ | 127 | | | | | $ | 126 | | | | | $ | 124 | | | | | $ | 119 | | | | | $ | 110 | | | | | $ | 94 | | |
Income Taxes
|
| | | $ | 64 | | | | | $ | 107 | | | | | $ | 134 | | | | | $ | 158 | | | | | $ | 186 | | | | | $ | 218 | | |
Depreciation
|
| | | $ | 33 | | | | | $ | 37 | | | | | $ | 41 | | | | | $ | 45 | | | | | $ | 49 | | | | | $ | 54 | | |
Amortization
|
| | | $ | 100 | | | | | $ | 126 | | | | | $ | 137 | | | | | $ | 148 | | | | | $ | 160 | | | | | $ | 174 | | |
Transaction-Related Costs
|
| | | $ | 56 | | | | | $ | 27 | | | | | $ | 34 | | | | | $ | 33 | | | | | $ | 32 | | | | | $ | 32 | | |
Equity-Based Compensation
|
| | | $ | 28 | | | | | $ | 30 | | | | | $ | 32 | | | | | $ | 34 | | | | | $ | 36 | | | | | $ | 39 | | |
Insurance Subsidiary Income
|
| | | $ | 2 | | | | | $ | 2 | | | | | $ | 3 | | | | | $ | 3 | | | | | $ | 3 | | | | | $ | 3 | | |
Other Non-Operating and Non-Recurring Items
|
| | | $ | 11 | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | | | | $ | (4) | | |
Adjusted EBITDA
|
| | | $ | 512 | | | | | $ | 618 | | | | | $ | 709 | | | | | $ | 782 | | | | | $ | 863 | | | | | $ | 951 | | |
Executive Officers and Directors
|
| |
Aggregate
Amount Payable for Unvested Stock Options ($)(1) |
| |
Aggregate
Amount Payable for Unvested Stock Units ($)(2) |
| |
Aggregate
Amount Payable for Unvested MSUs ($)(3) |
| |
Aggregate
Amount Payable for Unvested PSUs ($)(4) |
| ||||||||||||
Directors (excluding H. Lynn Massingale, M.D. and Leif M. Murphy)
|
| | | | | ||||||||||||||||||||
Edwin M. Crawford
|
| | | | n/a | | | | | | 123,584 | | | | | | n/a | | | | | | n/a | | |
Glenn A. Davenport
|
| | | | n/a | | | | | | 255,171 | | | | | | n/a | | | | | | n/a | | |
James L. Bierman
|
| | | | n/a | | | | | | 255,171 | | | | | | n/a | | | | | | n/a | | |
Mary R. Grealy
|
| | | | n/a | | | | | | 370,272 | | | | | | n/a | | | | | | n/a | | |
Vicky B. Gregg
|
| | | | n/a | | | | | | 255,171 | | | | | | n/a | | | | | | n/a | | |
Joseph L. Herring (former director)
|
| | | | n/a | | | | | | n/a | | | | | | n/a | | | | | | n/a | | |
Neil M. Kurtz, M.D.
|
| | | | n/a | | | | | | 255,171 | | | | | | n/a | | | | | | n/a | | |
Kenneth Paulus
|
| | | | n/a | | | | | | 175,871 | | | | | | n/a | | | | | | n/a | | |
Patrick Fry
|
| | | | n/a | | | | | | 191,618 | | | | | | n/a | | | | | | n/a | | |
Scott Ostfeld
|
| | | | n/a | | | | | | 123,584 | | | | | | n/a | | | | | | n/a | | |
Named Executive Officers | | | | | | ||||||||||||||||||||
Leif M. Murphy
|
| | | | 8,965,748 | | | | | | 4,001,826 | | | | | | 7,389,389 | | | | | | n/a | | |
H. Lynn Massingale, M.D.
|
| | | | 31,896 | | | | | | 4,681,383 | | | | | | n/a | | | | | | n/a | | |
David P. Jones
|
| | | | 53,503 | | | | | | 2,196,533 | | | | | | n/a | | | | | | 611,262 | | |
Oliver V. Rogers
|
| | | | 50,698 | | | | | | 2,007,482 | | | | | | n/a | | | | | | 509,385 | | |
Miles Snowden, M.D.
|
| | | | 7,854 | | | | | | 518,346 | | | | | | n/a | | | | | | 285,273 | | |
Michael D. Snow
|
| | | | n/a | | | | | | n/a | | | | | | n/a | | | | | | n/a | | |
All Other Executive Officers as a Group(5) (2 persons)
|
| | | | 8,415 | | | | | | 305,631 | | | | | | n/a | | | | | | 305,631 | | |
Name
|
| |
Cash
($)(1) |
| |
Equity
($)(2) |
| |
Perquisites/
Benefits ($)(3) |
| |
Tax
Reimbursement ($)(4) |
| |
Other
($)(5) |
| |
Total
($)(6) |
| ||||||||||||||||||
Leif M. Murphy
|
| | | | 6,000,000 | | | | | | 20,356,962 | | | | | | 36,000 | | | | | | — | | | | | | — | | | | | | 26,392,962 | | |
H. Lynn Massingale, M.D.
|
| | | | 2,904,716 | | | | | | 4,713,279 | | | | | | 13,500 | | | | | | 0 | | | | | | — | | | | | | 7,631,495 | | |
David P. Jones
|
| | | | 2,065,708 | | | | | | 2,861,297 | | | | | | 48,000 | | | | | | — | | | | | | — | | | | | | 4,975,005 | | |
Oliver V. Rogers
|
| | | | 2,657,978 | | | | | | 2,567,564 | | | | | | 36,000 | | | | | | — | | | | | | — | | | | | | 5,261,542 | | |
Miles Snowden, M.D.
|
| | | | 992,388 | | | | | | 811,473 | | | | | | 18,000 | | | | | | — | | | | | | — | | | | | | 1,821,861 | | |
Michael D. Snow
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Multiple of Base Salary
Payout ($) |
| |
Multiple of Bonus
Payout ($) |
| ||||||
H. Lynn Massingale, M.D.
|
| | | | 1,365,540 | | | | | | 1,539,176 | | |
Leif M. Murphy
|
| | | | 3,000,000 | | | | | | 3,000,000 | | |
David P. Jones
|
| | | | 1,119,200 | | | | | | 946,508 | | |
Oliver V. Rogers
|
| | | | 1,319,200 | | | | | | 1,338,778 | | |
Miles Snowden, M.D.
|
| | | | 634,600 | | | | | | 357,788 | | |
Michael D. Snow
|
| | | | — | | | | | | — | | |
Fiscal Year
|
| |
High
|
| |
Low
|
| ||||||
2016 | | | | ||||||||||
First Quarter
|
| | | $ | 46.28 | | | | | $ | 33.15 | | |
Second Quarter
|
| | | $ | 49.50 | | | | | $ | 39.09 | | |
Third Quarter
|
| | | $ | 43.50 | | | | | $ | 30.83 | | |
Fourth Quarter (through December 8, 2016)
|
| | | $ | 42.90 | | | | | $ | 32.16 | | |
2015 | | | | ||||||||||
First Quarter
|
| | | $ | 61.85 | | | | | $ | 50.83 | | |
Second Quarter
|
| | | $ | 67.79 | | | | | $ | 56.98 | | |
Third Quarter
|
| | | $ | 70.21 | | | | | $ | 52.78 | | |
Fourth Quarter
|
| | | $ | 63.56 | | | | | $ | 43.15 | | |
2014 | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 48.07 | | | | | $ | 41.37 | | |
Second Quarter
|
| | | $ | 52.18 | | | | | $ | 43.18 | | |
Third Quarter
|
| | | $ | 60.94 | | | | | $ | 48.80 | | |
Fourth Quarter
|
| | | $ | 63.13 | | | | | $ | 52.36 | | |
2013 | | | | ||||||||||
First Quarter
|
| | | $ | 37.15 | | | | | $ | 29.20 | | |
Second Quarter
|
| | | $ | 42.42 | | | | | $ | 35.30 | | |
Third Quarter
|
| | | $ | 42.15 | | | | | $ | 36.41 | | |
Fourth Quarter
|
| | | $ | 48.83 | | | | | $ | 37.79 | | |
Name of Beneficial Owner
|
| |
Number
|
| |
Percent
|
| ||||||
Beneficial Owners of More than 5%: | | | | ||||||||||
FMR LLC(1)
|
| | | | 8,895,191 | | | | | | 11.9% | | |
Wellington Management Group LLP(2)
|
| | | | 6,401,909 | | | | | | 8.6% | | |
JANA Partners LLC(3)
|
| | | | 5,890,368 | | | | | | 7.9% | | |
The Vanguard Group, Inc.(4)
|
| | | | 5,043,995 | | | | | | 6.8% | | |
Capital Research Global Investors(5)
|
| | | | 4,988,770 | | | | | | 6.7% | | |
BlackRock, Inc.(6)
|
| | | | 4,883,536 | | | | | | 6.5% | | |
Directors and Executive Officers: | | | | ||||||||||
Leif M. Murphy
|
| | | | — | | | | | | — | | |
H. Lynn Massingale, M.D.(7)
|
| | | | 314,261 | | | | | | * | | |
Oliver V. Rogers(8)
|
| | | | 117,746 | | | | | | * | | |
David P. Jones(9)
|
| | | | 83,022 | | | | | | * | | |
Edwin M. Crawford(10)
|
| | | | 83,076 | | | | | | * | | |
Glenn A. Davenport(11)
|
| | | | 23,589 | | | | | | * | | |
James L. Bierman(12)
|
| | | | 21,305 | | | | | | * | | |
Miles Snowden(13)
|
| | | | 10,165 | | | | | | * | | |
Mary R. Grealy(14)
|
| | | | 9,864 | | | | | | * | | |
Vicky B. Gregg(15)
|
| | | | 8,419 | | | | | | * | | |
Neil M. Kurtz, M.D.(16)
|
| | | | 5,015 | | | | | | * | | |
Kenneth Paulus(17)
|
| | | | 2,239 | | | | | | * | | |
Patrick Fry(18)
|
| | | | 1,239 | | | | | | * | | |
Scott Ostfeld(19)
|
| | | | 825 | | | | | | * | | |
Michael D. Snow(20)
|
| | | | 113,396 | | | | | | * | | |
Directors and Executive Officers as a Group (15 persons)
|
| | | | 683,765 | | | | | | * | | |
| | |
Page
|
| |||
RECITALS | | | | | A-7 | | |
| | | | A-8 | | | |
| | | | A-8 | | | |
| | | | A-8 | | | |
| | | | A-8 | | | |
| | | | A-8 | | | |
| | | | A-9 | | | |
| | | | A-9 | | | |
| | | | A-9 | | | |
| | | | A-9 | | | |
| | | | A-11 | | | |
| | | | A-13 | | | |
| | | | A-14 | | | |
| | | | A-14 | | | |
| | | | A-14 | | | |
| | | | A-15 | | | |
| | | | A-15 | | | |
| | | | A-16 | | | |
| | | | A-16 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-19 | | | |
| | | | A-20 | | | |
| | | | A-20 | | | |
| | | | A-21 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-23 | | | |
| | | | A-23 | | | |
| | | | A-24 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-27 | | | |
| | | | A-27 | | |
| | |
Page
|
| |||
| | | | A-27 | | | |
| | | | A-28 | | | |
| | | | A-28 | | | |
| | | | A-28 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-30 | | | |
| | | | A-30 | | | |
| | | | A-31 | | | |
| | | | A-31 | | | |
| | | | A-31 | | | |
| | | | A-31 | | | |
| | | | A-31 | | | |
| | | | A-32 | | | |
| | | | A-32 | | | |
| | | | A-34 | | | |
| | | | A-34 | | | |
| | | | A-35 | | | |
| | | | A-35 | | | |
| | | | A-39 | | | |
| | | | A-39 | | | |
| | | | A-40 | | | |
| | | | A-42 | | | |
| | | | A-42 | | | |
| | | | A-43 | | | |
| | | | A-43 | | | |
| | | | A-44 | | | |
| | | | A-45 | | | |
| | | | A-47 | | | |
| | | | A-49 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | |
| | |
Page
|
| |||
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-55 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-58 | | | |
| | | | A-58 | | | |
| | | | A-62 | | | |
| | | | A-62 | | | |
| | | | A-62 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-64 | | | |
| | | | A-65 | | | |
| | | | A-65 | | | |
Exhibits: | | | | | | | |
Exhibit A
Voting and Support Agreement
|
| | | | | | |
Exhibit B
Certificate of Incorporation of the Surviving Corporation
|
| | | | | | |
|
2010 ESPP
|
| | | | A-10 | | |
|
2010 NQSPP
|
| | | | A-10 | | |
|
ACA
|
| | | | A-26 | | |
|
Acceptable Confidentiality Agreement
|
| | | | A-58 | | |
|
Acquisition Proposal
|
| | | | A-38 | | |
|
Action
|
| | | | A-20 | | |
|
Affiliate
|
| | | | A-59 | | |
|
Affiliated Entities
|
| | | | A-14 | | |
|
Agreement
|
| | | | A-7 | | |
|
Alternative Financing
|
| | | | A-49 | | |
|
Anti-Corruption Laws
|
| | | | A-17 | | |
|
Antitrust Law
|
| | | | A-41 | | |
|
Applicable Date
|
| | | | A-18 | | |
|
Bankruptcy and Equity Exception
|
| | | | A-16 | | |
|
Benefit Continuation Period
|
| | | | A-44 | | |
|
Book-Entry Shares
|
| | | | A-12 | | |
|
Business Day
|
| | | | A-59 | | |
|
Bylaws
|
| | | | A-15 | | |
|
Cancelled Shares
|
| | | | A-9 | | |
|
Capitalization Date
|
| | | | A-15 | | |
|
Certificate of Incorporation
|
| | | | A-15 | | |
|
Certificate of Merger
|
| | | | A-8 | | |
|
Certificates
|
| | | | A-12 | | |
|
Change of Control Offer Documents
|
| | | | A-48 | | |
|
Change of Recommendation
|
| | | | A-40 | | |
|
Closing
|
| | | | A-8 | | |
|
Closing Date
|
| | | | A-8 | | |
|
COBRA
|
| | | | A-21 | | |
|
Code
|
| | | | A-21 | | |
|
Common Stock
|
| | | | A-15 | | |
|
Company
|
| | | | A-7 | | |
|
Company Disclosure Letter
|
| | | | A-14 | | |
|
Company Employees
|
| | | | A-21 | | |
|
Company Equity Award
|
| | | | A-59 | | |
|
Company Notice
|
| | | | A-37 | | |
|
Company Plans
|
| | | | A-21 | | |
|
Company Related Parties
|
| | | | A-56 | | |
|
Company Requisite Vote
|
| | | | A-16 | | |
|
Company Securities
|
| | | | A-16 | | |
|
Company Stock Plan
|
| | | | A-59 | | |
|
Company Systems
|
| | | | A-24 | | |
|
Company Termination Payment
|
| | | | A-59 | | |
|
Confidentiality Agreement
|
| | | | A-43 | | |
|
Continuing Employees
|
| | | | A-44 | | |
|
Contract
|
| | | | A-19 | | |
|
control
|
| | | | A-59 | | |
|
controlled
|
| | | | A-59 | | |
|
controlled by
|
| | | | A-59 | | |
|
controlling
|
| | | | A-59 | | |
|
Credit Facility
|
| | | | A-59 | | |
|
Cut-Off Date
|
| | | | A-36 | | |
|
Debt Financing
|
| | | | A-29 | | |
|
Debt Financing Commitments
|
| | | | A-29 | | |
|
Debt Financing Sources
|
| | | | A-59 | | |
|
Debt Tender Offer
|
| | | | A-47 | | |
|
DGCL
|
| | | | A-7 | | |
|
Dissenting Shares
|
| | | | A-13 | | |
|
DOJ
|
| | | | A-41 | | |
|
Earned MSUs
|
| | | | A-10 | | |
|
Effective Time
|
| | | | A-8 | | |
|
End Date
|
| | | | A-54 | | |
|
Environmental Laws
|
| | | | A-25 | | |
|
Equity Financing
|
| | | | A-29 | | |
|
Equity Financing Commitment
|
| | | | A-29 | | |
|
ERISA
|
| | | | A-21 | | |
|
ESPPs
|
| | | | A-10 | | |
|
Exchange Act
|
| | | | A-17 | | |
|
Exchange Fund
|
| | | | A-11 | | |
|
Excluded Party
|
| | | | A-38 | | |
|
Existing Notes
|
| | | | A-47 | | |
|
Financial Advisor
|
| | | | A-25 | | |
|
Financing
|
| | | | A-29 | | |
|
Financing Commitments
|
| | | | A-29 | | |
|
FTC
|
| | | | A-41 | | |
|
GAAP
|
| | | | A-60 | | |
|
Government Contract
|
| | | | A-60 | | |
|
Governmental Entity
|
| | | | A-17 | | |
|
Guarantor
|
| | | | A-7 | | |
|
Hazardous Materials
|
| | | | A-25 | | |
|
Health Care Laws
|
| | | | A-26 | | |
|
HIPAA
|
| | | | A-26 | | |
|
HSR Act
|
| | | | A-17 | | |
|
Indemnified Parties
|
| | | | A-45 | | |
|
Indenture
|
| | | | A-47 | | |
|
Intellectual Property
|
| | | | A-24 | | |
|
Intervening Event
|
| | | | A-37 | | |
|
IRS
|
| | | | A-21 | | |
|
knowledge
|
| | | | A-60 | | |
|
Law
|
| | | | A-60 | | |
|
Lender Related Party
|
| | | | A-56 | | |
|
Licenses
|
| | | | A-17 | | |
|
Liens
|
| | | | A-22 | | |
|
Marketing Period
|
| | | | A-60 | | |
|
Material Adverse Effect
|
| | | | A-61 | | |
|
Material Contract
|
| | | | A-20 | | |
|
Merger
|
| | | | A-7 | | |
|
Merger Sub
|
| | | | A-7 | | |
|
MSU
|
| | | | A-10 | | |
|
MSU End Price
|
| | | | A-10 | | |
|
No-Shop Period Start Date
|
| | | | A-35 | | |
|
Notice Period
|
| | | | A-38 | | |
|
Offer Documents
|
| | | | A-47 | | |
|
Option
|
| | | | A-9 | | |
|
Parent
|
| | | | A-7 | | |
|
Parent Disclosure Letter
|
| | | | A-27 | | |
|
Parent Group
|
| | | | A-40 | | |
|
Parent Guarantee
|
| | | | A-7 | | |
|
Parent Material Adverse Effect
|
| | | | A-53 | | |
|
Parent Related Party
|
| | | | A-56 | | |
|
Parent Termination Fee
|
| | | | A-55 | | |
|
Parties
|
| | | | A-7 | | |
|
Party
|
| | | | A-7 | | |
|
Paying Agent
|
| | | | A-11 | | |
|
Per Share Merger Consideration
|
| | | | A-9 | | |
|
Performance Options
|
| | | | A-9 | | |
|
Permitted Liens
|
| | | | A-23 | | |
|
Person
|
| | | | A-61 | | |
|
Preferred Stock
|
| | | | A-15 | | |
|
Proceeding
|
| | | | A-45 | | |
|
Proxy Statement
|
| | | | A-24 | | |
|
PSU
|
| | | | A-10 | | |
|
Recommendation
|
| | | | A-16 | | |
|
Recoupment Claims
|
| | | | A-26 | | |
|
Registered Intellectual Property
|
| | | | A-24 | | |
|
Representatives
|
| | | | A-35 | | |
|
Required Information
|
| | | | A-61 | | |
|
SEC
|
| | | | A-18 | | |
|
SEC Reports
|
| | | | A-18 | | |
|
Securities Act
|
| | | | A-18 | | |
|
Share
|
| | | | A-9 | | |
|
Stock Unit
|
| | | | A-10 | | |
|
Stockholders Meeting
|
| | | | A-40 | | |
|
subsidiaries
|
| | | | A-62 | | |
|
subsidiary
|
| | | | A-62 | | |
|
Superior Proposal
|
| | | | A-38 | | |
|
Supplemental Indenture
|
| | | | A-47 | | |
|
Support Agreement
|
| | | | A-7 | | |
|
Surviving Corporation
|
| | | | A-8 | | |
|
Tax Return
|
| | | | A-23 | | |
|
Taxes
|
| | | | A-23 | | |
|
Transaction Documents
|
| | | | A-62 | | |
|
Transaction Litigation
|
| | | | A-52 | | |
|
Trustee
|
| | | | A-47 | | |
|
under common control with
|
| | | | A-59 | | |
|
Willful Breach
|
| | | | A-62 | | |
| Tennessee Parent, Inc. c/o The Blackstone Group L.P. 345 Park Avenue New York, New York 10154 |
| |||
| Attention: | | | Neil Simpkins Bruce McEvoy |
|
| Facsimile: | | | (212) 583-5722 | |
| Email: | | | simpkins@blackstone.com mcevoy@blackstone.com |
|
| Kirkland & Ellis LLP 601 Lexington Avenue New York, New York 10022 |
| |||
| Attention: | | | Daniel Wolf P.C. Peter Martelli P.C. Laura Sullivan |
|
| Facsimile: | | | (212) 446-6460 | |
| Email: | | | daniel.wolf@kirkland.com peter.martelli@kirkland.com laura.sullivan@kirkland.com |
|
| Team Health Holdings, Inc. 265 Brookview Centre Way, Suite 400 Knoxville, Tennessee 37919 |
| |||
| Attention: | | | General Counsel | |
| Facsimile: | | | (865) 539-8030 | |
| Email: | | | Steve_Clifton@teamhealth.com | |
| Simpson Thacher & Bartlett LLP 425 Lexington Avenue New York, NY 10017 |
| |||
| Attention: | | | William R. Dougherty Anthony F. Vernace |
|
| Facsimile: | | | (212) 455-2502 | |
| Email: | | | wdougherty@stblaw.com avernace@stblaw.com |
|
| | | | COMPANY: TEAM HEALTH HOLDINGS, INC. |
| |||
| | | | By: | | | /s/ Leif M. Murphy | |
| | | | | | | Name: Leif M. Murphy | |
| | | | | | | Title: President and Chief Executive Officer | |
| | | | PARENT: TENNESSEE PARENT, INC. |
| |||
| | | | By: | | | /s/ Neil Simpkins | |
| | | | | | | Name: Neil Simpkins | |
| | | | | | | Title: President | |
| | | | MERGER SUB: TENNESSEE MERGER SUB, INC. |
| |||
| | | | By: | | | /s/ Neil Simpkins | |
| | | | | | | Name: Neil Simpkins | |
| | | | | | | Title: President | |
| JANA Partners LLC | | |||
| 767 Fifth Avenue, 8th Floor | | |||
| New York, NY 10153 | | |||
| Attention: | | | Charles Penner | |
| Email: | | | Charles.Penner@janapartners.com | |
| Tennessee Parent, Inc. | | |||
| c/o The Blackstone Group L.P. | | |||
| 345 Park Avenue | | |||
| New York, New York 10154 | | |||
| Attention: | | | Neil Simpkins | |
| | | | Bruce McEvoy | |
| Facsimile: | | | (212) 583-5722 | |
| Email: | | | simpkins@blackstone.com | |
| | | | mcevoy@blackstone.com | |
| Kirkland & Ellis LLP | | |||
| 601 Lexington Avenue | | |||
| New York, NY 10022 | | |||
| Attention: | | | Daniel E. Wolf, P.C. | |
| | | | Peter Martelli, P.C. | |
| | | | Laura Sullivan | |
| Facsimile: | | | (212) 446-6460 | |
| Email: | | | daniel.wolf@kirkland.com | |
| | | | peter.martelli@kirkland.com | |
| | | | laura.sullivan@kirkland.com | |
| Team Health Holdings, Inc. | | |||
| 265 Brookview Centre Way, Suite 400 | | |||
| Knoxville, Tennessee 37919 | | |||
| Attention: | | | General Counsel | |
| Facsimile: | | | (865) 539-8030 | |
| Email: | | | Steve_Clifton@teamhealth.com | |
| Simpson Thacher & Bartlett LLP | | |||
| 425 Lexington Avenue | | |||
| New York, NY 10017 | | |||
| Attention: | | | William R. Dougherty | |
| | | | Anthony F. Vernace | |
| Facsimile: | | | (212) 455-2502 | |
| Email: | | | wdougherty@stblaw.com | |
| | | | avernace@stblaw.com | |
| | | | TENNESSEE PARENT, INC. | | |||
| | | | By: | | | /s/ Neil Simpkins | |
| | | | | | | Name: Neil Simpkins | |
| | | | | | | Title: President | |
| | | | TENNESSEE MERGER SUB, INC. | | |||
| | | | By: | | | /s/ Neil Simpkins | |
| | | | | | | Name: Neil Simpkins | |
| | | | | | | Title: President | |
| | | | JANA PARTNERS LLC | | |||
| | | | By: | | | /s/ Scott Ostfeld | |
| | | | | | | Name: Scott Ostfeld | |
| | | | | | | Title: Partner | |
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