amendment3creditagreemen






Execution Version          MASTER ASSIGNMENT AGREEMENT AND AMENDMENT NO. 3 TO   THIRD AMENDED AND RESTATED CREDIT AGREEMENT      This MASTER ASSIGNMENT AGREEMENT AND AMENDMENT NO. 3 TO THIRD  AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of  September 8, 2021 but effective as of the Effective Date (defined below) is by and among Forum  Energy Technologies, Inc., a Delaware corporation (the “Parent”; and those additional entities that  are parties hereto as borrowers and are organized in Delaware (each, a “US Borrower” and  individually and collectively, jointly and severally, the “US Borrowers”)), Forum Canada ULC,  an Alberta unlimited liability corporation (“Forum Canada”; and those additional entities that are  parties hereto as borrowers and are organized in Alberta (each, a “Canadian Borrower” and  individually and collectively, jointly and severally, the “Canadian Borrowers”, and together with  the US Borrowers, each a “Borrower” and individually and collectively, jointly and severally, the  “Borrowers”)), the Restricted Subsidiaries party hereto (each a “Guarantor” and collectively, the  “Guarantors”), the Lenders (as defined below) party hereto, the Swing Line Lenders party hereto,  the Issuing Banks party hereto, the Exiting Lenders (as defined below), and Wells Fargo Bank,  National Association, as administrative agent (in such capacity, the “Agent”).  RECITALS    A. The Parent, Forum Canada, each other Borrower party thereto, the Agent and the  financial institutions party thereto from time to time, as lenders, issuing banks and swing line  lenders (collectively, the “Existing Lenders”) are parties to that certain Third Amended and  Restated Credit Agreement dated as of October 30, 2017 (as amended by that certain Amendment  No. 1 to Third Amended and Restated Credit Agreement dated as of February 3, 2020, that certain  Amendment No. 2 to Third Amended and Restated Credit Agreement and Amendment No. 1 to  each Guaranty and Security Agreement dated as of July 24, 2020, and as further amended, restated,  amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit  Agreement”).  B. In connection with this Agreement and subject to the terms and conditions set forth  herein, each of Citibank, N.A. (“Citi”), HSBC Bank USA, N.A. (“HSBC”), Deutsche Bank AG,  New York Branch (“DB New York”) and Deutsche Bank AG, Canada Branch (“DB Canada”, and  together with Citi, HSBC, DB New York, collectively, the “Exiting Lenders” and each  individually, an “Exiting Lender”)  wishes to assign its rights and obligations as an Existing Lender  under the Credit Agreement and the other Loan Documents to the remaining Existing Lenders (the  Existing Lenders other than the Exiting Lenders, the “Lenders”), and the Lenders wish to reallocate  their respective rights and obligations as set forth herein.  C. In addition, the Parent has requested that the Agent and the Lenders extend the  Maturity Date under the Credit Agreement.  The Agent and the Lenders have agreed to extend the  Maturity Date and otherwise amend the Credit Agreement as provided herein.  NOW THEREFORE, in consideration of the premises and the mutual covenants,  representations and warranties contained herein, and for other good and valuable consideration,  #8104613  





 






2    the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as  follows:  Section 1. Defined Terms.  As used in this Agreement, each of the terms defined in  the opening paragraph and the Recitals above shall have the meanings assigned to such terms  therein.  Each term defined in the Credit Agreement and used herein without definition shall have  the meaning assigned to such term in the Credit Agreement, unless expressly provided to the  contrary.  Section 2. Other Definitional Provisions.  Article, Section, Schedule, and Exhibit  references are to Articles and Sections of and Schedules and Exhibits to this Agreement, unless  otherwise specified.  The words “hereof”, “herein”, and “hereunder” and words of similar import  when used in this Agreement shall refer to this Agreement as a whole and not to any particular  provision of this Agreement.  The term “including” means “including, without limitation”.  Section  headings have been inserted in this Agreement as a matter of convenience for reference only and  it is agreed that such Section headings are not a part of this Agreement and shall not be used in the  interpretation of any provision of this Agreement.  Section 3. Assignment and Acceptance. In lieu of executing and delivering an  Assignment and Acceptance, each Existing Lender whose Pro Rata Share is decreasing in  connection herewith (each an “Assignor” and, collectively, the “Assignors”) and each Existing  Lender whose Pro Rata Share is increasing in connection herewith (each an “Assignee” and,  collectively, the “Assignees”) hereby agree to, and the Borrowers hereby accept, the following:  (a) For an agreed consideration, each Assignor hereby irrevocably sells and  assigns to the respective Assignees, and each Assignee hereby irrevocably purchases and assumes  from the respective Assignors, subject to and in accordance with the terms hereof and the Credit  Agreement, as of the Effective Date (i) such Pro Rata Share in and to all of such Assignor’s  Commitments and all other rights and obligations in its capacity as an Existing Lender under the  Credit Agreement, the other Loan Documents and any other documents or instruments delivered  pursuant thereto (including without limitation, all rights and obligations under the Credit  Agreement with respect to any Obligations, Letters of Credit, and Swing Loans, and, for the  avoidance of doubt, all interest and fees accrued pursuant to the Credit Agreement and the other  Loan Documents through the Effective Date) as would result in the Assignors and Assignees  having the respective Commitments set forth in Schedule C-1 attached hereto and (ii) to the extent  permitted to be assigned under applicable law, all claims, suits, causes of action and any other right  of such Assignor (in its capacity as an Existing Lender) against any Person, whether known or  unknown, arising under or in connection with the Credit Agreement, the other Loan Documents,  any other documents or instruments delivered pursuant thereto or the loan transactions governed  thereby or in any way based on or related to any of the foregoing, including, but not limited to,  contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in  equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights  and obligations sold and assigned by an Assignor pursuant to clauses (i) and (ii) above being  referred to herein collectively as, such Assignor’s “Assigned Interest”).  Each such sale and  assignment is without recourse to any Assignor and, except as expressly provided in this  Agreement, without representation or warranty by any Assignor.  





 






3    (b) Each Assignor (i) represents and warrants that (A) it is the legal and  beneficial owner of its Assigned Interest and that such Assigned Interest is free and clear of any  adverse claim and (B) it has full power and authority, and has taken all action necessary, to execute  and deliver this Agreement and to consummate the transactions contemplated hereby; (ii) makes  no representation or warranty and assumes no responsibility with respect to (A) any statements,  representations or warranties made in or in connection with the Loan Documents, or (B) the  execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan  Documents or any other instrument or document furnished pursuant thereto; and (iii) makes no  representation or warranty and assumes no responsibility with respect to the financial condition of  any Borrower or any Guarantor or the performance or observance by any Borrower or any  Guarantor of any of their respective obligations under the Loan Documents or any other instrument  or document furnished pursuant thereto.  (c) Each Assignee (i) confirms that it has received copies of the Credit  Agreement and the other Loan Documents, together with copies of the financial statements  referred to therein and such other documents and information as it has deemed appropriate to make  its own credit analysis and decision to enter into this Agreement; (ii) agrees that it will,  independently and without reliance upon the Agent, Assignor, or any other Lender, based upon  such documents and information as it shall deem appropriate at the time, continue to make its own  credit decisions in taking or not taking any action under the Loan Documents; (iii) appoints and  authorizes the Agent to take such action as agent on its behalf and to exercise such powers under  the Loan Documents as are delegated to the Agent by the terms thereof, together with such powers  as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their  terms all of the obligations which by the terms of the Loan Documents are required to be performed  by it as a Lender.  (d) As of  the Effective Date, (i) each Assignee shall be a party to the Credit  Agreement and, to the extent of the interest assigned pursuant to this Agreement, have the rights  and obligations of a Lender thereunder and under the other Loan Documents, and (b) each  Assignor shall, to the extent of the interest assigned pursuant to this Agreement, relinquish its  rights and be released from its obligations under the Credit Agreement and the other Loan  Documents, provided, however, that nothing contained herein shall release any Assignor from  obligations that survive the termination of the Credit Agreement, including such Assignor’s  obligations under Article 15 of the Credit Agreement and Section 17.9(a) of the Credit Agreement.  (e) From and after the Effective Date, the Agent shall make all payments in  respect of each Assigned Interest (including payments of principal, interest, fees and other  amounts) to the relevant Assignee whether such amounts have accrued prior to, on or after the  Effective Date.  The Assignors and the Assignees shall make all appropriate adjustments in  payments by the Agent for periods prior to the Effective Date or with respect to the making of this  assignment directly between themselves.    (f) The Agent, each Issuing Bank and each Swing Line Lender hereby consent  to each Assignor’s assignment of the Assigned Interests to the respective Assignees, waive any  other conditions to the effectiveness of such assignment that are not expressly set forth in this  Agreement, and agree that the terms of this Agreement shall constitute an Assignment and  Acceptance.  The Agent hereby consents to a one-time waiver of the $3,500 processing and  





 






4    recording fee that would otherwise be payable by each Assignee pursuant to Section 13.1(a)(ii)(F)  of the Credit Agreement as a result of the assignment provided for herein.  (g) Each Exiting Lender (for itself and on behalf of any Affiliate that is a Bank  Product Provider or Hedge Provider) agrees that, other than the rights, remedies, and obligations  expressly stated to survive such Exiting Lender’s termination as a “Lender” under and pursuant to  the Credit Agreement and such Exiting Lender’s right to the payment of amounts owing to such  Exiting Lender thereunder, such Exiting Lender (and such Exiting Lender’s Affiliates) shall cease  to have any rights, remedies, benefits, or obligations under the Credit Agreement and the other  Loan Documents (and all Collateral); provided that, by accepting the benefits of the Loan  Documents to secure its remaining Bank Product Obligations, HSBC Bank USA, N.A. shall  continue to remain a Secured Party (as defined in the Guaranty and Security Agreements) until the  earlier of (i) June 30, 2022 (or such later date as may be approved by the Agent in its reasonable  discretion) and (ii) the date upon which all Bank Product Obligations owed to HSBC Bank USA,  N.A. are satisfied and the Bank Product Agreements with HSBC Bank USA, N.A. are terminated.  Section 4. Amendment to Credit Agreement.     (a) The Credit Agreement (excluding exhibits and schedules thereto unless  otherwise expressly stated in this Section 4) is hereby amended to read as reflected on Annex A  attached hereto.  (b) Exhibit C-1 to the Credit Agreement is hereby amended and restated in its  entirety in the form attached hereto as Exhibit C-1.  (c) Schedule A-2 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule A-2.  (d) Schedule C-1 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule C-1.   (e) Schedule C-2 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule C-2.  (f) Schedule D-1 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule D-1.  (g) Schedule D-2 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule D-2.  (h) Schedule P-1 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule P-1.  (i) Schedule P-2 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule P-2.  (j) Schedule 4.1(c) of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule 4.1(c).  





 






5    (k) Schedule 4.1(d) of the Credit Agreement is hereby amended and restated  in its entirety in the form attached hereto as Schedule 4.1(d).  (l) Schedule 4.14 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule 4.14.  (m) Schedule 4.25 of the Credit Agreement is hereby amended and restated in  its entirety in the form attached hereto as Schedule 4.25.  (n) Schedule 5.1 of the Credit Agreement is hereby amended and restated in its  entirety in the form attached hereto as Schedule 5.1.  (o) Schedule 6.5 of the Credit Agreement is hereby amended and restated in its  entirety in the form attached hereto as Schedule 6.5.  Section 5. Representations and Warranties.  Each Loan Party hereby represents and  warrants that:  (a) after giving effect to this Agreement, the representations and warranties of  the Loan Parties and their Restricted Subsidiaries contained in the Loan Documents are true and  correct in all material respects (except that such materiality qualifier shall not be applicable to any  representations and warranties that already are qualified or modified by materiality in the text  thereof) on the Effective Date (except to the extent that such representations and warranties relate  solely to an earlier date, in which case such representations and warranties are true and correct in  all material respects (except that such materiality qualifier shall not be applicable to any  representations and warranties that already are qualified or modified by materiality in the text  thereof) as of such earlier date);    (b) no Default or Event of Default has occurred and is continuing;  (c) the execution, delivery and performance of this Agreement by such Loan  Party are within its corporate or limited liability company power and authority, as applicable, and  have been duly authorized by all necessary corporate or limited liability company action, as  applicable;   (d) this Agreement constitutes the legal, valid and binding obligation of such  Loan Party enforceable in accordance with its terms, except as limited by bankruptcy, insolvency,  reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally and  general principles of equity whether applied by a court of law or equity; and  (e) there are no governmental or other third party consents, licenses and  approvals required in connection with the execution, delivery, performance, validity and  enforceability of this Agreement, other than consents, licenses, approvals or other actions that have  been obtained and are in full force and effect and immaterial consents, licenses, approvals or other  actions the failure to obtain which could not reasonably be expected to be adverse to the interests  of any member of the Lender Group.  





 






6    Section 6. Conditions to Effectiveness.  This Agreement shall become effective and  enforceable against the parties hereto as of the date on which the satisfaction (or waiver in  accordance with the terms of Section 14.1 of the Credit Agreement) of the following conditions  precedent occurs (the “Effective Date”):  (a) The Agent shall have received this Agreement executed by duly authorized  officers of the Parent, Forum Canada, the other Borrowers, the Guarantors, the Agent, and all of  the Lenders and Exiting Lenders.   (b) The Agent shall have received the Fee Letter (as defined in Annex A  attached hereto) executed by duly authorized officers of the Borrowers and the Agent.  (c) Each Borrower shall have delivered to the Agent and directly to any Lender  requesting the same, a Beneficial Ownership Certification in relation to it (or a certification that  such Borrower qualifies for an express exclusion from the “legal entity customer” definition under  the Beneficial Ownership Regulations), in each case, at least five (5) Business Days prior to the  Effective Date.  (d) The Agent shall have completed (i) Patriot Act searches, OFAC/PEP  searches, corresponding searches required under Canadian Law (to the extent available), and  customary individual background checks for each Loan Party, and (ii) OFAC/PEP searches,  corresponding searches required under Canadian Law (to the extent available), and customary  individual background searches for each Loan Party’s senior management and key principals,  the  results of which shall be satisfactory to Agent.  (e) The Borrowers shall have paid all fees and expenses owed to the Agent, the  Lenders and Agent’s outside legal counsel, (i) pursuant to the Fee Letter and (ii) to the extent  required to be paid or reimbursed under the terms of the other Loan Documents, pursuant to  invoices presented for payment at least one Business Day prior to the Effective Date.  (f) The Agent shall have received opinions, dated as of the Effective Date, of  the Loan Parties’ counsel (including local counsels) in form and substance reasonably satisfactory  to the Agent.  (g) The Agent shall have received a certificate from the Secretary of each Loan  Party (i) attesting to the resolutions of such Loan Party’s board of directors authorizing its  execution and delivery of this Agreement, and the performance of the Loan Documents (as  amended hereby) to which it is a party, (ii) authorizing specific officers of such Loan Party to  execute the same, and (iii) attesting to the incumbency and signatures of such specific officers of  such Loan Party.  (h) The Agent shall have received copies of each Loan Party’s Governing  Documents, as amended, modified, or supplemented to the Effective Date, which Governing  Documents shall be (i) certified by the Secretary of such Loan Party, and (ii) with respect to  Governing Documents that are charter documents, certified as of a recent date by the appropriate  governmental official.  





 






7    (i) The Agent shall have received a certificate of status with respect to each  Loan Party, dated within 10 days of the Effective Date (or such other date as permitted by the  Agent in its sole discretion), such certificate to be issued by the appropriate officer of the  jurisdiction of organization of such Loan Party, which certificate shall indicate that such Loan  Party is in good standing in such jurisdiction.  (j) To the extent available to be delivered on or before the Effective Date, the  Agent shall have received certificates of status with respect to each Loan Party, each certified as  of a recent date, such certificates to be issued by the appropriate officer of the jurisdictions (other  than the jurisdiction of organization of such Loan Party) in which its failure to be duly qualified  or licensed would constitute a Material Adverse Effect, which certificates shall indicate that such  Loan Party is in good standing in such jurisdictions.  (k) The Agent shall have received appropriate lien searches, including UCC  searches and PPSA searches, in each Loan Party’s jurisdiction of organization and any other  jurisdiction reasonably requested by the Agent, reflecting no Liens encumbering the assets of the  Loan Parties other than Permitted Liens.  (l) After giving effect to the transactions contemplated hereby on the Effective  Date, the Borrowers shall demonstrate that the sum of (i) all cash on deposit in the Loan Parties’  deposit accounts and securities accounts in the United States (excluding cash in Excluded  Accounts), and (ii) Excess Availability is equal to or greater than $40,000,000.  (m) The Agent shall have received a certificate signed by an officer of the  Parent, certifying that as of the Effective Date, the representations and warranties in Section 5  hereof are true and correct in all respects.  (n) The Borrowers and each of their respective Restricted Subsidiaries shall  have received all licenses, approvals or evidence of other actions required by any Governmental  Authority in connection with the execution and delivery by the Borrowers or their respective  Restricted Subsidiaries of this Agreement or with the consummation of the transactions  contemplated hereby.  (o) The Agent shall have received a promissory note payable to each Lender  requesting a promissory note at least one (1) Business Day prior to the date hereof in the amount  of its Commitment after giving effect to this Agreement, duly and validly executed and delivered  by a duly authorized officer of the Borrowers.  Section 7. Acknowledgments and Agreements.    (a) Each Loan Party acknowledges that on the date hereof all outstanding  Obligations are payable in accordance with their terms and each Loan Party waives any defense,  offset, counterclaim or recoupment (other than a defense of payment or performance) with respect  thereto.  (b) Each Loan Party, the Agent, the Issuing Banks, the Swing Line Lenders and  each Lender party hereto does hereby adopt, ratify, and confirm the Credit Agreement, as amended  hereby (the “Amended Credit Agreement”), and acknowledges and agrees that the Amended  





 






8    Credit Agreement is and remains in full force and effect, and acknowledge and agree that their  respective liabilities and obligations under the Amended Credit Agreement, each Guaranty and  Security Agreement, and the other Loan Documents, are not impaired in any respect by this  Agreement.  (c) Nothing herein shall constitute a waiver or relinquishment of (i) any Default  or Event of Default under any of the Loan Documents, (ii) any of the agreements, terms or  conditions contained in any of the Loan Documents, (iii) any rights or remedies of the Agent or  any Lender with respect to the Loan Documents, or (iv) the rights of the Agent, any Issuing Bank,  any Swing Line Lender or any Lender to collect the full amounts owing to them under the Loan  Documents.  (d) From and after the Effective Date, all references to the Credit Agreement  shall mean the Credit Agreement, as amended by this Agreement.  This Agreement is a Loan  Document for the purposes of the provisions of the other Loan Documents.   Section 8. Post-Closing Obligation.    (a) On or before June 30, 2022 (or such later date as may be approved by the  Agent in its reasonable discretion) each Loan Party hereby agrees to (a) repay or otherwise satisfy  all Bank Product Obligations due and owing to HSBC Bank USA, N.A. and terminate all Bank  Product Agreements with HSBC Bank USA, N.A., and (b) terminate all cash management services  provided by HSBC Bank USA, N.A. or otherwise transfer all such cash management services and  any Collection Accounts to another Controlled Account Bank, and otherwise comply with Section  6.17 of the Credit Agreement.    (b) On or before the date that is 30 days following the Effective Date (or such  later date as may be approved by the Agent in its reasonable discretion), the Borrower shall  deliver to the Agent an amended and restated Perfection Certificate which shall be true and  correct as of such date and shall be in form and substance reasonably satisfactory to the Agent.  Section 9. Reaffirmation of Guaranty and Security Agreements.  Each Loan Party  (a) reaffirms the terms of and its obligations (and the security interests granted by it) under each  Guaranty and Security Agreement to which it is a party, and agrees that each such Guaranty and  Security Agreement will continue in full force and effect to secure the Obligations as the same  may be amended, supplemented, or otherwise modified from time to time, (b) acknowledges,  represents, warrants and agrees that the liens and security interests granted by it pursuant to each  Guaranty and Security Agreement are valid, enforceable and subsisting and create a security  interest to secure the Obligations, and (c) confirms, acknowledges and agrees that such Guarantor  continues to unconditionally and irrevocably guarantee the full and punctual payment, when due,  whether at stated maturity or earlier by acceleration or otherwise, of all of the Obligations, as such  Obligations may have been amended by this Agreement, and its execution and delivery of this  Agreement does not indicate or establish an approval or consent requirement by such Guarantor  under any Guaranty and Security Agreement, in connection with the execution and delivery of  amendments, consents or waivers to the Credit Agreement or any of the other Loan Documents.  





 






9    Section 10. Counterparts.  This Agreement may be signed in any number of  counterparts and by different parties hereto in separate counterparts, each of which when so  executed shall be deemed to be an original and all of which, taken together, constitute one and the  same agreement.  Delivery of an executed counterpart of a signature page of this Agreement by  facsimile or by e-mail “PDF” copy shall be effective as delivery of a manually executed  counterpart of this Agreement.  Section 11. Successors and Assigns.  This Agreement shall be binding upon and inure  to the benefit of the parties hereto and their respective successors and assigns permitted pursuant  to the Credit Agreement.  Section 12. Invalidity.  In the event that any one or more of the provisions contained in  this Agreement shall be held invalid, illegal or unenforceable in any respect under any applicable  Legal Requirement, the validity, legality, and enforceability of the remaining provisions contained  herein or therein shall not be affected or impaired thereby.  Section 13. Governing Law.  This Agreement shall be deemed a contract under, and  shall be governed by, and construed and enforced in accordance with, the laws of the State of New  York applicable to contracts made and to be performed entirely within such state without regard  to conflicts of laws principles (other than Sections 5-1401 and 5-1402 of the General Obligations  Law of the State of New York).  Section 14. Entire Agreement. THIS AGREEMENT, THE CREDIT  AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL  AGREEMENT AMONG THE PARTIES AND SUPERSEDE ALL PRIOR  UNDERSTANDINGS AND AGREEMENTS, WHETHER WRITTEN OR ORAL,  RELATING TO THE TRANSACTIONS PROVIDED FOR HEREIN AND THEREIN.   ADDITIONALLY, THIS AGREEMENT, THE CREDIT AGREEMENT AS AMENDED  BY THIS AGREEMENT, AND THE OTHER CREDIT DOCUMENTS MAY NOT BE  CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR  SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.   THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.   IN EXECUTING THIS AGREEMENT, EACH PARTY HERETO HEREBY  WARRANTS AND REPRESENTS IT IS NOT RELYING ON ANY STATEMENT OR  REPRESENTATION OTHER THAN THOSE IN THIS AGREEMENT AND IS RELYING  UPON ITS OWN JUDGMENT AND ADVICE OF ITS ATTORNEYS.   [SIGNATURES BEGIN ON NEXT PAGE]  





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed  by their respective officers thereunto duly authorized as of the day and year first above written. BORROWERS: FORUM ENERGY TECHNOLOGIES, INC. By: /s/ D. Lyle Williams Name: D. Lyle Williams Title:  Executive Vice President and Chief Financial  Officer FORUM CANADA ULC By: /s/ John McElroy Name: John McElroy Title:  President GT COILED TUBING OF CANADA ULC By: /s/ Neal Lux Name: Neal Lux Title:  President GUARANTORS: FET HOLDINGS, LLC FORUM ENERGY SERVICES, INC. FORUM GLOBAL HOLDINGS, LLC FORUM GLOBAL TUBING, LLC FORUM INTERNATIONAL HOLDINGS, INC. FORUM US, INC. By: /s/ John McElroy Name: John McElroy Title:  President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] FORUM GLOBAL TUBING LP By: Forum US, Inc., its General Partner By: ______/s/ John McElroy_____________ Name: John McElroy Title: President GLOBAL TUBING LLC By: /s/ Neal Lux Name: Neal Lux Title:  President Z EXPLORATIONS, INC. By: /s/ Steven Pounds Name: Steven Pounds Title:  President GLOBAL FLOW TECHNOLOGIES, INC. Z RESOURCES, INC. ZY-TECH GLOBAL INDUSTRIES, INC. By: /s/ Steven Pounds Name: Steven Pounds Title:  President PRO-TECH VALVE SALES INC. By: /s/ Steven Pounds Name: Steven Pounds Title:  President HOUSTON GLOBAL HEAT TRANSFER LLC By: /s/ John McElroy Name: John McElroy Title:  President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] GLOBAL HEAT TRANSFER ULC By: /s/ John McElroy Name: John McElroy Title:  President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] AGENTS/LENDERS: WELLS FARGO BANK, NATIONAL  ASSOCIATION, as Agent, Issuing Bank and a  Lender By: /s/ Seth Setterberg Name: Seth Setterberg Title: Relationship Manager 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] WELLS FARGO CAPITAL FINANCE  CORPORATION CANADA, as a Lender and  Issuing Bank By: /s/ David G. Phillips Name: David G. Phillips Title: Senior Vice President Credit Officer, Canada 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] JPMORGAN CHASE BANK, N.A., as a Lender and Issuing Bank By: /s/ Jason R. Williams Name: Jason R. Williams Title: Authorized Officer 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] JPMORGAN CHASE BANK, N.A., TORONTO  BRANCH, as a Lender and Issuing Bank By: /s/ Jason R. Williams Name: Jason R. Williams Title: Authorized Officer 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] Solely for purposes of Section 3 of this Agreement: CITIBANK, N.A., as an Exiting Lender and  Assignor By: /s/ Ivan Davey_ Name: Ivan Davey Title: Vice President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] BANK OF AMERICA, N.A., as a Lender By: /s/ Michael Danby Name: Michael Danby Title: Vice President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] BANK OF AMERICA, N.A. CANADA  BRANCH, as a Lender By: /s/ Sylwia Durkiewicz Name: Sylwia Durkiewicz Title: Vice President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] Solely for purposes of Section 3 of this Agreement: HSBC BANK USA, N.A., as an Exiting Lender and Assignor By: /s/ Temesaen Haile Name: Temesaen Haile Title: Vice President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] Solely for purposes of Section 3 of this Agreement: DEUTSCHE BANK AG, NEW YORK  BRANCH, as an Exiting Lender and Assignor By: /s/ Philip Tancorra Name: Philip Tancorra Title: Vice President By: /s/ Suzan Onal Name: Suzan Onal Title: Vice President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] Solely for purposes of Section 3 of this Agreement: DEUTSCHE BANK AG, CANADA BRANCH,  as an Exiting Lender and Assignor By: /s/ David Gynn Name: David Gynn Title: Chief Financial Officer By: /s/ Edward Salibian Name: Edward Salibian Title: Assistant Vice President 





 






[SIGNATURE PAGE TO FORUM AMENDMENT NO. 3] ZIONS BANCORPORATION, N.A. DBA  AMEGY BANK, as a Lender By: /s/ Brad Ellis Name: Brad Ellis Title: SVP 





 






[ANNEX A TO FORUM AMENDMENT NO. 3]    ANNEX A  [See Attached.] 





 






   ANNEX A TO MASTER ASSIGNMENT AGREEMENT AND  AMENDMENT NO. 3 TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT    THIRD AMENDED AND RESTATED CREDIT AGREEMENT  by and among  WELLS FARGO BANK, NATIONAL ASSOCIATION,  as Administrative Agent,  WELLS FARGO BANK, NATIONAL ASSOCIATION,  JPMORGAN CHASE BANK, N.A., AND BANK OF AMERICA, N.A.  as Joint Lead Arrangers,  WELLS FARGO BANK, NATIONAL ASSOCIATION,  JPMORGAN CHASE BANK, N.A., AND BANK OF AMERICA, N.A.  as Joint Book Runners,    THE LENDERS THAT ARE PARTIES HERETO  as the Lenders,  FORUM ENERGY TECHNOLOGIES, INC.,  as a US Borrower,   FORUM CANADA ULC,  as a Canadian Borrower  Dated as of October 30, 2017    





 






  TABLE OF CONTENTS  Page   -ii-    1.  DEFINITIONS AND CONSTRUCTION. ............................................................................................. 1  1.1  Definitions ............................................................................................................................... 1  1.2  Accounting Terms .................................................................................................................. 81  1.3  Code; PPSA ........................................................................................................................... 81  1.4  Construction ........................................................................................................................... 81  1.5  Time References .................................................................................................................... 82  1.6  Schedules and Exhibits .......................................................................................................... 82  1.7  Currencies; Agreed Currencies; Change of Currency ............................................................ 82  1.8  Quebec Interpretation ............................................................................................................. 84  1.9  Divisions ................................................................................................................................ 85  1.10  Rates ..................................................................................................................................... 85  2.  LOANS AND TERMS OF PAYMENT. .............................................................................................. 86  2.1  Revolving Loans .................................................................................................................... 86  2.2  Borrowing Procedures and Settlements ................................................................................. 87  2.3  Payments; Reductions of Commitments; Prepayments ......................................................... 96  2.4  Promise to Pay; Promissory Notes ....................................................................................... 102  2.5  Interest Rates and Letter of Credit Fee:  Rates, Payments, and Calculations ...................... 102  2.6  Crediting Payments .............................................................................................................. 105  2.7  Designated Account ............................................................................................................. 105  2.8  Maintenance of Loan Account; Statements of Obligations ................................................. 105  2.9  Fees ...................................................................................................................................... 106  2.10  Letters of Credit ................................................................................................................. 107  2.11  Non-Base Rate Option ....................................................................................................... 125  2.12  Capital Requirements ......................................................................................................... 128  2.13  Incremental Facilities ......................................................................................................... 130  2.14  Joint and Several Liability of US Borrowers ..................................................................... 131  2.15  Joint and Several Liability of Canadian Borrowers ........................................................... 134  2.16  Currencies .......................................................................................................................... 137  2.17  Interest Act (Canada); Criminal Rate of Interest; Nominal Rate of Interest ...................... 138  3.  CONDITIONS; TERM OF AGREEMENT. ...................................................................................... 139  3.1  Conditions Precedent to the Initial Extension of Credit....................................................... 139  3.2  Conditions Precedent to all Extensions of Credit ................................................................ 139  3.3  Maturity ............................................................................................................................... 139  3.4  Effect of Maturity ................................................................................................................ 140  





 






  TABLE OF CONTENTS  (continued)  Page    3.5  Early Termination by Borrowers ......................................................................................... 140  3.6  Conditions Subsequent ......................................................................................................... 140  4.  REPRESENTATIONS AND WARRANTIES. .................................................................................. 140  4.1  Due Organization and Qualification; Subsidiaries ............................................................... 140  4.2  Due Authorization; No Conflict ........................................................................................... 141  4.3  Governmental Consents ....................................................................................................... 141  4.4  Binding Obligations; Perfected Liens .................................................................................. 142  4.5  Title to Assets; No Encumbrances ....................................................................................... 142  4.6  Litigation .............................................................................................................................. 142  4.7  Compliance with Laws ........................................................................................................ 142  4.8  No Material Adverse Effect ................................................................................................. 142  4.9  Solvency ............................................................................................................................... 143  4.10  Employee Benefits ............................................................................................................. 143  4.11  Environmental Condition ................................................................................................... 144  4.12  Complete Disclosure .......................................................................................................... 144  4.13  Patriot Act; Canadian AML and Anti-Terrorism Laws ..................................................... 145  4.14  Indebtedness ....................................................................................................................... 145  4.15  Payment of Taxes ............................................................................................................... 145  4.16  Margin Stock ...................................................................................................................... 145  4.17  Governmental Regulation .................................................................................................. 145  4.18  OFAC; Sanctions; Procedures ........................................................................................... 145  4.19  Employee and Labor Matters ............................................................................................. 146  4.20  [Reserved] .......................................................................................................................... 146  4.21  Leases ................................................................................................................................. 146  4.22  Eligible Accounts ............................................................................................................... 146  4.23  Eligible Inventory .............................................................................................................. 146  4.24  [Reserved] .......................................................................................................................... 147  4.25  Location of Inventory ........................................................................................................ 147  4.26  Inventory Records .............................................................................................................. 147  5.  AFFIRMATIVE COVENANTS......................................................................................................... 147  5.1  Financial Statements, Reports, Certificates ......................................................................... 147  5.2  Reporting ............................................................................................................................. 147  5.3  Existence .............................................................................................................................. 147  





 






  TABLE OF CONTENTS  (continued)  Page    5.4  Maintenance of Properties ................................................................................................... 147  5.5  Taxes .................................................................................................................................... 147  5.6  Insurance .............................................................................................................................. 148  5.7  Inspection ............................................................................................................................. 148  5.8  Compliance with Laws ........................................................................................................ 149  5.9  Environmental ...................................................................................................................... 149  5.10  Disclosure Updates ............................................................................................................ 149  5.11  Formation of Subsidiaries; Designation ............................................................................. 150  5.12  Further Assurances ............................................................................................................. 151  5.13  Lender Meetings ................................................................................................................ 153  5.14  Location of Inventory; Chief Executive Office ................................................................. 153  5.15  OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws ....................... 153  5.16  Canadian Compliance ........................................................................................................ 153  5.17  Compliance with ERISA and the IRC ............................................................................... 154  5.18  Cash Balance Report .......................................................................................................... 154  6.  NEGATIVE COVENANTS. .............................................................................................................. 155  6.1  Indebtedness ......................................................................................................................... 155  6.2  Liens ..................................................................................................................................... 155  6.3  Restrictions on Fundamental Changes ................................................................................. 155  6.4  Disposal of Assets ................................................................................................................ 156  6.5  Nature of Business ............................................................................................................... 156  6.6  Prepayments and Amendments ............................................................................................ 156  6.7  Restricted Payments ............................................................................................................. 157  6.8  Accounting Methods ............................................................................................................ 157  6.9  Investments .......................................................................................................................... 157  6.10  Transactions with Affiliates ............................................................................................... 157  6.11  Use of Proceeds.................................................................................................................. 158  6.12  Limitation on Issuance of Equity Interests ........................................................................ 158  6.13  Inventory with Bailees ....................................................................................................... 158  6.14  Immaterial Subsidiaries ..................................................................................................... 159  6.15  Employee Benefits ............................................................................................................. 159  6.16  Canadian Employee Benefits ............................................................................................. 159  6.17  Controlled Accounts; Controlled Investments ................................................................... 160  





 






  TABLE OF CONTENTS  (continued)  Page    7.  FINANCIAL COVENANTS. ............................................................................................................. 161  8.  EVENTS OF DEFAULT. ................................................................................................................... 161  8.1  Payments .............................................................................................................................. 161  8.2  Covenants ............................................................................................................................. 161  8.3  Judgments ............................................................................................................................ 162  8.4  Voluntary Bankruptcy, etc ................................................................................................... 162  8.5  Involuntary Bankruptcy, etc ................................................................................................. 162  8.6  Default Under Other Agreements ........................................................................................ 162  8.7  Representations, etc ............................................................................................................. 162  8.8  Guaranty ............................................................................................................................... 162  8.9  Security Documents ............................................................................................................. 163  8.10  Loan Documents ................................................................................................................ 163  8.11  Change of Control .............................................................................................................. 163  8.12  ERISA ................................................................................................................................ 163  8.13  Intercreditor Agreement ..................................................................................................... 163  9.  RIGHTS AND REMEDIES................................................................................................................ 163  9.1  Rights and Remedies ............................................................................................................ 163  9.2  Remedies Cumulative .......................................................................................................... 164  10.  WAIVERS; INDEMNIFICATION. ................................................................................................. 164  10.1  Demand; Protest; etc .......................................................................................................... 164  10.2  The Lender Group’s Liability for Collateral ...................................................................... 164  10.3  Indemnification .................................................................................................................. 165  11.  NOTICES. ......................................................................................................................................... 166  12.  CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE  PROVISION. .............................................................................................................................. 167  13.  ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS. ....................................................... 168  13.1  Assignments and Participations ......................................................................................... 168  13.2  Successors .......................................................................................................................... 172  13.3  Intercreditor Matters .......................................................................................................... 172  13.4  Collection Allocation Mechanism ..................................................................................... 172  14.  AMENDMENTS; WAIVERS. ......................................................................................................... 173  14.1  Amendments and Waivers ................................................................................................. 173  14.2  Replacement of Certain Lenders ........................................................................................ 175  





 






  TABLE OF CONTENTS  (continued)  Page    14.3  No Waivers; Cumulative Remedies ................................................................................... 176  15.  AGENT; THE LENDER GROUP. ................................................................................................... 176  15.1  Appointment and Authorization of Agent ......................................................................... 176  15.2  Delegation of Duties .......................................................................................................... 177  15.3  Liability of Agent ............................................................................................................... 177  15.4  Reliance by Agent .............................................................................................................. 177  15.5  Notice of Default or Event of Default ................................................................................ 178  15.6  Credit Decision .................................................................................................................. 178  15.7  Costs and Expenses; Indemnification ................................................................................ 179  15.8  Agent in Individual Capacity ............................................................................................. 179  15.9  Successor Agent ................................................................................................................. 179  15.10  Lender in Individual Capacity.......................................................................................... 180  15.11  Collateral Matters ............................................................................................................. 180  15.12  Restrictions on Actions by Lenders; Sharing of Payments .............................................. 182  15.13  Agency for Perfection ...................................................................................................... 182  15.14  Payments by Agent to the Lenders .................................................................................. 182  15.15  Concerning the Collateral and Related Loan Documents ................................................ 183  15.16  Field Examination Reports; Confidentiality; Disclaimers by Lenders; Other  Reports and Information .................................................................................................. 183  15.17  Several Obligations; No Liability .................................................................................... 184  15.18  Joint Lead Arrangers, Joint Book Runners, Co-Syndication Agents, and  Documentation Agent ...................................................................................................... 184  15.19  Quebec Security ............................................................................................................... 184  16.  WITHHOLDING TAXES. ............................................................................................................... 184  16.1  Payments ............................................................................................................................ 184  16.2  Exemptions ........................................................................................................................ 185  16.3  Reductions ......................................................................................................................... 186  16.4  Refunds .............................................................................................................................. 186  17.  GENERAL PROVISIONS. .............................................................................................................. 187  17.1  Effectiveness ...................................................................................................................... 187  17.2  Section Headings ............................................................................................................... 187  17.3  Interpretation ...................................................................................................................... 187  17.4  Severability of Provisions .................................................................................................. 187  17.5  Bank Product Providers ..................................................................................................... 187  





 






  TABLE OF CONTENTS  (continued)  Page    17.6  Debtor-Creditor Relationship ............................................................................................. 188  17.7  Counterparts; Electronic Execution ................................................................................... 188  17.8  Revival and Reinstatement of Obligations; Certain Waivers ............................................ 188  17.9  Confidentiality ................................................................................................................... 189  17.10  Survival ............................................................................................................................ 190  17.11  Patriot Act; Due Diligence ............................................................................................... 191  17.12  Integration ........................................................................................................................ 191  17.13  Parent as Agent for Borrowers ......................................................................................... 191  17.14  Judgment Currency .......................................................................................................... 192  17.15  Amendment and Restatement .......................................................................................... 192  17.16  Acknowledgement and Consent to Bail-In of Affected Financial Institutions ................ 192  17.17  Certain ERISA Matters .................................................................................................... 193  17.18  Acknowledgement Regarding Any Supported QFCs ...................................................... 194  17.19  Erroneous Payments ......................................................................................................... 195    EXHIBITS AND SCHEDULES  Exhibit A-1 Form of Assignment and Acceptance   Exhibit B-1 Form of Borrowing Base Certificate  Exhibit B-2   Form of Bank Product Provider Agreement  Exhibit C-1 Form of Compliance Certificate  Exhibit J-1   Form of Joinder  Exhibit N-1   Form of Non-Base Rate Notice  Exhibit P-1   Form of Perfection Certificate       Schedule A-1 Agent’s Accounts  Schedule A-2 Authorized Persons  Schedule C-1 Commitments  Schedule D-1 Canadian Designated Account(s)  Schedule D-2   US Designated Account(s)  Schedule E-1   Existing Letters of Credit  Schedule P-1 Permitted Investments  Schedule P-2 Permitted Liens  Schedule 3.1 Conditions Precedent  Schedule 3.6 Conditions Subsequent  Schedule 4.1(c) Capitalization of Borrowers’ Subsidiaries  Schedule 4.1(d)   Subscriptions, Options, Warrants, Calls  Schedule 4.10   Employee Benefits  Schedule 4.11 Environmental Matters  Schedule 4.14 Permitted Indebtedness  





 






  TABLE OF CONTENTS  (continued)  Page    Schedule 4.25 Location of Inventory   Schedule 5.1 Financial Statements, Reports, Certificates  Schedule 5.2 Collateral Reporting   Schedule 6.5   Nature of Business    





 






      THIRD AMENDED AND RESTATED CREDIT AGREEMENT  THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT, is entered into  as of October 30, 2017 by and among the lenders identified on the signature pages hereof (each of such  lenders, together with its successors and permitted assigns, is referred to hereinafter as a “Lender”, as that  term is hereinafter further defined), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national  banking association, as administrative agent for each member of the Lender Group and the Bank Product  Providers (in such capacity, together with its successors and assigns in such capacity, “Agent”), WELLS  FARGO BANK, NATIONAL ASSOCIATION, JPMORGAN CHASE BANK, N.A. and BANK OF  AMERICA, N.A., as joint lead arrangers (in such capacity, together with their successors and assigns in  such capacity, the “Joint Lead Arrangers”), WELLS FARGO BANK, NATIONAL ASSOCIATION,  JPMORGAN CHASE BANK, N.A. and BANK OF AMERICA, N.A., as joint book runners (in such  capacity, together with their successors and assigns in such capacity, the “Joint Book Runners”), WELLS  FARGO BANK, NATIONAL ASSOCIATION, JPMORGAN CHASE BANK, N.A. and BANK OF  AMERICA, N.A., as co-syndication agents (in such capacity, together with their successors and assigns in  such capacity, the “Co-Syndication Agents”), WELLS FARGO BANK, NATIONAL ASSOCIATION,  as documentation agent (in such capacity, together with its successors and assigns in such capacity, the  “Documentation Agent”), Forum Energy Technologies, Inc., a Delaware corporation (“Parent”; and those  additional entities that hereafter become parties hereto as Borrowers in accordance with the terms hereof  by executing the form of Joinder attached hereto as Exhibit J-1 (each, a “US Borrower” and individually  and collectively, jointly and severally, the “US Borrowers”)), Forum Canada ULC, an Alberta unlimited  liability corporation (“Forum Canada”; and those additional entities that hereafter become parties hereto as   Borrowers in accordance with the terms hereof by executing the form of Joinder attached hereto as Exhibit  J-1 (each, a “Canadian Borrower” and individually and collectively, jointly and severally, the “Canadian  Borrowers”, and together with the US Borrowers, each a “Borrower” and individually and collectively,  jointly and severally, the “Borrowers”)).  The parties agree as follows:  1. DEFINITIONS AND CONSTRUCTION.  1.1 Definitions.  As used in this Agreement, the following terms shall have the following  definitions:  “ABL Collateral” means all of each and every Loan Party’s right, title, and interest in and  to the following types of property of such Loan Party, wherever located and whether now owned by such  Loan Party or hereafter acquired:   (a) all Accounts, credit card receivables and all amounts payable in respect of the sale,  lease, assignment, license or other disposition of Inventory or services rendered or to be rendered  (collectively, the “Receivables”);  (b) all Inventory;  (c)  all Deposit Accounts and Securities Accounts into which any proceeds of  Receivables, Inventory and other ABL Collateral are deposited (including any cash and other funds or other  property held in or on deposit therein);  (d) to the extent related to, substituted or exchanged for, evidencing, supporting or  arising from any of the items referred to in the preceding clauses (a)-(c), all general intangibles, chattel  





 






     -2-    paper, documents, letter of credit rights, instruments and rights to payment evidenced thereby, payment  intangibles, supporting obligations and books and records, including customer lists;  (e) to the extent attributed or pertaining to any ABL Collateral, all commercial tort  claims;  (f) business interruption insurance proceeds; and  (g) all substitutions, replacements, accessions, products, or proceeds of any of the  foregoing, in any form, including insurance proceeds and all claims against third parties for loss or damage  to, or destruction of, or other involuntary conversion (including claims in respect of condemnation or  expropriation) of any kind or nature of any or all of the foregoing.  “Acceptable Appraisal” means, with respect to an appraisal of Inventory, the most recent  appraisal of such property received by Agent (a) from an appraisal company satisfactory to Agent, (b) the  scope and methodology (including, to the extent relevant, any sampling procedure employed by such  appraisal company) of which are satisfactory to Agent, and (c) the results of which are satisfactory to Agent,  in each case, in Agent's Permitted Discretion.  “Account” means an account (as that term is defined in the Code or to the extent applicable,  the PPSA).   “Account Debtor” means any Person who is obligated on an Account, chattel paper, or a  general intangible.   “Accounting Changes” means changes in accounting principles required by the  promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards  Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with  similar functions).  “Acquired Indebtedness” means Indebtedness of a Person whose assets or Equity Interests  are acquired by a Loan Party or any of its Subsidiaries in a Permitted Acquisition; provided, that such  Indebtedness (a) is not recourse to any Loan Party or any Restricted Subsidiary of any Loan Party prior to  the date of such Permitted Acquisition, (b) is not secured by a Lien on any ABL Collateral (other than such  Liens which rank junior to the Liens encumbering ABL Collateral that secures the Obligations and which  are subject to a customary intercreditor agreement in form and substance reasonably acceptable to Agent  and the Administrative Borrower), (c) was in existence prior to the date of such Permitted Acquisition, and  (d) was not incurred in connection with, or in contemplation of, such Permitted Acquisition.  “Acquisition” means (a) the purchase or other acquisition by a Person or its Restricted  Subsidiaries of all or substantially all of the assets of (or any division or business line of) any other Person,  or (b) the purchase or other acquisition (whether by means of a merger, consolidation, or otherwise) by a  Person or its Restricted Subsidiaries of all of the Equity Interests of any other Person.  “Activation Instruction” has the meaning specified therefor in Section 6.17(b) of this  Agreement.  “Additional Documents” has the meaning specified therefor in Section 5.12 of this  Agreement.  





 






     -3-    “Adjusted LIBOR Rate” means, with respect to any LIBOR Rate Loan for any Interest  Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of one percent (1%))  equal to the LIBOR Rate for such Interest Period multiplied by the Statutory Reserve Rate. The Adjusted  LIBOR Rate will be adjusted automatically as to all LIBOR Rate Borrowings then outstanding as of the  effective date for the change in the Statutory Reserve Rate.  “Administrative Borrower” has the meaning specified therefor in Section 17.13 of this  Agreement.  “Administrative Questionnaire” has the meaning specified therefor in Section 13.1(a) of  this Agreement.  “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK  Financial Institution.  “Affected Lender” has the meaning specified therefor in Section 2.12(b) of this Agreement.  “Affiliate” means, as applied to any Person, any other Person who Controls, is Controlled  by, or is under common Control with, such Person; provided, that for purposes of the definition of Specified  Affiliate, US Eligible Accounts, Canadian Eligible Accounts and Section 6.10 of this Agreement: (a) any  Person which owns directly or indirectly 10% or more of the Equity Interests having ordinary voting power  for the election of directors or other members of the governing body of a Person or 10% or more of the  partnership or other ownership interests of a Person (other than as a limited partner of such Person) shall  be deemed an Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be  deemed to be an Affiliate of such Person, and (c) each partnership in which a Person is a general partner  shall be deemed an Affiliate of such Person.  “Agent” has the meaning specified therefor in the preamble to this Agreement.  “Agent Assignee” has the meaning specified therefor in Section 17.19(d) of this  Agreement.  “Agent-Related Persons” means Agent, together with its Affiliates, officers, directors,  employees, attorneys, and agents.  “Agent’s Applicable Account” means Agent’s US Account and/or Agent’s Canadian  Account, as the context requires.  “Agent’s Canadian Account” means the Deposit Account of Agent identified on Schedule  A-1 to this Agreement as Agent’s Canadian Account (or such other Deposit Account of Agent that has been  designated as such, in writing, by Agent to Administrative Borrower and the Lenders).  “Agent’s US Account” means the Deposit Account of Agent identified on Schedule A-1 to  this Agreement as Agent’s US Account (or such other Deposit Account of Agent that has been designated  as such, in writing, by Agent to Administrative Borrower and the Lenders).  “Agent’s Liens” means the Liens granted by each Loan Party or its Restricted Subsidiaries  to Agent under the Loan Documents and securing the Obligations.  





 






     -4-    “Aggregate Borrowing Base Certificate” means a certificate consistent with the US  Borrowing Base Certificate and the Canadian Borrowing Base Certificate in the form attached hereto as  Exhibit B-1.  “Agreement” means this Third Amended and Restated Credit Agreement, as amended,  restated, amended and restated, supplemented or otherwise modified from time to time.  "Agreed Currency" means, subject to Section 1.7, (a) with respect to any US Borrowing,  US Dollars, (b) with respect to any Canadian Borrowing, US Dollars and Canadian Dollars, (c) with respect  to any Letter of Credit, (i) US Dollars, (ii) British Pound Sterling, (iii) Canadian Dollars, (iv) Euros, (v)  UAE Dirham, (vi) Singapore Dollars, (vii) South African Rand (other than with respect to Bank of America,  N.A., as Issuing Bank if it is an Issuing Bank, unless it otherwise consents) and (vii) any other Eligible  Currency approved in accordance with Section 1.7, and (d) with respect to all other Obligations (including  US Bank Product Obligations or the Canadian Bank Product Obligations), US Dollars or Canadian Dollars,  as applicable.   “Amendment No. 3 Effective Date” means September 8, 2021.  “Announcements” has the meaning specified therefor in Section 1.10 of this Agreement.  “Anti-Corruption Laws” means the FCPA, the U.K. Bribery Act of 2010, as amended, and  all other applicable laws and regulations or ordinances concerning or relating to bribery, money laundering  or corruption in any jurisdiction in which any Loan Party or any of its Subsidiaries or Affiliates is located  or is doing business.  “Anti-Money Laundering Laws” means the applicable laws or regulations in any  jurisdiction in which any Loan Party or any of its Subsidiaries or Affiliates is located or is doing business  that relates to money laundering, any predicate crime to money laundering, or any financial record keeping  and reporting requirements related thereto, including the Canadian Anti-Money Laundering & Anti- Terrorism Legislation.  “Applicable Margin” means, as of any date of determination with respect to Base Rate  Loans, LIBOR Rate Loans, or CDOR Rate Loans, as applicable, the applicable margin set forth in Table A  below based on the Total Net Leverage Ratio as reflected in the Compliance Certificate delivered in  connection with the financial statements most recently delivered by the Borrowers pursuant to Section 5.1.   Adjustments, if any, to such Applicable Margin shall be effective on the first Business Day after the Agent  receives the applicable financial statements and corresponding Compliance Certificate as required by the  terms of this Agreement.  Notwithstanding the foregoing, the Loan Parties shall be deemed to be at Level  III until delivery of its unaudited financial statements for the fiscal quarter ending September 30, 2021 and  the corresponding Compliance Certificate.  If the Borrowers fail to deliver the financial statements and  corresponding Compliance Certificate to the Agent at the times required pursuant to Section 5.1, then  effective as of the date such financial statements and Compliance Certificate were required to be delivered  pursuant to Section 5.1, the Applicable Margin shall be determined at Level III and shall remain at such  level until the first Business Day after the date such financial statements and corresponding Compliance  Certificate are so delivered by the Borrowers. Notwithstanding anything to the contrary contained herein,  the determination of the Applicable Margin for any period shall be subject to the provisions of Section  2.5(g). For the avoidance of doubt, the levels on the pricing grid set forth below are set forth from lowest  (Level I) to the highest (Level III).  





 






     -5-      “Applicable Period” has the meaning set forth in Section 2.5(g).  “Applicable Unused Line Fee Percentage” means, as of any date of determination, the  applicable percentage set forth in Table A below that corresponds to the Average Revolver Usage of  Borrowers for the most recently completed calendar month as determined by Agent in its Permitted  Discretion:  TABLE A  Level Average Revolver Usage  Applicable Unused Line Fee  Percentage  I > 50% of the Maximum  Revolver Amount  0.375 percentage points  II < 50% of the Maximum  Revolver Amount  0.50 percentage points     “Application Event” means the occurrence of (a) a failure by Borrowers to repay all of the  Obligations in full on the Maturity Date, or (b) an Event of Default and the election by Agent or the  Supermajority Lenders to require that payments and proceeds of Collateral be applied pursuant to Section  2.3(b)(iii) of this Agreement.  “Assignee” has the meaning specified therefor in Section 13.1(a) of this Agreement.  “Assignment and Acceptance” means an Assignment and Acceptance Agreement  substantially in the form of Exhibit A-1 to this Agreement.  “Authorized Person” means any one of the individuals identified as an officer of a  Borrower on Schedule A-2 to this Agreement, or any other individual identified by Administrative  Borrower as an authorized person and authenticated through Agent’s electronic platform or portal in  accordance with its procedures for such authentication.  “Available Revolver Increase Amount” means, as of any date of determination, an amount  equal to the result of (a) $100,000,000 minus (b) the aggregate principal amount of Increases to the Revolver  Commitments previously made pursuant to Section 2.13 of this Agreement.  “Available Tenor” means, as of any date of determination and with respect to the then- current Benchmark, as applicable, (x) if the then-current Benchmark is a term rate, any tenor for such  Benchmark or (y) otherwise, any payment period for interest calculated with reference to such Benchmark,  TABLE A  Applicable Margin Total Net  Leverage Ratio  “Base Rate Margin” “LIBOR/CDOR Rate  Margin”  Level I Is less than 2.00 1.25 percentage  points  2.25 percentage points  Level II Is greater than or  equal to 2.00 and  less than 3.00  1.50 percentage  points  2.50 percentage points  Level III Is greater than or  equal to 3.00  1.75 percentage  points  2.75 percentage points  





 






     -6-    as applicable, that is or may be used for determining the length of an Interest Period pursuant to this  Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark  that is then-removed from the definition of “Interest Period” pursuant to Section 2.11(d)(iii)(D); provided,  that if the then-current Benchmark is based upon SOFR Average, such Benchmark shall be deemed to not  have any Available Tenors.  “Average Excess Availability” means, with respect to any period, the sum of the aggregate  amount of Excess Availability for each day in such period (as calculated by Agent as of the end of each  respective day) divided by the number of days in such period.   “Average Canadian Revolver Usage” means, with respect to any period, the sum of the  aggregate amount of Canadian Revolver Usage for each day in such period (calculated as of the end of each  respective day) divided by the number of days in such period.   “Average Revolver Usage” means, with respect to any period, the sum of the aggregate  amount of Revolver Usage for each day in such period (calculated as of the end of each respective day)  divided by the number of days in such period.  “Average US Revolver Usage” means, with respect to any period, the sum of the aggregate  amount of US Revolver Usage for each day in such period (calculated as of the end of each respective day)  divided by the number of days in such period.  “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution.  “Bail-In Legislation” means (a) with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union,  the implementing law, regulation, rule or requirement for such EEA Member Country from time to time  which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom,   Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law,  regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks,  investment firms or other financial institutions or their affiliates (other than through liquidation,  administration or other insolvency proceedings).  "Bank Product Agreements" means the US Bank Product Agreements and/or the Canadian  Bank Product Agreements, as the context requires.  "Bank Product Collateralization" means, with respect to the US Bank Product Obligations  or the Canadian Bank Product Obligations, as applicable, providing cash collateral (pursuant to  documentation reasonably satisfactory to Agent) in the Agreed Currency to be held by Agent for the benefit  of the applicable Bank Product Providers (other than the Hedge Providers) in an amount determined by  Agent as sufficient to satisfy the reasonably estimated credit exposure with respect to the applicable then  existing Bank Product Obligations (other than Hedge Obligations).  "Bank Product Obligations" means the US Bank Product Obligations and/or the Canadian  Bank Product Obligations, as the context requires.  “Bank Product Provider” means any Lender or any of its Affiliates, including each of the  foregoing in its capacity, if applicable, as a Hedge Provider; provided, that no such Person (other than Wells  Fargo or its Affiliates) shall constitute a Bank Product Provider with respect to a Bank Product unless and  until Agent receives a Bank Product Provider Agreement from such Person (a) on or prior to the Closing  





 






     -7-    Date (or such later date as Agent shall agree to in writing in its sole discretion) with respect to Bank Products  provided on or prior to the Closing Date, or (b) on or prior to the date that is 10 days after the provision of  such Bank Product to a Loan Party or its Restricted Subsidiaries that are Loan Parties (or such later date as  Agent shall agree to in writing in its sole discretion) with respect to Bank Products provided after the  Closing Date; provided further, that if, at any time, a Lender ceases to be a Lender under this Agreement  (prior to the payment in full of the Obligations), then, subject to the proviso below, from and after the date  on which it so ceases to be a Lender hereunder, neither it nor any of its Affiliates shall constitute Bank  Product Providers (other than in their respective capacities as Hedge Providers, if applicable) and the  obligations with respect to Bank Products provided by such former Lender or any of its Affiliates (other  than Hedge Obligations, if any) shall no longer constitute Bank Product Obligations; provided further, that  notwithstanding anything herein to the contrary, HSBC Bank USA, N.A. shall remain a Bank Product  Provider from and after the Amendment No. 3 Effective Date until the earlier of (A) June 30, 2022 (or such  later date as may be approved by the Agent in its reasonable discretion) and (B) the date upon which all  Bank Product Obligations owed to HSBC Bank USA, N.A. are satisfied and the Bank Product Agreements  with HSBC Bank USA, N.A. are terminated.  "Bank Product Provider Agreement" means an agreement in substantially the form attached  hereto as Exhibit B-2 to this Agreement, in form and substance satisfactory to Agent, duly executed by the  applicable Bank Product Provider, Loan Parties, and Agent.  "Bank Product Reserves" means the US Bank Product Reserves and/or the Canadian Bank  Product Reserves, as the context requires.  "Bank Products" means US Bank Products and/or Canadian Bank Products, as the context  requires.   “Bankruptcy Code” means title 11 of the United States Code, as in effect from time to time.  “Base Rate” means (a) a US Base Rate with respect to Obligations denominated in US  Dollars, and (b) otherwise, Canadian Base Rate.  “Base Rate Loan” means each portion of the Revolving Loans that bears interest at a rate  determined by reference to the Base Rate.  “Base Rate Margin” has the meaning set forth in the definition of Applicable Margin.  “Benchmark” means, initially, USD LIBOR; provided that if a Benchmark Transition  Event, a Term SOFR Transition Event, an Early Opt-in Election or an Other Benchmark Rate Election, as  applicable, and its related Benchmark Replacement Date have occurred with respect to USD LIBOR or the  then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent  that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section  2.11(d)(iii)(A).  “Benchmark Replacement” means,   (a) with respect to any Benchmark Transition Event or Early Opt-in Election, the first  alternative set forth in the order below that can be determined by Agent for the applicable Benchmark  Replacement Date:  (i) for any Available Tenor, the sum of: (A) Term SOFR and (B) the related Benchmark  Replacement Adjustment;  





 






     -8-    (ii) the sum of: (A) SOFR Average and (B) the related Benchmark Replacement  Adjustment;   (iii) for any Available Tenor (if applicable), the sum of: (A) the alternate benchmark rate  that has been selected by Agent and Administrative Borrower as the replacement for  the then-current Benchmark for the applicable Corresponding Tenor (if applicable)  giving due consideration to (1) any selection or recommendation of a replacement  benchmark rate or the mechanism for determining such a rate by the Relevant  Governmental Body or (2) any evolving or then-prevailing market convention for  determining a benchmark rate as a replacement for the then-current Benchmark for  Dollar-denominated syndicated credit facilities at such time and (B) the related  Benchmark Replacement Adjustment;   (b) with respect to any Term SOFR Transition Event, for any Available Tenor (if  applicable), the sum of (i) Term SOFR and (ii) the related Benchmark Replacement Adjustment; or  (c) with respect to any Other Benchmark Rate Election, for any Available Tenor (if  applicable), the sum of: (i) the alternate benchmark rate that has been selected by Agent and the  Administrative Borrower as the replacement for the then-current Benchmark for the applicable  Corresponding Tenor (if applicable) giving due consideration to any evolving or then-prevailing market  convention for determining a benchmark rate as a replacement for the then-current Benchmark for Dollar- denominated syndicated credit facilities at such time and (ii) the related Benchmark Replacement  Adjustment;  provided that, (x) in the case of clause (a)(i), if Agent decides that Term SOFR is not  administratively feasible for Agent, then Term SOFR will be deemed unable to be determined for purposes  of this definition and (y) in the case of clause (a)(i) or clause (b) of this definition, the applicable Unadjusted  Benchmark Replacement is displayed on a screen or other information service that publishes such rate from  time to time as selected by Agent in its  discretion.  If the Benchmark Replacement as determined pursuant  to clause (a)(i), (a)(ii) or (a)(iii), clause (b) or clause (c) of this definition would be less than the Floor, the  Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other  Loan Documents.  “Benchmark Replacement Adjustment” means, with respect to any replacement of any  then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period  and Available Tenor (if applicable) for any setting of such Unadjusted Benchmark Replacement:    (a) for purposes of clauses (a)(i) and (b) of the definition of “Benchmark  Replacement,” an amount equal to (A) 0.11448% (11.448 basis points) for an Available Tenor of one- month’s duration, (B) 0.26161% (26.161 basis points) for an Available Tenor of three-months’ duration  and (C) 0.42826% (42.826 basis points) for an Available Tenor of six-months’ duration;    (b) for purposes of clause (a)(ii) of the definition of “Benchmark Replacement,” an  amount equal to 0.11448% (11.448 basis points);     (c) for purposes of clause (a)(iii) of the definition of “Benchmark Replacement,” the  spread adjustment, or method for calculating or determining such spread adjustment, (which may be a  positive or negative value or zero) that has been selected by Agent and Administrative Borrower giving  due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating  or determining such spread adjustment, for the replacement of such Available Tenor (if applicable) of  such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental  Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market  





 






     -9-    convention for determining a spread adjustment, or method for calculating or determining such spread  adjustment, for the replacement of such Available Tenor (if applicable) of such Benchmark with the  applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities; and    (d) for purposes of clause (c) of the definition of “Benchmark Replacement,” the  spread adjustment, or method for calculating or determining such spread adjustment, (which may be a  positive or negative value or zero) that has been selected by Agent and Administrative Borrower giving  due consideration to any evolving or then-prevailing market convention for determining a spread  adjustment, or method for calculating or determining such spread adjustment, for the replacement of such  Available Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar- denominated syndicated credit facilities.  “Benchmark Replacement Conforming Changes” means, with respect to any Benchmark  Replacement, any technical, administrative or operational changes (including changes to the definition of  “US Base Rate,” the definition of “Business Day,” the definition of “Interest Period,” timing and frequency  of determining rates and making payments of interest, timing of borrowing requests or prepayment,  conversion or continuation notices, length of lookback periods, the applicability of breakage provisions and  other technical, administrative or operational matters) that the Agent decides may be appropriate to reflect  the adoption and implementation of such Benchmark Replacement and to permit the administration thereof  by the Agent in a manner substantially consistent with market practice (or, if the Agent decides that adoption  of any portion of such market practice is not administratively feasible or if the Agent determines that no  market practice for the administration of such Benchmark Replacement exists, in such other manner of  administration as the Agent decides is reasonably necessary in connection with the administration of this  Agreement and the other Loan Documents).  “Benchmark Replacement Date” means the earliest to occur of the following events with  respect to the then-current Benchmark:  (a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,”  the later of (i) the date of the public statement or publication of information referenced therein and (ii) the  date on which the administrator of such Benchmark (or the published component used in the calculation  thereof) permanently or indefinitely ceases to provide all Available Tenors (if applicable) of such  Benchmark (or such component thereof);  (b) in the case of clause (c) of the definition of “Benchmark Transition Event,” the  date of the public statement or publication of information referenced therein;  (c) in the case of a Term SOFR Transition Event, the date that is thirty (30) days after  Agent has provided the Term SOFR Notice to the Lenders and Administrative Borrower pursuant to Section  2.11(d)(iii)(A)(2); or  (d) in the case of an Early Opt-in Election or an Other Benchmark Rate Election, the  sixth (6th) Business Day after the date notice of such Early Opt-in Election or Other Benchmark Rate  Election, as applicable is provided to the Lenders, so long as Agent has not received, by 5:00 p.m. on the  fifth (5th) Business Day after the date notice of such Early Opt-in Election or Other Benchmark Rate  Election, as applicable is provided to the Lenders, written notice of objection to such Early Opt-in Election  or Other Benchmark Rate Election, as applicable from Lenders comprising the Supermajority Lenders.  For the avoidance of doubt, (A) if the event giving rise to the Benchmark Replacement  Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the  Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such  determination and (B) if the then-current Benchmark has any Available Tenors, the “Benchmark  





 






     -10-    Replacement Date” will be deemed to have occurred in the case of clause (a) or (b) with respect to any  Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then- current Available Tenors of such Benchmark (or the published component used in the calculation thereof).  “Benchmark Transition Event” means the occurrence of one or more of the following  events with respect to the then-current Benchmark:  (a) a public statement or publication of information by or on behalf of the  administrator of such Benchmark (or the published component used in the calculation thereof) announcing  that such administrator has ceased or will cease to provide all Available Tenors (if applicable)of such  Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such  statement or publication, there is no successor administrator that will continue to provide any Available  Tenor (if applicable) of such Benchmark (or such component thereof);  (b) a public statement or publication of information by the regulatory supervisor for  the administrator of such Benchmark (or the published component used in the calculation thereof), the  Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction  over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction  over the administrator for such Benchmark (or such component) or a court or an entity with similar  insolvency or resolution authority over the administrator for such Benchmark (or such component), which  states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all  Available Tenors (if applicable) of such Benchmark (or such component thereof) permanently or  indefinitely, provided that, at the time of such statement or publication, there is no successor administrator  that will continue to provide any Available Tenor (if applicable) of such Benchmark (or such component  thereof); or  (c) a public statement or publication of information by the regulatory supervisor for  the administrator of such Benchmark (or the published component used in the calculation thereof)  announcing that all Available Tenors (if applicable) of such Benchmark (or such component thereof) are  no longer representative.  For the avoidance of doubt, if the then-current Benchmark has any Available Tenors, a  “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public  statement or publication of information set forth above has occurred with respect to each then-current  Available Tenor of such Benchmark (or the published component used in the calculation thereof).  “Benchmark Unavailability Period”  means the period (if any) (x) beginning at the time  that a Benchmark Replacement Date pursuant to clauses (a) or (b) of that definition has occurred if, at such  time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and  under any Loan Document in accordance with Section 2.11(d)(iii) and (y) ending at the time that a  Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under  any Loan Document in accordance with Section 2.11(d)(iii).  “Beneficial Ownership Certification” means a certification regarding beneficial ownership  as required by the Beneficial Ownership Regulation.  “Beneficial Ownership Regulation” means 31 CFR § 1010.230.   “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is  subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the IRC or (c) any  Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of  ERISA or Section 4975 of the IRC) the assets of any such “employee benefit plan” or “plan”.  





 






     -11-    “Board of Directors” means, as to any Person, the board of directors (or comparable  managers) of such Person, or any committee thereof duly authorized to act on behalf of the board of  directors (or comparable managers).  “Board of Governors” means the Board of Governors of the Federal Reserve System of the  United States (or any successor).  “Borrower” and “Borrowers” have the respective meanings specified therefor in the  preamble to this Agreement.  “Borrower Materials” means materials or information provided by or on behalf of  Borrowers to Agent or its Affiliates.  “Borrowing” means a Canadian Borrowing or a US Borrowing, as the context requires.  “Borrowing Base” means the Canadian Borrowing Base or the US Borrowing Base, as the  context requires.  “Borrowing Base Certificate” means a certificate in the form of Exhibit B-1 to this  Agreement reflecting the Canadian Borrowing Base and the US Borrowing Base.  "Business Day" means any day that is not a Saturday, Sunday, or other day on which banks  are authorized or required to close in the State of New York, except that, if a determination of a Business  Day shall relate to (a) a LIBOR Rate Loan, the term "Business Day" also shall exclude any day on which  banks are closed for dealings in US Dollar deposits in the London interbank market; and (b) a Canadian  Revolving Loan, the term "Business Day" also shall exclude any day on which banks are authorized or  required to close in the Province of Ontario, Canada and Province of Alberta, Canada.  “CAM Exchange” has the meaning specified therefor in Section 13.4.  “CAM Exchange Date” has the meaning specified therefor in Section 13.4.  “CAM Percentage” has the meaning specified therefor in Section 13.4.  "Canadian Anti-Money Laundering & Anti-Terrorism Legislation" means Part II.1 of the  Criminal Code, (Canada), The Proceeds of Crime (Money Laundering) and Terrorist Financing Act,  (Canada) and the United Nations Act, (Canada), together with all rules, regulations and interpretations  thereunder or related thereto including, without limitation, the Regulations Implementing the United  Nations Resolutions on the Suppression of Terrorism and the United Nations Al-Qaida and Taliban  Regulations promulgated under the United Nations Act (Canada) and any similar Canadian legislation in  effect from time to time.  “Canadian Availability” means, as of any time of determination, the US Dollar Equivalent  amount that Canadian Borrowers are entitled to borrow as Canadian Revolving Loans under Section 2.1 of  this Agreement (after giving effect to the then outstanding Canadian Revolver Usage).  "Canadian Bank Product" means any one or more of the following financial products or  accommodations extended to a Canadian Loan Party by a Bank Product Provider: (a) credit cards (including  commercial credit cards (including so-called "purchase cards", "procurement cards" or "P-cards")), (b)  credit card processing services, (c) debit cards, (d) stored value cards, (e) Cash Management Services, or  (f) transactions under Hedge Agreements.  





 






     -12-    "Canadian Bank Product Agreements" means those agreements entered into from time to  time by a Canadian Loan Party with a Bank Product Provider in connection with the obtaining of any of  the Canadian Bank Products.  "Canadian Bank Product Obligations" means (a) all obligations, liabilities, reimbursement  obligations, fees, or expenses owing by any Canadian Loan Party to any Bank Product Provider pursuant  to or evidenced by a Canadian Bank Product Agreement and irrespective of whether for the payment of  money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter  arising, (b) all Canadian Hedge Obligations, and (c) all amounts that Agent or any Lender is obligated to  pay to a Bank Product Provider as a result of Agent or such Lender purchasing participations from, or  executing guarantees or indemnities or reimbursement obligations to, a Bank Product Provider with respect  to the Canadian Bank Products provided by such Bank Product Provider to any Canadian Loan Party;  provided, in order for any item described in clauses (a), (b), or (c) above, as applicable, to constitute  "Canadian Bank Product Obligations", if the applicable Bank Product Provider is any Person other than  Wells Fargo or its Affiliates, then the applicable Canadian Bank Product must have been (i) provided on or  prior to the Closing Date (or such later date as Agent shall agree to in writing in its sole discretion), or (ii)  provided after the Closing Date and Agent shall have received a Bank Product Provider Agreement within  10 days after the date of the provision of the applicable Canadian Bank Product to a Canadian Loan Party  (or such later date as Agent shall agree to in writing in its sole discretion).  "Canadian Bank Product Reserves" means, as of any date of determination, those reserves  that Agent has established (based upon the applicable Bank Product Provider's reasonable and good faith  determination of its credit exposure to the Canadian Loan Parties in respect of Canadian Bank Product  Obligations) in respect of Canadian Bank Products then provided or outstanding.  "Canadian Base Rate" means, for any day, a rate per annum equal to the greater of (a) the  CDOR Rate existing on such day (which rate shall be calculated based upon an Interest Period of 1 month),  plus 1 percentage point, and (b) the "prime rate" for Canadian Dollar commercial loans made in Canada as  reported by Thomson Reuters under Reuters Instrument Code <CAPRIME=> on the "CA Prime Rate  (Domestic Interest Rate) – Composite Display" page to the extent such page is available (or any successor  page or such other commercially available service or source (including the Canadian Dollar "prime rate"  announced by a Schedule I bank under the Bank Act (Canada)) as the Agent may designate from time to  time and, if any such reported rate is below 0.00 percentage points, then the rate determined pursuant to  this clause (b) shall be deemed to be 0.00 percentage points.  Each determination of the Canadian Base Rate  shall be made by Agent and shall be conclusive in the absence of manifest error.    "Canadian Borrower" and “Canadian Borrowers” have the respective meanings specified  therefor in the preamble to this Agreement.  "Canadian Borrowing" means a borrowing consisting of Canadian Revolving Loans made  on the same day by the Revolving Lenders with Canadian Revolver Commitments (or Agent on behalf  thereof), or by Canadian Swing Line Lender in the case of a Canadian Swing Loan, or by Agent in the case  of a Canadian Extraordinary Advance.   “Canadian Borrowing Base” means, as of any date of determination and subject to the  sentence following clause (f) at the end of this definition, the result of:  (a) 85% of the amount of Canadian Eligible Accounts, less the amount, if any, of the  Canadian Dilution Reserve; provided that, (i) the amount of Canadian Eligible Accounts from Specified  10% Affiliates to be included in the Canadian Borrowing Base shall not exceed $5,000,000, and (ii) the  





 






     -13-    amount of Accounts that are Eligible Canadian Accounts as a result of being covered by credit insurance  and which are to be included in the Canadian Borrowing Base shall not exceed $5,000,000 plus  (b) the lesser of (i) the product of 70% multiplied by the value (calculated at the lower  of cost or market on a basis consistent with Borrowers’ historical accounting practices) of Canadian Eligible  Finished Goods Inventory,  at such time, and (ii) the product of 85% multiplied by the Net Recovery  Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value  (calculated at the lower of cost or market on a basis consistent with Borrowers’ historical accounting  practices) of Canadian Eligible Finished Goods Inventory (such determination may be made as to different  categories of Canadian Eligible Finished Goods Inventory based upon the Net Recovery Percentage  applicable to such categories) at such time, plus  (c) the lesser of (i) the product of 70% multiplied by the value (calculated at the lower  of cost or market on a basis consistent with Borrowers’ historical accounting practices) of Canadian Eligible  In-Transit Inventory at such time, and (ii) the product of 85% multiplied by the Net Recovery Percentage  identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value (calculated at the  lower of cost or market on a basis consistent with Canadian Loan Parties’ historical accounting practices)  of Canadian Eligible In-Transit Inventory (such determination may be made as to different categories of  finished goods, raw materials or work-in-process Inventory based upon the Net Recovery Percentage  applicable to such categories) at such time; provided that, (A) until the completion of an Acceptable  Appraisal of such Canadian Eligible In-Transit Inventory and the completion of a field examination, with  respect to such Inventory that is satisfactory to Agent in its Permitted Discretion, the amount determined  under this clause (c) shall be equal to $0, and (B) the amount determined under this clause (c), when  aggregated with the amount determined under clause (c) of the definition of “US Borrowing Base”, shall  not exceed $5,000,000, plus  (d) the lesser of (i) the product of 70% multiplied by the value (calculated at the lower  of cost or market on a basis consistent with Borrowers’ historical accounting practices) of Canadian Eligible  Raw Materials Inventory at such time, and (ii) the product of 85% multiplied by the Net Recovery  Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value  (calculated at the lower of cost or market on a basis consistent with Borrowers’ historical accounting  practices) of Canadian Eligible Raw Materials Inventory (such determination may be made as to different  categories of Canadian Eligible Raw Materials Inventory based upon the Net Recovery Percentage  applicable to such categories) at such time, plus  (e) the lesser of   (i) $1,000,000, and    (ii) the lesser of (A) the product of 70% multiplied by the value (calculated at  the lower of cost or market on a basis consistent with Borrowers’ historical accounting practices) of  Canadian Eligible Work-In-Process Inventory at such time, and (B) the product of 85% multiplied by the  Net Recovery Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by  the value (calculated at the lower of cost or market on a basis consistent with Borrowers’ historical  accounting practices) of Canadian Eligible Work-In-Process Inventory (such determination may be made  as to different categories of Canadian Eligible Work-In-Process Inventory based upon the Net Recovery  Percentage applicable to such categories) at such time, minus  (f) the aggregate amount of Reserves, if any, established by Agent from time to time  under Section 2.1(d) of this Agreement.  





 






     -14-    Notwithstanding the foregoing, in no event shall the sum of clauses (b), (c), (d), and (e) set  forth in this definition, when added to the sum of clauses (b), (c), (d), and (e) set forth in the definition of  “US Borrowing Base” be greater than the then effective Inventory Cap.  "Canadian Borrowing Base Certificate" means a certificate in the form of Exhibit B-1,  containing the calculation of the Canadian Borrowing Base.   "Canadian Defined Benefit Plan" means any Canadian Pension Plan which contains a  "defined benefit provision" as defined in subsection 147.1(1) of the Income Tax Act (Canada).   "Canadian Designated Account" means the Deposit Account(s) of Canadian Borrowers  identified on Schedule D-1 to this Agreement (or such other Deposit Account of Canadian Borrower located  at Canadian Designated Account Bank that has been designated as such, in writing, by Administrative  Borrower to Agent).   "Canadian Designated Account Bank" has the meaning specified therefor in Schedule D-1  to this Agreement (or such other bank that is located within Canada that has been designated as such, in  writing, by Administrative Borrower to Agent).   "Canadian Dilution" means, as of any date of determination, a percentage, based upon the  experience of the immediately prior twelve months, that is the result of dividing the US Dollar Equivalent  amount of (a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items with  respect to Canadian Loan Parties' Accounts during such period, by (b) Canadian Loan Parties' billings with  respect to such Accounts during such period.   "Canadian Dilution Reserve" means, as of any date of determination, an amount sufficient  to reduce the advance rate against Eligible Accounts of Canadian Loan Parties by 1 percentage point for  each percentage point by which Canadian Dilution is in excess of 5%.   "Canadian Dollar Equivalent" means, at any time, (a) with respect to any amount  denominated in Canadian Dollars, such amount, and (b) with respect to any amount denominated in another  currency, the equivalent amount thereof in Canadian Dollars as determined by Agent, at such time, on the  basis of the Spot Rate (determined in respect of the most recent Revaluation Date or such other date  determined by Agent) for the purchase of Canadian Dollars with such currency.  Calculations of each  Borrowing Base with respect to items included therein that are not denominated in Canadian Dollars may  be adjusted by Agent pursuant to this definition from time to time and references herein to such Borrowing  Base (including references based upon the most recent applicable Borrowing Base Certificate delivered by  the applicable Borrowers to Agent) may reflect such adjustments.  "Canadian Dollars" or "Cdn $" means the lawful currency of Canada, as in effect from time  to time.   “Canadian Eligible Accounts” means those Accounts created by a Canadian Loan Party  that is a Wholly-Owned Restricted Subsidiary and created in the ordinary course of its business, that arise  out of such Loan Party’s sale of goods or rendition of services, that comply with each of the representations  and warranties respecting Canadian Eligible Accounts made in the Loan Documents, and that are not  excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, that such  criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to address the results  of any information with respect to the Canadian Borrowers’ business or assets of which Agent becomes  aware after the Closing Date, including any field examination performed by (or on behalf of) Agent from  time to time after the Closing Date.  In determining the amount to be included, Canadian Eligible Accounts  





 






     -15-    shall be calculated net of customer deposits, unapplied cash, Taxes, finance charges, service charges,  discounts, credits, allowances, and rebates. Canadian Eligible Accounts shall not include the following:  (a) Accounts that the Account Debtor has failed to pay within 90 days of original  invoice date or 60 days of due date; provided that any Account unpaid for more than 90 days of original  invoice date but not more than 120 days from the date of the relevant invoice shall not be excluded under  this clause (a) so long as (i) the aggregate amount of such Accounts under this clause (a) does not exceed  $3,000,000 (prior to the inclusion of such Accounts therein), (ii) the Account Debtor in respect of such  Account is a Specified Account Debtor, and (iii) such Account is not unpaid more than 60 days past its due  date,  (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all  Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,  (c) Accounts with respect to which the Account Debtor is a Specified Affiliate except  that up to $5,000,000 in the aggregate of such Accounts (when also aggregated with the US Eligible  Accounts owing by one or more Specified Affiliate), may be included in Canadian Eligible Account unless  the Agent otherwise determines, from time to time, in its sole discretion that a lower amount (including $0)  shall apply,  (d) (i) Accounts with respect to which the Account Debtor is an Affiliate of any Loan  Party or an employee or agent of any Loan Party or any Affiliate of any Loan Party, in any case, other than  a Specified Affiliate or a Specified 10% Affiliate, and (ii) Accounts with respect to which the Account  Debtor is a Specified 10% Affiliate of any Loan Party unless such Accounts were on an arms’ length basis,  for fair market value and in the ordinary course of business,  (e) Accounts (i) arising in a transaction wherein goods are placed on consignment or  are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms  by reason of which the payment by the Account Debtor may be conditional, or (ii) with respect to which  the payment terms are “C.O.D.”, cash on delivery or other similar terms,  (f) Accounts that are not payable in US Dollars or Canadian Dollars,  (g) Accounts with respect to which the Account Debtor either (i) does not maintain its  chief executive office in the United States or Canada, or (ii) is not organized under the laws of the United  States any state thereof, or under the laws of Canada or any territory or province thereof, or (iii) is the  government of any foreign country or sovereign state, or of any state, province, municipality, or other  political subdivision thereof, or of any department, agency, public corporation, or other instrumentality  thereof (unless (A) the Account is supported by an irrevocable letter of credit reasonably satisfactory to  Agent (as to form, substance and issuer or domestic confirming bank) that has been delivered to Agent and,  if requested by Agent, is directly drawable by Agent or (B) with the consent of Agent which may be  exercised in its sole discretion and exercised from time to time as to any particular Account, the Account is  covered by credit insurance in form, substance and amount, and by an insurer, acceptable to Agent in its  sole discretion), except that, as to Accounts with respect to which the Account Debtor maintains its chief  executive office in any of the five islands previously known as the “Netherlands Antilles” or Switzerland  or is organized under the laws of any such island or Switzerland or any state, territory or province thereof;  up to $1,000,000 of such Accounts may be included in Canadian Eligible Account,  (h) Accounts with respect to which the Account Debtor is either (i) the United States  or any department, agency, or instrumentality of the United States (exclusive, however, of Accounts with  respect to which Borrowers have complied, to the reasonable satisfaction of Agent, with the Assignment of  Claims Act, 31 USC §3727), or (ii) any state of the United States or any other Governmental Authority and  





 






     -16-    applicable law of such state or other Governmental Authority restricts or does not allow (A) an assignment  of Accounts owing by such Account Debtor or (B) the exercise of rights or remedies of a secured party with  respect to Accounts owing by such Account Debtor,  (i) Accounts with respect to which the Account Debtor is a creditor of a Loan Party,  has or has asserted a right of recoupment or setoff, or has disputed its obligation to pay all or any portion  of the Account, to the extent of such claim, right of recoupment or setoff, or dispute,  (j) (i) Accounts with respect to an Account Debtor (other than Concentration Account  Debtors and Investment Grade Account Debtors) whose Canadian Eligible Accounts owing to Canadian  Loan Parties exceed 15% (such percentage, as applied to a particular Account Debtor, being subject to  reduction by Agent in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates)  of all Canadian Eligible Accounts, (ii) Accounts with respect to Investment Grade Account Debtors whose  Canadian Eligible Accounts owing to Canadian Loan Parties exceed 25% (such percentage, as applied to a  particular Account Debtor, being subject to reduction by Agent in its Permitted Discretion if the  creditworthiness of such Account Debtor deteriorates) of all Canadian Eligible Accounts, and (iii) Accounts  with respect to a Concentration Account Debtor whose Canadian Eligible Accounts owing to Canadian  Loan Parties exceed 30% (such percentage, as applied to a particular Account Debtor, being subject to  reduction by Agent in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates)  of all Canadian Eligible Accounts, in each of the foregoing, to the extent of the obligations owing by such  Account Debtor in excess of such percentage; provided, that in each case under the preceding clause (i),  (ii) and (iii), the amount of Canadian Eligible Accounts that are excluded because they exceed the applicable  foregoing percentages shall be determined by Agent based on all of the otherwise Canadian Eligible  Accounts prior to giving effect to any eliminations based upon the foregoing concentration limits,  (k) Accounts with respect to which the Account Debtor is subject to an Insolvency  Proceeding, is not Solvent, has gone out of business, or as to which any Loan Party has received notice of  an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account  Debtor, in each case unless the Account from such Account Debtor arises subsequent to a decree or order  for relief with respect to such Account Debtor under the federal bankruptcy laws, as now or hereafter in  effect, and Agent shall have determined in its sole discretion that the timely payment and collection of such  Account will not be impaired,  (l) Accounts, the collection of which, Agent, in its Permitted Discretion, believes to  be doubtful, including by reason of the Account Debtor’s financial condition,  (m) Accounts that are not subject to a valid and perfected first priority Agent’s Lien,  (n) Accounts with respect to which (i) the goods giving rise to such Account have not  been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not  been performed and billed to the Account Debtor,  (o) Accounts with respect to which the Account Debtor is a Sanctioned Person or  Sanctioned Entity,  (p) Accounts (i) that represent the right to receive progress payments or other advance  billings that are due prior to the completion of performance by the applicable Loan Party of the subject  contract for goods or services, or (ii) that represent credit card sales, or  (q) Accounts owned by a target acquired in connection with a Permitted Acquisition  or Permitted Investment, or Accounts owned by a Person that is joined to this Agreement as a Canadian  Loan Party pursuant to the provisions of this Agreement, until the completion of a field examination with  





 






     -17-    respect to such Accounts, in each case, satisfactory to Agent in its Permitted Discretion (which examination  may be conducted prior to the closing of such Permitted Acquisition, Permitted Investment or joinder);  provided that (i) until the completion of such field examination, such Accounts may be included in Canadian  Eligible Account for a period of up to 45 days after the date of consummation of the Permitted Acquisition  or Permitted Investment or joinder so long as such Accounts otherwise qualify as Canadian Eligible  Accounts and (ii) the aggregate amount of such Accounts which are Canadian Eligible Accounts, together  with the aggregate amount of Canadian Eligible Inventory related to Permitted Acquisitions, Permitted  Investments, and joinders that are not subject to an acceptable field examination and an Acceptable  Appraisal, do not constitute more than 10% of the Canadian Borrowing Base.  “Canadian Eligible Finished Goods Inventory” means Inventory that qualifies as Canadian  Eligible Inventory and consists of first quality finished goods held for sale in the ordinary course of  Canadian Loan Parties’ business.  “Canadian Eligible In-Transit Inventory” means those items of Inventory that do not  qualify as Eligible Inventory solely because they are not in a location set forth on Schedule 4.25 to this  Agreement (as such Schedule 4.25 may be amended from time to time with prior notice to Agent) or in  transit among such locations and a Canadian Loan Party that is a Wholly-Owned Restricted Subsidiary does  not have actual and exclusive possession thereof, but as to which,  (a) such Inventory currently is in transit (by vessel or land) from a location outside of  the continental United States or Canada to a location set forth on Schedule 4.25 to this Agreement (as such  Schedule 4.25 may be amended from time to time with prior notice to Agent) to the extent that such  Inventory is the subject of a negotiable bill of lading governed by the laws of a province or territory within  Canada or a state within the United States that is (x) that is consigned to Agent or one of its Customs  Brokers (either directly or by means of endorsements), (y) that was issued by the carrier (including a non- vessel operating common carrier) in possession of the Inventory that is subject to such bill of lading, and  (z) that either is in the possession of Agent or a Customs Broker (in each case in Canada),  (b) title to such Inventory has passed to a Canadian Loan Party that is a Wholly-Owned  Restricted Subsidiary and Agent shall have received such evidence thereof as it may from time to time  require,  (c) such Inventory is insured against types of loss, damage, hazards, and risks, and in  amounts, satisfactory to Agent in its Permitted Discretion, and Agent shall have received a copy of the  certificate of marine cargo insurance in connection therewith in which it has been named as an additional  insured and loss payee in a manner acceptable to Agent,  (d) such Inventory is the subject of a negotiable bill of lading governed by the laws of  a province or territory within Canada or a state within the United States (x) that is consigned to Agent or  one of its Customs Brokers (either directly or by means of endorsements), (y) that was issued by the carrier  (including a non-vessel operating common carrier) in possession of the Inventory that is subject to such bill  of lading, and (z) that either is in the possession of Agent or a Customs Broker (in each case in Canada),  (e) such Inventory is in the possession of a common carrier (including on behalf of  any non-vessel operating common carrier) that has issued the bill of lading or other document of title with  respect thereto or the Customs Broker handling the importing, shipping and delivery of such Inventory;  (f) the documents of title related thereto are subject to the valid and perfected first  priority Lien of Agent;  





 






     -18-    (g) Agent determines that such Inventory is not subject to (i) any Person’s right of  reclamation, repudiation, stoppage in transit or diversion or (ii) any other right or claim of any other Person  which is (or is capable of being) senior to, or pari passu with, the Lien of Agent, or Agent determines that  any Person’s right or claim impairs, or interferes with, directly or indirectly, the ability of Agent to realize  on, or reduces the amount that Agent may realize from the sale or other disposition of such Inventory;  (h) Administrative Borrower has provided, upon Agent’s request, a copy of the  invoice, packing slip and manifest with respect thereto,  (i) such Inventory shall not have been in transit for more than sixty (60) days, and  (k) with respect to Inventory transferred from a Person that is not a Loan Party, upon  Agent’s request, the Agent shall have received such other agreements or documents in form and substance  satisfactory to the Agent executed by such Person related to such Person’s right or claim to such Inventory  or to any Loan Party.  “Canadian Eligible Inventory” means Inventory of a Canadian Loan Party that is a Wholly- Owned Restricted Subsidiary, that complies with each of the representations and warranties respecting  Canadian Eligible Inventory made in the Loan Documents, and that is not excluded as ineligible by virtue  of one or more of the excluding criteria set forth below; provided, that such criteria may be revised from  time to time by Agent in Agent’s Permitted Discretion to address the results of any information with respect  to the Canadian Borrowers’ business or assets of which Agent becomes aware after the Closing Date,  including any field examination or appraisal performed or received by Agent from time to time after the  Closing Date.  In determining the amount to be so included, Inventory shall be valued at the lower of cost  or market on a basis consistent with Canadian Borrowers’ historical accounting practices.  An item of  Inventory shall not be included in Canadian Eligible Inventory if:  (a) a Canadian Loan Party does not have good, valid, and marketable title thereto,  (b) a Canadian Loan Party does not have actual and exclusive possession thereof  (either directly or through a bailee or agent of such Loan Party),  (c) it is not located at one of the locations in Canada set forth on Schedule 4.25 to this  Agreement (as such Schedule 4.25 may be amended from time to time with the prior written consent of  Agent) (or in-transit from one such location to another such location),  (d) it is stored at locations holding less than $100,000 of the aggregate value of any  Canadian Loan Party’s Inventory,  (e) it is in-transit to or from a location of a Canadian Loan Party (other than in-transit  from one location set forth on Schedule 4.25 to this Agreement to another location set forth on Schedule  4.25 to this Agreement (as such Schedule 4.25 may be amended from time to time with the prior written  consent of Agent)),  (f) it is located on real property leased by a Canadian Loan Party or in a contract  warehouse or with a bailee, in each case, unless either (i) it is subject to a Collateral Access Agreement  executed by the lessor or warehouseman, as the case may be, and it is segregated or otherwise separately  identifiable from goods of others, if any, stored on the premises, or (ii) Agent has established a Landlord  Reserve with respect to such location; provided that, until the 90th day after the Closing Date, such Inventory  that is located at a location not covered by a Collateral Access Agreement or a Landlord Reserve may be  Canadian Eligible Inventory if it otherwise qualifies as a Canadian Eligible Inventory,  





 






     -19-    (g) it is the subject of a bill of lading or other document of title,  (h) it is not subject to a valid and perfected first priority Agent’s Lien,  (i) it consists of goods returned or rejected by a Canadian Loan Party’s customers,  unless such Inventory is undamaged and able to be resold in the ordinary course of business to a readily  available market without any modification,  (j) it consists of goods that are obsolete, slow moving, spoiled or are otherwise past  the stated expiration, “sell-by” or “use by” date applicable thereto, restrictive or custom items, or goods  that constitute spare parts that are consumed or consumable by any Loan Party or Restricted Subsidiary,  packaging and shipping materials, supplies used or consumed in a Canadian Loan Party’s business, bill and  hold goods, defective goods, “seconds,” or Inventory acquired on consignment,  (k) it is subject to third party intellectual property, licensing or other proprietary rights,  unless Agent is satisfied that such Inventory can be freely sold by Agent on and after the occurrence of an  Event of a Default despite such third party rights, or  (l) it was acquired in connection with a Permitted Acquisition or Permitted  Investment, or such Inventory is owned by a Person that is joined to this Agreement as a Canadian Loan  Party pursuant to the provisions of this Agreement, until the completion of an Acceptable Appraisal of such  Inventory and the completion of a field examination with respect to such Inventory that is satisfactory to  Agent in its Permitted Discretion (which examination may be conducted prior to the closing of such  Permitted Acquisition, Permitted Investment or joinder); provided that (i) until the completion of such field  examination and Acceptable Appraisal, such Inventory may be included in Canadian Eligible Inventory for  a period of up to 45 days after the date of consummation of the Permitted Acquisition or Permitted  Investment or joinder so long as such Inventory otherwise qualify as Canadian Eligible Inventory and (ii)  the aggregate amount of such Inventory which are Canadian Eligible Inventory, together with the aggregate  amount of Canadian Eligible Accounts related to Permitted Acquisitions, Permitted Investments, and  joinders that are not subject to a satisfactory field examination, do not constitute more than 10% of the  Canadian Borrowing Base.   “Canadian Eligible Raw Materials Inventory” means Inventory that qualifies as Canadian  Eligible Inventory and consists of goods that are first quality raw materials and that are not located in open  pallets or containers.   “Canadian Eligible Work-in-Process Inventory” means Inventory that qualifies as  Canadian Eligible Inventory and consists of goods that are first quality work-in-process; provided, that  anything to the contrary contained herein notwithstanding, the value of such Inventory shall not include the  value of any labor or other services rendered to produce such Inventory.  "Canadian Extraordinary Advance" has the meaning specified therefor in Section  2.2(d)(iii) of this Agreement.  "Canadian Hedge Obligations" means any and all obligations or liabilities, whether  absolute or contingent, due or to become due, now existing or hereafter arising, of any Canadian Loan Party  arising under, owing pursuant to, or existing in respect of Hedge Agreements entered into with one or more  of the Hedge Providers; provided that, as to such obligations or liabilities owing to a former Lender or an  Affiliate of a former Lender, such obligations and liabilities shall constitute Canadian Hedge Obligations  only as to the individual Hedge Agreements (and not Master ISDA Agreements) entered into prior to such  Lender ceasing to be a Lender hereunder and without giving effect to any extension or renewal thereof.  





 






     -20-    "Canadian Issuing Bank" means WF Canada or any other Lender that, at the request of  Administrative Borrower and with the consent of Agent (not to be unreasonably withheld, conditioned or  delayed), agrees, in such Lender's sole discretion, to become a Canadian Issuing Bank for the purpose of  issuing Canadian Letters of Credit or, if WF Canada is the Canadian Issuing Bank, shall include WF  Canada, to the extent applicable, represented by or acting for, through or on behalf of a Canadian  Underlying Issuer in its capacity as an issuer of Letters of Credit hereunder.  For avoidance of doubt, no  Canadian Issuing Bank other than WF Canada may issue a Canadian Reimbursement Undertaking without  Agent's prior written consent.  “Canadian Letter of Credit” means a letter of credit (as that term is defined in the Code)  issued by Canadian Issuing Bank or Canadian Underlying Issuer for the account of the Parent or any  Restricted Subsidiary.  "Canadian Letter of Credit Disbursement" means a payment made by Canadian Issuing  Bank pursuant to a Canadian Letter of Credit or a Canadian Reimbursement Undertaking.  "Canadian Letter of Credit Exposure" means, as of any time of determination with respect  to any Lender, such Lender's Pro Rata Share of the Canadian Letter of Credit Usage on such date (including  such Lender's Pro Rata Share of Canadian Reimbursement Undertakings on such date).   "Canadian Letter of Credit Fees" has the meaning specified therefor in Section 2.5(b) of  this Agreement.  "Canadian Letter of Credit Obligations" means the obligation of each Canadian Loan Party  to reimburse Canadian Issuing Bank for amounts paid pursuant to Canadian Letters of Credit.  “Canadian Letter of Credit Sublimit” means $3,000,000.  “Canadian Letter of Credit Usage” means, as of any time of determination, the US Dollar  Equivalent of the sum of (a) the aggregate undrawn amount of all outstanding Canadian Letters of Credit  plus (b) the aggregate amount of outstanding reimbursement obligations with respect to Canadian Letters  of Credit which remain unreimbursed or which have not been paid through a Revolving Loan.    "Canadian Loan Account" has the meaning specified therefor in Section 2.8 of this  Agreement.  “Canadian Loan Party” means the Canadian Borrowers and the Guarantors that are  Subsidiaries of the Parent organized or domiciled under the laws of Canada or any territory or province  thereof.  “Canadian Multi-Employer Plan” means a “multi-employer pension plan”, as such term is  defined under the Pension Benefits Act (Ontario), under which a Canadian Loan Party is required to  contribute pursuant to a collective bargaining agreement and under which (i) the sole obligation of the  Canadian Loan Party is to make the contributions specified in the applicable collective bargaining  agreement, and (ii) the Canadian Loan Party has no liability relating to any past or future withdrawals from  the plan.   "Canadian Obligations" means (a) all loans (including the Canadian Revolving Loans  (inclusive of Canadian Extraordinary Advances and Canadian Swing Loans)), debts, principal, interest  (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of  whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding),  





 






     -21-    reimbursement or indemnification obligations with respect to Canadian Letters of Credit (irrespective of  whether contingent), premiums, liabilities (including all amounts charged to the Canadian Loan Account  pursuant to this Agreement), obligations (including indemnification obligations) of any Canadian Loan  Party, fees (including the fees Schedule 1.1 provided for in the Fee Letter) of any Canadian Loan Party,  Lender Group Expenses (including any fees or expenses that accrue after the commencement of an  Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any  such Insolvency Proceeding) of any Canadian Loan Party, guaranties of any Canadian Loan Party, and all  covenants and duties of any other kind and description owing by any Canadian Loan Party arising out of,  under, pursuant to, in connection with, or evidenced by this Agreement or any of the other Loan Documents  and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent,  due or to become due, now existing or hereafter arising, and including all interest not paid when due and  all other expenses or other amounts that any Canadian Loan Party is required to pay or reimburse by the  Loan Documents or by law or otherwise in connection with the Loan Documents, (b) all debts, liabilities,  or obligations (including reimbursement obligations, irrespective of whether contingent) owing by  Canadian Borrower or any other Canadian Loan Party to Canadian Issuing Bank now or hereafter arising  from or in respect of a Canadian Letters of Credit, and (c) all Canadian Bank Product Obligations; provided,  that Canadian Obligations shall not include Excluded Swap Obligations. Without limiting the generality of  the foregoing, the Canadian Obligations under the Loan Documents include the obligation to pay (i) the  principal of the Canadian Revolving Loans, (ii) the interest accrued on the Canadian Revolving Loans, (iii)  the amount necessary to reimburse Canadian Issuing Bank for amounts paid or payable pursuant to  Canadian Letters of Credit, (iv) letter of credit commissions, charges, expenses, and fees, in each case in  respect of Canadian Letters of Credit (v) Lender Group Expenses of any Canadian Loan Party, (vi) fees  payable by any Canadian Loan Party under this Agreement or any of the other Loan Documents, and (vii)  indemnities and other amounts payable by any Canadian Loan Party under any Loan Document (excluding  Excluded Swap Obligations). Any reference in this Agreement or in the Loan Documents to the Canadian  Obligations shall include all or any portion thereof and any extensions, modifications, renewals, or  alterations thereof, both prior and subsequent to any Insolvency Proceeding.  "Canadian Overadvance" means, as of any time of determination, that the Canadian  Revolver Usage is greater than any of the limitations set forth in Section 2.1 or Section 2.10B.  "Canadian Pension Plans" means each pension plan required to be registered under  Canadian federal or provincial law that is maintained or contributed to, or to which there is or may be an  obligation to contribute by a Loan Party or a Restricted Subsidiary thereof, for its employees or former  employees, but does not include the Canada Pension Plan or the Quebec Pension Plan as maintained by the  Government of Canada or the Province of Quebec, respectively.  "Canadian Priority Payables Reserves" means reserves (determined from time to time by  Agent in its Permitted Discretion and subject to Section 2.1(d)) for:  (a) the amount past due and owing by  any Canadian Loan Party, or the accrued amount for which such Canadian Loan Party has an obligation to  remit, to a Governmental Authority or other Person pursuant to any applicable law, rule or regulation, in  respect of (i) goods and services taxes, harmonized sales taxes, other sales taxes, employee income taxes,  municipal taxes and other taxes payable or to be remitted or withheld; (ii) workers' compensation or  employment insurance; (iii) federal Canada Pension Plan and other statutory Pension Plan contributions;  (iv) vacation or holiday pay; and (v) other like charges and demands, in each case, to the extent that any  Governmental Authority or other Person may claim a Lien, trust, deemed trust or other claim ranking or  capable of ranking in priority to or pari passu with one or more of the Liens granted in the Loan Documents;  and (b) the aggregate amount of any other liabilities of any Canadian Loan Party (i) in respect of which a  Lien, trust or deemed trust has been or may be imposed on any Collateral to provide for payment, or (ii) in  respect of unpaid or unremitted pension plan contributions, including normal cost contributions, special  payments and, without duplication, amounts representing any unfunded liability, solvency deficiency or  





 






     -22-    wind-up deficiency whether or not due with respect to a Canadian Pension Plan, or (iii) which are secured  by a Lien, charge, right or claim on any Collateral (other than Permitted Liens that do not have priority over  Agent's Liens); in each case, pursuant to any applicable law, rule or regulation and which such lien, trust,  deemed trust, pledge, charge, right or claim ranks or in the Permitted Discretion of Agent, is capable of  ranking in priority to or pari passu with one or more of the Liens granted in the Loan Documents (such as  certain claims by employees for unpaid wages and other amounts payable under the Wage Earner Protection  Program Act (Canada)); in each case net of the aggregate amount of all restricted cash held or set aside for  the payment of such obligations.  "Canadian Protective Advances" has the meaning specified therefor in Section 2.2(d)(i) of  this Agreement.   "Canadian Reimbursement Undertaking" has the meaning specified therefor in Section  2.10B(a) of this Agreement and refers to the US Dollar Equivalent thereof.  “Canadian Revolver Commitment” means, with respect to each Revolving Lender, its  Canadian Revolver Commitment, and, with respect to all Revolving Lenders, their Canadian Revolver  Commitments, in each case as such US Dollar amounts are set forth beside such Revolving Lender’s name  under the applicable heading on Schedule C-1 to this Agreement or in the Assignment and Acceptance or  Increase Joinder pursuant to which such Revolving Lender became a Revolving Lender under this  Agreement, as such amounts may be reduced or increased from time to time pursuant to assignments made  in accordance with the provisions of Section 13.1 of this Agreement, and as such amounts may be decreased  by the amount of reductions in the Canadian Revolver Commitments made in accordance with Section  2.3(c) hereof.  “Canadian Revolver Usage” means, as of any time of determination, the US Dollar  Equivalent of the sum of (a) the amount of outstanding Canadian Revolving Loans (inclusive of Canadian  Swing Loans and Canadian Protective Advances), plus (b) the amount of the Canadian Letter of Credit  Usage.  “Canadian Revolving Lender” means a Lender that has Canadian Revolving Loan  Exposure or Canadian Letter of Credit Exposure.   “Canadian Revolving Loan Exposure” means, with respect to any Lender, as of any time  of determination (a) prior to the termination of the Canadian Revolver Commitments, the amount of such  Lender’s Canadian Revolver Commitment, and (b) after the termination of the Canadian Revolver  Commitments, the US Dollar Equivalent of the aggregate outstanding principal amount of the Canadian  Revolving Loans of such Lender plus such Lender’s Canadian Letter of Credit Exposure.  “Canadian Revolving Loans” has the meaning specified therefor in Section 2.1(b) of this  Agreement.  "Canadian Swing Line Lender" means WF Canada or any other Lender that, at the request  of Canadian Borrower and with the consent of Agent (not to be unreasonably withheld, delayed or  conditioned) agrees, in such Lender's sole discretion, to become the Canadian Swing Line Lender under  Section 2.2(b) of this Agreement.   “Canadian Swing Loan” has the meaning specified therefor in Section 2.2(b) of this  Agreement.  





 






     -23-    “Canadian Swing Loan Exposure” means, as of any time of determination with respect to  any Lender, such Lender’s Pro Rata Share of the US Dollar Equivalent of the principal amount of  outstanding Canadian Swing Loans on such date.  "Canadian Underlying Issuer" means The Toronto-Dominion Bank or one of its Affiliates  or such other Person that is acceptable to Agent.    “Capital Expenditures” means, with respect to any Person for any period, the amount of  all expenditures by such Person and its Restricted Subsidiaries during such period that are capital  expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or  financed, but excluding, without duplication (a) with respect to the purchase price of assets that are  purchased substantially contemporaneously with the trade-in of existing assets during such period, the  amount that the gross amount of such purchase price is reduced by the credit granted by the seller of such  assets for the assets being traded in at such time, (b) expenditures made during such period to consummate  one or more Permitted Acquisitions, and (c) expenditures during such period that, pursuant to a written  agreement, are reimbursed by a third Person (excluding any Loan Party or any of its Affiliates).  “Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease  that is required to be capitalized in accordance with GAAP.  “Capital Lease” means, subject to Section 1.2, a lease that is required to be capitalized for  financial reporting purposes in accordance with GAAP.  “Cash Balance” shall mean, at the close of business on any Business Day, an amount equal  to (a) the aggregate amount of cash and Cash Equivalents credited to the account of, or otherwise reflected  as an asset on the balance sheet of, the Loan Parties minus (b) without duplication, the sum of (i) any cash  set aside to pay in the ordinary course of business amounts then due and owing by the Loan Parties to  unaffiliated third parties on account of transactions not prohibited under this Agreement, in each case, for  which the Loan Parties have already issued checks or have already initiated wires or ACH transfers in order  to pay such amounts, plus (ii) cash or Cash Equivalents of the Loan Parties held in Excluded Accounts.  “Cash Balance Sweep Limit” shall mean (a) with respect to the aggregate Cash Balance of  the Loan Parties’ deposit accounts and securities accounts in the United States and Canada, $10,000,000,  and (b) with respect to the aggregate US Dollar and US Dollar Equivalent of the Cash Balance of the Loan  Parties’ deposit accounts and securities accounts in all jurisdictions (other than the United States and  Canada), $10,000,000.  “Cash Dominion Event” means the occurrence of any of the following:  (A) the occurrence  and continuance of any Event of Default, or (B) Excess Availability is less than the greater of (i) 10.0% of  the Line Cap and (ii) $17,900,000 at any time.  “Cash Dominion Period” means the period commencing after the occurrence of a Cash  Dominion Event and continuing until the date when (a) no Event of Default shall exist and be continuing,  and (b) Excess Availability exceeds the greater of (i) 10.0% of the Line Cap and (ii) $17,900,000, in any  event, for at least 30 consecutive days.  “Cash Equivalents” means the following, whether denominated in Canadian Dollars or US  Dollars: (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States or  issued by any agency thereof and backed by the full faith and credit of the United States or by, or  unconditionally guaranteed by, the government of Canada or issued by any agency thereof and backed by  the full faith and credit of Canada, in each case maturing within 1 year from the date of acquisition thereof  





 






     -24-    (b) marketable direct obligations issued or fully guaranteed by any state of the United States or province of  Canada or any political subdivision of any such state, territory or province or any public instrumentality  thereof maturing within 1 year from the date of acquisition thereof and, at the time of acquisition, having  one of the two highest ratings obtainable from either Standard & Poor's Rating Group ("S&P") or Moody's  Investors Service, Inc. ("Moody's"), (c) commercial paper maturing no more than 270 days from the date  of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1  from Moody’s, (d) certificates of deposit, time deposits, overnight bank deposits or bankers' acceptances  maturing within 1 year from the date of acquisition thereof issued by any bank organized under the laws of  the United States or any state thereof or the District of Columbia or a bank organized under the laws of  Canada, or any United States or Canadian branch of a foreign bank, in each case having at the date of  acquisition thereof combined capital and surplus of not less $1,000,000,000, (e) Deposit Accounts  maintained with (i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other bank  organized under the laws of the United States or any state thereof or the laws of Canada so long as the full  amount maintained with any such other bank is insured by the Federal Deposit Insurance Corporation or  the Canadian Deposit Insurance Corporation,  (f) repurchase obligations of any commercial bank satisfying  the requirements of clause (d) of this definition or of any recognized securities dealer having combined  capital and surplus of not less than $1,000,000,000, having a term of not more than seven days, with respect  to securities satisfying the criteria in clauses (a) or (d) above, (g) debt securities with maturities of six  months or less from the date of acquisition backed by standby letters of credit issued by any commercial  bank satisfying the criteria described in clause (d) above, and (h) Investments in money market funds  substantially all of whose assets are invested in the types of assets described in clauses (a) through (g)  above.  “Cash Management Services” means any cash management or related services including  treasury, depository, return items, overdraft, controlled disbursement,  merchant store value cards, e- payables services, electronic funds transfer, interstate depository network, automatic clearing house transfer  (including the Automated Clearing House processing of electronic funds transfers through the direct Federal  Reserve Fedline system) and other customary cash management arrangements.  "CDOR Rate" means the average rate per annum as reported on the Reuters Screen CDOR  Page (or any successor page or such other page or commercially available service displaying Canadian  interbank bid rates for Canadian Dollar bankers' acceptances as the Agent may designate from time to time,  or if no such substitute service is available, the rate quoted by a Schedule I bank under the Bank Act  (Canada) selected by the Agent at which such bank is offering to purchase Canadian Dollar bankers'  acceptances) as of 10:00 a.m. Eastern (Toronto) time on the date of commencement of the requested Interest  Period, for a term, and in an amount, comparable to the Interest Period and the amount of the CDOR Rate  Loan requested (whether as an initial CDOR Rate Loan or as a continuation of a CDOR Rate Loan or as a  conversion of a Base Rate Loan to a CDOR Rate Loan) by Borrowers in accordance with this Agreement  (and, if any such reported rate is below 0.00 percentage points, then the rate determined pursuant to this  clause (b) shall be deemed to be 0.00 percentage points).  Each determination of the CDOR Rate shall be  made by the Agent and shall be conclusive in the absence of manifest error.  "CDOR Rate Loan" means each portion of the Canadian Revolving Loans that bears  interest at a rate determined by reference to the CDOR Rate.   “CFC” means a controlled foreign corporation (as that term is defined in the IRC) in which  any Loan Party is a "United States shareholder" within the meaning of Section 951(b) of the IRC.  "Change of Control" means the occurrence of any of the following events:   





 






     -25-    (a) any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the  Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries,  and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any  such plan) other than the Permitted Holders (collectively a “Control Group”) becomes the "beneficial  owner" (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a  person or group shall be deemed to have "beneficial ownership" of all securities that such person or group  has the right to acquire (such right, an "option right"), whether such right is exercisable immediately or only  after the passage of time), directly or indirectly, of 35% or more of the equity securities of the Parent entitled  to vote for members of the board of directors or equivalent governing body of the Parent on a fully-diluted  basis (and taking into account all such securities that such person or group has the right to acquire pursuant  to any option right); provided that after giving effect to the conversion of the Secured Notes (and  Refinancing Secured Notes) held by such Control Group into common Equity Interests of the Parent in  accordance with the terms of the Secured Notes Documents as in effect on the Second Amendment Effective  Date, such Control Group, subject to the Parent’s delivery of an updated Beneficial Ownership Certification  and other information or documentation requested pursuant to the Beneficial Ownership Regulation in  accordance with Section 5.10, may be the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under  the Securities Exchange Act of 1934, except that a person or group shall be deemed to have "beneficial  ownership" of all securities that such person or group has the right to acquire pursuant to any option right),  directly or indirectly, of 35% or more of the equity securities of the Parent entitled to vote for members of  the board of directors or equivalent governing body of the Parent on a fully-diluted basis (and taking into  account all such securities that such person or group has the right to acquire pursuant to any option right),   (b) during any period of 12 consecutive months, a majority of the members of the  board of directors or other equivalent governing body of the Parent cease to be composed of individuals (i)  who were members of that board or equivalent governing body on the first day of such period, (ii) whose  election or nomination to that board or equivalent governing body was approved by individuals referred to  in clause (i) above constituting at the time of such election or nomination at least a majority of that board  or equivalent governing body or (iii) whose election or nomination to that board or other equivalent  governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time  of such election or nomination at least a majority of that board or equivalent governing body;   (c) the occurrence of any “change of control” or “change in control”, however defined,  under Other Debt Documents evidencing Indebtedness in an aggregate outstanding principal amount equal  to or greater than $25,000,000; or  (d) any Borrower (other than the Parent) ceases to be a Restricted Subsidiary of the  Parent.  “Change in Law” means the occurrence after the date of this Agreement of:  (a) the  adoption or effectiveness of any law, rule, regulation, judicial ruling, judgment or treaty, (b) any change in  any law, rule, regulation, judicial ruling, judgment or treaty or in the administration, interpretation,  implementation or application by any Governmental Authority of any law, rule, regulation, guideline or  treaty, or (c) the making or issuance by any Governmental Authority of any request, rule, guideline or  directive, whether or not having the force of law; provided, that notwithstanding anything in this Agreement  to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules,  guidelines or directives thereunder or issued in connection therewith, and (ii) all requests, rules, guidelines  or directives concerning capital adequacy promulgated by the Bank for International Settlements, the Basel  Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign  regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in  Law,” regardless of the date enacted, adopted or issued.  





 






     -26-    “Closing Date” means the date of the making of the initial Revolving Loan (or other  extension of credit) under this Agreement.   “Co-Syndication Agents” has the meaning set forth in the preamble to this Agreement.  “Code” means the New York Uniform Commercial Code, as in effect from time to time.  “Collateral” means all assets and interests in assets and proceeds thereof now owned or  hereafter acquired by any Loan Party or its Restricted Subsidiaries in or upon which a Lien is granted by  such Person in favor of Agent or the Lenders under any of the Loan Documents.   “Collateral Access Agreement” means a landlord waiver, bailee letter, or  acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in  possession of, having a Lien upon, or having rights or interests in any Loan Party’s or its Restricted  Subsidiaries’ books and records, Equipment, or Inventory, in each case, in form and substance reasonably  satisfactory to Agent.  “Collections” means, all cash, checks, notes, instruments, and other items of payment  (including insurance proceeds, cash proceeds of asset sales, rental proceeds and Tax refunds).  “Commitment” means, with respect to each Lender, its US Revolver Commitment or its  Canadian Revolver Commitment, as the context requires, and, with respect to all Lenders, their US  Revolver Commitments or their Canadian Revolver Commitments, as the context requires, in each case as  such US Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule  C-1 to this Agreement or in the Assignment and Acceptance pursuant to which such Lender became a  Lender under this Agreement, as such amounts may be reduced or increased from time to time pursuant to  assignments made in accordance with the provisions of Section 13.1 of this Agreement.   For the avoidance  of doubt, each Lender’s (or its Affiliate’s) Canadian Revolver Commitment, if any, is a subset of such  Lender’s US Revolver Commitment and, in no event shall any Revolving Lender or any its Affiliate be  obligated to have a US Revolving Loan Exposure in excess of its US Revolver Commitment.  “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.),  as amended from time to time, and any successor statute.  “Compliance Certificate” means a certificate substantially in the form of Exhibit C-1 to  this Agreement delivered by the chief financial officer or treasurer of Parent to Agent.  “Concentration Account Debtors” means the following Persons to the extent they are  Account Debtors (a) Patterson-UTI Energy, Inc. and each wholly-owned Subsidiary thereof, and (b) MRC  Global, Inc.  “Confidential Information” has the meaning specified therefor in Section 17.9(a) of this  Agreement.  “Control” means the possession, directly or indirectly, of the power to direct or cause the  direction of the management and policies of a Person, whether through ownership, by contract, or otherwise,  and the terms “Controlled by” or “under common Control with” shall have the correlative meanings.  “Control Agreement” means a control agreement, in form and substance reasonably  satisfactory to Agent, executed and delivered by a Loan Party or one of its Restricted Subsidiaries, Agent,  





 






     -27-    and the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a  Deposit Account).  “Controlled Account” has the has the meaning specified therefor in Section 6.17(a) of this  Agreement.  “Controlled Account Bank” has the meaning specified therefor in Section 6.17(a) of this  Agreement.  “Corresponding Tenor” with respect to any Available Tenor means, as applicable, either a  tenor (including overnight) or an interest payment period having approximately the same length  (disregarding business day adjustment) as such Available Tenor.  “Covenant Testing Period” means a period (a) commencing on the last day of the fiscal  quarter of Parent most recently ended prior to a Covenant Trigger Event for which Borrowers are required  to deliver to Agent quarterly or annual financial statements pursuant to Schedule 5.1 to this Agreement, and  (b) continuing through and including the first day after such Covenant Trigger Event that Excess  Availability has exceeded the greater of (i) 12.5% of the Line Cap and (ii) $22,375,000, in any event, for  60 consecutive days.  “Covenant Trigger Event” means if Excess Availability is less than the greater of (i) 12.5%  of the Line Cap and (ii) $22,375,000.  “Customs Brokers” shall mean the persons listed on Schedule C-2 hereto or such other  person or persons as may be selected by Administrative Borrower after the date hereof and after written  notice by Administrative Borrower to Agent who are reasonably acceptable to Agent in its Permitted  Discretion to handle the receipt of Inventory within the United States or Canada or to clear Inventory  through the Bureau of Customs and Border Protection or other domestic or foreign export control authorities  or otherwise perform port of entry services to process Inventory imported by a Borrower from outside the  United States or Canada, as applicable (such persons sometimes being referred to herein individually as a  “Customs Broker”), provided, that, as to each such person, (a) Agent shall have received a customs broker  agreement by such person in favor of Agent (in form and substance reasonably satisfactory to Agent) duly  authorized, executed and delivered by such person, (b) such agreement shall be in full force and effect and  (c) such person shall be in compliance in all material respects with the terms thereof.  “Criminal Code Section” has the meaning specified therefor in Section 2.17(b) of this  Agreement.  “Default” means an event, condition, or default that, with the giving of notice, the passage  of time, or both, would be an Event of Default.  “Defaulting Lender” means any Lender that (a) has failed to (i) fund all or any portion of  its Loans within two Business Days of the date such Loans were required to be funded hereunder unless  such Lender notifies Agent and Administrative Borrower in writing that such failure is the result of such  Lender’s determination that one or more conditions precedent to funding (each of which conditions  precedent, together with any applicable Default or Event of Default, shall be specifically identified in such  writing) has not been satisfied, or (ii) pay to Agent, Issuing Bank, or any other Lender any other amount  required to be paid by it hereunder (including in respect of its participation in Letters of Credit) within two  Business Days of the date when due, (b) has notified any Borrower, Agent or Issuing Bank in writing that  it does not intend to comply with its funding obligations hereunder or generally under other agreements in  which it commits to extend credit, or has made a public statement to that effect (unless such writing or  





 






     -28-    public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position  is based on such Lender’s determination that a condition precedent to funding (which condition precedent,  together with any applicable Default or Event of Default, shall be specifically identified in such writing or  public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by  Agent or Administrative Borrower, to confirm in writing to Agent and Administrative Borrower that it will  comply with its prospective funding obligations hereunder (provided, that such Lender shall cease to be a  Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by Agent and  Administrative Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the  subject of any Insolvency Proceeding, (ii) had appointed for it a receiver, custodian, conservator, trustee,  administrator, assignee for the benefit of creditors or similar Person charged with reorganization or  liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state  or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-in Action;  provided, that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of  any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental  Authority so long as such ownership interest does not result in or provide such Lender with immunity from  the jurisdiction of courts within the United States or from the enforcement of judgments or writs of  attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate,  disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by Agent  that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be  conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender  upon delivery of written notice of such determination to Administrative Borrower, Issuing Bank, and each  Lender.  “Defaulting Lender Rate” means (a) for the first three days from and after the date the  relevant payment is due, the Base Rate, and (b) thereafter, the interest rate then applicable to Revolving  Loans that are Base Rate Loans (inclusive of the Base Rate Margin applicable thereto).  “Deposit Account” means any deposit account (as that term is defined in the Code or, to  the extent applicable, the PPSA).  “Designated Account” means US Designated Account and/or Canadian Designated  Account, as the context requires.  “Disqualified Equity Interests” means any Equity Interests that, by their terms (or by the  terms of any security or other Equity Interests into which they are convertible or for which they are  exchangeable), or upon the happening of any event or condition (a) matures or are mandatorily redeemable  (other than solely for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except  as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence  of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all  other Obligations that are accrued and payable and the termination of the Commitments), (b) are redeemable  at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part, (c)  provide for the scheduled payments of dividends in cash, or (d) are or become convertible into or  exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity  Interests, in each case, prior to the date that is 91 days after the Maturity Date; provided that if any such  Equity Interest is issued pursuant to a plan for the benefit of the employees, directors, officers, managers  or consultants of any Borrower or any Restricted Subsidiary or by any such plan to such Persons, such  Equity Interest shall not be regarded as an Equity Interest constituting a Disqualified Equity Interest solely  because it may be required to be repurchased by Parent, any Borrower, or its Restricted Subsidiaries in  order to satisfy applicable employment or regulatory obligations.  “Documentation Agent” has the meaning set forth in the preamble to this Agreement.  





 






     -29-    “Domestic Cash” means cash deposited in a deposit account of a Loan Party that is (a)  maintained by a member of the Lender Group, as depository bank, (b) located in the United States, and (c)  subject to a Control Agreement, but not including cash used for Letter of Credit Collateralization or Bank  Product Collateralization.  “Domestic Subsidiary” means any Subsidiary of any Loan Party that is not a Foreign  Subsidiary.  “Drawing Document” means any Letter of Credit or other document presented for purposes  of drawing under any Letter of Credit, including by electronic transmission such as SWIFT, electronic mail,  facsimile or computer generated communication.  “Early Opt-in Election” means, if the then-current Benchmark is USD LIBOR, the  occurrence of:  (a) a notification by Agent to (or the request by Administrative Borrower to Agent to  notify) each of the other parties hereto that at least five currently outstanding Dollar-denominated  syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR- based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and  such syndicated credit facilities are identified in such notice and are publicly available for review), and  (b) the joint election by Agent and Administrative Borrower to trigger a fallback from  USD LIBOR and the provision by Agent of written notice of such election to the Lenders.  “Earn-Outs” means unsecured liabilities of a Loan Party arising under an agreement to  make any deferred payment as a part of the Purchase Price for a Permitted Acquisition, including  performance bonuses or consulting payments in any related services, employment or similar agreement, in  an amount that is subject to or contingent upon the revenues, income, cash flow or profits (or the like) of  the target of such Permitted Acquisition.  "EBITDA" means, for any period and for the Parent and its consolidated Restricted  Subsidiaries, without duplication, (a) the Parent's consolidated Net Income for such period (it being  understood that no amounts of the Unrestricted Subsidiaries' or any Joint Ventures’ Net Income shall be  taken into account in calculating EBITDA other than to the extent provided in clause (c) below), plus (b) to  the extent deducted in determining consolidated Net Income for such period, Interest Expense, taxes,  depreciation, amortization, depletion, and other non-cash charges for such period (including any provision  for the reduction in the carrying value of assets recorded in accordance with GAAP and including non-cash  charges resulting from the requirements of ASC 410, 718 and 815) for such period, plus (c) Net Income of  Unrestricted Subsidiaries and Joint Ventures but to the extent and only to the extent the amount thereof is  distributed as cash dividends to the Restricted Entities during such period, plus (d) to the extent deducted  in determining consolidated Net Income for such period, non-recurring restructuring expenses incurred  during such period consisting of severance costs, costs associated with office or plant closings and  consolidation or relocation fees for such period; provided that the aggregate amount of such expenses shall  not exceed $7,500,000 in the aggregate for any four-fiscal quarter period, plus (e) to the extent deducted in  determining consolidated Net Income for such period, any non-recurring charges incurred during such  period in connection with Permitted Acquisitions consisting of excess compensation of prior officers of the  acquired Person; provided that the aggregate amount of such charges may not exceed $2,500,000 for any  four-fiscal quarter period unless otherwise agreed to by the Agent, plus (f) to the extent deducted in  determining consolidated Net Income for such period, other reasonable non-recurring cash charges and  expenses incurred in connection with Permitted Acquisitions during such period in an amount not to exceed  such amount as agreed to between the Agent and the Parent (except that such amount shall not exceed  





 






     -30-    $7,500,000, not including transaction expenses) for any four-fiscal quarter period, minus (g) all non-cash  items of income which were included in determining such consolidated Net Income (including non-cash  income resulting from the requirements of ASC 410, 718 and 815); provided that such EBITDA shall be  subject to pro forma adjustments for Acquisitions and non-ordinary course sale, transfer, or other  disposition of assets, in any event, assuming that such transactions had occurred on the first day of the  determination period, which adjustments shall be determined on a basis consistent with Article 11 of  Regulation S-X promulgated under the Securities Act and as interpreted by the staff of the SEC or in a  manner otherwise reasonably acceptable to the Agent.     “EEA Financial Institution” means (a) any credit institution or investment firm established  in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any  entity established in an EEA Member Country which is a parent of an institution described in clause (a) of  this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary  of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision  with its parent.  “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  “EEA Resolution Authority” means any public administrative authority or any person  entrusted with public administrative authority of any EEA Member Country (including any delegee) having  responsibility for the resolution of any EEA Financial Institution.  “Eligible Accounts” means the US Eligible Accounts and/or the Canadian Eligible  Accounts, as the context requires.  "Eligible Currency" means any Foreign Currency provided that: (a) quotes for loans in such  currency are available in the London interbank deposit market; (b) such currency is freely transferable and  convertible into US Dollars in the London foreign exchange market, (c) no approval of a Governmental  Authority in the country of issue of such currency is required to permit use of such currency by any  applicable Lender or applicable Issuing Bank for making loans or issuing letters of credit, or honoring drafts  presented under letters of credit in such currency, and (d) there is no restriction or prohibition under any  applicable law or regulation against the use of such currency for such purposes.    “Employee Benefit Plan” means any employee benefit plan within the meaning of Section  3(3) of ERISA, whether or not subject to ERISA, (a) that is or within the preceding six (6) years has been  sponsored, maintained or contributed to by any Loan Party or ERISA Affiliate or (b) to which any Loan  Party or ERISA Affiliate has, or has had at any time within the preceding six (6) years, any liability,  contingent or otherwise.  “Environmental Action” means any written complaint, summons, citation, notice,  directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter, or  other written communication from any Governmental Authority, or any third party involving violations of  Environmental Laws or releases of Hazardous Materials (a) from any assets, properties, or businesses of  any Borrower, any Restricted Subsidiary of any Borrower, or any of their predecessors in interest, (b) from  adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous Materials  generated by any Borrower, any Restricted Subsidiary of any Borrower, or any of their predecessors in  interest.  “Environmental Law” means any applicable federal, state, provincial, foreign or local  statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable  





 






     -31-    written policy, or rule of common law now or hereafter in effect and in each case as amended, or any judicial  or administrative interpretation thereof, including any judicial or administrative order, consent decree or  judgment, in each case, to the extent binding on any Loan Party or its Restricted Subsidiaries, relating to  the environment, the effect of the environment on employee health, or Hazardous Materials, in each case  as amended from time to time.  “Environmental Liabilities” means all liabilities, monetary obligations, losses, damages,  costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or  consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest  incurred as a result of any claim or demand, or Remedial Action required, by any Governmental Authority  or any third party, and which relate to any Environmental Action.  “Environmental Lien” means any Lien in favor of any Governmental Authority for  Environmental Liabilities.  “Equipment” means equipment (as that term is defined in the Code or, to the extent  applicable, the PPSA).  “Equity Interests” means, with respect to a Person, all of the shares, options, warrants,  interests, participations, or other equivalents (regardless of how designated) of or in such Person, whether  voting or nonvoting, including capital stock (or other ownership or profit interests or units), preferred stock,  or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations  promulgated by the SEC under the Exchange Act).  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and  any successor statute thereto.  “ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as  employed by the same employer as the employees of any Loan Party or its Restricted Subsidiaries under  IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed  by the same employer as the employees of any Loan Party or its Restricted Subsidiaries under IRC Section  414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization  subject to ERISA that is a member of an affiliated service group of which any Loan Party or any of its  Restricted Subsidiaries is a member under IRC Section 414(m), or (d) solely for purposes of Section 302  of ERISA and Section 412 of the IRC, any Person subject to ERISA that is a party to an arrangement with  any Loan Party or any of its Restricted Subsidiaries and whose employees are aggregated with the  employees of such Loan Party or its Restricted Subsidiaries under IRC Section 414(o).  “Erroneous Payment” has the meaning specified therefor in Section 17.19(a) of this  Agreement.  “Erroneous Payment Deficiency Assignment” has the meaning specified therefor in  Section 17.19(d) of this Agreement.  “Erroneous Payment Impacted Loans” has the meaning specified therefor in Section  17.19(d) of this Agreement.  “Erroneous Payment Return Deficiency” has the meaning specified therefor in Section  17.19(d) of this Agreement.  





 






     -32-    “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published  by the Loan Market Association (or any successor person), as in effect from time to time.  “Event of Default” has the meaning specified therefor in Section 8 of this Agreement.   “Excess Availability” means, as of any time of determination, the amount equal to (a) the  Line Cap minus (b) the sum of (i) the US Revolver Usage and (ii) the Canadian Revolver Usage.  “Exchange” has the meaning given in Recital B of the Second Amendment.  “Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to time.  “Excluded Accounts” means deposit or securities accounts that are designated solely as  accounts for, and are used solely for, payroll funding, employee compensation, employee benefits or taxes.  “Excluded Subsidiary (Canadian)” means (a) Immaterial Subsidiaries, (b) any Foreign  Subsidiary that is not domiciled in Canada or any province or territory thereof, (c) any Restricted Subsidiary  of a Canadian Loan Party to the extent that the burden or cost (including any potential Tax liability) of  obtaining a guarantee outweighs the benefit afforded thereby as reasonably determined by Borrowers and  Agent, (d) any Subsidiary of a Loan Party that is not Wholly-Owned, and (e) any Unrestricted Subsidiary;  provided, that no Person which has guaranteed or is otherwise liable for any Other Debt shall be an  Excluded Subsidiary (Canadian).  “Excluded Subsidiary (US)” means (a) Immaterial Subsidiaries, (b) any Restricted  Subsidiary of a US Loan Party to the extent that the burden or cost (including any potential Tax liability)  of obtaining a guarantee outweighs the benefit afforded thereby as reasonably determined by Borrowers  and Agent, (c) any Foreign Subsidiary of a Loan Party that is a CFC, (d) any Subsidiary of a Loan Party  that is a direct or indirect subsidiary of a Foreign Subsidiary that is a CFC, (e) any Subsidiary of a Loan  Party that is not Wholly-Owned, and (f) any Unrestricted Subsidiary; provided, that no Person which has  guaranteed or is otherwise liable for any Other Debt shall be an Excluded Subsidiary (US).  “Excluded Swap Obligation” means, with respect to any Loan Party, any Swap Obligation  if, and to the extent that, all or a portion of the guaranty of such Loan Party of (including by virtue of the  joint and several liability provisions of Section 2.14 or Section 2.15), or the grant by such Loan Party of a  security interest to secure, such Swap Obligation (or any guaranty thereof) is or becomes illegal under the  Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission  (or the application or official interpretation of any thereof) by virtue of such Loan Party’s failure for any  reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the  regulations thereunder at the time the guaranty of such Loan Party or the grant of such security interest  becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master  agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap  Obligation that is attributable to swaps for which such guaranty or security interest is or becomes illegal.  “Excluded Taxes” means (a) any Tax imposed on the net or overall gross income or net or  overall gross profits of any Lender (including any branch profits, capital, franchise or similar Taxes), in  each case (i) imposed by the jurisdiction (or by any political subdivision or taxing authority thereof) in  which such Lender is organized or the jurisdiction (or by any political subdivision or taxing authority  thereof) in which such Lender’s principal office is located in or (ii) that are Other Connection Taxes, (b)  United States federal withholding Taxes that would not have been imposed but for a Lender’s failure to  comply with the requirements of Section 16.2 of this Agreement, (c) any United States federal or Canadian  withholding Taxes that would be imposed on amounts payable to a  Lender based upon the applicable  





 






     -33-    withholding rate in effect at the time such Lender becomes a party to this Agreement (or designates a new  lending office, other than a designation made at the request of a Loan Party), except that Excluded Taxes  shall not include (A) any amount that such Lender (or its assignor, if any) was previously entitled to receive  pursuant to Section 16.1 of this Agreement, if any, with respect to such withholding Tax at the time such  Lender becomes a party to this Agreement (or designates a new lending office), and (B) additional United  States federal withholding Taxes that may be imposed after the time such Lender becomes a party to this  Agreement (or designates a new lending office), as a result of any Change in Law, and (d) any United States  federal withholding Taxes imposed under FATCA.  “Existing Credit Facility” means the facility evidenced by that certain Second Amended  and Restated Credit Agreement dated as of November 26, 2013 among the Parent, Wells Fargo as  administrative agent, swing line lender, and issuing lender, the other issuing lenders thereunder and the  lenders party thereto, as heretofore amended.  “Existing Letters of Credit” means those letters of credit described on Schedule E-1 to this  Agreement.  “Exiting Lender” has the meaning specified therefor in Section 17.15 of this Agreement.  "Extraordinary Advances" means the US Extraordinary Advances and/or the Canadian  Extraordinary Advances, as the context requires.  “FATCA” means Sections 1471 through 1474 of the IRC, as of the date of this Agreement  (or any amended or successor version that is substantively comparable and not materially more onerous to  comply with), and (a) any current or future regulations or official interpretations thereof, (b) any agreements  entered into pursuant to Section 1471(b)(1) of the IRC, and (c) any intergovernmental agreement entered  into by the United States (or any fiscal or regulatory legislation, rules, or official practices adopted pursuant  to any such intergovernmental agreement entered into in connection therewith).  “FCA” has the meaning specified therefor in Section 1.10 of this Agreement.  “FCPA” means the Foreign Corrupt Practices Act of 1977, as amended, and the rules and  regulations thereunder.  “FDIC” means the Federal Deposit Insurance Corporation.  “Fee Letter” means that certain fee letter, dated as of September 8, 2021, among Borrowers  and Agent, in form and substance reasonably satisfactory to Agent.  “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal to,  for each day during such period, the weighted average of the rates on overnight Federal funds transactions  with members of the Federal Reserve System, as published on the next succeeding Business Day by the  Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business  Day, the average of the quotations for such day on such transactions received by Agent from three Federal  funds brokers of recognized standing selected by it (and, if any such rate is below zero, then the rate  determined pursuant to this definition shall be deemed to be zero).  “Federal Reserve Bank of New York’s Website” means the website of the Federal Reserve  Bank of New York at http://www.newyorkfed.org, or any successor source.  





 






     -34-    “Fixed Charges” means, with respect to any fiscal period and with respect to Parent and its  Restricted Subsidiaries determined on a consolidated basis in accordance with GAAP, the sum, without  duplication, of (a) Interest Expense paid (other than interest paid-in-kind, amortization of financing fees,  and other non-cash Interest Expense) during such period, (b) scheduled principal payments in respect of  Indebtedness that are required to be paid during such period (other than Earn-Outs), and (c) all Restricted  Payments paid in cash during such period.    “Fixed Charge Coverage Ratio” means, with respect to any fiscal period and with respect  to Parent and its Restricted Subsidiaries determined on a consolidated basis in accordance with GAAP, the  ratio of (a) EBITDA for such period minus all federal, state, provincial and local income Taxes required to  be paid during such period minus Unfinanced Capital Expenditures made (to the extent not already incurred  in a prior period) or incurred during such period plus all cash refunds for federal, state, provincial and local  income Taxes received after the Closing Date and during such period plus the lesser of (x) Growth Capital  Expenditures made (to the extent not already incurred in a prior period) or incurred during such period, and  (y) $5,000,000, to (b) Fixed Charges for such period; provided that, in any event, EBITDA, Unfinanced  Capital Expenditures and Fixed Charges attributable to Restricted Subsidiaries that are not Loan Parties  shall not constitute more than 15% of such respective amounts.  For the purposes of calculating Fixed Charge Coverage Ratio for any Reference Period, if  at any time during such Reference Period (and after the Closing Date), any Loan Party or any of its  Subsidiaries shall have made a Permitted Acquisition, Fixed Charges and Unfinanced Capital Expenditures  for such Reference Period shall be calculated after giving pro forma effect thereto or in such other manner  acceptable to Agent as if any such Permitted Acquisition occurred on the first day of such Reference Period.    “Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of  the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise)  with respect to USD LIBOR.  “Flow of Funds Agreement” means a flow of funds agreement, dated as of even date with  this Agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by  Borrowers and Agent.  “Foreclosed Canadian Borrower” has the meaning specified therefor in Section 2.15(h) of  this Agreement.  “Foreclosed US Borrower” has the meaning specified therefor in Section 2.14(h) of this  Agreement.  "Foreign Currency" means each Agreed Currency (other than Dollars).  "Foreign Currency Equivalent" means, at any time, with respect to any amount  denominated in US Dollars, the equivalent amount thereof in the applicable Foreign Currency as determined  by the Agent or the applicable Issuing Bank, as the case may be, at such time on the basis of the Spot Rate  (determined in respect of the most recent Revaluation Date) for the purchase of such Foreign Currency with  US Dollars.  "Foreign Currency L/C" means any Letter of Credit issued or deemed issued hereunder  which is denominated in currency other than Dollars.  





 






     -35-    “Foreign Subsidiary” means any direct or indirect subsidiary of any Loan Party that is  organized under the laws of any jurisdiction other than the United States, any state thereof or the District  of Columbia.  “Foreign Subsidiary Holding Company” or “FSHCO” means any direct or indirect  Domestic Subsidiary that is a Restricted Subsidiary substantially all of the assets of which consist, directly  or indirectly, of Equity Interests in one or more CFCs.  “Forum Canada” has the meaning specified therefor in the preamble to this Agreement.  “Funded Indebtedness” means, as of any time of determination, all Indebtedness for  borrowed money or letters of credit of Parent and its Restricted Subsidiaries, determined on a consolidated  basis in accordance with GAAP, including, in any event, but without duplication, with respect to the Loan  Parties and their Restricted Subsidiaries, the US Revolver Usage, the Canadian Revolver Usage, and the  amount of their Capitalized Lease Obligations.  “Funding Date” means the date on which a Borrowing occurs.  “Funding Losses” has the meaning specified therefor in Section 2.11(b)(ii) of this  Agreement.  “GAAP” means generally accepted accounting principles as in effect from time to time in  the United States, consistently applied.  “Governing Documents” means, with respect to any Person, the certificate or articles of  incorporation, by-laws, or other organizational documents of such Person.  “Governmental Authority” means the government of any nation or any political  subdivision thereof, whether at the national, state, territorial, provincial, county, municipal or any other  level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity  exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or  pertaining to, government (including any supra-national bodies such as the European Union or the European  Central Bank).  “Growth Capital Expenditure” means, for the Parent and its consolidated Restricted  Subsidiaries, all Capital Expenditures consisting of spending for new assets, expansion or the enhancement  of existing assets but only to the extent such spending generates new revenue or costs savings and is not  addressing wear and tear of existing assets.  “Guarantor” means (a) each Person that guaranties all or a portion of the Obligations,  including Parent and any Person that is a "Guarantor" under the Guaranty and Security Agreement, and (b)  each other Person that becomes a guarantor after the Closing Date pursuant to Section 5.11 of this  Agreement.  “Guaranty and Security Agreement” means (a) a guaranty and security agreement, dated  as of even date with this Agreement, in form and substance reasonably satisfactory to Agent, executed and  delivered by each of the US Loan Parties to Agent which secures and guarantees the Obligations, and (b) a  guaranty and security agreement, dated as of even date with this Agreement, in form and substance  reasonably satisfactory to Agent, executed and delivered by each of the Loan Parties to Agent which secures  and guarantees the Canadian Obligations.  





 






     -36-    “Hazardous Materials” means (a) substances that are defined or listed in, or otherwise  classified pursuant to, any applicable laws or regulations as “hazardous substances,” “hazardous materials,”  “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify  substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity,  reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas,  natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated with the  exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any  flammable substances or explosives or any radioactive materials, and (d) asbestos in any form or electrical  equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess  of 50 parts per million.  “Hedge Agreement” means a “swap agreement” as that term is defined in Section  101(53B)(A) of the Bankruptcy Code.  “Hedge Obligations" means US Hedge Obligations and/or Canadian Hedge Obligations,  as the context requires.  “Hedge Provider” means any Bank Product Provider that is a party to a Hedge Agreement  with a Loan Party or its Restricted Subsidiaries or otherwise provides Bank Products under clause (f) of the  definition thereof; provided, that if, at any time, a Lender ceases to be a Lender under this Agreement (prior  to the payment in full of the Obligations), then such former Lender and any of its Affiliates shall constitute  Hedge Providers only through the stated termination (without extension or renewal) of the individual Hedge  Agreements (and not Master ISDA Agreements) entered into with such former Lender or any of its  Affiliates.  “IBA” has the meaning specified therefor in Section 1.10 of this Agreement.  “Immaterial Subsidiary” means each Subsidiary of a Borrower that is not a Material  Subsidiary.  “Increase” has the meaning specified therefor in Section 2.13.  “Increase Date” the date of the effectiveness of the increased US Revolver Commitments  and the Maximum Revolver Amount.  “Increase Joinder” has the meaning specified therefor in Section 2.13.  “Increased Reporting Event” means if Excess Availability is less than the greater of (a)  15.0% of the Line Cap and (b) $26,850,000.  “Increased Reporting Period” means the period commencing after the continuance of an  Increased Reporting Event and continuing until the date when no Increased Reporting Event has occurred  for 30 consecutive days.   “Indebtedness” as to any Person means (a) all obligations of such Person for borrowed  money, (b) all obligations of such Person evidenced by bonds, debentures, notes, or other similar  instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances,  or other financial products, (c) all obligations of such Person as a lessee under Capital Leases, (d) all  obligations or liabilities of others secured by a Lien on any asset of such Person, irrespective of whether  such obligation or liability is assumed, (e) all obligations of such Person to pay the deferred purchase price  of assets (other than trade payables incurred in the ordinary course of business and repayable in accordance  





 






     -37-    with customary trade practices and, for the avoidance of doubt, other than royalty payments payable in the  ordinary course of business in respect of non-exclusive licenses) and any earn-out or similar obligations,  (f) all monetary obligations of such Person owing under Hedge Agreements (which amount shall be  calculated based on the amount that would be payable by such Person if the Hedge Agreement were  terminated on the date of determination), (g) any Disqualified Equity Interests of such Person, and (h) any  obligation of such Person guaranteeing or intended to guarantee (whether directly or indirectly guaranteed,  endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that constitutes  Indebtedness under any of clauses (a) through (g) above.  For purposes of this definition, (i) the amount of  any Indebtedness represented by a guaranty or other similar instrument shall be the lesser of the principal  amount of the obligations guaranteed and still outstanding and the maximum amount for which the  guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Indebtedness,  and (ii) the amount of any Indebtedness which is limited or is non-recourse to a Person or for which recourse  is limited to an identified asset shall be valued at the lesser of (A) if applicable, the limited amount of such  obligations, and (B) if applicable, the fair market value of such assets securing such obligation.  “Indemnified Liabilities” has the meaning specified therefor in Section 10.3 of this  Agreement.  “Indemnified Person” has the meaning specified therefor in Section 10.3 of this  Agreement.  “Indemnified Taxes” means, (a) Taxes, other than Excluded Taxes, imposed on or with  respect to any payment made by, or on account of any obligation of, any Loan Party under any Loan  Document, and (b) to the extent not otherwise described in the foregoing clause (a), Other Taxes.  "Insolvency Laws" means, collectively, (i) the Bankruptcy Code, (ii) the Bankruptcy and  Insolvency Act (Canada), (iii) the Companies' Creditors Arrangement Act (Canada), (iv) the Winding-Up  and Restructuring Act (Canada), (v) corporate statutes where such statute is used by a Person to propose  an arrangement involving the compromise of the claims of creditors; and (vi) any similar legislation in a  relevant jurisdiction, in each case as applicable and as in effect from time to time.   "Insolvency Proceeding" means any proceeding commenced by or against any Person  under any Insolvency Law or under any other provincial, state or federal bankruptcy or insolvency law,  each as now and hereafter in effect, any successors to such statutes, and any similar laws in any jurisdiction  including, without limitation, any laws relating to assignments for the benefit of creditors, formal or  informal moratoria, compositions, extensions generally with creditors, or proceedings seeking  reorganization, arrangement, or other similar relief and any law permitting a debtor to obtain a stay or a  compromise of the claims of its creditors.   “Intercompany Subordination Agreement” means an intercompany subordination  agreement, dated as of even date with this Agreement, executed and delivered by each Loan Party and each  of its Restricted Subsidiaries, and Agent, the form and substance of which is reasonably satisfactory to  Agent.  “Intercompany Threshold Amount” has the meaning specified therefor in the definition of  Permitted Dispositions.  “Intercreditor Agreement” means that certain Intercreditor Agreement dated as of the  Second Amendment Effective Date among the Agent, the Notes Collateral Agent, the Loan Parties, and  any other Person that may become party thereto or, in connection with any Refinancing Secured Notes,  such other customary intercreditor agreement in form and substance reasonably satisfactory to the Agent,  





 






     -38-    Supermajority Lenders, and the Administrative Borrower, in each case, as such agreement may be amended,  restated, supplemented, replaced or otherwise modified in accordance with the terms thereof and this  Agreement.  “Interest Expense” means, for any period and with respect to any Person, total cash interest  expense net of gross interest income of Parent and its Restricted Subsidiaries, letter of credit fees and other  fees and expenses incurred by such Person in connection with any Indebtedness for such period whether  paid or accrued (including that attributable to obligations which have been or should be, in accordance with  GAAP, recorded as Capital Leases), including, without limitation, all commissions, discounts, and other  fees and charges owed with respect to letters of credit and bankers' acceptance financing, fees owed with  respect to the Obligations, and net costs under Hedge Agreements entered into addressing interest rates, all  as determined in conformity with GAAP; provided that, no amounts of the Unrestricted Subsidiaries'  Interest Expense shall be taken into account in calculating the Parent’s consolidated Interest Expense.  “Interest Period” means, (a) with respect to each LIBOR Rate Loan, a period commencing  on the date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the  conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending 1, 3, or 6 months thereafter and (b) with  respect to each CDOR Rate Loan, a period commencing on the date of the making of such CDOR Rate  Loan (or the continuation of a CDOR Rate Loan or the conversion of a Base Rate Loan to a CDOR Rate  Loan) and ending 1 or 3 months thereafter; provided, that for both LIBOR Rate Loans and CDOR Rate  Loans, (i) interest shall accrue at the applicable rate based upon the LIBOR Rate or CDOR Rate, as  applicable, from and including the first day of each Interest Period to, but excluding, the day on which any  Interest Period expires and (ii) Borrowers may not elect an Interest Period which will end after the Maturity  Date; provided, further, that for LIBOR Rate Loans (but not CDOR Rate Loans) (A) any Interest Period  that would end on a day that is not a Business Day shall be extended to the next succeeding Business Day  unless such Business Day falls in another calendar month, in which case such Interest Period shall end on  the next preceding Business Day and (B) with respect to an Interest Period that begins on the last Business  Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar  month at the end of such Interest Period), the Interest Period shall end on the last Business Day of the  calendar month that is 1, 3, or 6 months after the date on which the Interest Period began, as applicable.  “Inventory” means inventory (as that term is defined in the Code or, to the extent  applicable, the PPSA).   “Inventory Cap” means, as of any date of determination, the lesser of (a) 80% of the  Borrowing Base at the time of calculation thereof in the relevant Borrowing Base Certificate delivered by  the Parent hereunder, and (b) initially as of the Second Amendment Effective Date, $130,000,000, as such  amount is reduced from time to time in accordance with the proviso hereto; provided that the Inventory Cap  described in clause (b) shall decrease by $500,000 upon the first Business Day of each fiscal quarter,  commencing with the fiscal quarter beginning October 1, 2020.  “Inventory Reserves” means, as of any date of determination, (a) Landlord Reserves in  respect of Inventory, (b) those reserves that Agent deems necessary or appropriate, in its Permitted  Discretion and subject to Section 2.1(d), to establish and maintain (including reserves for slow moving  Inventory and Inventory shrinkage) with respect to US Eligible Inventory or the Canadian Eligible  Inventory or the Maximum Revolver Amount, including based on the results of appraisals, and (c) with  respect to US Eligible In-Transit Inventory or Canadian Eligible In-Transit Inventory, those reserves that  Agent deems necessary or appropriate, in its Permitted Discretion and subject to Section 2.1(d), to establish  and maintain with respect to US Eligible In-Transit Inventory, Canadian Eligible In-Transit Inventory or  the Maximum Revolver Amount (i) for the estimated costs relating to unpaid freight charges, warehousing  or storage charges, Taxes, duties, and other similar unpaid costs associated with the acquisition of such US  





 






     -39-    Eligible In-Transit Inventory or Canadian Eligible In-Transit Inventory, plus (ii) for the estimated  reclamation claims of unpaid sellers of such US Eligible In-Transit Inventory or Canadian Eligible In- Transit Inventory.  “Investment” means, with respect to any Person, any investment by such Person in any  other Person (including Affiliates) in the form of loans, guarantees, advances, capital contributions  (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in  the ordinary course of business, and (b) bona fide accounts receivable arising in the ordinary course of  business), or acquisitions of Indebtedness, Equity Interests, or all or substantially all of the assets of such  other Person (or of any division or business line of such other Person), and any other items that are or would  be classified as investments on a balance sheet prepared in accordance with GAAP.  The amount of any  Investment shall be the original cost of such Investment plus the cost of all additions thereto, without any  adjustment for increases or decreases in value, or write-ups, write-downs, or write-offs with respect to such  Investment.  “Investment Grade Account Debtor” means  any Account Debtor that, at the time of  determination, (a) has a credit rating no lower than Baa3 (by Moody’s) or a credit rating no lower than  BBB- (by S&P) (an “Investment Grade Rating”), or (b) is a wholly-owned Subsidiary of a Person that has  an Investment Grade Rating; provided that (i) for the avoidance of doubt, if neither of such rating agencies  provide a credit rating for an Account Debtor (or parent of such Account Debtor) such Account Debtor  shall not qualify as an Investment Grade Account Debtor, (ii) an Account Debtor that is an Investment  Grade Account Debtor solely based on its status as a wholly-owned Subsidiary of a Person with an  Investment Grade Rating shall cease to be an Investment Grade Account Debtor when its parent company  ceases to have an Investment Grade Rating, and (iii) no Specified 10% Affiliate and no Specified Affiliate  shall qualify as an Investment Grade Account Debtor.   “IRC” means the Internal Revenue Code of 1986, as in effect from time to time.  “ISP” means, with respect to any Letter of Credit, the International Standby Practices 1998  (International Chamber of Commerce Publication No. 590) and any version or revision thereof accepted by  an Issuing Bank for use.  “Issuer Document” means, with respect to any Letter of Credit, a letter of credit application,  a letter of credit agreement, or any other document, agreement or instrument entered into (or to be entered  into) by a Borrower in favor of Issuing Bank and relating to such Letter of Credit.  “Issuing Bank” means any US Issuing Bank and/or Canadian Issuing Bank, as the context  requires.  “Joinder” means a joinder agreement substantially in the form of Exhibit J-1 to this  Agreement.  “Joint Book Runners” has the meaning set forth in the preamble to this Agreement.  “Joint Lead Arrangers” has the meaning set forth in the preamble to this Agreement.  “Joint Venture” means, with respect to any Person (the "holder") at any date, any  incorporated, formed or organized corporation, limited liability company, partnership, association or other  entity, a less than a majority of whose outstanding voting Equity Interests shall at any time be owned by  the holder or one or more Subsidiaries of the holder.  Unless expressly provided otherwise, all references  herein to any "Joint Venture" or "Joint Ventures" means a Joint Venture or Joint Ventures of the Parent.  





 






     -40-    “Landlord Reserve” means, as to each location at which a Borrower has Inventory or books  and records located and as to which a Collateral Access Agreement has not been received by Agent, a  reserve in an amount equal to 3 months’ rent, storage charges, fees or other amounts under the lease or  other applicable agreement relative to such location.  “Lender” has the meaning set forth in the preamble to this Agreement, shall include each  Issuing Bank and each Swing Line Lender, and shall also include any other Person made a party to this  Agreement pursuant to the provisions of Section 13.1 of this Agreement and “Lenders” means each of the  Lenders or any one or more of them.  “Lender Group” means each of the Lenders (including each Issuing Bank and each Swing  Line Lender) and Agent, or any one or more of them.  “Lender Group Expenses” means all (a) costs or expenses (including Taxes and insurance  premiums) required to be paid by any Loan Party or its Restricted Subsidiaries under any of the Loan  Documents that are paid, advanced, or incurred by the Lender Group, (b) reasonable documented out-of- pocket fees or charges paid or incurred by Agent in connection with the Lender Group’s transactions with  each Loan Party and its Restricted Subsidiaries under any of the Loan Documents, including, photocopying,  notarization, couriers and messengers, telecommunication, public record searches, filing fees, recording  fees, publication, real estate surveys if applicable, real estate title policies and endorsements if applicable,  and environmental audits, (c) Agent’s customary fees and charges imposed or incurred in connection with  any background checks or OFAC/PEP searches related to any Loan Party or its Restricted Subsidiaries, (d)  Agent’s customary fees and charges (as adjusted from time to time) with respect to the disbursement of  funds (or the receipt of funds) to or for the account of any Borrower (whether by wire transfer or otherwise),  together with any out-of-pocket costs and expenses incurred in connection therewith, (e) customary charges  imposed or incurred by Agent resulting from the dishonor of checks payable by or to any Loan Party, (f)  reasonable, documented out-of-pocket costs and expenses paid or incurred by the Lender Group to correct  any default or enforce any provision of the Loan Documents, or during the continuance of an Event of  Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing  for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is  consummated, (g) field examination, appraisal, and valuation fees and expenses of Agent related to any  field examinations, appraisals, or valuation to the extent of the fees and charges (and up to the amount of  any limitation) provided in Section 2.9 of this Agreement, (h) Agent’s and Lenders’ reasonable,  documented costs and expenses (including reasonable and documented attorneys’ fees and expenses)  relative to third party claims or any other lawsuit or adverse proceeding paid or incurred, whether in  enforcing or defending the Loan Documents or otherwise in connection with the transactions contemplated  by the Loan Documents, Agent’s Liens in and to the Collateral, or the Lender Group’s relationship with  any Loan Party or any of its Restricted Subsidiaries, (i) Agent’s reasonable and documented costs and  expenses (including reasonable and documented attorneys’ fees and due diligence expenses but limited to  one law firm serving as counsel for the Agent, and if applicable, one law firm serving as local counsel for  each applicable jurisdiction) incurred in advising, structuring, drafting, reviewing, administering (including  travel, meals, and lodging), syndicating (including reasonable costs and expenses relative to the rating of  the CUSIP, DXSyndicateTM, SyndTrak or other communication costs incurred in connection with a  syndication of the loan facilities), or amending, waiving, or modifying the Loan Documents, and (j) Agent’s  and each Lender’s reasonable and documented costs and expenses (including reasonable and documented  attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing  (including attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection  with a “workout,” a “restructuring,” or an Insolvency Proceeding concerning any Loan Party or any of its  Restricted Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the  Loan Documents, irrespective of whether a lawsuit or other adverse proceeding is brought, or in taking any  enforcement action or any Remedial Action with respect to the Collateral.  





 






     -41-    “Lender Group Representatives” has the meaning specified therefor in Section 17.9 of this  Agreement.  “Lender-Related Person” means, with respect to any Lender, such Lender, together with  such Lender’s Affiliates, officers, directors, employees, attorneys, and agents.  “Letter of Credit” means a Canadian Letter of Credit or a US Letter of Credit.  "Letter of Credit Collateralization" means with respect to the US Letter of Credit  Obligations or the Canadian Letter of Credit Obligations, as applicable, either (a) providing cash collateral  in the Agreed Currency (pursuant to documentation reasonably satisfactory to Agent, including provisions  that specify that the applicable Letter of Credit Fees and all commissions, fees, charges and expenses  provided for in this Agreement (including any fronting fees) will continue to accrue while the applicable  Letters of Credit are outstanding) to be held by Agent for the benefit of the applicable Revolving Lenders  in an amount equal to the Required Cash Collateral Percentages of the then existing US Letter of Credit  Usage and the then existing Canadian Letter of Credit Usage, (b) delivering to Agent documentation  executed by all beneficiaries under the applicable Letters of Credit, in form and substance reasonably  satisfactory to Agent and the applicable Issuing Bank, terminating all of such beneficiaries' rights under the  Letters of Credit, or (c) providing Agent with a standby letter of credit, in form and substance reasonably  satisfactory to Agent in the Agreed Currency, from a commercial bank acceptable to Agent (in its sole  discretion) in an amount equal to applicable Required Cash Collateral Percentages of the US Letter of Credit  Usage and the Canadian Letter of Credit Usage (it being understood that the applicable Letter of Credit Fee  and all fronting fees set forth in this Agreement will continue to accrue while the applicable Letters of  Credit are outstanding and that any such fees that accrue must be an amount that can be drawn under any  such standby letter of credit).  "Letter of Credit Disbursement" means a US Letter of Credit Disbursement and/or a  Canadian Letter of Credit Disbursement, as the context requires.   "Letter of Credit Exposure" means the US Letter of Credit Exposure and/or the Canadian  Letter of Credit Exposure, as the context requires.   "Letter of Credit Fees" means the US Letter of Credit Fees and/or the Canadian Letter of  Credit Fees, as the context requires.    "Letter of Credit Indemnified Costs" means any and all claims, demands, suits, actions,  investigations, proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable documented  fees and disbursements of attorneys or experts, and all other costs and expenses actually incurred in  connection therewith or in connection with the enforcement of the indemnification set forth in Section  2.10A or Section 2.10B (as and when they are incurred and irrespective of whether suit is brought), which  may be incurred by or awarded against any Letter of Credit Related Person (other than Taxes, which shall  be governed by Section 16) in connection with any Letter of Credit.  "Letter of Credit Obligations" means the US Letter of Credit Obligations or the Canadian  Letter of Credit Obligations, as the context requires.   “Letter of Credit Related Person” has the means each member of the Lender Group  (including Issuing Bank and its branches, Affiliates, and correspondents) and each such Person’s respective  directors, officers, employees, attorneys and agents.  





 






     -42-    "Letter of Credit Usage" means the US Letter of Credit Usage and/or the Canadian Letter  of Credit Usage, as the context requires.   “LIBOR Rate” means the rate per annum as published by ICE Benchmark Administration  Limited (or any successor page or other commercially available source as the Agent may designate from  time to time) as of 11:00 a.m., London time, two Business Days prior to the commencement of the requested  Interest Period, for a term, and in an amount, comparable to the Interest Period and the amount of the  LIBOR Rate Loan requested (whether as an initial LIBOR Rate Loan or as a continuation of a LIBOR Rate  Loan or as a conversion of a Base Rate Loan to a LIBOR Rate Loan) by Borrowers in accordance with this  Agreement (and, if any such published rate is below 0.00 percentage points, then the rate for such  determination shall be deemed to be 0.00 percentage points). Each determination of the LIBOR Rate shall  be made by the Agent and shall be conclusive in the absence of manifest error.  “LIBOR Rate Loan” means each portion of a Revolving Loan denominated in US Dollars  that bears interest at a rate determined by reference to the Adjusted LIBOR Rate.  “LIBOR/CDOR Rate Margin” has the meaning set forth in the definition of Applicable  Margin.  “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge,  deposit arrangement, encumbrance, easement, lien (statutory or other), security interest, or other security  arrangement and any other preference, priority, or preferential arrangement of any kind or nature  whatsoever, including any conditional sale contract or other title retention agreement, the interest of a lessor  under a Capital Lease and any synthetic or other financing lease having substantially the same economic  effect as any of the foregoing.  “Line Cap” means, as of any time of determination, the lesser of (a) the Maximum Revolver  Amount, and (b) the sum of (i) the lesser of (A) $25,000,000 and (B) the Canadian Borrowing Base, and  (ii) the US Borrowing Base.  “Loan” means any Revolving Loan, Swing Loan, or Extraordinary Advance made (or to  be made) hereunder.  "Loan Account" means the US Loan Account or the Canadian Loan Account, as the context  requires.  “Loan Documents” means this Agreement, the Control Agreements, any Borrowing Base  Certificate, the Fee Letter, the Guaranty and Security Agreement, the Intercompany Subordination  Agreement, any Issuer Documents, the Letters of Credit, the Loan Manager Side Letter, the Intercreditor  Agreement, the Patent Security Agreement, the Trademark Security Agreement, any note or notes executed  by Borrowers in connection with this Agreement and payable to any member of the Lender Group, and any  other instrument or agreement entered into, now or in the future, by any Loan Party or any of its Restricted  Subsidiaries and any member of the Lender Group in connection with this Agreement (but specifically  excluding Bank Product Agreements).  “Loan Manager Side Letter” means that certain letter agreement between the Borrowers  and Wells Fargo regarding the terms under which Wells Fargo will provide services to the Borrowers in  respect of Wells Fargo’s proprietary automated loan management program.  “Loan Party” means any Borrower or any Guarantor.  





 






     -43-    “Margin Stock” as defined in Regulation U of the Board of Governors as in effect from  time to time.  “Material Adverse Effect” means (a) a material adverse effect in the business, operations,  assets, liabilities or financial condition of the Loan Parties and their Restricted Subsidiaries, taken as a  whole, (b) a material impairment of the Loan Parties’ and their Restricted Subsidiaries’ ability to perform  their payment and other material obligations under the Loan Documents to which they are parties or of the  Lender Group’s ability to enforce the Obligations or realize upon the Collateral (other than as a result of an  action taken or not taken that is solely in the control of Agent), or (c) a material impairment of the  enforceability or priority of Agent’s Liens with respect to all or a material portion of the Collateral.  “Material Subsidiary” means (a) each Borrower, (b) each Restricted Subsidiary of a Loan  Party that (i) owns at least 2.50% of the consolidated total assets of the Loan Parties and their Restricted  Subsidiaries, (ii) generates at least 2.50% of the consolidated revenues of the Loan Parties and their  Restricted Subsidiaries, (iii) is the owner of Equity Interests of any Restricted Subsidiary of a Loan Party  that otherwise constitutes a Material Subsidiary, or (iv) any group comprising Restricted Subsidiaries of a  Loan Party that each would not have been a Material Subsidiary under clauses (i), (ii), or (iii) but that, taken  together, had revenues or total assets in excess of 5.00% of the consolidated revenues or total assets, as  applicable, of the Loan Parties and their Restricted Subsidiaries, and (c) each other Subsidiary that has  guaranteed or is otherwise liable for any Other Debt.  “Maturity Date” means the earlier of (a) September 8, 2026 and (b) the date that is 91 days  prior to the maturity of any Secured Notes (or any Refinancing Secured Notes incurred in accordance with  the definition thereof in respect of such Secured Notes).  “Maximum Revolver Amount” means $179,000,000, as the same shall be decreased by the  amount of reductions in the US Revolver Commitments and Canadian Revolver Commitments made in  accordance with Section 2.3(c) of this Agreement and increased by the amount of any Increase made in  accordance with Section 2.13 of this Agreement.  “Moody’s” has the meaning specified therefor in the definition of Cash Equivalents.  “Multiemployer Plan” means any multiemployer plan within the meaning of Section 3(37)  or 4001(a)(3) of ERISA with respect to which any Loan Party or ERISA Affiliate has an obligation to  contribute or has any liability, contingent or otherwise or could be assessed withdrawal liability assuming  a complete withdrawal from any such multiemployer plan.  "Net Income" means, for any period and with respect to any Person, the net income for  such period for such Person after Taxes as determined in accordance with GAAP, excluding, however,  (a) extraordinary items, including (i) any net non-cash gain or loss during such period arising from the sale,  exchange, retirement or other disposition of capital assets (such term to include all fixed assets and all  securities) other than in the ordinary course of business, and (ii) any write-up or write-down of assets, and  (b) the cumulative effect of any change in GAAP.  For the avoidance of doubt, in determining net income,  gross interest income shall be applied to increase income or decrease interest expense but not both.  “Net Recovery Percentage” means, as of any date of determination, the percentage of the  book value of Borrowers’ Inventory that is estimated to be recoverable in an orderly liquidation of such  Inventory net of all associated costs and expenses of such liquidation, such percentage to be determined as  to each category of Inventory and to be as specified in the most recent Acceptable Appraisal of Inventory.  





 






     -44-    "Non-Base Rate" means (a) with respect to Obligations denominated in Canadian Dollars,  the CDOR Rate, and (b) respect to Obligations denominated in US Dollars, the Adjusted LIBOR Rate.   "Non-Base Rate Deadline" has the meaning specified therefor in Section 2.11(b)(i).   "Non-Base Rate Loan" means a Non-Base Rate Revolving Loan.   "Non-Base Rate Notice" means a written notice in the form of Exhibit N-1.   "Non-Base Rate Option" has the meaning specified therefor in Section 2.11(a).     "Non-Base Rate Revolving Loan" means a Revolving Loan that bears interest at a rate  determined by reference to the applicable Non-Base Rate.   “Non-Consenting Lender” has the meaning specified therefor in Section 14.2(a) of this  Agreement.  “Non-Defaulting Lender” means each Lender other than a Defaulting Lender.  “Notes Collateral Agent” means the “collateral agent” or “trustee” or similar Person acting  in the capacity as the collateral agent under, and its permitted successors and assigns under, the Secured  Notes Documents.  “Obligations” means (a) all loans (including the Revolving Loans (inclusive of  Extraordinary Advances and Swing Loans)), debts, principal, interest (including any interest that accrues  after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole  or in part as a claim in any such Insolvency Proceeding), reimbursement or indemnification obligations  with respect to Letters of Credit (irrespective of whether contingent), premiums, liabilities (including all  amounts charged to the Loan Account pursuant to this Agreement), obligations (including indemnification  obligations), fees (including the fees provided for in the Fee Letter), Lender Group Expenses (including  any fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless of  whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), guaranties,  and all covenants and duties of any other kind and description owing by any Loan Party arising out of,  under, pursuant to, in connection with, or evidenced by this Agreement or any of the other Loan Documents  and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent,  due or to become due, now existing or hereafter arising, and including all interest not paid when due and  all other expenses or other amounts that any Loan Party is required to pay or reimburse by the Loan  Documents or by law or otherwise in connection with the Loan Documents, and (b) all Bank Product  Obligations (subject to, with respect to HSBC Bank USA, N.A., the second and third provisos in the  definition of “Bank Product Provider”); provided that, anything to the contrary contained in the foregoing  notwithstanding, the Obligations shall exclude all Excluded Swap Obligation.  Without limiting the  generality of the foregoing, the Obligations of Borrowers under the Loan Documents include the obligation  to pay (i) the principal of the Revolving Loans, (ii) interest accrued on the Revolving Loans, (iii) the amount  necessary to reimburse Issuing Bank for amounts paid or payable pursuant to Letters of Credit, (iv) Letter  of Credit commissions, fees (including fronting fees) and charges, (v) Lender Group Expenses, (vi) fees  payable under this Agreement or any of the other Loan Documents, and (vii) indemnities and other amounts  payable by any Loan Party under any Loan Document.  Any reference in this Agreement or in the Loan  Documents to the Obligations shall include all or any portion thereof and any extensions, modifications,  renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.  





 






     -45-    “OFAC” means The Office of Foreign Assets Control of the U.S. Department of the  Treasury.  “Originating Lender” has the meaning specified therefor in Section 13.1(e) of this  Agreement.  “Other Benchmark Rate Election” means, if the then-current Benchmark is USD LIBOR,  the occurrence of:  (a) a notification by Agent to (or the request by Administrative Borrower to Agent to  notify) each of the other parties hereto that at least five currently outstanding Dollar-denominated  syndicated credit facilities at such time contain (as a result of amendment or as originally executed), in lieu  of a USD LIBOR-based rate, a term benchmark rate that is not a SOFR-based rate as a benchmark rate (and  such syndicated credit facilities are identified in such notice and are publicly available for review), and  (b) the joint election by Agent and Administrative Borrower to trigger a fallback from  USD LIBOR and the provision by Agent of written notice of such election to the Lenders.  “Other Connection Taxes” means, with respect to any Lender, Taxes imposed as a result  of a present or former connection between such Lender and the jurisdiction or taxing authority imposing  the Tax (other than any such connection arising from such Lender having executed, delivered or performed  its obligations or received payment under, or enforced its rights or remedies under this Agreement or any  other Loan Document).  “Other Debt” means, without duplication, the Senior Notes, the Refinancing Senior Notes,  the Secured Notes, the Refinancing Secured Notes, the Indebtedness permitted under clause (s) of the  definition of Permitted Indebtedness, the Indebtedness permitted under clause (v) of the definition of  Permitted Indebtedness, the Indebtedness permitted under clause (w) of the definition of Permitted  Indebtedness, and any Refinancing Indebtedness of any of the foregoing regardless of whether such  Indebtedness is permitted hereunder.  “Other Debt Documents” means the agreements, instruments and documents evidencing  or securing or otherwise governing any Other Debt.  “Other Taxes” means all present or future stamp, court, excise, value added, or  documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from  the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a  security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are  Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant  to Section 14.2 or any assignment made as a result of an Increase).  "Overadvance" means a US Overadvance and/or a Canadian Overadvance, as the context  requires.   “Parent” has the meaning specified therefor in the preamble to this Agreement.  “Participant” has the meaning specified therefor in Section 13.1(e) of this Agreement.  “Participant Register” has the meaning set forth in Section 13.1(i) of this Agreement.   “Patent Security Agreement” has the meaning specified therefor in the Guaranty and  Security Agreement.  





 






     -46-    “Patriot Act” has the meaning specified therefor in Section 4.13 of this Agreement.  “Payment Conditions” means, at the time of determination with respect to a proposed  payment to fund a Specified Transaction (or the designation of a Subsidiary as an Unrestricted Subsidiary),  that:  (a) no Default or Event of Default then exists or would arise as a result of the  consummation of such Specified Transaction,   (b) either    (i) Excess Availability (x) at all times during the 30 consecutive days  immediately preceding the date of such proposed payment and the consummation of such Specified  Transaction, calculated on a pro forma basis as if such proposed payment was made, and the Specified  Transaction was consummated, on the first day of such period, and (y) after giving effect to such proposed  payment and Specified Transaction, in each case, is not less than the greater of (1) 20% of the Line Cap,  and (2) $35,800,000, or   (ii) both (A) the Fixed Charge Coverage Ratio of the Loan Parties and their  Restricted Subsidiaries is equal to or greater than 1.00:1.00 for the trailing 12 month period most recently  ended for which financial statements are required to have been delivered to Agent pursuant to Schedule 5.1  to this Agreement (calculated on a pro forma basis as if such proposed payment is a Fixed Charge made on  the last day of such 12 month period (it being understood that such proposed payment shall also be a Fixed  Charge made on the last day of such 12 month period for purposes of calculating the Fixed Charge Coverage  Ratio under this clause (ii) for any subsequent proposed payment to fund a Specific Transaction)) and  otherwise calculated on a pro forma basis as if such Specified Transaction was consummated on the first  day of such period, and (B) Excess Availability, (x) at all times during the 30 consecutive days immediately  preceding the date of such proposed payment and the consummation of such Specified Transaction,  calculated on a pro forma basis as if such proposed payment was made, and the Specified Transaction was  consummated, on the first day of such period, and (y) after giving effect to such proposed payment and  Specified Transaction, in each case, is not less than the greater of (1) 15% of the Line Cap, and  (2) $26,850,000, and  (c) Administrative Borrower has delivered a certificate to Agent certifying that all  conditions described in clauses (a) and (b) above have been satisfied;  provided that, in determining compliance with the Payment Conditions with respect to the designation of a  Restricted Subsidiary as an Unrestricted Subsidiary, the Borrowers must be in compliance with clause  (b)(ii) rather than clause (b)(i).  “Payment Recipient” has the meaning specified therefor in Section 17.19(a) of this  Agreement.  “PBGC” means the Pension Benefit Guaranty Corporation or any successor agency.  “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which  is subject to the provisions of Title IV or Section 302 of ERISA or Sections 412 or 430 of the IRC sponsored,  maintained, or contributed to by any Loan Party or ERISA Affiliate or to which any Loan Party or ERISA  Affiliate has any liability, contingent or otherwise.  “Perfection Certificate” means a certificate in the form of Exhibit P-1 to this Agreement.   





 






     -47-    “Permitted Acquisition” means any Acquisition so long as:  (a) no Default or Event of Default shall have occurred and be continuing or would  result from the consummation of the proposed Acquisition and the proposed Acquisition is consensual,  (b) no Indebtedness will be incurred, assumed, or would exist with respect to any Loan  Party or its Restricted Subsidiaries as a result of such Acquisition, other than Permitted Indebtedness and  no Liens will be incurred, assumed, or would exist with respect to the assets of any Loan Party or its  Restricted Subsidiaries as a result of such Acquisition other than Permitted Liens,  (c) Borrowers have provided Agent with its due diligence package relative to the  proposed Acquisition, including forecasted balance sheets, profit and loss statements, and cash flow  statements of the Person or assets to be acquired, all prepared on a basis consistent with such Person’s (or  assets’) historical financial statements, together with appropriate supporting details and a statement of  underlying assumptions for the one year period following the date of the proposed Acquisition, on a quarter  by quarter basis); provided that such due diligence package shall only be required to be delivered by  Borrowers if requested by the Agent and only for (i) Acquisitions (x) with a purchase price consideration  in excess of $25,000,000 and (y) made in reliance on clause (b)(ii) of the definition of Payment Conditions,  and (ii) Acquisitions which result in Accounts or Inventory that are to be included in the applicable  Borrowing Base as a result of the provisos in clause (q) of the definition of Canadian Eligible Accounts or  US Eligible Accounts or in clause (l) of the definition of Canadian Eligible Inventory or US Eligible  Inventory; provided further that in the  case of clause (ii) above, the due diligence package provided to  Agent shall be limited to information relating to the Accounts and Inventory that are to be included in the  applicable Borrowing Base and such other information that is necessary in order to determine availability  arising from such Accounts and Inventory,  (d) such Acquisition is not hostile in nature,  (e) [Reserved],  (f) If the proceeds of any Borrowing will be used to fund any part of the purchase  price of any proposed Acquisition or any proposed Acquisition which result in Accounts or Inventories that  are to be included in the applicable Borrowing Base as a result of the provisos in clause (q) of the definition  of Canadian Eligible Accounts or US Eligible Accounts or in clause (l) of the definition of Canadian  Eligible Inventory or US Eligible Inventory, the Borrowers have provided Agent with written notice of the  proposed Acquisition at least five Business Days prior to the anticipated closing date of the proposed  Acquisition and, not later than five Business Days prior to the anticipated closing date of the proposed  Acquisition, copies of the draft acquisition agreement and other draft material documents relative to the  proposed Acquisition; provided that the Borrowers shall inform Agent of any material changes made to  such draft acquisition agreement and material documents prior to the closing of the proposed Acquisition  and shall provide copies of the acquisition agreement and other material documents relating to such  Acquisition promptly after the closing thereof,  (g) the assets being acquired (other than a de minimis amount of assets in relation to  Parent’s and its Restricted Subsidiaries’ total assets), or the Person whose Equity Interests are being  acquired, are useful in or engaged in, as applicable, the business of the Loan Parties and their Restricted  Subsidiaries or a business reasonably related thereto,  (h) if the assets being acquired (other than a de minimis amount of assets in relation to  the assets being acquired) are located outside of the United States or Canada, or the Person whose Equity  Interests are being acquired is organized in a jurisdiction located outside the United States or Canada, then  





 






     -48-    the Borrowers shall have an Excess Availability of at least the greater of (a) 25% of the Line Cap and (b)  $35,000,000 immediately after giving effect to each such acquisition,  (i) the subject assets or Equity Interests, as applicable, are being acquired directly by  a Borrower or a Restricted Subsidiary, and, in connection therewith, the applicable Loan Party shall have  complied with Section 5.11 or 5.12 of this Agreement, as applicable, and, in the case of an acquisition of  Equity Interests, the Person whose Equity Interests are acquired shall become a Loan Party or any other  Restricted Subsidiary, or an Unrestricted Subsidiary if the conditions to designating such Person as an  Unrestricted Subsidiary required under Section 5.11 could be satisfied with respect to such Person, and  (j) the Payment Conditions are satisfied.  “Permitted Discretion” means a determination made in the exercise of reasonable (from  the perspective of a secured asset-based lender) business judgment in good faith.  “Permitted Dispositions” means:  (a) sales, abandonment, or other dispositions of property (other than ABL Collateral)  that is substantially worn, damaged, or obsolete or no longer used or useful in the ordinary course of  business  and leases or subleases of Real Property not useful in the conduct of the business of the Loan  Parties and their Restricted Subsidiaries,  (b) sales of Inventory to buyers in the ordinary course of business,  (c) the use or transfer of money or Cash Equivalents in a manner that is not prohibited  by the terms of this Agreement or the other Loan Documents,  (d) the licensing, on a non-exclusive basis, of patents, trademarks, copyrights, and  other intellectual property rights in the ordinary course of business,  (e) the granting of Permitted Liens,  (f) the sale or discount, in each case without recourse, of accounts receivable (other  than Eligible Accounts) arising in the ordinary course of business, but only in connection with the  compromise or collection thereof,  (g) any involuntary loss, damage or destruction of property,  (h) any involuntary condemnation, seizure or taking, by exercise of the power of  eminent domain or otherwise, or confiscation or requisition of use of property,  (i) the leasing or subleasing of assets of any Loan Party or its Restricted Subsidiaries  in the ordinary course of business,  (j) (i) the sale or issuance of Equity Interests (other than Disqualified Equity Interests)  of Parent and the sale of Equity Interests in Joint Ventures, (ii) the sale of Equity Interests in Unrestricted  Subsidiaries, and (iii) the designation or redesignation of a Subsidiary as an Unrestricted Subsidiary in  accordance with Section 5.12,  (k) (i) the lapse of registered patents, trademarks, copyrights and other intellectual  property of any Loan Party or any of its Restricted Subsidiaries to the extent not economically desirable in  the conduct of its business, or (ii) the abandonment of patents, trademarks, copyrights, or other intellectual  property rights in the ordinary course of business so long as (in each case under clauses (i) and (ii)), (A)  





 






     -49-    with respect to copyrights, such copyrights are not material revenue generating copyrights, and (B) such  lapse is not materially adverse to the interests of the Lender Group,  (l) the making of Restricted Payments that are expressly permitted to be made  pursuant to this Agreement,  (m) the making of Permitted Investments,  (n) so long as no Event of Default has occurred and is continuing or would  immediately result therefrom, (i) transfers of assets from any US Loan Party to a US Loan Party, (ii)  transfers of assets from any Canadian Loan Party to a Canadian Loan Party, (iii) from any Restricted  Subsidiary of any Loan Party that is not a Loan Party to any other Restricted Subsidiary of any Loan Party,  (iv) the transfer of Inventory in the ordinary course of business between any US Loan Party and any  Canadian Loan Party provided, that if, as of any time of determination, such transfers pursuant to this clause  (iv) during the period of time from the first day of the month in which such date of determination occurs  until such date of determination, either individually or in the aggregate, involve $10,000,000 or more of  assets included in any Borrowing Base (based on the fair market value of the assets so disposed) (the  “Intercompany Threshold Amount”), then Borrowers shall have, prior to consummation of such transfer  that causes the assets included in the Borrowing that are disposed of during such period to exceed the  Intercompany Threshold Amount, delivered to Agent an updated Borrowing Base Certificate that reflects  the removal of the applicable assets from the applicable Borrowing Base, and (v) transfers of assets (other  than ABL Collateral) by any Loan Party to any Restricted Subsidiary or by any Restricted Subsidiary to  any Loan Party not otherwise covered above in this clause (n),  (o) dispositions of Equipment or Real Property to the extent that (i) such property is  exchanged for credit against the purchase price of similar replacement property, or (ii) the proceeds of such  disposition are applied within 90 days to the purchase price of such replacement property; provided, that to  the extent the property being transferred constitutes Collateral, such replacement property shall constitute  Collateral,  (p) dispositions of assets acquired by the Loan Parties and their Restricted Subsidiaries  pursuant to a Permitted Acquisition consummated within 12 months of the date of the proposed disposition  so long as (i) the consideration received for the assets to be so disposed is at least equal to the fair market  value of such assets, (ii) the assets to be so disposed are not necessary or economically desirable in  connection with the business of the Loan Parties and their Restricted Subsidiaries, and (iii) the assets to be  so disposed are readily identifiable as assets acquired pursuant to the subject Permitted Acquisition, and  (q) sales or other dispositions of assets not otherwise permitted in clauses (a) through  (p) above, so long as (i) no Default or Event of Default has occurred and is continuing or would immediately  result therefrom, (ii) each such sale or disposition is in an arm’s-length transaction and the applicable Loan  Party or its Restricted Subsidiary receives at least the fair market value of the assets so disposed, (iii) the  consideration received by the applicable Loan Party or its Restricted Subsidiary consists of at least 75%  cash and Cash Equivalents and is paid at the time of the closing of such sale or disposition, and (iv) the  aggregate amount of the cash and non-cash proceeds received from all assets sold or disposed of pursuant  to this clause (q) taken together with all such sales and dispositions completed since the Amendment No. 3  Effective Date, shall not exceed 5.5% of the Tangible Net Assets in the aggregate and calculated at the time  of such subject sale or disposition;  provided, that if, as of any time of determination, sales or dispositions (other than in the ordinary course of  business) by the Loan Parties to any Person that is not a Loan Party during the period of time from the first  day of the month in which such date of determination occurs until such date of determination, either  individually or in the aggregate, involve $5,000,000 or more of assets included in any Borrowing Base  





 






     -50-    (based on the fair market value of the assets so disposed) (the “Threshold Amount”), then Borrowers shall  have, prior to the consummation of the sale or disposition that causes the assets included in the Borrowing  Base that are disposed of during such period to exceed the Threshold Amount, delivered to the Agent an  updated Borrowing Base Certificate that reflects the removal of the applicable assets from the applicable  Borrowing Base.  “Permitted Holder” means (a) SCF-V, L.P., SCF-VI, L.P., SCF-VII, L.P., SCF 2012A, L.P.  and SCF 2012B, L.P. and (ii) any other investment fund or vehicle managed or controlled by any of the  foregoing and in each case their respective controlling Affiliates.   “Permitted Indebtedness” means:  (a) Indebtedness in respect of the Obligations other than Bank Product Obligations,  (b) Indebtedness as of the Amendment No. 3 Effective Date set forth on Schedule 4.14  to this Agreement and any Refinancing Indebtedness in respect of such Indebtedness,  (c) Permitted Purchase Money Indebtedness and any Refinancing Indebtedness in  respect of such Indebtedness,  (d) Indebtedness arising in connection with the endorsement of instruments or other  payment items for deposit,  (e) Indebtedness consisting of (i) unsecured guarantees incurred in the ordinary course  of business with respect to surety and appeal bonds, performance bonds, bid bonds, appeal bonds,  completion guarantee and similar obligations; (ii) unsecured guarantees arising with respect to customary  indemnification obligations to purchasers in connection with Permitted Dispositions; (iii) guarantees with  respect to Indebtedness of any Loan Party or one of its Restricted Subsidiaries, to the extent that the Person  that is obligated under such guaranty could have incurred such underlying Indebtedness; provided that, a   guarantee provided by a Loan Party which guarantees Indebtedness of a Restricted Subsidiary that is not a  Loan Party must be an unsecured guarantee, and (iv) unsecured guarantees by the Parent of Foreign  Subsidiaries Indebtedness permitted under clause (y) below in this definition of Permitted Indebtedness,  (f) unsecured Indebtedness of any Loan Party that is incurred on the date of the  consummation of a Permitted Acquisition solely for the purpose of consummating such Permitted  Acquisition so long as (i) no Event of Default has occurred and is continuing or would result therefrom, (ii)  such unsecured Indebtedness is not incurred for working capital purposes, (iii) such unsecured Indebtedness  does not mature prior to the date that is 91 days after the Maturity Date, (iv) such unsecured Indebtedness  does not amortize until 91 days after the Maturity Date, (v) such unsecured Indebtedness does not provide  for the payment of interest thereon in cash or Cash Equivalents prior to the date that is 91 days after the  Maturity Date, and (vi) such Indebtedness is subordinated in right of payment to the Obligations on terms  and conditions reasonably satisfactory to Agent and is otherwise on terms and conditions (including  economic terms and absence of covenants) reasonably satisfactory to Agent,  (g) Acquired Indebtedness and any Refinancing Indebtedness in respect of such  Indebtedness; provided that, the aggregate amount of Indebtedness permitted under this clause (g) shall not  exceed $50,000,000 outstanding at any one time,  (h) Indebtedness incurred in the ordinary course of business under performance,  surety, bid, statutory, or appeal bonds,  





 






     -51-    (i) Indebtedness owed to any Person providing property, casualty, liability, or other  insurance to any Loan Party or any of its Subsidiaries, so long as the amount of such Indebtedness is not in  excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of, such insurance  for the year in which such Indebtedness is incurred and such Indebtedness is outstanding only during such  year,  (j) the incurrence by any Loan Party or its Subsidiaries of Indebtedness under Hedge  Agreements that is incurred for the bona fide purpose of hedging the interest rate, commodity, or foreign  currency risks associated with such Loan Party’s or such Restricted Subsidiary’s operations and not for  speculative purposes,  (k) Indebtedness of Loan Parties incurred in the ordinary course of business in respect  of credit cards, credit card processing services, debit cards, stored value cards, commercial cards (including  so-called “purchase cards”, “procurement cards” or “p-cards”), or Cash Management Services,  (l) unsecured Indebtedness of any Loan Party owing to employees, former employees,  former officers, directors, or former directors (or any spouses, ex-spouses, or estates of any of the foregoing)  incurred in connection with the repurchase or redemption by such Loan Party of the Equity Interests of  Parent that has been issued to such Persons, so long as (i) no Default or Event of Default has occurred and  is continuing or would result from the incurrence of such Indebtedness, and (ii) the aggregate amount of all  such Indebtedness outstanding at any one time does not exceed $7,500,000,  (m) contingent liabilities in respect of any indemnification obligation, adjustment of  purchase price, non-compete, or similar obligation of any Loan Party incurred in connection with the  consummation of one or more Permitted Acquisitions,  (n) Indebtedness composing Permitted Investments,  (o) unsecured Indebtedness of a Loan Party or its Restricted Subsidiaries (other than  Foreign Subsidiaries) incurred in respect of netting services, overdraft protection, and other like services,  in each case, incurred in the ordinary course of business,  (p) unsecured Indebtedness of any Loan Party or its Restricted Subsidiaries in respect  of Earn-Outs owing to sellers of assets or Equity Interests to such Loan Party or its Restricted Subsidiaries  that is incurred in connection with the consummation of one or more Permitted Acquisitions so long as such  unsecured Indebtedness is paid within 60 days after such amount becomes due,  (q) Permitted Intercompany Advances,  (r) accrual of interest, accretion or amortization of original issue discount, or the  payment of interest in kind, in each case, on Indebtedness that otherwise constitutes Permitted Indebtedness,  (s) the Secured Notes (and Refinancing Secured Notes incurred in accordance with  the definition thereof in respect of such Secured Notes), the aggregate principal amount of which, when  combined with the aggregate principal amount of all remaining Senior Notes after giving effect to the  Exchange (and any Refinancing Senior Notes in respect thereof), does not exceed $328,144,000 (excluding,  however, in the case of (x) the Secured Notes, any additional principal amount thereof resulting from the  payment of accrued interest in kind thereon in accordance with the terms of the Secured Notes Documents  as in effect on the Second Amendment Effective Date, and (y) Refinancing Secured Notes or Refinancing  Senior Notes, any additional principal amount thereof permitted to be incurred pursuant to clause (a) of the  definition of “Refinancing Secured Notes” or “Refinancing Senior Notes”, as applicable, in connection with  accrued interest, premiums, fees and expenses in respect of the refinanced Indebtedness); provided that (i)  





 






     -52-    if any Lien securing such Indebtedness encumbers ABL Collateral, then such Lien shall rank junior to the  Liens encumbering ABL Collateral securing the Obligations; (ii) if any Lien securing such Indebtedness  encumbers any other assets, such Lien and such Indebtedness may rank senior to, pari passu with or junior  to the Obligations and the Liens, if any, encumbering such other assets securing the Obligations in  accordance with clause (v) of the definition of “Permitted Liens”, and in each case under the foregoing  clauses (i) and (ii), such Liens and such Indebtedness shall be subject to the Intercreditor Agreement; (iii)  the amount permitted pursuant to this clause (s) shall be reduced dollar for dollar by (A) the aggregate  principal payments made on the Secured Notes (other than a redemption or repayment thereof that  constitutes Refinancing Secured Notes) and (B) the aggregate principal amount of any Secured Notes (and  Refinancing Secured Notes) converted to common Equity Interests of the Parent in accordance with the  terms of such Secured Notes (as in effect on the Second Amendment Effective Date) or Refinancing  Secured Notes, as applicable, on the date such conversion becomes effective; (iv) the scheduled maturity  date of such Indebtedness shall not be earlier than 91 days after the Maturity Date in effect at the incurrence  of such Indebtedness; (v) such Indebtedness shall not have any amortization or other requirement to  purchase, redeem, retire, defease or otherwise make any payment in respect thereof, other than (A) at  scheduled maturity thereof, (B) mandatory prepayments which are customary with respect to such type of  Indebtedness and that are triggered upon a change of control and sale of all or substantially all assets and  certain other asset sales, or (C) the mandatory conversion thereof for common Equity Interests of the Parent  in accordance with the Secured Notes Documents as in effect on the Second Amendment Effective Date;  (vi) such Indebtedness shall not be recourse to any Person not liable on account of the Obligations; (vii)  such Indebtedness shall be on terms that are reasonable in light of the prevailing circumstances at the time  such Indebtedness is incurred (as determined in good faith by the board of directors of the Parent); (viii)  such Indebtedness shall be in the form of high yield notes and not “term b” loans or institutional term loans;  and (ix) the agreements and instruments governing such Indebtedness shall not contain (A) any financial  maintenance covenant, (B) any affirmative or negative covenants that are, taken as a whole, materially more  restrictive than those set forth in the Credit Agreement; provided that the inclusion of any financial covenant  that is customary with respect to such type of Indebtedness and that is not found in the Credit Agreement  shall not be deemed to be more restrictive for purposes of this clause (B); (C) any restrictions on the ability  of Parent or any Subsidiary of the Parent to guarantee the Obligations; provided that a requirement that any  such Subsidiary also guarantee such Indebtedness shall not be deemed to be a violation of this clause (C),  (D) any restrictions on the ability of Parent or any Restricted Subsidiary to pledge Collateral as collateral  security for the Obligations, except as set forth in the Intercreditor Agreement, or (E) any restrictions on  the ability of Parent or any Restricted Subsidiary to incur Indebtedness under the Credit Agreement or any  other Loan Document other than a restriction as to the outstanding principal amount of such Indebtedness  in excess of the aggregate Maximum Revolver Amount then in effect on the initial issuance date of such  Indebtedness,  (t) any other unsecured Indebtedness incurred by any Loan Party or any of its  Restricted Subsidiaries in an aggregate outstanding principal amount not to exceed $50,000,000, at any one  time,   (u) the outstanding Senior Notes as of the Second Amendment Effective Date (after  giving effect to the Exchange) and any outstanding Refinancing Senior Notes in respect thereof, in each  case, in an aggregate maximum principal amount, when combined with the aggregate principal amount of  all outstanding Secured Notes (and all outstanding Refinancing Secured Notes in respect thereof) not to  exceed $328,144,000 (excluding, however, in the case of (x) the Secured Notes, any additional principal  amount thereof resulting from the payment of accrued interest in kind thereon in accordance with the terms  of the Secured Notes Documents as in effect on the Second Amendment Effective Date, and (y) Refinancing  Secured Notes or Refinancing Senior Notes, any additional principal amount thereof permitted to be  incurred pursuant to clause (a) of the definition of “Refinancing Secured Notes” or “Refinancing Senior  Notes”, as applicable, in connection with accrued interest, premiums, fees and expenses in respect of the  





 






     -53-    refinanced Indebtedness), as such aggregate amount may be reduced dollar for dollar in connection with  the conversion of any Secured Notes and Refinancing Secured Notes to common Equity Interests of the  Parent permitted by this Agreement and otherwise in accordance with clause (s) of the definition of  “Permitted Indebtedness”,   (v) unsecured Indebtedness of the Parent (and guarantees thereof by its Restricted  Subsidiaries that are Guarantors) evidenced by term loans, bonds, debentures, notes or other similar  instruments (including extensions, refinancings, refundings, replacements and renewals of thereof) in an  aggregate outstanding principal amount not to exceed $250,000,000 at any one time; provided that, (i) the  scheduled maturity date of such Indebtedness shall not be earlier than 91 days after the Maturity Date,  (ii) no Default or Event of Default shall have occurred and be continuing at the time of incurrence thereof  or shall result therefrom, (iii) such Indebtedness shall not have any amortization or other requirement to  purchase, redeem, retire, defease or otherwise make any payment in respect thereof, other than at scheduled  maturity thereof, mandatory prepayments which are customary with respect to such type of Indebtedness  and that are triggered upon change of control and sale of all or substantially all assets and certain other asset  sales, and (iv) the agreements and instruments governing such Indebtedness shall not contain (A) any  affirmative or negative covenants that are, taken as a whole, materially more restrictive than those set forth  in this Agreement; provided that the inclusion of any financial covenant that is customary with respect to  such type of Indebtedness and that is not found in this Agreement shall not be deemed to be more restrictive  for purposes of this clause (A), (B) any restrictions on the ability of Parent or any Restricted Subsidiary of  the Parent to guarantee the Obligations, provided that a requirement that any such Restricted Subsidiary  also guarantee such Indebtedness shall not be deemed to be a violation of this clause (B), (C) any restrictions  on the ability of Parent or any Restricted Subsidiary to pledge Collateral as collateral security for the  Obligations, or (D) any restrictions on the ability of Parent or any Restricted Subsidiary to incur  Indebtedness under this Agreement or any other Loan Document other than a restriction as to the  outstanding principal amount of such Indebtedness in excess of the aggregate Maximum Revolver Amount  then in effect on the initial issuance date of such Indebtedness,  (w) unsecured Indebtedness of the Parent (and guarantees thereof by its Restricted  Subsidiaries that are Guarantors) evidenced by term loans, bonds, debentures, notes or other similar  instruments (including extensions, refinancings, refundings, replacements and renewals of thereof);  provided that, (i) the scheduled maturity date of such Indebtedness shall not be earlier than 91 days after  the Maturity Date, (ii) no Default or Event of Default shall have occurred and be continuing at the time of  incurrence thereof or shall result therefrom, (iii)  at the time of incurrence thereof and after giving pro forma  effect thereto and the use of proceeds thereof, the Borrowers would be in compliance with the Total Net  Leverage Ratio, calculated on a pro forma basis as of the most recently ended fiscal quarter or year, as  applicable, for which Agent has received financial statements pursuant to Section 5.1 on or prior to the  incurrence of such unsecured Indebtedness, that is no greater than 5.00:1.00, (iv) such Indebtedness shall  not have any amortization or other requirement to purchase, redeem, retire, defease or otherwise make any  payment in respect thereof, other than at scheduled maturity thereof, mandatory prepayments which are  customary with respect to such type of Indebtedness and that are triggered upon change of control and sale  of all or substantially all assets and certain other asset sales, and (v) the agreements and instruments  governing such Indebtedness shall not contain (A) any affirmative or negative covenants that are, taken as  a whole, materially more restrictive than those set forth in this Agreement; provided that the inclusion of  any financial covenant that is customary with respect to such type of Indebtedness and that is not found in  this Agreement shall not be deemed to be more restrictive for purposes of this clause (A), (B) any  restrictions on the ability of Parent or any Restricted Subsidiary of the Parent to guarantee the Obligations,  provided that a requirement that any such Restricted Subsidiary also guarantee such Indebtedness shall not  be deemed to be a violation of this clause (B), (C) any restrictions on the ability of Parent or any Restricted  Subsidiary to pledge Collateral as collateral security for the Obligations, or (D) any restrictions on the  ability of Parent or any Restricted Subsidiary to incur Indebtedness under this Agreement or any other Loan  





 






     -54-    Document other than a restriction as to the outstanding principal amount of such Indebtedness in excess of  the aggregate Maximum Revolver Amount then in effect on the initial issuance date of such Indebtedness,   (x) secured Indebtedness in connection with letters of credit issued by any financial  institution that is a Lender hereunder at the time of such issuance pursuant to a bilateral line of credit  available for the account of any Loan Party or any Restricted Subsidiary; provided that (i) the sum of  outstanding amounts drawn plus available amounts to be drawn under all such letters of credit issued under  all such bilateral lines of credit shall not exceed $10,000,000 at any time, and (ii) the Lien securing such  Indebtedness shall only encumber cash, Cash Equivalents and Deposit Accounts held with such financial  institution,  (y) Indebtedness owing by Foreign Subsidiaries (other than a Loan Party) in respect  of netting services, overdraft protection (including overdraft lines of credit), and other like services, in any  event, made available to support the operations of Foreign Subsidiaries in the United Kingdom, Singapore,  the United Arab Emirates, Saudi Arabia, the People’s Republic of China, Germany or any other jurisdiction  that is not a Sanctioned Entity in an aggregate outstanding principal amount not to exceed $38,000,000 at  any time (which Indebtedness, for the avoidance of doubt, may not be secured by a Lien on any assets of  any Loan Party), and  (z)  to the extent constituting Indebtedness, deferred compensation owed to  employees, officers and directors in the ordinary course of business, not in excess of an aggregate principal  amount of $12,500,000 at any time outstanding.  “Permitted Intercompany Advances” means loans made by (a) a US Loan Party to another  US Loan Party, (b) a Canadian Loan Party to another Canadian Loan Party, (c) a Restricted Subsidiary that  is not a Loan Party to another Restricted Subsidiary that is not a Loan Party, (d) a Restricted Subsidiary  that is not a Loan Party to a Loan Party, so long as the parties thereto are party to the Intercompany  Subordination Agreement but subject to any applicable time periods provided under Schedule 3.6, and (e)  a Loan Party to a Restricted Subsidiary that is not a Loan Party so long as, in the case of this clause (e), (i)  at the time of the making of such loan, no Event of Default has occurred and is continuing or would result  therefrom, (ii) such loan made by a Loan Party is Collateral, and (iii) Borrowers have Excess Availability  of greater than $10,000,000 immediately after giving effect to each such loan.  “Permitted Investments” means:  (a) Investments in cash and Cash Equivalents,  (b) Investments in negotiable instruments deposited or to be deposited for collection  in the ordinary course of business,  (c) advances made in connection with purchases of goods or services in the ordinary  course of business,  (d) Investments received in settlement of amounts due to any Loan Party or any of its  Restricted Subsidiaries effected in the ordinary course of business or owing to any Loan Party or any of its  Restricted Subsidiaries as a result of Insolvency Proceedings involving an account debtor or upon the  foreclosure or enforcement of any Lien in favor of a Loan Party or its Restricted Subsidiaries,  (e) Investments owned by any Loan Party or any of its Restricted Subsidiaries on the  Amendment No. 3 Effective Date and set forth on Schedule P-1 to this Agreement,  (f) guarantees permitted under the definition of Permitted Indebtedness,  





 






     -55-    (g) Permitted Intercompany Advances,  (h) Equity Interests or other securities acquired in connection with the satisfaction or  enforcement of Indebtedness or claims due or owing to a Loan Party or its Restricted Subsidiaries (in  bankruptcy of customers or suppliers or otherwise outside the ordinary course of business) or as security  for any such Indebtedness or claims,  (i) deposits of cash made in the ordinary course of business to secure performance of  operating leases,  (j) (i) non-cash loans and advances to employees, officers, and directors of a Loan  Party or any of its Restricted Subsidiaries for the purpose of purchasing Equity Interests in Parent so long  as the proceeds of such loans are used in their entirety to purchase such Equity Interests in Parent, and (ii)  loans and advances to employees and officers of a Loan Party or any of its Restricted Subsidiaries in the  ordinary course of business for any other business purpose; provided that, the aggregate amount of such  Investments permitted under this clause (j) shall not to exceed $7,500,000 at any one time,  (k) Permitted Acquisitions,  (l) (i) Investments in the form of capital contributions and the acquisition of Equity  Interests made by any US Loan Party in any other US Loan Party (other than capital contributions to or the  acquisition of Equity Interests of Parent), (ii) Investments in the form of capital contributions and the  acquisition of Equity Interests made by any Canadian Loan Party in any other Canadian Loan Party (other  than capital contributions to or the acquisition of Equity Interests of Parent), or (iii) Investments in the form  of capital contributions and the acquisition of Equity Interests made by any Restricted Subsidiary that is  not a Loan Party in any other Restricted Subsidiary that is not a Loan Party (other than capital contributions  to or the acquisition of Equity Interests of Parent),  (m) Investments resulting from entering into (i) Bank Product Agreements, or (ii)  agreements relative to obligations permitted under clause (j) of the definition of Permitted Indebtedness,  (n) equity Investments by any Loan Party in any Restricted Subsidiary of such Loan  Party which is required by law to maintain a minimum net capital requirement or as may be otherwise  required by applicable law,  (o) Investments held by a Person acquired in a Permitted Acquisition to the extent that  such Investments were not made in contemplation of or in connection with such Permitted Acquisition and  were in existence on the date of such Permitted Acquisition,   (p) So long as no Event of Default has occurred and is continuing or would result  therefrom, from and after the Amendment No. 3 Effective Date, any other Investments in an aggregate  amount not to exceed $30,000,000 during the term of this Agreement,  (q) Investments consisting of non-cash consideration received in connection with  Permitted Dispositions, so long as the non-cash consideration received in connection with any Permitted  Disposition does not exceed 25% of the total consideration received in connection with such Permitted  Disposition,   (r) Investments in the form of Equity Interests, including the purchase or acquisition  thereof and capital contributions in connection therewith, made by any Loan Party in or to any Restricted  Subsidiary; provided that, (i) at the time of the making of such Investment, no Event of Default has occurred  and is continuing or would result therefrom, (ii) such Investment is Collateral, and (iii) Borrowers have  





 






     -56-    Excess Availability of greater than $10,000,000 immediately after giving effect to each such Investment,  and  (s) other Investments (other than Acquisitions) so long as the Payment Conditions are  satisfied.   “Permitted Liens” means:  (a) Liens granted to, or for the benefit of, Agent to secure the Obligations,  (b) Liens for unpaid Taxes, assessments, or other governmental charges or levies that  either (i) are not yet delinquent, or (ii) are not material with respect to which the underlying Taxes,  assessments, or charges or levies are the subject of Permitted Protests,  (c) judgment Liens arising solely as a result of the existence of judgments, orders, or  awards that do not constitute an Event of Default under Section 8.3 of this Agreement,  (d) Liens set forth on Schedule P-2 to this Agreement; provided, that to qualify as a  Permitted Lien, any such Lien described on Schedule P-2 to this Agreement shall only secure the  Indebtedness that it secures on the Closing Date and any Refinancing Indebtedness in respect thereof,  (e) the interests of lessors under operating leases and non-exclusive licensors under  license agreements,  (f) purchase money Liens on fixed assets or the interests of lessors under Capital  Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so long  as (i) such Lien attaches only to the fixed asset purchased, acquired, constructed or improved  and the  proceeds thereof, and (ii) such Lien only secures the Indebtedness that was incurred to acquire, construct  or improve such fixed asset or any Refinancing Indebtedness in respect thereof,  (g) Liens arising by operation of law (or under contract other than with respect to ABL  Collateral) in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers,  in any event, incurred in the ordinary course of business and not in connection with the borrowing of money,  and which Liens either (i) are for sums not yet delinquent, (ii) are not more than 30 days overdue so long  as a Reserve has been established with respect thereto, or (iii) are the subject of Permitted Protests,  (h) Liens on amounts deposited to secure any Borrower’s and its Restricted  Subsidiaries’ obligations in connection with worker’s compensation or other unemployment insurance, old  age pensions or other social security or retirement benefits, or similar legislation to secure public or  statutory obligations,  (i) Liens on amounts deposited to secure any Borrower’s and its Restricted  Subsidiaries’ obligations in connection with the making or entering into of bids, tenders, leases,  performance bonds, statutory obligations, regulatory obligations and other obligations of a like nature  incurred in the ordinary course of business and not in connection with the borrowing of money,  (j) Liens on amounts deposited to secure any Borrower’s and its Restricted  Subsidiaries’ reimbursement obligations with respect to surety or appeal bonds obtained in the ordinary  course of business,  





 






     -57-    (k) with respect to any Real Property, easements, rights of way, servitudes, zoning  restrictions and other restrictions on the use of Real Property that do not materially interfere with or impair  the use or operation thereof,  (l) non-exclusive licenses of patents, trademarks, copyrights, and other intellectual  property rights in the ordinary course of business,  (m) Liens that are replacements of Permitted Liens to the extent that the original  Indebtedness is the subject of permitted Refinancing Indebtedness and so long as the replacement Liens  only encumber those assets that secured the original Indebtedness,  (n) rights of setoff or bankers’ liens upon deposits of funds in favor of banks or other  depository institutions, solely to the extent incurred in connection with the maintenance of such Deposit  Accounts or securities accounts in the ordinary course of business,  (o) Liens granted in the ordinary course of business on the unearned portion of  insurance premiums securing the financing of insurance premiums to the extent the financing is permitted  under the definition of Permitted Indebtedness,  (p) Liens in favor of customs and revenue authorities arising as a matter of law to  secure payment of customs duties in connection with the importation of goods,  (q) Liens solely on any cash earnest money deposits made by a Loan Party or any of  its Restricted Subsidiaries in connection with any letter of intent or purchase agreement with respect to a  Permitted Acquisition,   (r) Liens assumed by any Loan Party or its Restricted Subsidiaries in connection with  a Permitted Acquisition that secure Acquired Indebtedness that is Permitted Indebtedness,   (s) Liens arising out of conditional sale, title retention, consignment or similar  arrangements for sale of goods entered into in the ordinary course of business or Liens arising by operation  of law under Article 2 of the UCC or by contract in favor of a reclaiming seller of goods or buyer of goods  (including purchase money security interests in favor of vendors in the ordinary course of business);  (t) Liens created pursuant to joint venture agreements and related documents (to the  extent a Lien on the Equity Interest owned by any Borrower or Restricted Subsidiary in the applicable Joint  Venture is required thereunder) having ordinary and customary terms (including with respect to Liens) and  entered into in the ordinary course of business and securing (x) obligations other than Indebtedness or (y)  Indebtedness of such Joint Venture that is non-recourse to any Borrower or Restricted Subsidiary or to any  property thereof other than such Equity Interests;   (u) Liens consisting of cash or Cash Equivalents deposits with any Governmental  Authority for any purpose at any time as required by applicable law as a condition to the transaction of any  business or the exercise of any privilege or license;   (v) Liens on assets of the Parent and Domestic Subsidiaries securing any Indebtedness  pursuant to clause (s) of the definition of “Permitted Indebtedness” subject to the restrictions set forth  therein, in this Agreement and the Intercreditor Agreement, as applicable; provided that Liens encumbering  Real Property shall not be permitted by this clause (v) without the prior written consent of the Agent and  the Supermajority Lenders in the case of such Lien arising after the Second Amendment Effective Date to  secure Indebtedness not incurred in connection with the Exchange (it being understood, however, that any  Refinancing Secured Notes may be secured by a Lien on Real Property at the time of such refinancing (in  





 






     -58-    accordance with clause (e) of the definition thereof) so long as the Secured Notes (or Refinancing Secured  Notes in respect thereof) were secured by Real Property at the time of such refinancing);   (w) Liens granted to any Lender in its individual capacity (and not, if applicable, as  Agent) on cash, Cash Equivalents and Deposit Accounts held with such Lender to secure Indebtedness  permitted under clause (x) of the definition of “Permitted Indebtedness;   (x) other Liens which do not encumber Real Property and which do not secure  Indebtedness for borrowed money or letters of credit and as to which the aggregate amount of the  obligations secured thereby does not exceed $10,000,000;  (y) Liens encumbering properties of Foreign Subsidiaries that are not Collateral or  required to be Collateral hereunder and only securing the Indebtedness permitted under clause (y) of the  definition of “Permitted Indebtedness”; and  (z) Lien on the Equity Interests of Unrestricted Subsidiaries which secure  Indebtedness of such Unrestricted Subsidiary that is non-recourse to any Borrower or other Restricted  Subsidiary or to any property of any Borrower or other Restricted Subsidiary other than such Equity  Interests.  “Permitted Protest” means the right of any Loan Party or any of its Restricted Subsidiaries  to protest any Lien (other than any Lien that secures the Obligations), Taxes, or rental payment; provided,  that (a) a reserve with respect to such obligation is established on such Loan Party’s or its Restricted  Subsidiaries’ books and records in such amount as is required under GAAP, (b) any such protest is instituted  promptly and prosecuted diligently by such Loan Party or its Restricted Subsidiary, as applicable, in good  faith, and (c) Agent is reasonably satisfied that, while any such protest is pending, there will be no  impairment of the enforceability, validity, or priority of any of Agent’s Liens.  “Permitted Purchase Money Indebtedness” means, as of any time of determination,  Indebtedness (other than the Obligations, but including Capitalized Lease Obligations), incurred after the  Closing Date and at the time of, or within 90 days after, the acquisition, construction or improvement of  any fixed or capital assets for the purpose of financing all or any part of the acquisition, construction or  improvement cost thereof, in an aggregate principal amount outstanding at any one time not in excess of  $50,000,000.  “Person” means natural persons, corporations, limited liability companies, limited  partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business  trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies  and political subdivisions thereof.  “Platform” has the meaning specified therefor in Section 17.9(c) of this Agreement.  "PPSA" means the Personal Property Security Act (Alberta) and the regulations  thereunder, as from time to time in effect; provided, however, if attachment, perfection or priority of Agent's  Lien on any Collateral are governed by the personal property security laws of any jurisdiction in Canada  other than the laws of the Province of Alberta, "PPSA" means those personal property security laws in such  other jurisdiction in Canada for the purposes of the provisions hereof relating to such attachment, perfection  or priority and for the definitions related to such provisions.  “Post-Increase Revolver Lenders” has the meaning specified therefor in Section 2.13 of  this Agreement.  





 






     -59-    “Pre-Increase Revolver Lenders” has the meaning specified therefor in Section 2.13 of this  Agreement.  “Projections” means Parent’s forecasted (a) balance sheets, (b) profit and loss statements,  and (c) cash flow statements, all prepared on a basis consistent with Parent’s historical financial statements,  together with appropriate supporting details and a statement of underlying assumptions.  “Pro Rata Share” means, as of any time of determination:  (a) with respect to a Lender’s obligation to make all or a portion of the US Revolving  Loans, with respect to such Lender’s right to receive payments of interest, fees, and principal with respect  to the US Revolving Loans, and with respect to all other computations and other matters related to the US  Revolver Commitments or the US Revolving Loans, the percentage obtained by dividing (i) the US  Revolving Loan Exposure of such Lender, by (ii) the aggregate US Revolving Loan Exposure of all  Lenders,  (b) with respect to a Lender’s obligation to make all or a portion of the Canadian  Revolving Loans, with respect to such Lender’s right to receive payments of interest, fees, and principal  with respect to the Canadian Revolving Loans, and with respect to all other computations and other matters  related to the Canadian Revolver Commitments or the Canadian Revolving Loans, the percentage obtained  by dividing (i) the Canadian Revolving Loan Exposure of such Lender, by (ii) the aggregate Canadian  Revolving Loan Exposure of all Lenders,  (c) with respect to a Lender’s obligation to participate in the US Letters of Credit, with  respect to such Lender’s obligation to reimburse the applicable US Issuing Bank, and with respect to such  Lender’s right to receive payments of US Letter of Credit Fees, and with respect to all other computations  and other matters related to the US Letters of Credit, the percentage obtained by dividing (i) the US  Revolving Loan Exposure of such Lender, by (ii) the aggregate US Revolving Loan Exposure of all  Lenders; provided, that if all of the US Revolving Loans have been repaid in full and all US Revolver  Commitments have been terminated, but US Letters of Credit remain outstanding, Pro Rata Share under  this clause shall be the percentage obtained by dividing (A) the US Letter of Credit Exposure of such  Lender, by (B) the US Letter of Credit Exposure of all Lenders,  (d) with respect to a Lender’s obligation to participate in the Canadian Letters of  Credit, with respect to such Lender’s obligation to reimburse the applicable Canadian Issuing Bank, and  with respect to such Lender’s right to receive payments of Canadian Letter of Credit Fees, and with respect  to all other computations and other matters related to the Canadian Letters of Credit, the percentage obtained  by dividing (i) the Canadian Revolving Loan Exposure of such Lender, by (ii) the aggregate Canadian  Revolving Loan Exposure of all Lenders; provided, that if all of the Canadian Revolving Loans have been  repaid in full and all Canadian Revolver Commitments have been terminated, but Canadian Letters of Credit  remain outstanding, Pro Rata Share under this clause shall be the percentage obtained by dividing (A) the  Canadian Letter of Credit Exposure of such Lender, by (B) the Canadian Letter of Credit Exposure of all  Lenders, and  (e) with respect to all other matters and for all other matters as to a particular Lender  (including the indemnification obligations arising under Section 15.7 of this Agreement and including the  obligations under Section 13.4), the percentage obtained by dividing (i) the US Revolving Loan Exposure  and Canadian Revolving Loan Exposure of such Lender, by (ii) the aggregate US Revolving Loan Exposure  and Canadian Revolving Loan Exposure of all Lenders, in any such case as the applicable percentage may  be adjusted by assignments permitted pursuant to Section 13.1; provided, that if all of the Loans have been  repaid in full and all Commitments have been terminated, Pro Rata Share under this clause shall be the  





 






     -60-    percentage obtained by dividing (A) the aggregate Letter of Credit Exposure of such Lender, by (B) the  aggregate Letter of Credit Exposure of all Lenders.  "Protective Advances" means the US Protective Advances and/or the Canadian Protective  Advances, as the context requires.   “PTE” means a prohibited transaction class exemption issued by the U.S. Department of  Labor, as any such exemption may be amended from time to time.   “Public Lender” has the meaning specified therefor in Section 17.9(c) of this Agreement.  “Purchase Price” means, with respect to any Acquisition, an amount equal to the aggregate  consideration, whether cash, property or securities (including the fair market value of any Equity Interests  of Parent issued in connection with such Acquisition and including the maximum amount of Earn-Outs),  paid or delivered by a Loan Party or one of its Restricted Subsidiaries in connection with such Acquisition  (whether paid at the closing thereof or payable thereafter and whether fixed or contingent), but excluding  therefrom (a) any cash of the seller and its Affiliates used to fund any portion of such consideration, and  (b) any cash or Cash Equivalents acquired in connection with such Acquisition.   “Qualified Equity Interests” means and refers to any Equity Interests issued by Parent (and  not by one or more of its Subsidiaries) that is not a Disqualified Equity Interest.  “Real Property” means any estates or interests in real property now owned or hereafter  acquired by any Loan Party or one of its Restricted Subsidiaries and the improvements thereto.  “Receivable Reserves” means, as of any date of determination, those reserves that Agent  deems necessary or appropriate, in its Permitted Discretion and subject to Section 2.1(d), to establish and  maintain (including Landlord Reserves for books and records locations and reserves for rebates, discounts,  warranty claims, and returns) with respect to the US Eligible Accounts, Canadian Eligible Accounts or the  Maximum Revolver Amount.  “Receivables” has the meaning set forth in the definition of ABL Collateral.  “Record” means information that is inscribed on a tangible medium or that is stored in an  electronic or other medium and is retrievable in perceivable form.  “Reference Period” means twelve consecutive months.  “Reference Time” with respect to any setting of the then-current Benchmark means (a) if  such Benchmark is USD LIBOR, 11:00 a.m., London time, on the day that is two (2) Business Days  preceding the date of such setting, and (b) if such Benchmark is not USD LIBOR, the time determined by  Agent in its reasonable discretion.  “Refinancing Indebtedness” means refinancings, renewals, or extensions of Indebtedness  so long as:  (a) such refinancings, renewals, or extensions do not result in an increase in the  principal amount of the Indebtedness so refinanced, renewed, or extended, other than by the amount of  premiums paid thereon and accrued interest (including, for the purpose of defeasance, future interest) and  the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with  respect thereto,  





 






     -61-    (b) such refinancings, renewals, or extensions do not result in a shortening of the final  stated maturity or the average weighted maturity (measured as of the refinancing, renewal, or extension) of  the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a  whole, are or could reasonably be expected to be materially adverse to the interests of the Lenders,  (c) if the Indebtedness that is refinanced, renewed, or extended was subordinated in  right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension  must include subordination terms and conditions that are at least as favorable to the Lender Group as those  that were applicable to the refinanced, renewed, or extended Indebtedness,  (d) the Indebtedness that is refinanced, renewed, or extended is not recourse to any  Person that is liable on account of the Obligations other than those Persons which were obligated with  respect to the Indebtedness that was refinanced, renewed, or extended,  (e) if the Indebtedness that is refinanced, renewed or extended was unsecured, such  refinancing, renewal or extension shall be unsecured, and  (f) if the Indebtedness that is refinanced, renewed, or extended was secured (i) such  refinancing, renewal, or extension shall be secured by substantially the same or less collateral as secured  such refinanced, renewed or extended Indebtedness on terms no less favorable to Agent or the Lender Group  and (ii) the Liens securing such refinancing, renewal or extension shall not have a priority more senior than  the Liens securing such Indebtedness that is refinanced, renewed or extended.  “Refinancing Secured Notes” means refinancings, renewals, or extensions of the Secured  Notes (and the Secured Notes Documents, as applicable) so long as:  (a) such refinancings, renewals, or extensions do not result in an increase in the  principal amount of the Indebtedness so refinanced, renewed, or extended, other than by the amount of  premiums paid thereon and accrued interest (including, for the purpose of defeasance, future interest) and  the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with  respect thereto,  (b) such refinancings, renewals, or extensions do not result in a shortening of the final  stated maturity or the average weighted maturity (measured as of the refinancing, renewal, or extension) of  the Indebtedness so refinanced, renewed, or extended,  (c) if the Indebtedness that is refinanced, renewed, or extended was subordinated in  right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension  must include subordination terms and conditions that are at least as favorable to the Lender Group as those  that were applicable to the refinanced, renewed, or extended Indebtedness,  (d) the Indebtedness that is refinanced, renewed, or extended is not recourse to any  Person that is liable on account of the Obligations other than those Persons which were obligated with  respect to the Indebtedness that was refinanced, renewed, or extended,  (e) such refinancing, renewal, or extension shall be (i) unsecured or (ii)(A) otherwise  secured only by substantially the same or less collateral as secured such refinanced, renewed or extended  Indebtedness on terms no less favorable to Agent or the Lender Group, (B) the Liens securing such  refinancing, renewal or extension shall not have a priority more senior than the Liens securing such  Indebtedness that is refinanced, renewed or extended, and (C) such refinancing, renewal or extension shall  be secured only to the extent permitted by this Agreement and shall otherwise be (and the holders thereof  





 






     -62-    and any collateral agent for the holders thereof shall be) subject in all respects to the Intercreditor  Agreement, and  (f) the scheduled maturity date of such refinancings, renewals, or extensions shall not  be earlier than 91 days after the later of (i) the Maturity Date, and (ii) the scheduled maturity date of the  Indebtedness that is refinanced, renewed, or extended.  “Refinancing Senior Notes” means refinancings, renewals, or extensions of the Senior  Notes so long as:  (a) such refinancings, renewals, or extensions do not result in an increase in the  principal amount of the Indebtedness so refinanced, renewed, or extended, other than by the amount of  premiums paid thereon and accrued interest (including, for the purpose of defeasance, future interest) and  the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with  respect thereto,  (b) such refinancings, renewals, or extensions do not result in a shortening of the final  stated maturity or the average weighted maturity (measured as of the refinancing, renewal, or extension) of  the Indebtedness so refinanced, renewed, or extended,  (c) if the Indebtedness that is refinanced, renewed, or extended was subordinated in  right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension  must include subordination terms and conditions that are at least as favorable to the Lender Group as those  that were applicable to the refinanced, renewed, or extended Indebtedness,  (d) the Indebtedness that is refinanced, renewed, or extended is not recourse to any  Person that is liable on account of the Obligations other than those Persons which were obligated with  respect to the Indebtedness that was refinanced, renewed, or extended,   (e) such refinancing, renewal or extension shall be unsecured, and  (f) the scheduled maturity date of such refinancings, renewals, or extensions shall not  be earlier than 91 days after the Maturity Date.  “Register” has the meaning set forth in Section 13.1(h) of this Agreement.  “Registered Loan” has the meaning set forth in Section 13.1(h) of this Agreement.  “Related Fund” means any Person (other than a natural person) that is engaged in making,  purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course and  that is administered, advised or managed by (a) a Lender, (b) an Affiliate of a Lender, or (c) an entity or an  Affiliate of an entity that administers, advises or manages a Lender.  “Relevant Governmental Body” means the Federal Reserve Board or the Federal Reserve  Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the  Federal Reserve Bank of New York, or any successor thereto.  “Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain,  treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor  environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not  migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment,  (c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies,  





 






     -63-    investigations, or post-remedial operation and maintenance activities, or (e) conduct any other actions with  respect to Hazardous Materials required by Environmental Laws.  “Replacement Lender” has the meaning specified therefor in Section 2.12(b) of this  Agreement.  “Report” has the meaning specified therefor in Section 15.16 of this Agreement.  “Required Cash Collateral Percentages” means (a) 103% for US Dollar-denominated US  Letters of Credit or Canadian Letters of Credit, and (b) 104% for Foreign Currency-denominated US Letters  of Credit or Canadian Letters of Credit.  “Required Lenders” means, at any time, Revolving Lenders having or holding more than  50% of the aggregate Revolving Loan Exposure of all Revolving Lenders; provided, that (A) the Revolving  Loan Exposure of any Defaulting Lender shall be disregarded in the determination of the Required Lenders,  and (B) at any time there are two or more Revolving Lenders (who are not Affiliates of one another or  Defaulting Lenders), “Required Lenders” must include at least two Revolving Lenders (who are not  Affiliates of one another).  “Rescission” has the meaning specified therefor in Section 6.17(b) of this Agreement.  “Reserves” means, as of any date of determination, without duplication, Inventory  Reserves, Receivables Reserves, Bank Product Reserves, the Canadian Priority Payables Reserves, and  those other reserves that Agent deems necessary or appropriate, in its Permitted Discretion and subject to  Section 2.1(d), to establish and maintain (including reserves with respect to (a) sums that any Loan Party  or its Restricted Subsidiaries are required to pay under any Section of this Agreement or any other Loan  Document (such as Taxes, assessments, insurance premiums, or, in the case of leased assets, rents or other  amounts payable under such leases) and has failed to pay, and (b) amounts owing by any Loan Party or its  Restricted Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral  (other than a Permitted Lien), which Lien or trust, in the Permitted Discretion of Agent likely would have  a priority superior to the Agent’s Liens (such as Liens or trusts in favor of landlords, warehousemen,  carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or  other Taxes where given priority under applicable law) in and to such item of the Collateral) with respect  to the US Borrowing Base, the Canadian Borrowing Base, or the Maximum Revolver Amount.  “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority.  “Restricted Payment” means (a) any declaration or payment of any dividend or the making  of any other payment or distribution, directly or indirectly, on account of Equity Interests issued by Parent  or any of its Restricted Subsidiaries (including any payment in connection with any merger or consolidation  involving Parent or to the direct or indirect holders of Equity Interests issued by Parent or any of its  Restricted Subsidiaries in their capacity as such (other than dividends or distributions payable in Qualified  Equity Interests issued by Parent or any warrants, options or rights to purchase or acquire such Equity  Interests), or (b) any purchase, redemption, making of any sinking fund or similar payment, or other  acquisition or retirement for value (including in connection with any merger or consolidation involving  Parent) any Equity Interests issued by Parent or any of its Restricted Subsidiaries, or (c) any making of any  payment to retire, or to obtain the surrender of, any outstanding warrants, options, or other rights to acquire  Equity Interests of Parent now or hereafter outstanding.  





 






     -64-    "Restricted Subsidiary" means each Subsidiary of Parent that is not an Unrestricted  Subsidiary.  "Revaluation Date" means (a) with respect to any Revolving Loan, each of the following:   (i) each date of a Borrowing of such Revolving Loan, (ii) each date of a continuation of such Revolving  Loan pursuant to Section 2.11, and (iii) such additional dates as Agent shall determine or the Supermajority  Lenders shall require, (b) with respect to any Letter of Credit, each of the following:  (i) each date of  issuance of such Letter of Credit, (ii) each date of an amendment of such Letter of Credit having the effect  of increasing the amount thereof, (iii) each date of any payment by an Issuing Bank under such Letter of  Credit, and (iv) such additional dates as Agent or an Issuing Bank shall determine or the Supermajority  Lenders shall require, and (c) with respect to any other Obligations, each date as Agent shall determine  unless otherwise prescribed in this Agreement or any other Loan Documents.   “Revolver Commitments” means the US Revolver Commitment and the Canadian  Revolver Commitment.  “Revolver Usages” means the US Revolver Usage and the Canadian Revolver Usage.  “Revolving Lenders” means the US Revolver Lenders and the Canadian Revolver Lenders.   “Revolving Loan Exposure” means the aggregate of the US Revolving Loan Exposure and  the Canadian Revolving Loan Exposure.   “Revolving Loans” means the aggregate of the US Revolving Loans and the Canadian  Revolving Loans.  "Same Day Funds" means (a) with respect to disbursements and payments in US Dollars,  immediately available funds, and (b) with respect to disbursements and payments in a Foreign Currency,  same day or other funds as may be reasonably determined by the Agent or applicable Issuing Bank, as the  case may be, to be customary in the place of disbursement or payment for the settlement of international  banking transactions in the relevant Foreign Currency.  “Sanctioned Entity” means (a) a country or territory or a government of a country or  territory, (b) an agency of the government of a country or territory, (c) an organization directly or indirectly  controlled by a country or territory or its government, or (d) a Person resident in or determined to be resident  in a country or territory , in each case of clauses (a) through (d) that is a target of Sanctions, including a  target of any country sanctions program administered and enforced by OFAC.  “Sanctioned Person” means, at any time (a) any Person named on the list of Specially  Designated Nationals and Blocked Persons maintained by OFAC, OFAC’s consolidated Non-SDN list or  any other Sanctions-related list maintained by any Governmental Authority, (b) a Person or legal entity that  is a target of Sanctions, (c) any Person operating, organized or resident in a Sanctioned Entity, or (d) any  Person directly or indirectly owned or controlled (individually or in the aggregate) by or acting on behalf  of any such Person or Persons described in clauses (a) through (c) above.  “Sanctions” means individually and collectively, respectively, any and all economic  sanctions, trade sanctions, financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes  anti-terrorism laws and other sanctions laws, regulations or embargoes, including those imposed,  administered or enforced from time to time by:  (a) the United States of America, including those  administered by OFAC, the U.S. Department of State, the U.S. Department of Commerce, or through any  existing or future executive order, (b) the United Nations Security Council, (c) the European Union or any  





 






     -65-    European Union member state, (d) Her Majesty’s Treasury of the United Kingdom, or (d) any other  Governmental Authority with jurisdiction over any member of Lender Group or any Loan Party or any of  their respective Subsidiaries or Affiliates.     “S&P” has the meaning specified therefor in the definition of Cash Equivalents.  “SEC” means the United States Securities and Exchange Commission and any successor  thereto.  “Second Amendment” means the Amendment No. 2 to Third Amended and Restated Credit  Agreement dated as of July 24, 2020 among the Parent, the Borrowers, the Guarantors, the Lenders party  thereto, the Swing Line Lenders party thereto, the Issuing Banks party thereto and the Agent.  “Second Amendment Effective Date” means the “Effective Date” as defined in the Second  Amendment.  “Secured Notes” means the high yield secured convertible notes issued in connection with  the Exchange, and otherwise as permitted under clause (s) of the definition of “Permitted Indebtedness”, as  the same high yield secured convertible notes may be amended, restated, refinanced (in accordance with  the terms and conditions in the definition of Refinancing Secured Notes), supplemented or otherwise  modified from time to time, but only to the extent such amendment, restatement, supplement, refinancing  or modification is not prohibited under the terms of this Agreement and the Intercreditor Agreement.  “Secured Notes Documents” means all indentures, supplemental indentures, collateral  documents and other material documents and other instruments executed and delivered by the Parent in  connection with the issuance of the Secured Notes, as the same may be amended, restated, supplemented,  refinanced (in accordance with the terms and conditions in the definition of Refinancing Secured Notes),  replaced, or otherwise modified from time to time, but only to the extent such amendment, restatement,  refinancing, replacement, supplement or modification is not prohibited under the terms of this Agreement  and the Intercreditor Agreement.  “Securities Account” means a securities account (as that term is defined in the Code or, to  the extent applicable, the PPSA).  “Securities Act” means the Securities Act of 1933, as amended from time to time, and any  successor statute.   “Senior Notes” means (a) prior to the consummation of the Exchange, the outstanding (as  of the Second Amendment Effective Date) $328,144,000 6.250% Senior Notes due 2021, issued under the  Indenture dated as of October 2, 2013 among the Parent, as issuer, certain subsidiaries of the Parent, as  guarantors, and Wells Fargo Bank, National Association, as trustee, and (b) after the consummation of the  Exchange, such portion, if any, of the outstanding Senior Notes on and after the Second Amendment  Effective Date in an aggregate principal amount, when combined with the aggregate principal amount of  outstanding Secured Notes (and any outstanding Refinancing Secured Notes in respect thereof) not to  exceed $328,144,000 at any time (excluding, however, in the case of (x) the Secured Notes, any additional  principal amount thereof resulting from the payment of accrued interest in kind in accordance with the  terms of the Secured Notes Documents as in effect on the Second Amendment Effective Date, and (y) in  the case of Refinancing Secured Notes, any additional principal amount thereof permitted to be incurred  pursuant to clause (a) of the definition of “Refinancing Secured Notes” in connection with accrued interest,  premiums, fees and expenses in respect of the refinanced Indebtedness), as such aggregate amount may be  reduced dollar for dollar in connection with the conversion of any Secured Notes and Refinancing Secured  





 






     -66-    Notes to common Equity Interests of the Parent permitted by this Agreement and otherwise in accordance  with clause (s) of the definition of “Permitted Indebtedness”.  “Settlement” has the meaning specified therefor in Section 2.2(e)(i) of this Agreement.  “Settlement Date” has the meaning specified therefor in Section 2.2(e)(i) of this  Agreement.  “SOFR” means, with respect to any Business Day, a rate per annum equal to the secured  overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR  Administrator’s Website on the immediately succeeding Business Day.  “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor  administrator of the secured overnight financing rate).  “SOFR Administrator’s Website” means the website of the Federal Reserve Bank of New  York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing  rate identified as such by the SOFR Administrator from time to time.  “SOFR Average” means the compounded average of SOFR over a rolling calendar day  period of thirty (30) days published by the Federal Reserve Bank of New York (or a successor administrator  of the SOFR Average).  “Solvent” means, with respect to any Person as of any time of determination, that (a) at fair  valuations, the sum of such Person’s debts (including contingent liabilities) is less than all of such Person’s  assets, (b) such Person is not engaged or about to engage in a business or transaction for which the remaining  assets of such Person are unreasonably small in relation to the business or transaction or for which the  property remaining with such Person is an unreasonably small capital, (c) such Person has not incurred and  does not intend to incur, or reasonably believe that it will incur, debts beyond its ability to pay such debts  as they become due (whether at maturity or otherwise), and (d) such Person is “solvent” or not “insolvent”,  as applicable within the meaning given those terms and similar terms under applicable Insolvency Law or  other laws relating to fraudulent transfers and conveyances.  For purposes of this definition, the amount of  any contingent liability at any time shall be computed as the amount that, in light of all of the facts and  circumstances existing at such time, represents the amount that can reasonably be expected to become an  actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual  under Statement of Financial Accounting Standard No. 5).  “Specified Account Debtor” means (a) any Account Debtor listed on Schedule 1.1(B), (b)  any other Account Debtor approved by the Agent in its Permitted Discretion, and (c) any wholly-owned  Subsidiary of a Specified Account Debtor; provided that (i) the Agent may not approve any Account Debtor  as a Specified Account Debtor under clause (b) above if, at the time of such approval, such Account Debtor  has been assigned a credit rating by Moody’s or S&P and such credit rating is lower than Ba3 (as set by  Moody's) or BB- (as set by S&P) or neither of such rating agencies provide a credit rating for such Account  Debtor, (ii) after approval by the Agent under clause (b) above, an Account Debtor shall cease to be a  Specified Account Debtor under clause (b) above if such Account Debtor is assigned a credit rating  of less  than Ba3 (as set by Moody's) or BB- (as set by S&P) or neither of such rating agencies provide a credit  rating for such Account Debtor; (iii) an Account Debtor shall cease to be a Specified Account Debtor under  clause (a) if such Account Debtor’s credit or other financial condition materially deteriorates after the  Amendment No. 3 Effective Date as determined by the Agent in is Permitted Discretion, (iv) a wholly- owned Subsidiary of an Account Debtor that is a Specified Account Debtor solely based on its status as a  wholly-owned Subsidiary of a Specified Account Debtor shall cease to be a Specified Account Debtor when  





 






     -67-    its parent company ceases to be a Specified Account Debtor, and (v) no Specified 10% Affiliate and no  Specified Affiliate shall qualify as a Specified Account Debtor.   “Specified Affiliate” means any Person that qualifies as an Affiliate of a Loan Party solely  as a result of such Person and such Loan Party being under common Control by any of the following:  (a)  a Permitted Holder, (b) Quantum Energy Partners LP, and (c) John Schmitz.  “Specified 10% Affiliate” means an Affiliate of a Loan Party solely by virtue of the  application of clause (a) of the definition of “Affiliate” (and is not an Affiliate by virtue of any other  provision of such definition).  “Specified Currency” has the meaning specified therefor in Section 17.14 of this  Agreement.  “Specified Event of Default” means any Event of Default described in any of Sections 8.1,  8.2 (but only with respect to a breach under Section 5.1, Section 5.2, Section 6.17 or Section 7), 8.4, or 8.5.  “Specified Transaction” means, any Investment, prepayment of Indebtedness, Restricted  Payment (or declaration of any prepayment or Restricted Payment), or any designation of a Subsidiary as  an Unrestricted Subsidiary.   “Sponsor Affiliated Entity” means the Permitted Holder or any of its Affiliates.  "Spot Rate" means, for a currency, the rate determined by Agent to be the rate quoted by  Wells Fargo acting in such capacity as the spot rate for the purchase by Wells Fargo of such currency with  another currency through its principal foreign exchange trading office at approximately 11:00 a.m. (New  York time) on the date two Business Days prior to the date as of which the foreign exchange computation  is made; provided, that Agent may obtain such spot rate from another financial institution designated by  Agent if Wells Fargo acting in such capacity does not have as of the date of determination a spot buying  rate for any such currency.  “STA” means the Securities Transfer Act, 2006 (Alberta) or to the extent applicable,  comparable legislation in other Canadian provinces.  “Standard Letter of Credit Practice” means, for Issuing Bank, any domestic or foreign law  or letter of credit practices applicable in the city in which Issuing Bank issued the applicable Letter of Credit  or, for its branch or correspondent, such laws and practices applicable in the city in which it has advised,  confirmed or negotiated such Letter of Credit, as the case may be, in each case, (a) which letter of credit  practices are of banks that regularly issue letters of credit in the particular city, and (b) which laws or letter  of credit practices are required or permitted under ISP or UCP, as chosen in the applicable Letter of Credit.  “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of  which is the number one and the denominator of which is the number one minus the aggregate of the  maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)  expressed as a decimal established by the Board of Governors to which the Agent is subject, for  eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board of  Governors). Such reserve percentages shall include those imposed pursuant to such Regulation D.  Non- Base Rate Loans shall be deemed to constitute Eurocurrency funding and to be subject to such reserve  requirements without benefit of or credit for proration, exemptions or offsets that may be available from  time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve  Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.  





 






     -68-    “Subsidiary” of a Person means a corporation, partnership, limited liability company, or  other entity in which that Person directly or indirectly owns or controls the Equity Interests having ordinary  voting power to elect a majority of the Board of Directors of such corporation, partnership, limited liability  company, or other entity.  “Supermajority Lenders” means, at any time, Revolving Lenders having or holding more  than 66 2/3% of the aggregate Revolving Loan Exposure of all Revolving Lenders; provided, that (i) the  Revolving Loan Exposure of any Defaulting Lender shall be disregarded in the determination of the  Supermajority Lenders, and (ii) at any time there are two or more Revolving Lenders (who are not Affiliates  of one another or Defaulting Lenders), “Supermajority Lenders” must include at least two Revolving  Lenders (who are not Affiliates of one another or Defaulting Lenders).  “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.   "Swing Line Lender" means the US Swing Line Lender and/or the Canadian Swing Line  Lender, as the context requires.    “Swing Loans” means US Swing Loans and Canadian Swing Loans.  “Swing Loan Exposure” means the US Swing Line Exposure or the Canadian Swing Line  Exposure.  "Tangible Net Assets" means (a) the consolidated net book value of all assets of the Parent  and is consolidated Restricted Subsidiaries minus (b) the consolidated net book value of all intangible assets  of the Parent and its consolidated Restricted Subsidiaries.  “Tax Indemnitee” has the meaning specified therefor in Section 16.1 of this Agreement.  “Tax Lender” has the meaning specified therefor in Section 14.2(a) of this Agreement.  “Taxes” means any taxes, levies, imposts, duties, deductions, withholdings (including  backup withholding), assessments or other charges in the nature of a tax now or hereafter imposed by any  jurisdiction or by any political subdivision or taxing authority thereof or therein, and all interest, penalties  or similar liabilities with respect thereto.   “Term SOFR” means, for the applicable Corresponding Tenor as of the applicable  Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by  the Relevant Governmental Body.  “Term SOFR Notice” means a notification by Agent to the Lenders and Administrative  Borrower of the occurrence of a Term SOFR Transition Event.  “Term SOFR Transition Event” means the determination by Agent that (a) Term SOFR  has been recommended for use by the Relevant Governmental Body, (b) the administration of Term SOFR  is administratively feasible for Agent and (c) a Benchmark Transition Event, an Early Opt-in Election or  an Other Benchmark Rate Election, as applicable, has previously occurred resulting in the replacement of  the then-current Benchmark for all purposes hereunder and under any other Loan Document in accordance  with Section 2.11(d)(iii) with a Benchmark Replacement the Unadjusted Benchmark Replacement  component of which is not Term SOFR.  





 






     -69-    “Termination Event” means (a) the occurrence with respect to a Pension Plan of a  “reportable event” described in Section 4043(c) of ERISA for which the 30-day notice requirement has not  been waived by applicable regulations issued by the PBGC, (b) the withdrawal of any Loan Party or ERISA  Affiliate from a Pension Plan during a plan year in which it was a “substantial employer” as defined in  Section 4001(a)(2) of ERISA, (c) the termination of a Pension Plan, the filing of a notice of intent to  terminate a Pension Plan or the treatment of a Pension Plan amendment as a termination, under Section  4041 of ERISA, if the plan assets are not sufficient to pay all plan liabilities, (d) the institution of  proceedings to terminate, or the appointment of a trustee with respect to, any Pension Plan by the PBGC or  any Pension Plan or Multiemployer Plan administrator, or (e) any other event or condition that would  constitute grounds under Section 4042(a) of ERISA for the termination of, or the appointment of a trustee  to administer, any Pension Plan.  “Threshold Amount” has the meaning specified therefor in the definition of Permitted  Dispositions.  "Total Net Leverage Ratio" means, as of any date of determination the result of (a) (i) the  amount of Parent’s consolidated Funded Indebtedness as of such date minus Domestic Cash as of such date,  to (b) Parent’s consolidated EBITDA for the 12 month period ended as of such date.  “Trademark Security Agreement” has the meaning specified therefor in the Guaranty and  Security Agreement.  “UCP” means, with respect to any Letter of Credit, the Uniform Customs and Practice for  Documentary Credits 2007 Revision, International Chamber of Commerce Publication No. 600 and any  version or revision thereof accepted by Issuing Bank for use.   “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement  excluding the related Benchmark Replacement Adjustment.  “Unfinanced Capital Expenditures”  means Capital Expenditures (a) not financed with the  proceeds of any incurrence of Indebtedness (other than the incurrence of any Revolving Loans), the  proceeds of any sale or issuance of Equity Interests or equity contributions, the proceeds of any asset sale  (other than the sale of Inventory in the ordinary course of business) or any insurance proceeds, and (b) that  are not reimbursed by a third person (excluding any Loan Party or any of its Affiliates) in the period such  expenditures are made pursuant to a written agreement.  “United States” means the United States of America.  "Unrestricted Subsidiaries" means any Subsidiary of Parent that has been designated as an  Unrestricted Subsidiary in compliance with Section 5.11.  “Unused Canadian Line Fee” has the meaning specified therefor in Section 2.9(b) of this  Agreement.  “Unused US Line Fee” has the meaning specified therefor in Section 2.9(b) of this  Agreement.  “Unused Line Fees” means the Unused (US) Line Fee and the Unused (Canadian) Line  Fee.  





 






     -70-    “UK Financial Institution” means any BRRD Undertaking (as such term is defined under  the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential  Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from  time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain  credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.  “UK Resolution Authority” means the Bank of England or any other public administrative  authority having responsibility for the resolution of any UK Financial Institution.  “US Availability” means, as of any time of determination, the amount that US Borrowers  are entitled to borrow as US Revolving Loans under Section 2.1 of this Agreement (after giving effect to  the then outstanding US Revolver Usage).  "US Bank Product" means any one or more of the following financial products or  accommodations extended to a US Loan Party by a Bank Product Provider: (a) credit cards (including  commercial credit cards (including so-called "purchase cards", "procurement cards" or "P-cards")), (b)  credit card processing services, (c) debit cards, (d) stored value cards, (e) Cash Management Services, or  (f) transactions under Hedge Agreements.  "US Bank Product Agreements" means those agreements entered into from time to time by  a US Loan Party with a Bank Product Provider in connection with the obtaining of any of the US Bank  Products.  "US Bank Product Obligations" means (a) all obligations, liabilities, reimbursement  obligations, fees, or expenses owing by any US Loan Party to any Bank Product Provider pursuant to or  evidenced by a US Bank Product Agreement and irrespective of whether for the payment of money, whether  direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, (b) all  US Hedge Obligations, and (c) all amounts that Agent or any Lender is obligated to pay to a Bank Product  Provider as a result of Agent or such Lender purchasing participations from, or executing guarantees or  indemnities or reimbursement obligations to, a Bank Product Provider with respect to the US Bank Products  provided by such Bank Product Provider to any US Loan Party; provided, in order for any item described  in clauses (a), (b), or (c) above, as applicable, to constitute "US Bank Product Obligations", if the applicable  Bank Product Provider is any Person other than Wells Fargo or its Affiliates, then the applicable US Bank  Product must have been (i) provided on or prior to the Closing Date (or such later date as Agent shall agree  to in writing in its sole discretion), or (ii) provided after the Closing Date and Agent shall have received a  Bank Product Provider Agreement within 10 days after the date of the provision of the applicable US Bank  Product to a US Loan Party (or such later date as Agent shall agree to in writing in its sole discretion).  "US Bank Product Reserves" means, as of any date of determination, those reserves that  Agent has established (based upon the applicable Bank Product Provider's reasonable and good faith  determination of its credit exposure to the US Loan Parties in respect of US Bank Product Obligations) in  respect of US Bank Products then provided or outstanding.  “US Base Rate” means the greatest of (a) the Federal Funds Rate plus 1⁄2%, (b) the Adjusted  LIBOR Rate (which rate shall be calculated based upon a contract period of one month and shall be  determined on a daily basis), plus one percentage point, and (c) the rate of interest announced, from time  to time, within Wells Fargo at its principal office in San Francisco as its “prime rate”, with the understanding  that the “prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates) and serves  as the basis upon which effective rates of interest are calculated for those loans making reference thereto  and is evidenced by the recording thereof after its announcement in such internal publications as Wells  





 






     -71-    Fargo may designate (and, if any such announced rate is below 0.00 percentage points, then the rate  determined pursuant to this clause (d) shall be deemed to be 0.00 percentage points).  "US Borrower" and “US Borrowers” have the respective meanings specified therefor in  the preamble to this Agreement.  "US Borrowing" means a borrowing consisting of US Revolving Loans made on the same  day by the Revolving Lenders with US Revolver Commitments (or Agent on behalf thereof), or by Swing  Line Lender in the case of a US Swing Loan, or by Agent in the case of a US Extraordinary Advance.  “US Borrowing Base” means, as of any date of determination and subject to the sentence  following clause (f) at the end of this definition, the result of:  (a) 85% of the amount of US Eligible Accounts, less the amount, if any, of the US  Dilution Reserve; provided that, (i) the amount of US Eligible Accounts from Specified 10% Affiliates to  be included in the US Borrowing Base shall not exceed $15,000,000, and (ii) the amount of Accounts that  are Eligible US Accounts as a result of being covered by credit insurance and which are to be included in  the US Borrowing Base shall not exceed $5,000,000, plus  (b) the lesser of (i) the product of 70% multiplied by the value (calculated at the lower  of cost or market on a basis consistent with Borrowers’ historical accounting practices) of US Eligible  Finished Goods Inventory,  at such time, and (ii) the product of 85% multiplied by the Net Recovery  Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value  (calculated at the lower of cost or market on a basis consistent with Borrowers’ historical accounting  practices) of US Eligible Finished Goods Inventory (such determination may be made as to different  categories of US Eligible Finished Goods Inventory based upon the Net Recovery Percentage applicable to  such categories) at such time, plus  (c) the lesser of (i) the product of 70% multiplied by the value (calculated at the lower  of cost or market on a basis consistent with Borrowers’ historical accounting practices) of US Eligible In- Transit Inventory at such time, and (ii) the product of 85% multiplied by the Net Recovery Percentage  identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value (calculated at the  lower of cost or market on a basis consistent with US Loan Parties’ historical accounting practices) of US  Eligible In-Transit Inventory (such determination may be made as to different categories of finished goods,  raw materials or work-in-process Inventory based upon the Net Recovery Percentage applicable to such  categories) at such time, provided that, (A) until the completion of an Acceptable Appraisal of such US  Eligible In-Transit Inventory and the completion of a field examination with respect to such Inventory that  is satisfactory to Agent in its Permitted Discretion, the amount determined under this clause (c) shall be  equal to $0, and (B) the amount determined under this clause (c), when aggregated with the amount  determined under clause (c) of the definition of “Canadian Borrowing Base”, shall not exceed $5,000,000,  plus  (d) the lesser of (i) the product of 70% multiplied by the value (calculated at the lower  of cost or market on a basis consistent with Borrowers’ historical accounting practices) of US Eligible Raw  Materials Inventory at such time, and (ii) the product of 85% multiplied by the Net Recovery Percentage  identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value (calculated at the  lower of cost or market on a basis consistent with Borrowers’ historical accounting practices) of US Eligible  Raw Materials Inventory (such determination may be made as to different categories of US Eligible Raw  Materials Inventory based upon the Net Recovery Percentage applicable to such categories) at such time,  plus  





 






     -72-    (e) the lesser of   (i) $25,000,000, and    (ii) the lesser of (A) the product of 70% multiplied by the value (calculated at  the lower of cost or market on a basis consistent with Borrowers’ historical accounting practices) of US  Eligible Work-In-Process Inventory at such time, and (B) the product of 85% multiplied by the Net  Recovery Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the  value (calculated at the lower of cost or market on a basis consistent with Borrowers’ historical accounting  practices) of US Eligible Work-In-Process Inventory (such determination may be made as to different  categories of US Eligible Work-In-Process Inventory based upon the Net Recovery Percentage applicable  to such categories) at such time; minus  (f) the aggregate amount of Reserves, if any, established by Agent from time to time  under Section 2.1(d) of this Agreement.  Notwithstanding the foregoing, in no event shall the sum of clauses (b), (c), (d), and (e) set  forth in this definition, when added to the sum of clauses (b), (c), (d), and (e) set forth in the definition of  “Canadian Borrowing Base” be greater than the then effective Inventory Cap.  "US Borrowing Base Certificate" means a certificate in the form of Exhibit B-1, containing  the calculation of the US Borrowing Base.   "US Designated Account" means the Deposit Account(s) of US Borrowers identified on  Schedule D-2 to this Agreement (or such other Deposit Account(s) of US Borrowers located at US  Designated Account Bank that has been designated as such, in writing, by Administrative Borrower to  Agent).   "US Designated Account Bank" has the meaning specified therefor in Schedule D-2 to this  Agreement (or such other bank that is located within the United States that has been designated as such, in  writing, by Administrative Borrower to Agent).   "US Dilution" means, as of any date of determination, a percentage, based upon the  experience of the immediately prior twelve months, that is the result of dividing the US Dollar Equivalent  amount of (a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items with  respect to US Loan Parties' Accounts during such period, by (b) US Loan Parties' billings with respect to  such Accounts during such period.   "US Dilution Reserve" means, as of any date of determination, an amount sufficient to  reduce the advance rate against Eligible Accounts of US Loan Parties by 1 percentage point for each  percentage point by which US Dilution is in excess of 5%.  “US Dollars”, “Dollars”, “$” or “US$” means United States dollars.  "US Dollar Equivalent" means, at any time (a) with respect to any amount denominated in  US Dollars, such US Dollars, and (b) with respect to any amount denominated in any Foreign Currency,  the equivalent amount thereof in US Dollars as determined by Agent, at such time on the basis of the Spot  Rate (determined in respect of the most recent Revaluation Date or such other date determined by Agent)  for the purchase of US Dollars with such Foreign Currency.  





 






     -73-    “US Eligible Accounts” means those Accounts created by a US Loan Party that is the  Parent or that is a Wholly-Owned Restricted Subsidiary and created in the ordinary course of its business,  that arise out of such US Loan Party’s sale of goods or rendition of services, that comply with each of the  representations and warranties respecting US Eligible Accounts made in the Loan Documents, and that are  not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, that  such criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to address the  results of any information with respect to the US Loan Parties’ business or assets of which Agent becomes  aware after the Amendment No. 3 Effective Date, including any field examination performed by (or on  behalf of) Agent from time to time after the Amendment No. 3 Effective Date.  In determining the amount  to be included, US Eligible Accounts shall be calculated net of customer deposits, unapplied cash, Taxes,  finance charges, service charges, discounts, credits, allowances, and rebates. US Eligible Accounts shall  not include the following:  (a) Accounts that the Account Debtor has failed to pay within 90 days of original  invoice date or 60 days of due date; provided that any Account unpaid for more than 90 days of original  invoice date but not more than 120 days from the date of the relevant invoice shall not be excluded under  this clause (a) so long as (i) the aggregate amount of such Accounts under this clause (a) does not exceed  10% of the US Borrowing Base (prior to the inclusion of such Accounts therein), (ii) the Account Debtor  in respect of such Account is a Specified Account Debtor, and (iii) such Account is not unpaid more than  60 days past its due date,  (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all  Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,  (c) Accounts with respect to which the Account Debtor is a Specified Affiliate except  that up to $5,000,000 in the aggregate of such Accounts (when also aggregated with the Canadian Eligible  Accounts owing by one or more Specified Affiliate), may be included in US Eligible Account unless (i) the  Agent otherwise determines, from time to time, in its sole discretion that a lower amount (including $0)  shall apply, or (ii) such Accounts were not on an arms’ length basis, not for fair market value or not in the  ordinary course of business,  (d) (i) Accounts with respect to which the Account Debtor is an Affiliate of any Loan  Party or an employee or agent of any Loan Party or any Affiliate of any Loan Party, in any case, other than  a Specified Affiliate or a Specified 10% Affiliate, and (ii) Accounts with respect to which the Account  Debtor is a Specified 10% Affiliate of any Loan Party unless such Accounts were on an arms’ length basis,   for fair market value and in the ordinary course of business,  (e) Accounts (i) arising in a transaction wherein goods are placed on consignment or  are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms  by reason of which the payment by the Account Debtor may be conditional, or (ii) with respect to which  the payment terms are “C.O.D.”, cash on delivery or other similar terms,  (f) Accounts that are not payable in US Dollars,  (g) Accounts with respect to which the Account Debtor either (i) does not maintain its  chief executive office in the United States, or (ii) is not organized under the laws of the United States any  state thereof, or (iii) is the government of any foreign country or sovereign state, or of any state, province,  municipality, or other political subdivision thereof, or of any department, agency, public corporation, or  other instrumentality thereof, (unless (A) the Account is supported by an irrevocable letter of credit  reasonably satisfactory to Agent (as to form, substance and issuer or domestic confirming bank) that has  been delivered to Agent and, if requested by Agent, is directly drawable by Agent or (B) with the consent  of Agent which may be exercised in its sole discretion and exercised from time to time as to any particular  





 






     -74-    Account, the Account is covered by credit insurance in form, substance and amount, and by an insurer,  acceptable to Agent in its sole discretion), except that (x) as to Accounts with respect to which the Account  Debtor maintains its chief executive office in Canada or is organized under the laws of Canada or any state,  territory or province thereof; up to $15,000,000 of such Accounts may be included in US Eligible Accounts,  and (y) except that, as to Accounts with respect to which the Account Debtor maintains its chief executive  office in any of the five islands previously known as the “Netherlands Antilles” or Switzerland or is  organized under the laws of any such island or Switzerland or any state, territory or province thereof; up to  $7,500,000 of such Accounts may be included in US Eligible Account,  (h) Accounts with respect to which the Account Debtor is either (i) the United States  or any department, agency, or instrumentality of the United States (exclusive, however, of Accounts with  respect to which US Loan Parties have complied, to the reasonable satisfaction of Agent, with the  Assignment of Claims Act, 31 USC §3727), or (ii) any state of the United States or any other Governmental  Authority and applicable law of such state or other Governmental Authority restricts or does not allow  (A) an assignment of Accounts owing by such Account Debtor or (B) the exercise of rights or remedies of  a secured party with respect to Accounts owing by such Account Debtor,  (i) Accounts with respect to which the Account Debtor is a creditor of any Loan Party,  has or has asserted a right of recoupment or setoff, or has disputed its obligation to pay all or any portion  of the Account, to the extent of such claim, right of recoupment or setoff, or dispute,  (j) (i) Accounts with respect to an Account Debtor (other than Concentration Account  Debtors and Investment Grade Account Debtors) whose US Eligible Accounts owing to US Loan Parties  exceed 15% (such percentage, as applied to a particular Account Debtor, being subject to reduction by  Agent in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all US  Eligible Accounts, (ii) Accounts with respect to Investment Grade Account Debtors whose US Eligible  Accounts owing to US Loan Parties exceed 25% (such percentage, as applied to a particular Account  Debtor, being subject to reduction by Agent in its Permitted Discretion if the creditworthiness of such  Account Debtor deteriorates) of all US Eligible Accounts, and (iii) Accounts with respect to a Concentration  Account Debtor whose US Eligible Accounts owing to US Loan Parties exceed 30% (such percentage, as  applied to a particular Account Debtor, being subject to reduction by Agent in its Permitted Discretion if  the creditworthiness of such Account Debtor deteriorates) of all US Eligible Accounts, in each of the  foregoing, to the extent of the obligations owing by such Account Debtor in excess of such percentage;  provided, that in each case under the preceding clause (i), (ii) and (iii), the amount of US Eligible Accounts  that are excluded because they exceed the applicable foregoing percentages shall be determined by Agent  based on all of the otherwise US Eligible Accounts prior to giving effect to any eliminations based upon  the foregoing concentration limits,  (k) Accounts with respect to which the Account Debtor is subject to an Insolvency  Proceeding, is not Solvent, has gone out of business, or as to which any Borrower has received notice of an  imminent Insolvency Proceeding or a material impairment of the financial condition of such Account  Debtor, in each case unless the Account from such Account Debtor arises subsequent to a decree or order  for relief with respect to such Account Debtor under the federal bankruptcy laws, as now or hereafter in  effect, and Agent shall have determined in its sole discretion that the timely payment and collection of such  Account will not be impaired,  (l) Accounts, the collection of which, Agent, in its Permitted Discretion, believes to  be doubtful, including by reason of the Account Debtor’s financial condition,  (m) Accounts that are not subject to a valid and perfected first priority Agent’s Lien,  





 






     -75-    (n) Accounts with respect to which (i) the goods giving rise to such Account have not  been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not  been performed and billed to the Account Debtor,  (o) Accounts with respect to which the Account Debtor is a Sanctioned Person or  Sanctioned Entity,  (p) Accounts (i) that represent the right to receive progress payments or other advance  billings that are due prior to the completion of performance by the applicable US Loan Party of the subject  contract for goods or services, or (ii) that represent credit card sales, or  (q) Accounts owned by a target acquired in connection with a Permitted Acquisition  or Permitted Investment, or Accounts owned by a Person that is joined to this Agreement as a US Loan  Party pursuant to the provisions of this Agreement, until the completion of a field examination with respect  to such Accounts, in each case, satisfactory to Agent in its Permitted Discretion (which examination may  be conducted prior to the closing of such Permitted Acquisition, Permitted Investment or joinder); provided  that (i) until the completion of such field examination, such Accounts may be included in US Eligible  Account for a period of up to 45 days after the date of consummation of the Permitted Acquisition or  Permitted Investment or joinder so long as such Accounts otherwise qualify as US Eligible Accounts and  (ii) the aggregate amount of such Accounts which are US Eligible Accounts, together with the aggregate  amount of US Eligible Inventory related to Permitted Acquisitions, Permitted Investments, and joinders  that are not subject to an acceptable field examination and an Acceptable Appraisal, do not constitute more  than 10% of the US Borrowing Base.  “US Eligible Finished Goods Inventory” means Inventory that qualifies as US Eligible  Inventory and consists of first quality finished goods held for sale in the ordinary course of US Loan Parties’  business.   “US Eligible Inventory” means Inventory of a US Loan Party that it the Parent or that is a  Wholly-Owned Restricted Subsidiary, that complies with each of the representations and warranties  respecting US Eligible Inventory made in the Loan Documents, and that is not excluded as ineligible by  virtue of one or more of the excluding criteria set forth below; provided, that such criteria may be revised  from time to time by Agent in Agent’s Permitted Discretion to address the results of any information with  respect to the US Loan Parties’ business or assets of which Agent becomes aware after the Amendment No.  3 Effective Date, including any field examination or appraisal performed or received by Agent from time  to time after the Amendment No. 3 Effective Date.  In determining the amount to be so included, Inventory  shall be valued at the lower of cost or market on a basis consistent with US Loan Parties’ historical  accounting practices.  An item of Inventory shall not be included in US Eligible Inventory if:  (a) a US Loan Party does not have good, valid, and marketable title thereto,  (b) a US Loan Party does not have actual and exclusive possession thereof (either  directly or through a bailee or agent of a US Loan Party),  (c) it is not located at one of the locations in the continental United States set forth on  Schedule 4.25 to this Agreement (as such Schedule 4.25 may be amended from time to time with the prior  written consent of Agent) (or in-transit from one such location to another such location),  (d) it is stored at locations holding less than $100,000 of the aggregate value of any  US Loan Party’s Inventory,  





 






     -76-    (e) it is in-transit to or from a location of a US Loan Party (other than in-transit from  one location set forth on Schedule 4.25 to this Agreement to another location set forth on Schedule 4.25 to  this Agreement (as such Schedule 4.25 may be amended from time to time with the prior written consent  of Agent)),  (f) it is located on real property leased by a US Loan Party or in a contract warehouse  or with a bailee, in each case, unless either (i) it is subject to a Collateral Access Agreement executed by  the lessor or warehouseman, as the case may be, and it is segregated or otherwise separately identifiable  from goods of others, if any, stored on the premises, or (ii) Agent has established a Landlord Reserve with  respect to such location; provided that, until the 90th day after the Closing Date, such Inventory that is  located at a location not covered by a Collateral Access Agreement or a Landlord Reserve may be US  Eligible Inventory if it otherwise qualifies as a US Eligible Inventory,  (g) it is the subject of a bill of lading or other document of title,  (h) it is not subject to a valid and perfected first priority Agent’s Lien,  (i) it consists of goods returned or rejected by a US Loan Party’s customers, unless  such Inventory is undamaged and able to be resold in the ordinary course of business to a readily available  market without any modification,  (j) it consists of goods that are obsolete, slow moving, spoiled or are otherwise past  the stated expiration, “sell-by” or “use by” date applicable thereto, restrictive or custom items or otherwise  is manufactured in accordance with customer-specific requirements, or goods that constitute spare parts  that are consumed or consumable by any Loan Party or Restricted Subsidiary, packaging and shipping  materials, supplies used or consumed in US Loan Parties’ business, bill and hold goods, defective goods,  “seconds,” or Inventory acquired on consignment,  (k) it is subject to third party intellectual property, licensing or other proprietary rights,  unless Agent is reasonably satisfied that such Inventory can be freely sold by Agent on and after the  occurrence of an Event of a Default despite such third party rights, or  (l) it was acquired in connection with a Permitted Acquisition or Permitted  Investment, or such Inventory is owned by a Person that is joined to this Agreement as a US Loan Party  pursuant to the provisions of this Agreement, until the completion of an Acceptable Appraisal of such  Inventory and the completion of a field examination with respect to such Inventory that is satisfactory to  Agent in its Permitted Discretion (which examination may be conducted prior to the closing of such  Permitted Acquisition, Permitted Investment or joinder); provided that (i) until the completion of such field  examination and Acceptable Appraisal, such Inventory may be included in US Eligible Inventory for a  period of up to 45 days after the date of consummation of the Permitted Acquisition or Permitted Investment  or joinder so long as such Inventory otherwise qualify as US Eligible Inventory and (ii) the aggregate  amount of such Inventory which are US Eligible Inventory, together with the aggregate amount of US  Eligible Accounts related to Permitted Acquisitions, Permitted Investments, and joinders that are not subject  to a satisfactory field examination, do not constitute more than 10% of the US Borrowing Base.  “US Eligible In-Transit Inventory” means those items of Inventory that do not qualify as  Eligible Inventory solely because they are not in a location set forth on Schedule 4.25 to this Agreement  (as such Schedule 4.25 may be amended from time to time with prior notice to Agent) or in transit among  such locations and a US Loan Party that is the Parent or that is a Wholly-Owned Restricted Subsidiary does  not have actual and exclusive possession thereof, but as to which,  





 






     -77-    (a) such Inventory currently is in transit (by vessel or land) from a location outside of  the continental United States to a location set forth on Schedule 4.25 to this Agreement (as such Schedule  4.25 may be amended from time to time with prior notice to Agent) to the extent that such Inventory is the  subject of a negotiable bill of lading governed by the laws of a state within the United States that is (x) that  is consigned to Agent or one of its Customs Brokers (either directly or by means of endorsements), (y) that  was issued by the carrier (including a non-vessel operating common carrier) in possession of the Inventory  that is subject to such bill of lading, and (z) that either is in the possession of Agent or a Customs Broker  (in each case in the continental United States),  (b) title to such Inventory has passed to a US Loan Party that is the Parent or that is a  Wholly-Owned Restricted Subsidiary and Agent shall have received such evidence thereof as it may from  time to time require,  (c) such Inventory is insured against types of loss, damage, hazards, and risks, and in  amounts, satisfactory to Agent in its Permitted Discretion, and Agent shall have received a copy of the  certificate of marine cargo insurance in connection therewith in which it has been named as an additional  insured and loss payee in a manner acceptable to Agent,  (d) such Inventory is the subject of a negotiable bill of lading governed by the laws of  a state within the United States (x) that is consigned to Agent or one of its Customs Brokers (either directly  or by means of endorsements), (y) that was issued by the carrier (including a non-vessel operating common  carrier) in possession of the Inventory that is subject to such bill of lading, and (z) that either is in the  possession of Agent or a Customs Broker (in each case in the continental United States),  (e) such Inventory is in the possession of a common carrier (including on behalf of  any non-vessel operating common carrier) that has issued the bill of lading or other document of title with  respect thereto or the Customs Broker handling the importing, shipping and delivery of such Inventory;  (f) the documents of title related thereto are subject to the valid and perfected first  priority Lien of Agent;  (g) Agent determines that such Inventory is not subject to (i) any Person’s right of  reclamation, repudiation, stoppage in transit or diversion or (ii) any other right or claim of any other Person  which is (or is capable of being) senior to, or pari passu with, the Lien of Agent or Agent determines that  any Person’s right or claim impairs, or interferes with, directly or indirectly, the ability of Agent to realize  on, or reduces the amount that Agent may realize from the sale or other disposition of such Inventory;  (h) Administrative Borrower has provided, upon Agent’s request, a copy of the  invoice, packing slip and manifest with respect thereto,  (i) such Inventory shall not have been in transit for more than sixty (60) days, and  (j) with respect to Inventory transferred from a Person that is not a Loan Party, upon  Agent’s request, the Agent shall have received such other agreements or documents in form and substance  satisfactory to the Agent executed by such Person related to such Person’s right or claim to such Inventory  or to any Loan Party.  “US Eligible Raw Materials Inventory” means Inventory that qualifies as US Eligible  Inventory and consists of goods that are first quality raw materials and that are not located in open pallets  or containers.   





 






     -78-    “US Eligible Work-in-Process Inventory” means Inventory that qualifies as US Eligible  Inventory and consists of goods that are first quality work-in-process; provided, that anything to the  contrary contained herein notwithstanding, the value of such Inventory shall not include the value of any  labor or other services rendered to produce such Inventory.  "US Extraordinary Advances" has the meaning specified therefor in Section 2.2(d)(iii) of  this Agreement.   “US Guarantors” means the Guarantors that are Domestic Subsidiaries of the Parent  provided, however, that, with respect to US Borrowers, recovery from any US Guarantor that is a FSHCO  will be limited to 65% of the voting Equity Interests in any CFCs and FSCHOs owned by such US  Guarantor unless such greater recovery is available to the holders of any Other Debt pursuant to the guaranty  thereof by such FSHCO (and 100% of any other interests in such entity along with all other assets of such  FSHCO); provided that, for the avoidance of doubt, with respect to US Borrowers, no direct or indirect  Domestic Subsidiary of a Foreign Subsidiary that is a CFC shall be a US Guarantor unless such CFC has  guaranteed, or is otherwise liable for, any Other Debt (in accordance with the Secured Notes Documents or  otherwise).  "US Hedge Obligations" means any and all obligations or liabilities, whether absolute or  contingent, due or to become due, now existing or hereafter arising, of any US Loan Party arising under,  owing pursuant to, or existing in respect of Hedge Agreements entered into with one or more of the Hedge  Providers; provided that, as to such obligations or liabilities owing to a former Lender or an Affiliate of a  former Lender, such obligations and liabilities shall constitute US Hedge Obligations only as to the  individual Hedge Agreements (and not Master ISDA Agreements) entered into prior to such Lender ceasing  to be a Lender hereunder and without giving effect to any extension or renewal thereof.  "US Issuing Bank" means Wells Fargo or any other Lender or any Affiliate thereof that, at  the request of Administrative Borrower and with the consent of Agent (not to be unreasonably withheld,  delayed or conditioned), agrees, in such Lender's or such Affiliate’s sole discretion, to become a US Issuing  Bank for the purpose of issuing US Letters of Credit pursuant to Section 2.10A of this Agreement.  "US Letter of Credit" means a letter of credit (as that term is defined in the Code) issued  by US Issuing Bank for the account of the Parent or any Restricted Subsidiary.  "US Letter of Credit Disbursement" means a payment made by US Issuing Bank pursuant  to a US Letter of Credit.   “US Letter of Credit Exposure” means, as of any time of determination with respect to any  Lender, such Lender's Pro Rata Share of the US Letter of Credit Usage on such date.  "US Letter of Credit Fees" has the meaning specified therefor in Section 2.5(b).  “US Letter of Credit Sublimit” means $45,000,000.  "US Letter of Credit Obligations" means the obligation of each US Loan Party to reimburse  US Issuing Bank for amounts paid pursuant to US Letters of Credit.   “US Letter of Credit Usage” means, as of any time of determination, the sum of (a) the  aggregate undrawn amount of all outstanding US Letters of Credit plus (b) the aggregate amount of  outstanding reimbursement obligations with respect to US Letters of Credit which remain unreimbursed or  which have not been paid through a Revolving Loan.    





 






     -79-    "US Loan Account" has the meaning specified therefor in Section 2.8.   “US Loan Party” means the US Borrowers and the US Guarantors.  "US Obligations" means (a) all loans (including the US Revolving Loans (inclusive of US  Extraordinary Advances and US Swing Loans)), debts, principal, interest (including any interest that  accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable  in whole or in part as a claim in any such Insolvency Proceeding), reimbursement or indemnification  obligations with respect to US Letters of Credit (irrespective of whether contingent), premiums, liabilities  (including all amounts charged to the US Loan Account pursuant to this Agreement), obligations (including  indemnification obligations) of any US Loan Party, fees (including the fees Schedule 1.1 provided for in  the Fee Letter) of any US Loan Party, Lender Group Expenses (including any fees or expenses that accrue  after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole  or in part as a claim in any such Insolvency Proceeding) of any US Loan Party, guaranties of any US Loan  Party, and all covenants and duties of any other kind and description owing by any US Loan Party arising  out of, under, pursuant to, in connection with, or evidenced by this Agreement or any of the other Loan  Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or  contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when  due and all other expenses or other amounts that any US Loan Party is required to pay or reimburse by the  Loan Documents or by law or otherwise in connection with the Loan Documents, (b) all debts, liabilities,  or obligations (including reimbursement obligations, irrespective of whether contingent) owing by US  Borrower or any other US Loan Party to US Issuing Bank now or hereafter arising from or in respect of a  US Letters of Credit, and (c) all US Bank Product Obligations; provided, that US Obligations shall not  include Excluded Swap Obligations. Without limiting the generality of the foregoing, the US Obligations  under the Loan Documents include the obligation to pay (i) the principal of the US Revolving Loans, (ii)  the interest accrued on the US Revolving Loans, (iii) the amount necessary to reimburse US Issuing Bank  for amounts paid or payable pursuant to US Letters of Credit, (iv) letter of credit commissions, charges,  expenses, and fees, in each case in respect of US Letters of Credit (v) Lender Group Expenses of any US  Loan Party, (vi) fees payable by any US Loan Party under this Agreement or any of the other Loan  Documents, and (vii) indemnities and other amounts payable by any US Loan Party under any Loan  Document (excluding Excluded Swap Obligations). Any reference in this Agreement or in the Loan  Documents to the US Obligations shall include all or any portion thereof and any extensions, modifications,  renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.  “US Overadvance” means, as of any time of determination, that the US Revolver Usage is  greater than any of the limitations set forth in Section 2.1 or Section 2.10A.  “US Protective Advances” has the meaning specified therefor in Section 2.2(d)(i) of this  Agreement.    “US Revolver Commitment” means, with respect to each Revolving Lender, its US  Revolver Commitment, and, with respect to all Revolving Lenders, their US Revolver Commitments, in  each case as such US Dollar amounts are set forth beside such Revolving Lender’s name under the  applicable heading on Schedule C-1 to this Agreement or in the Assignment and Acceptance or Increase  Joinder pursuant to which such Revolving Lender became a Revolving Lender under this Agreement, as  such amounts may be reduced or increased from time to time pursuant to assignments made in accordance  with the provisions of Section 13.1 of this Agreement, and as such amounts may be decreased by the amount  of reductions in the US Revolver Commitments made in accordance with Section 2.3(c) hereof.  





 






     -80-    “US Revolver Usage” means, as of any time of determination, the sum of (a) the amount  of outstanding US Revolving Loans (inclusive of Swing Loans and US Protective Advances), plus (b) the  amount of the US Letter of Credit Usage.  “US Revolving Lender” means a Lender that has a US Revolving Loan Exposure or US  Letter of Credit Exposure.  “US Revolving Loan Exposure” means, with respect to any Lender, as of any time of  determination (a) prior to the termination of the US Revolver Commitments, the amount of such Lender’s  US Revolver Commitment, and (b) after the termination of the US Revolver Commitments, the aggregate  outstanding principal amount of the US Revolving Loans of such Lender plus such Lender’s US Letter of  Credit Exposure.  “US Revolving Loans” has the meaning specified therefor in Section 2.1(a) of this  Agreement.  “US Swing Line Lender” means Wells Fargo or any other Lender that, at the request of US  Borrowers and with the consent of Agent (not to be unreasonably withheld, delayed or conditioned) agrees,  in such Lender’s sole discretion, to become a US Swing Line Lender under Section 2.2(b) of this  Agreement.  “US Swing Loan” has the meaning specified therefor in Section 2.2(b) of this Agreement.  “US Swing Loan Exposure” means, as of any time of determination with respect to any  Lender, such Lender’s Pro Rata Share of the US Swing Loans on such date.  “USD LIBOR” means the London interbank offered rate for US Dollars.  “Voidable Transfer” has the meaning specified therefor in Section 17.8 of this Agreement.  “Wells Fargo” means Wells Fargo Bank, National Association, a national banking  association.  "WF Canada" means Wells Fargo Capital Finance Corporation Canada.  "Wholly-Owned" means, as used in reference to a Restricted Subsidiary, any Restricted  Subsidiary whose Equity Interest is owned 100%, either directly or indirectly, by the Parent.  “Withdrawal Liability” means liability with respect to a Multiemployer Plan as a result of  a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of  Subtitle E of Title IV of ERISA  “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time  under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion  powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom,   any powers of the applicable Resolution Authority  under the Bail-In Legislation to cancel, reduce, modify  or change the form of a liability of any UK Financial Institution  or any contract or instrument under which  that liability arises, to convert all or part of that liability into shares, securities or obligations of that person  or any other person, to provide that any such contract or instrument is to have effect as if a right had been  exercised under it or to suspend any obligation in respect of that liability or any of the powers under that  Bail-In Legislation that are related to or ancillary to any of those powers.  





 






     -81-    1.2 Accounting Terms.  All accounting terms not specifically defined herein shall be  construed in accordance with GAAP; provided, that if Administrative Borrower notifies Agent that  Borrowers request an amendment to any provision hereof to eliminate the effect of any Accounting Change  occurring after the Closing Date or in the application thereof on the operation of such provision (or if Agent  notifies Administrative Borrower that the Supermajority Lenders request an amendment to any provision  hereof for such purpose), regardless of whether any such notice is given before or after such Accounting  Change or in the application thereof, then Agent and Borrowers agree that they will negotiate in good faith  amendments to the provisions of this Agreement that are directly affected by such Accounting Change with  the intent of having the respective positions of the Lenders and Borrowers after such Accounting Change  conform as nearly as possible to their respective positions immediately before such Accounting Change  took effect and, until any such amendments have been agreed upon and agreed to by the Supermajority  Lenders, the provisions in this Agreement shall be calculated as if no such Accounting Change had  occurred.  When used herein, the term “financial statements” shall include the notes and schedules thereto.   Whenever the term “Parent” or “Borrowers” is used in respect of a financial covenant or a related definition,  it shall be understood to mean the Loan Parties and their Restricted Subsidiaries on a consolidated basis,  unless the context clearly requires otherwise.  Notwithstanding anything to the contrary contained herein,  (a) all financial statements delivered hereunder shall be prepared, and all financial covenants contained  herein shall be calculated, without giving effect to any election under the Statement of Financial Accounting  Standards Board’s Accounting Standards Codification Topic 825 (or any similar accounting principle)  permitting a Person to value its financial liabilities or Indebtedness at the fair value thereof, and (b) the term  “unqualified opinion” as used herein to refer to opinions or reports provided by accountants shall mean an  opinion or report that is (i) unqualified, and (ii) does not include any explanation, supplemental comment,  or other comment concerning the ability of the applicable Person to continue as a going concern or  concerning the scope of the audit.  Notwithstanding any changes in GAAP after the Closing Date, any lease  of the Borrowers or their Restricted Subsidiaries that would be characterized as an operating lease under  GAAP in effect on the Closing Date (whether such lease is entered into before or after the Closing Date)  shall not constitute a Capital Lease under this Agreement or any other Loan Document as a result of such  changes in GAAP unless otherwise agreed to in writing by the Borrowers and Supermajority Lenders.  1.3 Code; PPSA.  Any terms used in this Agreement that are defined in (a) the Code shall be  construed and defined as set forth in the Code unless otherwise defined herein; provided, that to the extent  that the Code is used to define any term herein and such term is defined differently in different Articles of  the Code, the definition of such term contained in Article 9 of the Code shall govern, and (b) with respect  to the Canadian Loan Parties or Collateral subject to the PPSA, the PPSA (but not the Code) shall be  construed and defined as set forth in the PPSA unless otherwise defined herein.  Notwithstanding the  foregoing, and where the context so requires, (i) any term defined in this Agreement by reference to the  "Code", the "UCC" or the "Uniform Commercial Code" shall also have, with respect to the Canadian Loan  Parties or Collateral subject to the PPSA, any extended, alternative or analogous meaning given to such  term in applicable Canadian personal property security and other laws (including, without limitation, the  PPSA, the Bills of Exchange Act (Canada) and the Depository Bills and Notes Act (Canada)), in all cases  for the extension, preservation or betterment of the security and rights of the Collateral, (ii) all references  in this Agreement to "Article 8" shall be deemed to refer also to applicable Canadian securities transfer  laws (including, without limitation, the STA), (iii) all references in this Agreement to a financing statement,  continuation statement, amendment or termination statement shall be deemed to refer also to the analogous  documents used under the PPSA, and (iv) all references to federal or state securities law of the United States  shall be deemed to refer also to analogous federal (where applicable) and provincial securities laws in  Canada.  1.4 Construction.  Unless the context of this Agreement or any other Loan Document clearly  requires otherwise, references to the plural include the singular, references to the singular include the plural,  the terms “includes” and  “including” are not limiting, and the term “or” has, except where otherwise  





 






     -82-    indicated, the inclusive meaning represented by the phrase “and/or.”  The words “hereof,” “herein,”  “hereby,” “hereunder,” and similar terms in this Agreement or any other Loan Document refer to this  Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision  of this Agreement or such other Loan Document, as the case may be.  Section, subsection, clause, schedule,  and exhibit references herein are to this Agreement unless otherwise specified.  Any reference in this  Agreement or in any other Loan Document to any agreement, instrument, or document shall include all  alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions,  joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations,  amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and  supplements set forth herein).  The words “asset” and “property” shall be construed to have the same  meaning and effect and to refer to any and all tangible and intangible assets and properties.  Any reference  herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations  shall mean (a) the payment or repayment in full in Same Day Funds of (i) the principal amount of, and  interest accrued and unpaid with respect to, all outstanding Loans, together with the payment of any  premium applicable to the repayment of the Loans, (ii) all Lender Group Expenses that have accrued and  are unpaid regardless of whether demand has been made therefor, and (iii) all fees or charges that have  accrued hereunder or under any other Loan Document (including the Letter of Credit Fee and the Unused  Line Fee) and are unpaid, (b) in the case of contingent reimbursement obligations with respect to Letters of  Credit, providing Letter of Credit Collateralization, (c) in the case of obligations with respect to Bank  Products (other than Hedge Obligations), providing Bank Product Collateralization, (d) the receipt by Agent  of cash collateral in order to secure any other contingent Obligations for which a claim or demand for  payment has been made on or prior to such time or in respect of matters or circumstances known to Agent  or a Lender at such time that are reasonably expected to result in any loss, cost, damage, or expense  (including attorneys’ fees and legal expenses), such cash collateral to be in such amount as Agent  reasonably determines is appropriate to secure such contingent Obligations, (e) the payment or repayment  in full in Same Day Funds of all other outstanding Obligations (including the payment of any termination  amount then applicable (or which would or could become applicable as a result of the repayment of the  other Obligations) under Hedge Agreements provided by Hedge Providers) other than (i) unasserted  contingent indemnification Obligations, (ii) any Bank Product Obligations (other than Hedge Obligations)  that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding without being  required to be repaid or cash collateralized, and (iii) any Hedge Obligations that, at such time, are allowed  by the applicable Hedge Provider to remain outstanding without being required to be repaid, and (f) the  termination of all of the Commitments of the Lenders.  Any reference herein to any Person shall be  construed to include such Person’s successors and assigns.  Any requirement of a writing contained herein  or in any other Loan Document shall be satisfied by the transmission of a Record.  1.5 Time References.  Unless the context of this Agreement or any other Loan Document  clearly requires otherwise, all references to time of day refer to Central standard time or Central daylight  saving time, as in effect in Houston, Texas on such day.  For purposes of the computation of a period of  time from a specified date to a later specified date, unless otherwise expressly provided, the word “from”  means “from and including” and the words “to” and “until” each means “to and including”; provided, that  with respect to a computation of fees or interest payable to Agent or any Lender, such period shall in any  event consist of at least one full day.  1.6 Schedules and Exhibits.  All of the schedules and exhibits attached to this Agreement  shall be deemed incorporated herein by reference.  1.7 Currencies; Agreed Currencies; Change of Currency.   (a) Currency Equivalents.  All references to "Dollars" or "$" shall mean US Dollars  unless otherwise specified herein.  For purposes of this Agreement and the other Loan Documents, the US  





 






     -83-    Dollar Equivalent of the Revolving Loans, Letters of Credit, other Obligations and other references to  amounts denominated in a currency other than US Dollars shall be determined in accordance with the terms  of this Agreement.  Such US Dollar Equivalent shall become effective as of such Revaluation Date for such  Revolving Loans, Letters of Credit and other Obligations and shall be the US Dollar Equivalent employed  in converting any amounts between the applicable currencies until the next Revaluation Date to occur for  such Revolving Loans, Letters of Credit and other Obligations.  Except as otherwise expressly provided  herein or in the applicable other Loan Document, the applicable amount of any currency for purposes of  this Agreement and the other Loan Documents (including all calculations in connection with the covenants,  including the financial covenants) shall be the US Dollar Equivalent thereof, and for the purpose of such  calculations, comparisons, measurements or determinations, amounts denominated in currencies other than  US Dollars shall be converted into the US Dollar Equivalent of such amount on the date of calculation,  comparison, measurement or determination; provided that, for purposes of determining compliance with  respect to any amount of Indebtedness, Investment, sale, other disposition, distribution or payment in a  currency other than US Dollars, no Default or Event of Default shall be deemed to have occurred solely as  a result of changes in rates of exchange occurring after the time such Indebtedness or Investment is incurred  or sale, other disposition, distribution or payment is made.  Notwithstanding the foregoing, for the purposes  of financial statements and any components of the financial covenant contained in Section 7 derived  therefrom, in each case prepared by Parent or Borrowers, the US Dollar Equivalent of each amount in a  currency other than US Dollars shall be determined in accordance with GAAP.  Wherever in this Agreement  and the other Loan Documents in connection with a borrowing, conversion, continuation or prepayment of  a Revolving Loan or the issuance, amendment or extension of a Letter of Credit, an amount, such as a  required minimum or multiple amount, is expressed in US Dollars, but such Revolving Loan or Letter of  Credit is denominated in any Foreign Currency, such amount shall be the relevant Foreign Currency  Equivalent of such US Dollar amount (rounded to the nearest unit of such Foreign Currency, with 0.5 of a  unit being rounded upward), as determined by the Administrative Agent or the applicable Issuing Bank, as  the case may be.  (b) Agreed Currencies.   (i) Subject to the terms and conditions set forth in this Agreement, the US  Borrowers may from time to time request (A) US Revolving Loans in US Dollars, and (B) Letters of Credit  in any Agreed Currency, and the Canadian Borrowers may from time to time request (x) Canadian  Revolving Loans in US Dollars or Canadian Dollars, and (y) Letters of Credit in any Agreed Currency;  provided that, in any event, any request for a Letter of Credit in any currency other than US Dollars from a  US Issuing Bank shall be subject to the approval of such US Issuing Bank and any request for a Letter of  Credit in any currency other than US Dollars or Canadian Dollars from a Canadian Issuing Bank shall be  subject to the approval of such Canadian Issuing Bank.  Any such request required in the preceding proviso  shall be made to the applicable Issuing Bank, with a copy to the Agent, not later than 11:00 a.m., five  Business Days prior to the date of the desired issuance of a Letter of Credit (or such other time or date as  may be agreed by the applicable Issuing Bank in its sole discretion).  The applicable Issuing Bank shall  notify the Agent, not later than 1:00 p.m., three Business Days (or such other time or date as may be  reasonably agreed by the Agent in its sole discretion) after receipt of such request whether it consents, in  its sole discretion, to the issuance of Letters of Credit in such requested Foreign Currency.  (ii) Any failure by an Issuing Bank to respond to such request within the time  period specified in the preceding sentence shall be deemed to be a refusal by such Issuing Bank to permit  Letters of Credit to be issued in such requested currency.  If the applicable Issuing Bank consents to the  issuance of Letters of Credit in such requested currency, such Issuing Bank shall so notify the requesting  Borrower and the Agent and such currency shall thereupon be deemed for all purposes to be an Agreed  Currency hereunder for purposes of any Letter of Credit issuances by such Issuing Bank.  Any specified  currency of an Existing Letter of Credit that is neither Dollars nor one of the Agreed Currencies specifically  





 






     -84-    listed in the definition of "Agreed Currency" shall be deemed an Agreed Currency with respect to such  Existing Letter of Credit only unless otherwise agreed to by the applicable Issuing Bank.  (iii) If, after the designation of any currency as an Agreed Currency for  purposes of a Letter of Credit (A) currency control or other exchange regulations are imposed in the country  in which such currency is issued with the result that different types of such currency are introduced, (B)  such currency, in the reasonable determination of the Agent or an applicable Issuing Bank, no longer  qualifies as an "Eligible Currency" for purposes of a Letter of Credit or (C) in the reasonable determination  of the Agent or any applicable Issuing Bank, a US Dollar Equivalent of such currency is not readily  calculable, the Agent (or if applicable, such Issuing Bank) shall promptly notify the other Issuing Banks,  the Borrowers, and, in the case of a determination made by an Issuing Bank, the Agent, and such currency  shall no longer be an Agreed Currency for purposes of a Letter of Credit with respect to all the Issuing  Banks if such determination is made by the Agent and with respect to any particular Issuing Bank if such  determination is made by such Issuing Bank, in any event, until such time as the Agent and the Issuing  Banks (or such applicable Issuing Bank), as provided herein, agree to reinstate such currency as an Agreed  Currency for purposes of Letters of Credit.  (c) Change of Currency.  (i) Each obligation of the Borrowers to make a payment denominated in the  national currency unit of any member state of the European Union that adopts the Euro as its lawful currency  after the date hereof shall be redenominated into Euro at the time of such adoption (in accordance with the  EMU Legislation).  If, in relation to the currency of any such member state, the basis of accrual of interest  expressed in this Agreement in respect of that currency shall be inconsistent with any convention or practice  in the London interbank market for the basis of accrual of interest in respect of the Euro, such expressed  basis shall be replaced by such convention or practice with effect from the date on which such member state  adopts the Euro as its lawful currency.  (ii) Each provision of this Agreement shall be subject to such reasonable  changes of construction as the Agent may from time to time specify to be appropriate to reflect the adoption  of the Euro by any member state of the European Union and any relevant market conventions or practices  relating to the Euro.   (iii) Each provision of this Agreement also shall be subject to such reasonable  changes of construction as the Administrative Agent may from time to time specify to be appropriate to  reflect a change in currency of any other country and any relevant market conventions or practices relating  to the change in currency.  1.8 Quebec Interpretation.  For all purposes of any assets, liabilities or entities located in the  Province of Quebec and for all purposes pursuant to which the interpretation or construction of this  Agreement may be subject to the laws of the Province of Quebec or a court or tribunal exercising  jurisdiction in the Province of Quebec, (a) "personal property" shall include "movable property", (b) "real  property" shall include "immovable property", (c) "tangible property" shall include "corporeal property",  (d) "intangible property" shall include "incorporeal property", (e) "security interest", "mortgage" and "lien"  shall include a "hypothec", "prior claim" and a "resolutory clause", (f) all references to filing, registering or  recording under the Code or PPSA shall include publication under the Civil Code of Quebec, (g) all  references to "perfection" of or "perfected" liens or security interest shall include a reference to an  "opposable" or "set up" lien or security interest as against third parties, (h) any "right of offset", "right of  setoff' or similar expression shall include a "right of compensation", (i) "goods" shall include corporeal  movable property" other than chattel paper, documents of title, instruments, money and securities, (j) an  "agent" shall include a "mandatary", (k) "construction liens" shall include "legal hypothecs", (l) "joint and  





 






     -85-    several" shall include solidary, (m) "gross negligence or willful misconduct" shall be deemed to be  "intentional or gross fault", (n) "beneficial ownership" shall include "ownership on behalf of another as  mandatary", (o) "easement" shall include "servitude", (p) "priority" shall include "prior claim", (q) "survey"  shall include "certificate of location and plan", and (r) "fee simple title" shall include "absolute ownership".  1.9 Divisions.  For all purposes under the Loan Documents, in connection with any division  or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a)  if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a  different Person, then it shall be deemed to have been transferred from the original Person to the subsequent  Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been  organized on the first date of its existence by the holders of its Equity Interests at such time.  1.10 Rates.  The interest rate on LIBOR Rate Loans and Base Rate Loans (when determined by  reference to clause (c) of the definition of Base Rate) may be determined by reference to the LIBOR Rate,  which is derived from the London interbank offered rate.  The London interbank offered rate is intended to  represent the rate at which contributing banks may obtain short-term borrowings from each other in the  London interbank market.  On March 5, 2021, ICE Benchmark Administration ("IBA"), the administrator  of the London interbank offered rate, and the Financial Conduct Authority (the "FCA"), the regulatory  supervisor of IBA, announced in public statements (the "Announcements") that the final publication or  representativeness date for the London interbank offered rate for Dollars for: (a) 1-week and 2-month tenor  settings will be December 31, 2021 and (b) overnight, 1-month, 3-month, 6-month and 12-month tenor  settings will be June 30, 2023.  No successor administrator for IBA was identified in such Announcements.  As a result, it is possible that immediately after such dates, the London interbank offered rate for such tenors  may no longer be available or may no longer be deemed a representative reference rate upon which to  determine the interest rate on LIBOR Rate Loans or Base Rate Loans (when determined by reference to  clause (c) of the definition of Base Rate). There is no assurance that the dates set forth in the Announcements  will not change or that the IBA or the FCA will not take further action that could impact the availability,  composition or characteristics of any London interbank offered rate.  Public and private sector industry  initiatives have been and continue, as of the Amendment No. 3 Effective Date, to be underway to implement  new or alternative reference rates to be used in place of the London interbank offered rate.  In the event that  the London interbank offered rate or any other then-current Benchmark is no longer available or in certain  other circumstances set forth in Section 2.11(d)(iii), such Section 2.11(d)(iii) provides a mechanism for  determining an alternative rate of interest.  Agent will notify Administrative Borrower, pursuant to Section  2.11(d)(iii), of any change to the reference rate upon which the interest rate on LIBOR Rate Loans and Base  Rate Loans (when determined by reference to clause (c) of the definition of Base Rate) is based.  However,  Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to,  (i) the continuation of, administration of, submission of, calculation of or any other matter related to the  London interbank offered rate or other rates in the definition of “LIBOR Rate” or with respect to any  alternative, successor or replacement rate thereto (including any then-current Benchmark or any Benchmark  Replacement), including whether the composition or characteristics of any such alternative, successor or  replacement rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to  Section 2.11(d)(iii), will be similar to, or produce the same value or economic equivalence of, the LIBOR  Rate or any other Benchmark, or have the same volume or liquidity as did the London interbank offered  rate or any other Benchmark prior to its discontinuance or unavailability, or (ii) the effect, implementation  or composition of any Benchmark Replacement Conforming Changes.  Agent and its Affiliates or other  related entities may engage in transactions that affect the calculation of a Benchmark, any alternative,  successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto  and such transactions may be adverse to a Borrower.  Agent may select information sources or services in  its discretion to ascertain any Benchmark, any component definition thereof or rates referenced in the  definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to any  Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect,  





 






     -86-    special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract  or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component  thereof) provided by any such information source or service.  2. LOANS AND TERMS OF PAYMENT.  2.1 Revolving Loans.  (a) Subject to the terms and conditions of this Agreement, and during the term of this  Agreement, each Lender with a US Revolver Commitment agrees (severally, not jointly or jointly and  severally) to make revolving loans in US Dollars (“US Revolving Loans”) to US Borrowers in an amount  at any one time outstanding not to exceed an amount which would cause such Lender’s Pro Rata Share of  the US Revolver Usage to exceed the least of:  (i) such Lender’s US Revolver Commitment,   (ii) such Lender’s Pro Rata Share of the US Borrowing Base, and  (iii) such Lender’s Pro Rata Share of an amount equal to (A) the Line Cap less  (B) the Canadian Revolver Usage at such time.  (b) Subject to the terms and conditions of this Agreement, and during the term of this  Agreement, each Lender with a Canadian Revolver Commitment agrees (severally, not jointly or jointly  and severally) to make revolving loans in US Dollars or in Canadian Dollars (“Canadian Revolving Loans”)  to Canadian Borrowers in an amount at any one time outstanding not to exceed an amount which would  cause such Lender’s Pro Rata Share of the Canadian Revolver Usage to exceed the least of:  (i) such Lender’s Canadian Revolver Commitment,   (ii) such Lender’s Pro Rata Share of an amount equal to (A) the Line Cap less  (B) the US Revolver Usage,  (iii) such Lender’s Pro Rata Share of the Canadian Borrowing Base, and  (iv) such Lender’s Pro Rata Share of $20,000,000.  (c) Amounts borrowed pursuant to this Section 2.1 may be repaid and, subject to the  terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement.  The  outstanding principal amount of the Revolving Loans, together with interest accrued and unpaid thereon,  shall constitute Obligations and shall be due and payable on the Maturity Date or, if earlier, on the date on  which they otherwise become due and payable pursuant to the terms of this Agreement.  (d) Anything to the contrary in this Section 2.1 notwithstanding, Agent shall have the  right (but not the obligation) at any time, in the exercise of its Permitted Discretion, to establish and increase  or decrease Reserves and against the US Borrowing Base, the Canadian Borrowing Base or the Maximum  Revolver Amount; provided, that Agent shall endeavor to notify Borrowers at or before the time any such  Reserve in a material amount is to be established or increased, but a non-willful failure of Agent to so notify  Borrowers shall not be a breach of this Agreement and shall not cause such establishment or increase of  any such Reserve to be ineffective; provided further, that (A) the Borrowers may not obtain any new  Revolving Loans (including Swing Loans) or Letters of Credit to the extent that such Revolving Loan  (including Swing Loans) or Letter of Credit would cause an Overadvance after giving effect to the  establishment or increase of such Reserve as set forth in any such notice; (B) no such prior notice shall be  





 






     -87-    required for changes to any Reserves resulting solely by virtue of mathematical calculations of the amount  of the Reserve in accordance with the methodology of calculation set forth in this Agreement or previously  utilized; (C) no such prior notice shall be required during the continuance of any Event of Default, (D) no  such prior notice shall be required with respect to any Reserve established in respect of any Lien that has  priority over Agent’s Liens on any Collateral (regardless of whether such prior Lien is permitted hereunder),  (E) no such prior notice shall be required with respect to any Reserve established in respect of US Eligible  In-Transit Inventory prior to the first US Borrowing Base determined where the value attributed to such  Inventory is greater than $0 and (F) no such prior notice shall be required with respect to any Reserve  established in respect of Canadian Eligible In-Transit Inventory prior to the first Canadian Borrowing Base  determined where the value attributed to such Inventory is greater than $0.  The amount of any Reserve  established by Agent, and any changes to the eligibility criteria set forth in the definitions of US Eligible  Accounts, US Eligible Inventory, US Eligible Raw Material Inventory, US Eligible Work-in-Process  Inventory, US Eligible Finished Goods Inventory, US Eligible In-Transit Inventory, Canadian Eligible In- Transit Inventory, Canadian Eligible Accounts, Canadian Eligible Inventory, Canadian Eligible Raw  Material Inventory, Canadian Eligible Work-in-Process Inventory, Canadian Eligible Finished Goods  Inventory shall have a reasonable relationship to the event, condition, other circumstance, or fact that is the  basis for such reserve or change in eligibility and shall not be duplicative of any other reserve established  and currently maintained or eligibility criteria; provided that, (i) that circumstances, conditions, events or  contingencies existing or arising prior to the Closing Date and, in each case, disclosed in writing in the field  examination conducted by the Agent in connection herewith prior to the Closing Date, shall not be the basis  for any establishment of any Reserves after the Closing Date, unless (A) such circumstances, conditions,  events or contingencies shall have changed in a material respect since the Closing Date (it being understood,  however, that the forgoing shall not restrict or affect changes in Reserves by Agent solely by virtue of  mathematical calculations of the amount of such Reserves), (B) such Reserves relate to tax liabilities and  landlord rights which were so disclosed to the Agent prior to the Closing Date, or (C) such Reserve relate  to an insufficient or incomplete set-up of the electronic collateral reporting acceptable to the Agent in its  sole discretion within 180 days after the Closing Date, and (ii) the limitations in the foregoing clause (i) of  this proviso shall not apply to establishing Landlord Reserves, Bank Product Reserves or any Reserves  established with respect to US Eligible In-Transit Inventory or Canadian Eligible In-Transit Inventory.   Upon establishment or increase in Reserves, Agent agrees to make itself available to discuss the Reserve  or increase, and Borrowers may take such action as may be required so that the event, condition,  circumstance, or fact that is the basis for such reserve or increase no longer exists, in a manner and to the  extent reasonably satisfactory to Agent in the exercise of its Permitted Discretion.  In no event shall such  opportunity limit the right of Agent to establish or change such Reserve, unless Agent shall have  determined, in its Permitted Discretion, that the event, condition, other circumstance, or fact that was the  basis for such Reserve or such change no longer exists or has otherwise been adequately addressed by  Borrowers.  (e) Anything to the contrary in this Section 2.1 notwithstanding, at no time shall the  sum of (i) the US Revolver Usage and (ii) the Canadian Revolver Usage exceed the Maximum Revolver  Amount, and at no time shall the Canadian Revolver Usage exceed $20,000,000.  (f) Each Lender may, at its option, make any Loan available to any Borrower by  causing any foreign or domestic branch or Affiliate of such Lender to make such Loan; provided that any  exercise of such option shall not affect the obligation of such Borrower to repay such Loan in accordance  with the terms of this Agreement.  2.2 Borrowing Procedures and Settlements.  (a) Procedure for Borrowing Revolving Loans.  Each Borrowing shall be made by  a written request by an Authorized Person delivered to the Agent and received by the Agent no later than  





 






     -88-    1:00 p.m. (i) on the Business Day that is the requested Funding Date in the case of a request for a Swing  Loan, (ii) on the Business Day that is three Business Days prior to the requested Funding Date in the case  of a request for a Non-Base Rate Loan, and (iii) on the Business Day that is one Business Day prior to the  requested Funding Date in the case of all other requests, specifying (A) the amount of such Borrowing and  whether such Borrowing is for the account of US Borrowers or Canadian Borrowers, and in each case,  whether in US Dollars or Canadian Dollars, and (B) the requested Funding Date (which shall be a Business  Day); provided, that the Agent may, in its sole discretion, elect to accept as timely requests that are received  later than 1:00 p.m. on the applicable Business Day.  At the Agent’s election, in lieu of delivering the above  described written request, any Authorized Person may give the Agent telephonic notice of such request by  the required time. In such circumstances, the Borrowers agree that any such telephonic notice will be  confirmed in writing by Administrative Borrower within 24 hours of the giving of such telephonic notice,  but the failure to provide such written confirmation shall not affect the validity of the request. Borrowings  for the account of US Borrowers shall be denominated in US Dollars and Borrowings for the account of  Canadian Borrowers shall be denominated in Canadian Dollars or US Dollars (as selected by the  Administrative Borrower).  (b) Making of Swing Loans.  In the case of a request for a US Swing Loan by the  Administrative Borrower and so long as either (i) the aggregate amount of US Swing Loans made since the  last Settlement Date, minus all payments or other amounts applied to US Swing Loans since the last  Settlement Date, plus the amount of the requested US Swing Loan, does not exceed $15,000,000, or (ii) the  US Swing Line Lender, in its sole discretion, agrees to make such US Swing Loan notwithstanding the  foregoing limitation, the US Swing Line Lender shall make a Revolving Loan (any such Revolving Loan  for the account of US Borrowers made by US Swing Line Lender pursuant to this Section 2.2(b) being  referred to as a “US Swing Loan” and all such Revolving Loans for the account of US Borrowers by US  Swing Line Lender being referred to as “US Swing Loans”) available to US Borrowers on the Funding  Date applicable thereto by transferring Same Day Funds in the Agreed Currency in the amount of such  requested Borrowing to the US Designated Account.  In the case of a request for a Canadian Swing Loan  by the Administrative Borrower and so long as either (i) the aggregate US Dollar Equivalent amount of  Canadian Swing Loans made since the last Settlement Date, minus all payments or other amounts applied  to Canadian Swing Loans since the last Settlement Date, plus the amount of the requested Canadian Swing  Loan, does not exceed $3,000,000, or (ii) the Canadian Swing Line Lender, in its sole discretion, agrees to  make such Canadian Swing Loan notwithstanding the foregoing limitation, the Canadian Swing Line  Lender shall make a Revolving Loan (any such Revolving Loan for the account of a Canadian Borrower  made by Canadian Swing Line Lender pursuant to this Section 2.2(b) being referred to as a “Canadian  Swing Loan” and all such Revolving Loans for the account of a Canadian Borrower by Canadian Swing  Line Lender being referred to as “Canadian Swing Loans”) available to Canadian Borrowers on the Funding  Date applicable thereto by transferring Same Day Funds in the Agreed Currency in the amount of such  requested Borrowing to the Canadian Designated Account.  Each Swing Loan shall be deemed to be a  Revolving Loan hereunder and shall be subject to all the terms and conditions (including Section 3)  applicable to other US Revolving Loans or Canadian Revolving Loans, as applicable, except that all  payments (including interest) on any Swing Loan shall be payable to the applicable Swing Line Lender  solely for its own account.  Subject to the provisions of Section 2.2(d)(ii), no Swing Line Lender shall make  or be obligated to make any Swing Loan if such Swing Line Lender has actual knowledge that (i) one or  more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested  Funding Date for the applicable Borrowing, or (ii) the requested Borrowing would exceed US Availability  (if a US Borrowing) or Canadian Availability (if a Canadian Borrowing) on such Funding Date.  No Swing  Line Lender shall otherwise be required to determine whether the applicable conditions precedent set forth  in Section 3 have been satisfied on the Funding Date applicable thereto prior to making any Swing Loan.   The US Swing Loans shall be secured by the Agent’s Liens, constitute US Revolving Loans and US  Obligations, and bear interest at the rate applicable from time to time to US Revolving Loans that are Base  Rate Loans and the Canadian Swing Loans shall be secured by the Agent’s Liens, constitute Canadian  





 






     -89-    Revolving Loans and Canadian Obligations, and bear interest at the rate applicable from time to time to  Canadian Revolving Loans in the Agreed Currency that are Base Rate Loans.  (c) Making of Revolving Loans.  (i) In the event that the applicable Swing Line Lender is not obligated to make  a Swing Loan, then after receipt of a request for a Borrowing pursuant to Section 2.2(a), the Agent shall  notify the applicable Lenders by telecopy, telephone, email, or other electronic form of transmission, of the  requested Borrowing (and whether such borrowing is for the account of US Borrowers or Canadian  Borrowers); such notification to be sent on the Business Day that is one Business Day prior to the requested  Funding Date.  If Agent has notified the applicable Lenders of a requested Borrowing on the Business Day  that is one Business Day prior to the Funding Date, then each Lender with the applicable Revolving  Commitment shall make the amount of such Lender’s Pro Rata Share of the requested Borrowing available  to the Agent in Same Day Funds in the Agreed Currency, to the Agent’s US Account or the Agent’s  Canadian Account, as applicable, not later than 12:00 noon on the Business Day that is the requested  Funding Date.  After the Agent’s receipt of the proceeds of such Revolving Loans from the applicable  Lenders, the Agent shall make the proceeds thereof available to the applicable Borrowers on the applicable  Funding Date by transferring Same Day Funds in the Agreed Currency equal to such proceeds received by  the Agent to the US Designated Account or the Canadian Designated Account, as applicable; provided, that  subject to the provisions of Section 2.2(d)(ii), no Lender shall have an obligation to make any Revolving  Loan, if (1) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied  on the requested Funding Date for the applicable Borrowing unless such condition has been waived, or (2)  the requested Borrowing would exceed the US Availability (in the case of a US Borrowing) or the Canadian  Availability (in the case of a Canadian Borrowing) on such Funding Date.  (ii) Unless the Agent receives notice from a Lender prior to 11:30 a.m. on the  Business Day that is the requested Funding Date relative to a requested Borrowing as to which the Agent  has notified the Lenders of a requested Borrowing that such Lender will not make available as and when  required hereunder to the Agent for the account of US Borrowers or Canadian Borrowers, as applicable,  the amount of that Lender’s Pro Rata Share of the Borrowing, the Agent may assume that each Lender has  made or will make such amount available to the Agent in Same Day Funds in the Agreed Currency on the  Funding Date and the Agent may (but shall not be so required), in reliance upon such assumption, make  available to US Borrowers or Canadian Borrowers, as applicable, a corresponding amount.  If, on the  requested Funding Date, any Lender shall not have remitted the full amount that it is required to make  available to the Agent in Same Day Funds in the Agreed Currency and if the Agent has made available to  US Borrowers or Canadian Borrowers, as applicable, such amount on the requested Funding Date, then  such Lender shall make the amount of such Lender’s Pro Rata Share of the requested Borrowing available  to the Agent in Same Day Funds in the Agreed Currency, to the Agent’s Applicable Account, no later than  12:00 noon on the Business Day that is the first Business Day after the requested Funding Date (in which  case, the interest accrued on such Lender’s portion of such Borrowing for the Funding Date shall be for the  Agent’s separate account).  If any Lender shall not remit the full amount that it is required to make available  to the Agent in Same Day Funds in the Agreed Currency as and when required hereby and if the Agent has  made available to US Borrowers or Canadian Borrowers, as applicable, such amount, then that Lender shall  be obligated to immediately remit such amount to the Agent, together with interest at the applicable  Defaulting Lender Rate for each day until the date on which such amount is so remitted.  A notice submitted  by the Agent to any Lender with respect to amounts owing under this Section 2.2(c)(ii) shall be conclusive,  absent manifest error.  If the amount that a Lender is required to remit is made available to the Agent, then  such payment to the Agent shall constitute such Lender’s US Revolving Loans (in the case of Revolving  Loans for the account of US Borrowers) or Canadian Revolving Loans (in the case of Revolving Loans for  the account of Canadian Borrower) for all purposes of this Agreement.  If such amount is not made available  to the Agent on the Business Day following the Funding Date, the Agent will notify the Administrative  





 






     -90-    Borrower of such failure to fund and, upon demand by the Agent, US Borrowers (in the case of US  Revolving Loans) and Canadian Borrowers (in the case of Canadian Revolving Loans) shall pay such  amount in the Agreed Currency to the Agent, together with interest thereon for each day elapsed since the  date of such Borrowing, at a rate per annum equal to the interest rate applicable at the time to the applicable  Revolving Loans composing such Borrowing.  (d) Protective Advances and Optional Overadvances.  (i) Any contrary provision of this Agreement or any other Loan Document  notwithstanding, (but subject to Section 2.2(d)(iv)), at any time (A) after the occurrence and during the  continuance of a Default or an Event of Default, or (B) that any of the other applicable conditions precedent  set forth in Section 3 are not satisfied, the Agent hereby is authorized by Borrowers and the Lenders, from  time to time, in the Agent’s sole discretion, to make US Revolving Loans to, or for the benefit of, US  Borrowers, and/or Canadian Revolving Loans to, or for the benefit of, Canadian Borrowers, in each case,  on behalf of the applicable Revolving Lenders, that the Agent, in its Permitted Discretion, deems necessary  or desirable (1) to preserve or protect the Collateral, or any portion thereof, or (2) to enhance the likelihood  of repayment of the Obligations (other than the Bank Product Obligations) (the US Revolving Loans  described in this Section 2.2(d)(i) shall be referred to as “US Protective Advances” and the Canadian  Revolving Loans described in this Section 2.2(d)(i) shall be referred to as “Canadian Protective Advances”).   Agent’s authorization to make Protective Advances may be revoked at any time by the Required Lenders  delivering written notice of such revocation to Agent.  Any such revocation shall become effective  prospectively upon Agent’s receipt thereof.  The Protective Advances shall be made in Canadian Dollars  or US Dollars, as determined by the Agent.  Notwithstanding the foregoing, at the time any Protective  Advance is made, the aggregate amount of all Protective Advances outstanding at such time, after giving  effect to such Protective Advance, shall not exceed 10% of the Line Cap then in effect.   (ii) Any contrary provision of this Agreement or any other Loan Document  notwithstanding, but subject to Section 2.2(d)(iv), the Lenders hereby authorize the Agent or the applicable  Swing Line Lender, as applicable, and either the Agent or the applicable Swing Line Lender, as applicable,  may, but is not obligated to, knowingly and intentionally, continue to make US Revolving Loans (including  US Swing Loans) to US Borrowers and Canadian Revolving Loans (including Canadian Swing Loans) to  Canadian Borrowers notwithstanding that an Overadvance exists or would be created thereby, so long as  (A) with respect to any such US Revolving Loans, (i) after giving effect to any such US Revolving Loans,  the outstanding US Revolver Usage does not exceed the US Borrowing Base by more than 10% of the  Maximum Revolver Amount (unless Supermajority Lenders otherwise agree to a higher amount), and (ii)  after giving effect to such US Revolving Loans, the US Revolver Usage (except for and excluding amounts  charged to the US Loan Account for interest, fees, or Lender Group Expenses) does not exceed the  Maximum Revolver Amount, and (B) with respect to any such Canadian Revolving Loans, after giving  effect to such Canadian Revolving Loans, the Canadian Revolver Usage (except for and excluding amounts  charged to the Loan Account for interest, fees, or Lender Group Expenses) does not exceed the Canadian  Borrowing Base by more than $3,000,000 (unless Supermajority Lenders otherwise agree to a higher  amount).  In the event the Agent obtains actual knowledge that the applicable US Revolver Usage or  Canadian Revolver Usage exceeds the amounts permitted by the immediately foregoing provisions,  regardless of the amount of, or reason for, such excess, the Agent shall notify the Lenders as soon as  practicable (and prior to making any (or any additional) intentional Overadvances (except for and excluding  amounts charged to the applicable Loan Account for interest, fees, or Lender Group Expenses) unless the  Agent determines that prior notice would result in imminent harm to the Collateral or its value, in which  case the Agent may make such Overadvances and provide notice as promptly as practicable thereafter), and  the Lenders with applicable Revolver Commitments thereupon shall, together with the Agent, jointly  determine the terms of arrangements that shall be implemented with the applicable Borrowers intended to  reduce, within a reasonable time, the outstanding principal amount of the applicable Revolving Loans to  





 






     -91-    such Borrowers to an amount permitted by the preceding sentence.  In such circumstances, if any Lender  with a Revolver Commitment objects to the proposed terms of reduction or repayment of any Overadvance,  the terms of reduction or repayment thereof shall be implemented according to the determination of the  Supermajority Lenders.  Agent’s and Swing Line Lender’s authorization to make intentional Overadvances  may be revoked at any time by the Required Lenders delivering written notice of such revocation to Agent.   Any such revocation shall become effective prospectively upon Agent’s receipt thereof.    (iii) Each US Protective Advance and each US Overadvance (each, an “US  Extraordinary Advance”) shall be deemed to be a US Revolving Loan hereunder and each Canadian  Protective Advance and Canadian Overadvance (each, a “Canadian Extraordinary Advance”) shall be  deemed a Canadian Revolving Loan hereunder. No Extraordinary Advance shall be eligible to be a Non- Base Rate Loan.  Prior to Settlement of any Extraordinary Advances, all payments with respect thereto,  including interest thereon, shall be payable to the Agent solely for its own account. The US Extraordinary  Advances shall be repayable on demand, constitute US Obligations hereunder, and bear interest at the rate  applicable from time to time to US Revolving Loans that are Base Rate Loans, and the Canadian  Extraordinary Advances shall be repayable on demand, constitute Canadian Obligations hereunder, and  bear interest at the rate applicable from time to time to Canadian Revolving Loans in the Agreed Currency  that are Base Rate Loans.  The provisions of this Section 2.2(d) are for the exclusive benefit of the Agent,  Swing Line Lender, and the Lenders and are not intended to benefit Borrowers (or any other Loan Party)  in any way.   (iv) Notwithstanding anything contained in this Agreement or any other Loan  Document to the contrary, no Extraordinary Advance may be made by Agent if such Extraordinary Advance  would cause the aggregate Revolver Usage to exceed the Maximum Revolver Amount or any Lender’s Pro  Rata Share of the Revolver Usage to exceed such Lender’s Revolver Commitments; provided that Agent  may make Extraordinary Advances in excess of the foregoing limitations so long as such Extraordinary  Advances that cause the aggregate Revolver Usage to exceed the Maximum Revolver Amount or a Lender’s  Pro Rata Share of the Revolver Usage to exceed such Lender’s Revolver Commitments are for Agent’s sole  and separate account and not for the account of any Lender.  No Lender shall have an obligation to settle  with Agent for such Extraordinary Advances that cause the aggregate Revolver Usage to exceed the  Maximum Revolver Amount or a Lender’s Pro Rata Share of the Revolver Usage to exceed such Lender’s  Revolver Commitments as provided in Section 2.2(e).  (e) Settlement.  It is agreed that each Lender’s funded portion of the (i) US Revolving  Loans is intended by the Lenders to equal, at all times, such Lender’s Pro Rata Share of the outstanding US  Revolving Loans and (ii) Canadian Revolving Loans is intended by the Lenders to equal, at all times, such  Lender’s Pro Rata Share of the outstanding Canadian Revolving Loans.  Such agreement notwithstanding,  the Agent, Swing Line Lender, and the other Lenders agree (which agreement shall not be for the benefit  of Borrowers) that in order to facilitate the administration of this Agreement and the other Loan Documents,  settlement among the Lenders as to the Revolving Loans (including Swing Loans and Extraordinary  Advances) shall take place on a periodic basis in accordance with the following provisions:  (i) The Agent shall request settlement (“Settlement”) with the Lenders on a  weekly basis, or on a more frequent basis if so determined by the Agent in its sole discretion (1) on behalf  of US Swing Line Lender, with respect to the outstanding US Swing Loans, (2) on behalf of Canadian  Swing Line Lender, with respect to the outstanding Canadian Swing Loans, (3) for itself, with respect to  the outstanding Extraordinary Advances, and (4) with respect to any Loan Party’s or any of their Restricted  Subsidiaries’ payments or other amounts received, as to each by notifying the Lenders by telecopy,  telephone, or other similar form of transmission, of such requested Settlement, no later than 4:00 p.m. on  the Business Day immediately prior to the date of such requested Settlement (the date of such requested  Settlement being the “Settlement Date”).  Such notice of a Settlement Date shall include a summary  





 






     -92-    statement of the amount of outstanding US Revolving Loans (including US Swing  Loans and US  Extraordinary Advances) and Canadian Revolving Loans (including Canadian Swing Loans and Canadian  Extraordinary Advances) for the period since the prior Settlement Date.  Subject to the terms and conditions  contained herein (including Section 2.2(g)):  (y) if the amount of the applicable Revolving Loans (including  applicable Swing Loans and applicable Extraordinary Advances) made by a Lender that is not a Defaulting  Lender exceeds such Lender’s Pro Rata Share of the applicable Revolving Loans (including applicable  Swing Loans and applicable Extraordinary Advances) as of a Settlement Date, then the Agent shall, by no  later than 2:00 p.m. on the Settlement Date, transfer in Same Day Funds in the Agreed Currency to a Deposit  Account of such Lender (as such Lender may designate), an amount such that each such Lender shall, upon  receipt of such amount, have as of the Settlement Date, its Pro Rata Share of the US Revolving Loans  (including US Swing Loans and US Extraordinary Advances) and the Canadian Revolving Loans (including  Canadian Swing Loans and Canadian Extraordinary Advances), as applicable, and (z) if the amount of the  applicable Revolving Loans (including applicable Swing Loans and applicable Extraordinary Advances)  made by a Lender is less than such Lender’s Pro Rata Share of the applicable Revolving Loans (including  applicable Swing Loans and applicable Extraordinary Advances) as of a Settlement Date, such Lender shall  no later than 2:00 p.m. on the Settlement Date transfer in Same Day Funds in the Agreed Currency to the  Agent’s Applicable Account, an amount such that each such Lender shall, upon transfer of such amount,  have as of the Settlement Date, its Pro Rata Share of the US Revolving Loans (including US Swing Loans  and US Extraordinary Advances) and Canadian Revolving Loans (including Canadian Swing Loans and  Canadian Extraordinary Advances).  Such amounts made available to Agent under clause (z) of the  immediately preceding sentence shall be applied against the amounts of the applicable Swing Loans or  Extraordinary Advances and, together with the portion of such Swing Loans or Extraordinary Advances  representing Swing Line Lender’s Pro Rata Share thereof, shall constitute Revolving Loans of such  Lenders.  If any such amount is not made available to Agent by any Lender on the Settlement Date  applicable thereto to the extent required by the terms hereof, Agent shall be entitled to recover for its  account such amount on demand from such Lender together with interest thereon at the Defaulting Lender  Rate.  (ii) In determining whether a Lender’s balance of the applicable Revolving  Loans (including Swing Loans and Extraordinary Advances) is less than, equal to, or greater than such  Lender’s Pro Rata Share of the applicable Revolving Loans (including Swing Loans and Extraordinary  Advances) as of a Settlement Date, the Agent shall, as part of the relevant Settlement, apply to such balance  the portion of payments applicable to such Obligations actually received in good funds by Agent with  respect to principal, interest, fees payable by Borrowers and allocable to the Lenders hereunder, and  proceeds of Collateral.  (iii) Between Settlement Dates, the Agent, to the extent Extraordinary  Advances or Swing Loans are outstanding, may pay over to the Agent or Swing Line Lender, as applicable,  any payments or other amounts received by the Agent, that in accordance with the terms of this Agreement  would be applied to the reduction of the applicable Revolving Loans, for application to the applicable  Extraordinary Advances or applicable Swing Loans.  Between Settlement Dates, the Agent, to the extent  no Extraordinary Advances or Swing Loans are outstanding, may pay over to the applicable Swing Line  Lender any payments or other amounts received by the Agent, that in accordance with the terms of this  Agreement would be applied to the reduction of the applicable Revolving Loans, for application to the  applicable Swing Line Lender’s Pro Rata Share of the applicable Revolving Loans.  If, as of any Settlement  Date, payments or other amounts of the Loan Parties or their Restricted Subsidiaries received since the then  immediately preceding Settlement Date have been applied to a Swing Line Lender’s Pro Rata Share of the  applicable Revolving Loans other than to its Swing Loans, as provided for in the previous sentence, such  Swing Line Lender shall pay to the Agent for the accounts of the Lenders, and the Agent shall pay to the  Lenders (other than a Defaulting Lender if the Agent has implemented the provisions of Section 2.2(g)), to  be applied to the outstanding applicable Revolving Loans of such Lenders, an amount such that each such  





 






     -93-    Lender shall, upon receipt of such amount, have, as of such Settlement Date, its Pro Rata Share of the  applicable Revolving Loans.  During the period between Settlement Dates, a Swing Line Lender with  respect to its Swing Loans, the Agent with respect to Extraordinary Advances, and each Lender with respect  to the Revolving Loans other than Swing Loans and Extraordinary Advances, shall be entitled to interest at  the applicable rate or rates payable under this Agreement on the daily amount of funds employed by such  Swing Line Lender, the Agent, or the Lenders, as applicable.  Anything in this Section 2.2(e) to the contrary notwithstanding, in the event that a Lender is a Defaulting  Lender, the Agent shall be entitled to refrain from remitting settlement amounts to the Defaulting Lender  and, instead, shall be entitled to elect to implement the provisions set forth in Section 2.2(g)  (f) Notation.  Consistent with Section 13.1(h), the Agent, as a non-fiduciary agent for  the Borrowers, shall maintain a register showing in the Agreed Currency the principal amount and stated  interest of the Revolving Loans, owing to each Lender, including Swing Loans owing to the applicable  Swing Line Lender, and Extraordinary Advances owing to Agent, and the interests therein of each Lender,  from time to time and such register shall, absent manifest error, conclusively be presumed to be correct and  accurate.  (g) Defaulting Lenders.  (i) Notwithstanding the provisions of Section 2.3(b)(iii), the Agent shall not  be obligated to transfer to a Defaulting Lender any payments made by Borrowers to the Agent for the  Defaulting Lender’s benefit or any proceeds of Collateral that would otherwise be remitted hereunder to  the Defaulting Lender, and, in the absence of such transfer to the Defaulting Lender, the Agent shall transfer  any such payments (A) pertaining to or securing US Obligations (i) first, to the Agent to the extent of any  US Extraordinary Advances that were made by the Agent and that were required to be, but were not, paid  by the Defaulting Lender, (ii) second, to US Swing Line Lender to the extent of any US Swing Loans that  were made by US Swing Line Lender and that were required to be, but were not, paid by the Defaulting  Lender,  (iii) third, to US Issuing Bank, to the extent of the portion of a US Letter of Credit Disbursement  that was required to be, but was not, paid by the Defaulting Lender, (iv) fourth, to each Non-Defaulting  Lender ratably in accordance with their US Revolver Commitments (but, in each case, only to the extent  that such Defaulting Lender’s portion of a US Revolving Loan (or other funding obligation) was funded by  such other Non-Defaulting Lender), (v) fifth, in the Agent’s sole discretion, to a suspense account  maintained by the Agent, the proceeds of which shall be retained by the Agent and may be made available  to be re-advanced to or for the benefit of US Borrowers (upon the request of the Administrative Borrower  and subject to the conditions set forth in Section 3.2) as if such Defaulting Lender had made its portion of  US Revolving Loans (or other funding obligations) hereunder, and (vi) sixth, from and after the date on  which all other US Obligations have been paid in full, to such Defaulting Lender in accordance with tier  (A)(13) of Section 2.3(b)(iii), and (B) pertaining to or securing Canadian Obligations, (i) first, to the Agent  to the extent of any Canadian Extraordinary Advances that were made by the Agent and that were required  to be, but were not, paid by the Defaulting Lender, (ii) second, to the Canadian Swing Line Lender to the  extent of any Canadian Swing Loans that were made by Canadian Swing Line Lender and that were required  to be, but were not, paid by the Defaulting Lender,  (iii) third, to Canadian Issuing Bank, to the extent of  the portion of a Canadian Letter of Credit Disbursement that was required to be, but was not, paid by the  Defaulting Lender, (iv) fourth, to each Non-Defaulting Lender ratably in accordance with their Canadian  Commitments (but, in each case, only to the extent that such Defaulting Lender’s portion of a Canadian  Revolving Loan (or other funding obligation) was funded by such other Non-Defaulting Lender), (v) fifth,  in the Agent’s sole discretion, to a suspense account maintained by the Agent, the proceeds of which shall  be retained by the Agent and may be made available to be re-advanced to or for the benefit of Canadian  Borrowers (upon the request of the Administrative Borrower and subject to the conditions set forth in  Section 3.2) as if such Defaulting Lender had made its portion of Canadian Revolving Loans (or other  





 






     -94-    funding obligations) hereunder, and (vi) sixth, from and after the date on which all other Canadian  Obligations have been paid in full, to such Defaulting Lender in accordance with tier (B)(12) of Section  2.3(b)(iii).  Subject to the foregoing, the Agent may hold and, in its discretion, re-lend to the applicable  Borrowers for the account of such Defaulting Lender the amount of all such payments received and retained  by the Agent for the account of such Defaulting Lender.  Solely for the purposes of voting or consenting to  matters with respect to the Loan Documents (including the calculation of Pro Rata Share in connection  therewith) and for the purpose of calculating the fee payable under Section 2.9(b), such Defaulting Lender  shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero; provided,  that the foregoing shall not apply to any of the matters governed by Section 14.1(a)(i) through (iii).  The  provisions of this Section 2.2(g) shall remain effective with respect to such Defaulting Lender until the  earlier of (y) the date on which all of the Non-Defaulting Lenders, the Agent, Issuing Bank, and Borrowers  shall have waived, in writing, the application of this Section 2.2(g) to such Defaulting Lender, or (z) the  date on which such Defaulting Lender makes payment of all amounts that it was obligated to fund  hereunder, pays to the Agent all amounts owing by Defaulting Lender in respect of the amounts that it was  obligated to fund hereunder, and, if requested by the Agent, provides adequate assurance of its ability to  perform its future obligations hereunder (on which earlier date, so long as no Event of Default has occurred  and is continuing, any remaining cash collateral held by the Agent pursuant to Section 2.2(g)(ii) shall be  released to the applicable Borrowers).  The operation of this Section 2.2(g) shall not be construed to increase  or otherwise affect the Commitment of any Lender, to relieve or excuse the performance by such Defaulting  Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance  by any Borrower of its duties and obligations hereunder to the Agent, Issuing Bank, or to the Lenders other  than such Defaulting Lender.  Any failure by a Defaulting Lender to fund amounts that it was obligated to  fund hereunder shall constitute a material breach by such Defaulting Lender of this Agreement and shall  entitle Borrowers, at their option, upon written notice to the Agent, to arrange for a substitute Lender to  assume the Commitment of such Defaulting Lender, such substitute Lender to be reasonably acceptable to  the Agent.  In connection with the arrangement of such a substitute Lender, the Defaulting Lender shall  have no right to refuse to be replaced hereunder, and agrees to execute and deliver a completed form of  Assignment and Acceptance in favor of the substitute Lender (and agrees that it shall be deemed to have  executed and delivered such document if it fails to do so) subject only to being paid its share of the  outstanding Obligations (other than Bank Product Obligations, but including (1) all interest, fees, and other  amounts that may be due and payable in respect thereof, and (2) an assumption of its Pro Rata Share of its  participation in the Letters of Credit); provided, that any such assumption of the Commitment of such  Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or Borrowers’  rights or remedies against any such Defaulting Lender arising out of or in relation to such failure to fund.   In the event of a direct conflict between the priority provisions of this Section 2.2(g) and any other provision  contained in this Agreement or any other Loan Document, it is the intention of the parties hereto that such  provisions be read together and construed, to the fullest extent possible, to be in concert with each other.   In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and  provisions of this Section 2.2(g) shall control and govern.  (ii) If any applicable Swing Loan or Letter of Credit is outstanding at the time  that a Lender becomes a Defaulting Lender then:  (A) Such Defaulting Lender’s Swing Loan Exposure and Letter of  Credit Exposure shall be reallocated among the applicable  Non-Defaulting Lenders in accordance with  their respective Pro Rata Shares but only to the extent (x) the sum of all Non-Defaulting Lenders’ US  Revolver Usage plus such Defaulting Lender’s  US Swing Loan Exposure and US Letter of Credit Exposure  does not exceed the total of all Non-Defaulting Lenders’ US Revolver Commitments, (y) the sum of the  Dollar Equivalent of all Non-Defaulting Lenders’ Canadian Revolver Usage plus such Defaulting Lender’s  Canadian Swing Line Exposure and Canadian Letter of Credit Exposure does not exceed the total of all  





 






     -95-    Non-Defaulting Lender’s Canadian Revolver Commitments, and (z) the conditions set forth in Section 3.2  are satisfied at such time;  (B) If the reallocation described in clause (A) above cannot, or can  only partially, be effected, the applicable Borrowers shall within one Business Day following notice by the  Agent (x) first, prepay such Defaulting Lender’s applicable Swing Loan Exposure (after giving effect to  any partial reallocation pursuant to clause (A) above), and (y) second, cash collateralize such Defaulting  Lender’s applicable Letter of Credit Exposure (after giving effect to any partial reallocation pursuant to  clause (A) above), pursuant to a cash collateral agreement to be entered into in form and substance  reasonably satisfactory to the Agent, for so long as such Letter of Credit Exposure is outstanding; provided,  that such Borrowers shall not be obligated to cash collateralize any Defaulting Lender’s Letter of Credit  Exposure if such Defaulting Lender is also the Issuing Bank;  (C) if the applicable Borrowers cash collateralize any portion of such  Defaulting Lender’s Letter of Credit Exposure pursuant to this Section 2.2(g)(ii), such Borrowers shall not  be required to pay any Letter of Credit Fees to Agent for the account of such Defaulting Lender pursuant  to Section 2.5(b) with respect to such cash collateralized portion of such Defaulting Lender’s Letter of  Credit Exposure during the period such Letter of Credit Exposure is cash collateralized;  (D) to the extent the Letter of Credit Exposure of the Non-Defaulting  Lenders is reallocated pursuant to this Section 2.2(g)(ii), then the Letter of Credit Fees payable to the Non- Defaulting Lenders pursuant to Section 2.5(b) shall be adjusted in accordance with such Non-Defaulting  Lenders’ Letter of Credit Exposure;  (E) to the extent any Defaulting Lender’s Letter of Credit Exposure is  neither cash collateralized nor reallocated pursuant to this Section 2.2(g)(ii), then, without prejudice to any  rights or remedies of any Issuing Bank or any Lender hereunder, all Letter of Credit Fees that would have  otherwise been payable to such Defaulting Lender under Section 2.5(b) with respect to such portion of such  Letter of Credit Exposure shall instead be payable to the applicable Issuing Bank until such portion of such  Defaulting Lender’s Letter of Credit Exposure is cash collateralized or reallocated;  (F) so long as any Lender is a Defaulting Lender, no Swing Line  Lender shall be required to make any Swing Loan and no Issuing Bank shall be required to issue, amend,  or increase any Letter of Credit, in each case, to the extent (x) the Defaulting Lender’s Pro Rata Share of  such Swing Loans or Letter of Credit cannot be reallocated pursuant to this Section 2.2(g)(ii), or (y) the  applicable Swing Line Lender or Issuing Bank, as applicable, has not otherwise entered into arrangements  reasonably satisfactory to the applicable Swing Line Lender or Issuing Bank, as applicable, and the  applicable Borrowers to eliminate the Swing Line Lender’s or Issuing Bank’s risk with respect to the  Defaulting Lender’s participation in such Swing Loans or Letters of Credit; and  (G) the Agent may release any cash collateral provided by the  applicable Borrowers pursuant to this Section 2.2(g)(ii) to the applicable Issuing Bank and such Issuing  Bank may apply any such cash collateral to the payment of such Defaulting Lender’s Pro Rata Share of any  Letter of Credit Disbursement that is not reimbursed by the applicable Borrowers pursuant to Section  2.10A(d) or Section 2.10B(d).  Subject to Section 17.16, no reallocation hereunder shall constitute a waiver  or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having  become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non- Defaulting Lender’s increased exposure following such reallocation.  If any Lender with a US Revolver commitment is a Defaulting Lender, then any Affiliate of such Lender  with a Canadian Revolver Commitment shall be deemed to be a Defaulting Lender and if any Lender with  





 






     -96-    a Canadian Revolver Commitment is a Defaulting Lender, then any Affiliate of such Lender with a US  Revolver Commitment shall be deemed to be a Defaulting Lender.  (h) Independent Obligations.  All Revolving Loans (other than Swing Loans and  Extraordinary Advances) shall be made by the applicable Lenders contemporaneously and in accordance  with their Pro Rata Shares.  It is understood that (i) no Lender shall be responsible for any failure by any  other Lender to perform its obligation to make any Revolving Loan (or other extension of credit) hereunder,  nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other  Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations  hereunder shall excuse any other Lender from its obligations hereunder.  2.3 Payments; Reductions of Commitments; Prepayments.  (a) Payments by Borrowers.  (i) Except as otherwise expressly provided herein, all payments by Borrowers  shall be made to the Agent’s Applicable Account for the account of the Lender Group and shall be made in  Same Day Funds in the Agreed Currency, no later than 1:30 p.m. on the date specified herein.  Any payment  received by the Agent later than 1:30 p.m. shall be deemed to have been received (unless the Agent, in its  sole discretion, elects to credit it on the date received) on the following Business Day and any applicable  interest or fee shall continue to accrue until such following Business Day.  (ii) Unless the Agent receives notice from Borrowers prior to the date on  which any payment is due to the Lenders that the applicable Borrowers will not make such payment in full  as and when required, the Agent may assume that such Borrowers have made (or will make) such payment  in full to the Agent on such date in Same Day Funds and the Agent may (but shall not be so required), in  reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount  then due such Lender.  If and to the extent the applicable Borrowers do not make such payment in full to  the Agent on the date when due, each Lender severally shall repay to Agent on demand such amount  distributed to such Lender, together with interest thereon at the Defaulting Lender Rate for each day from  the date such amount is distributed to such Lender until the date repaid.  (b) Apportionment and Application.  (i) So long as no Application Event has occurred and is continuing and except  as otherwise provided herein with respect to Defaulting Lenders, all principal and interest payments  received by the Agent shall be apportioned ratably among the Lenders (according to the unpaid principal  balance of the Obligations to which such payments relate held by each Lender) and all payments of fees  and expenses received by the Agent (other than fees or expenses that are for the Agent’s separate account  or for the separate account of Issuing Bank) shall be apportioned ratably among the Lenders having a Pro  Rata Share of the type of Commitment or Obligation to which a particular fee or expense relates.  (ii) Subject to Section 2.3(b)(v) and Section 2.3(e), all payments to be made  hereunder by US Borrowers shall be remitted to the Agent and all such payments, and all proceeds of  Collateral securing US Obligations received by the Agent, shall be applied, so long as no Application Event  has occurred and is continuing and except as otherwise provided herein with respect to Defaulting Lenders,  to reduce the balance of the US Revolving Loans outstanding and, thereafter, to US Borrowers (to be wired  to the US Designated Account) or such other Person entitled thereto under applicable law. Subject to  Section 2.3(b)(v) and Section 2.3(e), all payments in respect of Canadian Obligations to be made hereunder  by Canadian Borrowers shall be remitted to the Agent and all such payments, and all proceeds of Collateral  securing Canadian Obligations (other than Collateral also securing US Obligations) received by the Agent,  shall be applied, so long as no Application Event has occurred and is continuing and except as otherwise  





 






     -97-    provided herein with respect to Defaulting Lenders, to reduce the balance of the Canadian Revolving Loans  outstanding and, thereafter, to Canadian Borrowers (to be wired to the Canadian Designated Account) or  such other Person entitled thereto under applicable law.  (iii) At any time that an Application Event has occurred and is continuing and  except as otherwise provided herein with respect to Defaulting Lenders, all payments remitted to the Agent  and all proceeds of Collateral received by the Agent shall be applied as follows:  (A) All payments in respect of US Obligations and all proceeds of  Collateral securing the US Obligations received by the Agent shall be applied as follows:  first, to pay any Lender Group Expenses (including cost or expense reimbursements) or  indemnities then due to the Agent under the Loan Documents in respect of US Obligations, until  paid in full,  second, to pay any fees or premiums then due to the Agent under the Loan Documents, in  respect of US Obligations  until paid in full,  third, to pay interest due in respect of all US Protective Advances, until paid in full,  fourth, to pay the principal of all US Protective Advances, until paid in full,  fifth, ratably, to pay any Lender Group Expenses (including cost or expense  reimbursements) or indemnities then due to any of the Lenders under the Loan Documents in  respect of US Obligations, until paid in full,  sixth, ratably, to pay any fees or premiums then due to any of the Lenders under the Loan  Documents in respect of US Obligations, until paid in full,  seventh, to pay interest accrued in respect of the US Swing Loans, until paid in full,  eighth, to pay the principal of all US Swing Loans, until paid in full,  ninth, ratably, to pay interest accrued in respect of the US Revolving Loans (other than US  Protective Advances), until paid in full,  tenth, ratably  (1) to pay the principal of all US Revolving Loans until paid in full,  (2) to the Agent, to be held by the Agent, for the benefit of US Issuing Banks (and for the ratable  benefit of each of the Lenders that have an obligation to pay to the Agent, for the account of US  Issuing Banks, a share of each US Letter of Credit Disbursement), as cash collateral in an amount  up to the applicable Required Cash Collateral Percentages of the US Letter of Credit Usage (to the  extent permitted by applicable law, such cash collateral shall be applied to the reimbursement of  any US Letter of Credit Disbursement as and when such disbursement occurs and, if a US Letter  of Credit expires undrawn, the cash collateral held by the Agent in respect of such Letter of Credit  shall, to the extent permitted by applicable law, be reapplied pursuant to this Section 2.3(b)(iii),  beginning with tier (A) hereof),  (3) ratably, up to the amount (after taking into account any amounts previously paid pursuant to this  clause (iii) during the continuation of the applicable Application Event) of the most recently  established US Bank Product Reserve, which amount was established prior to the occurrence of,  





 






     -98-    and not in contemplation of, the subject Application Event, to (I) ratably to the Bank Product  Providers of US Bank Products (based on the US Bank Product Reserve, if any, established for  each US Bank Product of such Bank Product Provider) up to the amounts then certified the  applicable Bank Product Provider to the Agent (in form and substance satisfactory to the Agent) to  be due and payable to such Bank Product Provider on account of US Bank Product Obligations and  (II) with any balance to be paid to the Agent, to be held by the Agent, for the ratable benefit (based  on the US Bank Product Reserve established for each US Bank Product) of the Bank Product  Providers for US Bank Products, as cash collateral (which cash collateral may be released by the  Agent to the applicable Bank Product Provider and applied by such Bank Product Provider to the  payment or reimbursement of any amounts due and payable with respect to US Bank Product  Obligations owed to the applicable Bank Product Provider as and when such amounts first become  due and payable and, if and at such time as all such US Bank Product Obligations are paid or  otherwise satisfied in full, the cash collateral held by the Agent in respect of such US Bank Product  Obligations shall be reapplied pursuant to this Section 2.3(b)(iii), beginning with tier (A) hereof,  eleventh, to pay any US Obligations arising as a result of any guaranty by a US Loan Party  of the Canadian Obligations (and if no amounts are due under any such guaranty, to cash  collateralize the obligations under such guaranty unless the Canadian Revolver Commitments of  Lenders to make Canadian Revolving Loans have terminated and the Canadian Obligations have  been paid in full),   twelfth, to pay any other US Obligations other than Obligations owed to Defaulting  Lenders (including being paid, ratably, to the Bank Product Providers on account of all amounts  then due and payable in respect of US Bank Product Obligations, with any balance to be paid to  the Agent, to be held by the Agent, for the ratable benefit of the Bank Product Providers, as cash  collateral (which cash collateral may be released by the Agent to the applicable Bank Product  Provider and applied by such Bank Product Provider to the payment or reimbursement of any  amounts due and payable with respect to US Bank Product Obligations owed to the applicable Bank  Product Provider as and when such amounts first become  due and payable and, if and at such time  as all such US Bank Product Obligations are paid or otherwise satisfied in full, the cash collateral  held by the Agent in respect of such Bank Product Obligations shall be reapplied pursuant to this  Section 2.3(b)(iii), beginning with tier (A) hereof),  thirteenth, ratably to pay any US Obligations owed to Defaulting Lenders; and  fourteenth, to US Borrowers (to be wired to the US Designated Account) or such other  Person entitled thereto under applicable law.   (B) All payments in respect of Canadian Obligations and all proceeds  of Collateral securing the Canadian Obligations received by the Agent shall be applied as follows:  first, to pay any Lender Group Expenses (including cost or expense reimbursements) or  indemnities then due to the Agent under the Loan Documents in respect of Canadian Obligations,  until paid in full,  second, to pay any fees or premiums then due to the Agent under the Loan Documents, in  respect of Canadian Obligations  until paid in full,  third, to pay interest due in respect of all Canadian Protective Advances, until paid in full,  fourth, to pay the principal of all Canadian Protective Advances, until paid in full,  





 






     -99-    fifth, ratably, to pay any Lender Group Expenses (including cost or expense  reimbursements) or indemnities then due to any of the Lenders under the Loan Documents in  respect of Canadian Obligations, until paid in full,  sixth, ratably, to pay any fees or premiums then due to any of the Lenders under the Loan  Documents in respect of Canadian Obligations, until paid in full,  seventh, to pay interest accrued in respect of the Canadian Swing Loans, until paid in full,  eighth, to pay the principal of all Canadian Swing Loans, until paid in full,  ninth, ratably, to pay interest accrued in respect of the Canadian Revolving Loans , until  paid in full,  tenth, ratably  (1)  to pay the principal of all Canadian Revolving Loans  until paid in full,  (2)  to the Agent, to be held by the Agent, for the benefit  of Canadian Issuing Banks (and for the ratable benefit of each of the Lenders that have an  obligation to pay to the Agent, for the account of Canadian Issuing Banks, a share of each  Canadian Letter of Credit Disbursement), as cash collateral in an amount up to the  applicable Required Cash Collateral Percentages of the US Letter of Credit Usage and the  Canadian Letter of Credit Usage (to the extent permitted by applicable law, such cash  collateral shall be applied to the reimbursement of any Canadian Letter of Credit  Disbursement as and when such disbursement occurs and, if a Canadian Letter of Credit  expires undrawn, the cash collateral held by the Agent in respect of such Letter of Credit  shall, to the extent permitted by applicable law, be reapplied pursuant to this Section  2.3(b)(iii), beginning with tier (B) hereof),   (3)  ratably, up to the amount (after taking into account  any amounts previously paid pursuant to this clause (iii) during the continuation of the  applicable Application Event) of the most recently established Canadian Bank Product  Reserve, which amount was established prior to the occurrence of, and not in contemplation  of, the subject Application Event, to (I) ratably to the Bank Product Providers of Canadian  Bank Products (based on the Canadian Bank Product Reserve, if any, established for each  Canadian Bank Product of such Bank Product Provider) up to the amounts then certified  by the applicable Bank Product Provider to the Agent (in form and substance satisfactory  to the Agent) to be due and payable to such Bank Product Provider on account of Canadian  Bank Product Obligations and (II) with any balance to be paid to the Agent, to be held by  the Agent, for the ratable benefit (based on the Canadian Bank Product Reserve established  for each Canadian Bank Product) of the Bank Product Providers for Canadian Bank  Products, as cash collateral (which cash collateral may be released by the Agent to the  applicable Bank Product Provider and applied by such Bank Product Provider to the  payment or reimbursement of any amounts due and payable with respect to Canadian Bank  Product Obligations owed to the applicable Bank Product Provider as and when such  amounts first become due and payable and, if and at such time as all such Canadian Bank  Product Obligations are paid or otherwise satisfied in full, the cash collateral held by the  Agent in respect of such Canadian Bank Product Obligations shall be reapplied pursuant  to this Section 2.3(b)(iii), beginning with tier (B) hereof,  





 






     -100-    eleventh, to pay any other Canadian Obligations other than Obligations owed to Defaulting  Lenders (including being paid, ratably, to the Bank Product Providers on account of all amounts  then due and payable in respect of Canadian Bank Product Obligations, with any balance to be paid  to the Agent, to be held by the Agent, for the ratable benefit of the Bank Product Providers, as cash  collateral (which cash collateral may be released by the Agent to the applicable Bank Product  Provider and applied by such Bank Product Provider to the payment or reimbursement of any  amounts due and payable with respect to Canadian Bank Product Obligations owed to the  applicable Bank Product Provider as and when such amounts first become  due and payable and, if  and at such time as all such Canadian Bank Product Obligations are paid or otherwise satisfied in  full, the cash collateral held by the Agent in respect of such Bank Product Obligations shall be  reapplied pursuant to this Section 2.3(b)(iii), beginning with tier (B) hereof),  twelfth, ratably to pay any Canadian Obligations owed to Defaulting Lenders; and  thirteenth, to Canadian Borrowers (to be wired to the Canadian Designated Account) or  such other Person entitled thereto under applicable law.  For the avoidance of doubt, none of the payments in respect of any Obligations and none of the proceeds  of Collateral  shall be applied to Excluded Swap Obligations.  (iv) The Agent promptly shall distribute to each Lender, pursuant to the  applicable wire instructions received from each Lender in writing, such funds as it may be entitled to  receive, subject to a Settlement delay as provided in Section 2.2(e).  (v) In each instance, so long as no Application Event has occurred and is  continuing, Section 2.3(b)(ii) shall not apply to any payment made by Borrowers to the Agent and specified  by Borrowers to be for the payment of specific Obligations then due and payable (or prepayable) under any  provision of this Agreement or any other Loan Document.  (vi) For purposes of Section 2.3(b)(iii), “paid in full” of a type of Obligation  means payment in cash or Same Day Funds of all amounts owing on account of such type of Obligation,  including interest accrued after the commencement of any Insolvency Proceeding, default interest, interest  on interest, and expense reimbursements, irrespective of whether any of the foregoing would be or is  allowed or disallowed in whole or in part in any Insolvency Proceeding.  (vii) In the event of a direct conflict between the priority provisions of this  Section 2.3 and any other provision contained in this Agreement or any other Loan Document, it is the  intention of the parties hereto that such provisions be read together and construed, to the fullest extent  possible, to be in concert with each other.  In the event of any actual, irreconcilable conflict that cannot be  resolved as aforesaid, if the conflict relates to the provisions of Section 2.2(g) and this Section 2.3, then the  provisions of Section 2.2(g) shall control and govern, and if otherwise, then the terms and provisions of this  Section 2.3 shall control and govern.  (viii) Payments from US Loan Parties shall be deemed to be in respect of US  Obligations,  and if no US Obligations are outstanding, then in respect of Canadian Obligations.  Payments  from Canadian Loan Parties shall be deemed to be in respect of Canadian Obligations.  If a payment is  from proceeds of Collateral that secures both US Obligations and Canadian Obligations, or is a payment  from a Person that is not organized under the laws of the United States or any state thereof but has  guaranteed both the US Obligations and the Canadian Obligations, any such payment shall be, so long  as no Application Event has occurred and is continuing, applied as specified by Administrative Borrower  or, if not so specified or if an Application Event has occurred and is continuing, applied as determined  





 






     -101-    by the Agent (and in the absence of such determination, shall be assumed to be a payment in respect of  US Obligations until the US Obligations are paid in full).  (c) Reduction of Commitments. The Revolver Commitments shall terminate on the  Maturity Date or earlier termination thereof pursuant to the terms of this Agreement.  The applicable  Borrowers may reduce the US Revolver Commitments or the Canadian Revolver Commitments, as  applicable, without premium or penalty, to an amount (which may be zero) not less than the sum of (A) the  applicable Revolver Usage as of such date, plus (B) the principal amount of all applicable Revolving Loans  not yet made as to which a request has been given by Borrowers under Section 2.2(a), plus (C) the amount  of all applicable Letters of Credit not yet issued as to which a request has been given by Borrowers pursuant  to Section 2.10A or Section 2.10B, as applicable.  Each such reduction shall be in an amount which is not  less than $5,000,000 (unless the applicable Revolver Commitments are being reduced to zero and the  amount of the applicable Revolver Commitments in effect immediately prior to such reduction are less than  $5,000,000), shall be made by providing not less than three Business Days prior written notice to the Agent,  and shall be irrevocable.  The applicable Revolver Commitments, once reduced, may not be increased.   Each such reduction of the applicable Revolver Commitments shall reduce the applicable Revolver  Commitments of each Lender proportionately in accordance with its ratable share thereof.  In connection  with any reduction in the Revolver Commitments prior to the Maturity Date, if any Loan Party or any of its  Restricted Subsidiaries owns or carries any Margin Stock, Borrowers shall deliver to Agent an updated  Form U-1 (with sufficient additional originals thereof for each Lender), duly executed and delivered by the  Borrowers, together with such other documentation as Agent shall reasonably request, in order to enable  Agent and the Lenders to comply with any of the requirements under Regulations T, U or X of the Federal  Reserve Board.  (d) Optional Prepayments.  The applicable Borrowers may prepay the principal of  any US Revolving Loan or Canadian Revolving Loan, as applicable, at any time in whole or in part, without  premium or penalty.  (e) Mandatory Prepayments.    (i) If, at any time, (A) the US Revolver Usage on such date exceeds (B) the  lesser of (x) the US Borrowing Base reflected in the US Borrowing Base Certificate most recently delivered  by US Borrowers to the Agent, or (y) the Maximum Revolver Amount, minus (C) the Canadian Revolver  Usage, in all cases as adjusted for Reserves established by the Agent in accordance with Section 2.1(d),  then Borrowers shall immediately prepay the Obligations in accordance with Section 2.3(f) in an aggregate  amount equal to the amount of such excess.  (ii) If, at any time, (A) the Canadian Revolver Usage on such date exceeds (B)  the lesser of (x) the Canadian Borrowing Base reflected in the Canadian Borrowing Base Certificate most  recently delivered by Canadian Borrowers to the Agent (including any excess arising as a result of  fluctuations in exchange rates), or (y) $20,000,000, then the Canadian Borrowers shall immediately prepay  the Obligations in accordance with Section 2.3(f) in an aggregate amount equal to the amount of such  excess.  (iii) If, at any time when there are any Loans outstanding on any Business Day  that is on or after the thirtieth (30th) day after the Second Amendment Effective Date, (A) the aggregate  Cash Balance in deposit accounts and securities accounts in the United States and Canada exceeds the Cash  Balance Sweep Limit described in clause (a) thereof, then the Borrower shall, promptly (and, in any event,  no later than the following Business Day) prepay the Loans in an aggregate principal amount equal to such  excess, and (B) the aggregate Cash Balance in deposit accounts and securities accounts in all jurisdictions  (other than the United States and Canada) exceeds the Cash Balance Sweep Limit described in clause (b)  thereof, then the Borrower shall, promptly (and, in any event, no later than four (4) Business Days  





 






     -102-    thereafter) prepay the Loans in an aggregate principal amount to equal to such excess and, if the Dominion  Condition (as defined in Section 5.18) has been satisfied, deliver to the Agent a certificate, in form and  substance satisfactory to the Agent, certifying the Cash Balance in all such deposit accounts and securities  accounts before and after giving effect to the prepayment of the Loans in the amount of such excess.  (f) Application of Payments.  Each prepayment pursuant to the first sentence of  Section 2.3(e)  shall, (1) so long as no Application Event shall have occurred and be continuing, be applied,  first, to the outstanding principal amount of the US Revolving Loans until paid in full, and second, to cash  collateralize the Letters of Credit in an amount equal to applicable Required Cash Collateral Percentages  of the US Letter of Credit Usage and the Canadian Letter of Credit Usage, and (2) if an Application Event  shall have occurred and be continuing, be applied in the manner set forth in Section 2.3(b)(iii).  Each  prepayment pursuant to the second sentence of Section 2.3(e) shall, (1) so long as no Application Event  shall have occurred and be continuing, be applied, first, to the outstanding principal amount of the Canadian  Revolving Loans until paid in full, and second, to cash collateralize the Canadian Letters of Credit in an  amount equal to applicable Required Cash Collateral Percentages of the US Letter of Credit Usage and the  Canadian Letter of Credit Usage, and (2) if an Application Event shall have occurred and be continuing, be  applied in the manner set forth in Section 2.3(b)(iii).    2.4 Promise to Pay; Promissory Notes.  (a) Each Borrower agrees to pay the Lender Group Expenses owing by such Borrower  on the earlier of (i) the first day of the month following the date on which the applicable Lender Group  Expenses were first incurred, or (ii) the date on which demand therefor is made by Agent (it being  acknowledged and agreed that any charging of such costs, expenses or Lender Group Expenses to the  applicable Loan Account pursuant to the provisions of Section 2.5(d) shall be deemed to constitute a  demand for payment thereof for the purposes of this subclause (ii)).  Each Borrower promises to pay all of  the Obligations (including principal, interest, premiums, if any, fees, costs, and expenses (including Lender  Group Expenses)) owing by such Borrower in full on the Maturity Date or, if earlier, on the date on which  such Obligations (other than the Bank Product Obligations) become due and payable pursuant to the terms  of this Agreement.  Borrowers agree that their obligations contained in the first sentence of this Section  2.4(a) shall survive payment or satisfaction in full of all other Obligations.  (b) Any Lender may request that any portion of its Commitments or the Loans made  by it be evidenced by one or more promissory notes.  In such event, the applicable Borrowers shall execute  and deliver to such Lender the requested promissory notes payable to the order of such Lender in a form  furnished by the Agent and reasonably satisfactory to the applicable Borrowers.  Thereafter, the portion of  the Commitments and Loans evidenced by such promissory notes and interest thereon shall at all times be  represented by one or more promissory notes in such form payable to the order of the payee named therein.  2.5 Interest Rates and Letter of Credit Fee:  Rates, Payments, and Calculations.  (a) Interest Rates.  Except as provided in Section 2.5(c), all Obligations (except for  undrawn Letters of Credit) that have been charged to the Loan Account pursuant to the terms hereof shall  bear interest as follows:  (i) if the relevant Obligation is a Non-Base Rate Loan in Canadian  Dollars, at a per annum rate equal to the CDOR Rate plus the Applicable Margin;  (ii) if the relevant Obligation is a Non-Base Rate Loan in US Dollars, at a  per annum rate equal to the Adjusted LIBOR Rate plus the Applicable Margin,  





 






     -103-    (iii) if the relevant Obligation is a Base Rate Loan in Canadian Dollars, at a  per annum rate equal to the Canadian Base Rate plus the Applicable Margin,  (iv) if the relevant Obligation is a Base Rate Loan in US Dollars, at a per  annum rate equal to the US Base Rate plus the Applicable Margin,  (v) otherwise, at a per annum rate equal to the Canadian Base Rate (if such  Obligation is denominated in Canadian Dollars) plus the Base Rate Margin or the US Base Rate (if  such Obligation is denominated in US Dollars) plus the Base Rate Margin.  (b) Letter of Credit Fee.  US Borrowers shall pay to the Agent, for the ratable  account of the US Revolving Lenders, a Letter of Credit fee (the "US Letter of Credit Fees") (which fee  shall be in addition to the fronting fees and commissions, other fees, charges and expenses set forth in  Section 2.10A(k) and Section 2.10B(k), as applicable) that shall accrue at a per annum rate equal to  the LIBOR/CDOR Rate Margin times the average amount of the US Letter of Credit Usage during the  immediately preceding month (or portion thereof). Canadian Borrower shall pay to Agent, for the ratable  account of the Canadian Revolving Lenders, a Letter of Credit fee (the "Canadian Letter of Credit Fees")  (which fee shall be in addition to the fronting fees and commissions, other fees, charges and expenses  set forth in Section 2.10A(k) and Section 2.10B(k), as applicable) that shall accrue at a per annum  rate equal to the LIBOR/CDOR Rate Margin times the average amount of the Canadian Letter of  Credit Usage during the immediately preceding month (or portion thereof).  (c) Default Rate.   (i) Automatically upon the occurrence and during the continuation  of an Event of Default under Section 8.4 or 8.5 and (ii) upon the occurrence and during the continuation of  any other Specified Event of Default (other than an Event of Default under Section 8.4 or 8.5), at the  direction of Agent or the Supermajority Lenders, and upon written notice by Agent to Borrowers of such  direction (provided, that such notice shall not be required for any Event of Default under Section 8.1), (A)  all Loans and all Obligations (except for undrawn Letters of Credit) that have been charged to the Loan  Account pursuant to the terms hereof shall bear interest at a per annum rate equal to two percentage points  above the per annum rate otherwise applicable hereunder, and (B) the Letter of Credit Fee shall be increased  to two percentage points above the per annum rate otherwise applicable hereunder.    (d) Payment.     (i) Except to the extent provided to the contrary in Section 2.9, Section  2.10A(k), Section 2.10B(k) or Section 2.11(a), (A) all interest and all other fees payable hereunder or under  any of the other Loan Documents (other than Letter of Credit Fees) shall be due and payable, in arrears, on  the first Business Day of each month, (B) all Letter of Credit Fees payable hereunder, and all fronting fees  and all commissions, other fees, charges and expenses provided for in Section 2.10A(k) and Section  2.10B(k) shall be due and payable, in arrears, on the first Business Day of each month, and (C) all costs  and expenses payable hereunder or under any of the other Loan Documents, and all other Lender Group  Expenses shall be due and payable on the earlier of (x) the first day of the month following the date on  which the applicable costs, expenses, or Lender Group Expenses were first incurred, or (y) the date on  which demand therefor is made by the Agent (it being acknowledged and agreed that any charging of such  costs, expenses or Lender Group Expenses to the Loan Account pursuant to the provisions of the following  clauses of this Section 2.5(d) shall be deemed to constitute a demand for payment thereof for the purposes  of this subclause (y)).    (ii) Each Canadian Borrower hereby authorizes the Agent, from time to time  without prior notice to Borrowers, to charge to the Loan Account for the Canadian Borrowers (A) on the  first Business Day of each month, all interest accrued during the prior month on the Canadian Revolving  Loans that are Base Rate Loans hereunder, (B) as and when due and payable under Section 2.11(a), all  





 






     -104-    interest accrued on the Canadian Revolving Loans that are Non-Base Rate Loans hereunder, (C) on the first  Business Day of each month, all Canadian Letter of Credit Fees accrued or chargeable hereunder during  the prior month, (D) as and when incurred or accrued, all fees and costs provided for in Section 2.9(a) or  (c) and owing by the Canadian Borrowers, (E) on the first Business Day of each month, the Unused Line  Fees accrued during the prior month pursuant to Section 2.9(b), (F) as and when due and payable, all other  fees payable hereunder or under any of the other Loan Documents by the Canadian Borrowers, (G) as and  when incurred or accrued, all other Lender Group Expenses owing by the Canadian Borrowers, and (H) as  and when due and payable all other payment obligations payable under any Loan Document or any  Canadian Bank Product Agreement (including any amounts due and payable to the Bank Product Providers  in respect of Canadian Bank Products) owing by the Canadian Borrowers.   (iii) Each US Borrower hereby authorizes the Agent, from time to time without  prior notice to Borrowers, to charge to the Loan Account for the US Borrowers (A) on the first Business  Day of each month, all interest accrued during the prior month on the US Revolving Loans that are Base  Rate Loans, (B) as and when due and payable under Section 2.11(a), all interest accrued on the US  Revolving Loans that are Non-Base Rate Loans hereunder, (C) on the first Business Day of each month, all  US Letter of Credit Fees accrued or chargeable hereunder during the prior month, (D) as and when incurred  or accrued, all fees and costs provided for in Section 2.9(a) or (c) and owing by the US Borrowers, (E) on  the first Business Day of each month, the Unused Line Fees accrued during the prior month pursuant to  Section 2.9(b), (F) as and when due and payable, all other fees payable hereunder or under any of the other  Loan Documents by the US Borrowers, (G) as and when incurred or accrued, all other Lender Group  Expenses owing by the US Borrowers, and (H) as and when due and payable all other payment obligations  payable under any Loan Document or any US Bank Product Agreement (including any amounts due and  payable to the Bank Product Providers in respect of US Bank Products) owing by the US Borrowers.   (iv) All amounts (including interest, fees, costs, expenses, Lender Group  Expenses, or other amounts payable hereunder or under any other Loan Document or under any Bank  Product Agreement) charged to the applicable Loan Account shall thereupon constitute Revolving Loans  hereunder for the account of the applicable Borrowers, shall constitute Obligations hereunder of such  Borrowers, and shall initially accrue interest at the rate then applicable to Base Rate Revolving Loans in  the Agreed Currency (unless and until converted into Non-Base Rate Loans in accordance with the terms  of this Agreement).  (e) Computation.  All interest and fees chargeable under the Loan Documents (other  than amounts accruing at the Base Rate or CDOR Rate) shall be computed on the basis of a 360 day year,  in each case, for the actual number of days elapsed in the period during which the interest or fees accrue.  All interest and fees chargeable under the Loan Documents accruing at the Base Rate or the CDOR Rate  shall be computed on the basis of a 365 or 366 day year for the actual number of days elapsed in the period  during which the interest or fees accrue. In the event the Base Rate is changed from time to time hereafter,  the rates of interest hereunder based upon the Base Rate automatically and immediately shall be increased  or decreased by an amount equal to such change in the Base Rate.  (f) Intent to Limit Charges to Maximum Lawful Rate.  In no event shall the interest  rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the  highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination,  deem applicable.  Subject to Section 2.17 in the case of Canadian Borrower and the Canadian Obligations,  Borrowers and the Lender Group, in executing and delivering this Agreement, intend legally to agree upon  the rate or rates of interest and manner of payment stated within it; provided, that anything contained herein  to the contrary notwithstanding, if such rate or rates of interest or manner of payment exceeds the maximum  allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrowers are and shall  be liable only for the payment of such maximum amount as is allowed by law, and payment received from  





 






     -105-    Borrowers in excess of such legal maximum, whenever received, shall be applied to reduce the principal  balance of the Obligations to the extent of such excess.  (g) Retroactive Adjustments of Applicable Margin.  In the event that any financial  statement or Compliance Certificate delivered pursuant to Section 5.1 is shown to be inaccurate other than  as a result of a change in GAAP or pro forma adjustments made as permitted or required by this Agreement  (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is  discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable  Margin then in effect for any period (an “Applicable Period”) than the Applicable Margin applied for such  Applicable Period, then the Agent shall give notice to the Parent of such inaccuracy and (i) the Parent shall  promptly deliver to the Agent a corrected Compliance Certificate for such Applicable Period, (ii) the  Applicable Margin shall be determined as if the higher Applicable Margin then in effect that would have  applied were applicable for such Applicable Period, and (iii) the Borrowers shall promptly, without further  action by the Agent or any Lender, pay to the Agent for the account of the applicable Lenders, the accrued  additional interest owing as a result of such increased Applicable Margin for such Applicable Period.  This  Section 2.5(g) shall not limit the rights of the Agent and the Lenders with respect to the Default Rate of  interest as set forth in Section 2.5(c) or Article 8.  The Borrowers’ obligations under this Section 2.5(g)  shall survive the termination of the Commitments and the repayment of all other Obligations hereunder.  2.6 Crediting Payments.  The receipt of any payment item by the Agent shall not be required  to be considered a payment on account unless such payment item is a wire transfer of Same Day Funds in  the Agreed Currency made to the Agent’s Applicable Account or unless and until such payment item is  honored when presented for payment.  Should any payment item not be honored when presented for  payment, then the applicable Borrowers shall be deemed not to have made such payment.  Anything to the  contrary contained herein notwithstanding, any payment item shall be deemed received by the Agent only  if it is received into the Agent’s Applicable Account on a Business Day on or before 3:30 p.m.  If any  payment item is received into the Agent’s Applicable Account on a non-Business Day or after 3:30 p.m. on  a Business Day (unless the Agent, in its sole discretion, elects to credit it on the date received), it shall be  deemed to have been received by the Agent as of the opening of business on the immediately following  Business Day.  2.7 Designated Account.  The Agent is authorized to make the Revolving Loans, and each  Issuing Bank is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or  other instructions received from anyone purporting to be an Authorized Person or, without instructions, if  pursuant to Section 2.5(d).  US Borrowers agree to establish and maintain the US Designated Account with  the US Designated Account Bank and the Canadian Borrowers agree to establish and maintain the Canadian  Designated Account with the Canadian Designated Bank, in each case, for the purpose of receiving the  proceeds of the applicable Revolving Loans requested by such Borrowers and made by the Agent or the  applicable Lenders hereunder.  Unless otherwise agreed by the Agent and Borrowers, any Revolving Loan  or Swing Loan requested by Borrowers and made by the Agent or the Lenders hereunder shall be made to  the applicable Designated Account.  2.8 Maintenance of Loan Account; Statements of Obligations.  The Agent shall maintain  an account on its books in the name of US Borrowers (the “US Loan Account”) on which US Borrowers  will be charged with all US  Revolving Loans (including US Extraordinary Advances and US Swing Loans)  made by the Agent, US Swing Line Lender, or the Lenders to US Borrowers or for the US Borrowers’  account, the US Letters of Credit issued or arranged by a US Issuing Bank for a US Borrowers’ account,  and with all other payment of US Obligations hereunder or under the other Loan Documents, including,  accrued interest, fees and expenses, and Lender Group Expenses of US Borrowers with respect thereto.   The Agent shall maintain an account on its books in the name of Canadian Borrowers (the “Canadian Loan  Account”) on which Canadian Borrowers will be charged with all Canadian  Revolving Loans (including  





 






     -106-    Canadian Extraordinary Advances and Canadian Swing Loans) made by the Agent, Canadian Swing Line  Lender, or the Lenders to Canadian Borrowers or for the Canadian Borrowers’ account, the Canadian  Letters of Credit issued or arranged by a Canadian Issuing Bank for a Canadian Borrowers’ account, and  with all other payment of Canadian Obligations hereunder or under the other Loan Documents, including,  accrued interest, fees and expenses, and Lender Group Expenses of Canadian Borrowers with respect  thereto.  In accordance with Section 2.6, the applicable Loan Account will be credited with all payments  received by the Agent from the applicable Borrowers or for the applicable Borrowers’ account.  The Agent  shall make available to the Administrative Borrower monthly statements regarding the Loan Accounts,  including the principal amount of the Revolving Loans, interest accrued hereunder, fees accrued or charged  hereunder or under the other Loan Documents, and a summary itemization of all charges and expenses  constituting Lender Group Expenses accrued hereunder or under the other Loan Documents, and each such  statement, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute  an account stated between Borrowers and the Lender Group unless, within 30 days after Agent first makes  such a statement available to the Administrative Borrower. Administrative Borrower shall deliver to the  Agent written objection thereto describing the error or errors contained in such statement.  2.9 Fees.  (a) Agent Fees.  Borrowers shall pay to the Agent, for the account of the Agent, as  and when due and payable under the terms of the Fee Letter, the fees set forth in the Fee Letter.  (b) Unused Line Fees.    (i) Borrowers shall pay to Agent, for each US Revolving Lender, an unused line fee  (the “Unused US Line Fee”) in an amount equal to the Applicable Unused Line Fee Percentage per  annum times the result of (A) such US Revolving Lender’s US Revolver Commitment, less (B)  such  US Revolving Lender’s (or such US Revolving Lender’s Affiliate’s) Canadian Revolver  Commitment, if any, less (C) such US Revolving Lender’s Pro Rata Share of the Average US  Revolver Usage during the immediately preceding month (or portion thereof), which Unused US  Line Fee shall be due and payable, in arrears, on the first day of each month from and after the  Closing Date up to the first day of the month prior to the date on which the Obligations are paid in  full and on the date on which the Obligations are paid in full.  (ii) Borrowers shall pay to Agent, for each Canadian Revolving Lenders, an unused  line fee (the “Unused Canadian Line Fee”) in an amount equal to the Applicable Unused Line Fee  Percentage per annum times the result of (A) such Canadian Revolving Lender’s Canadian  Revolver Commitment, less (B) such Canadian Revolving Lender’s Pro Rata Share of the Average  Canadian Revolver Usage during the immediately preceding month (or portion thereof), which  Unused Canadian Line Fee shall be due and payable, in arrears, on the first day of each month from  and after the Closing Date up to the first day of the month prior to the date on which the Obligations  are paid in full and on the date on which the Obligations are paid in full.  (c) Field Examination and Other Fees.  Subject to Section 5.7, the Borrowers shall  pay to the Agent, field examination, appraisal, and valuation fees and charges, as and when incurred or  chargeable, as follows (i) a fee of $1,000 per day, per examiner, plus reasonable and documented out-of- pocket expenses (including travel, meals, and lodging) for each field examination of any Loan Party or its  Restricted Subsidiaries performed by or on behalf of the Agent, and (ii) the reasonable and documented  fees, charges or expenses paid or incurred by the Agent if it elects to employ the services of one or more  third Persons to perform field examinations, appraise the Collateral, or any portion thereof, or to assess any  Loan Party’s or its Restricted Subsidiaries’ business valuation.  





 






     -107-    2.10 Letters of Credit.  A.  US Letters of Credit.  (a) Subject to the terms and conditions of this Agreement, upon the request of the  Borrowers made in accordance herewith, and prior to the Maturity Date, US Issuing Banks may, but shall  not be obligated to, agree to issue a requested standby US Letter of Credit or a sight commercial US Letter  of Credit for the account of US Borrowers on their behalf or on behalf of any Restricted Subsidiary.  By  submitting a request to a US Issuing Bank for the issuance of a US Letter of Credit, US Borrowers shall be  deemed to have requested that such US Issuing Bank issue the requested US Letter of Credit.  Each request  for the issuance of a US Letter of Credit, or the amendment, renewal, or extension of any outstanding US  Letter of Credit, shall be (i) irrevocable and  made in writing by an Authorized Person, (ii) delivered to the  Agent and US Issuing Bank via telefacsimile or other electronic method of transmission reasonably  acceptable to the Agent and US Issuing Bank and reasonably in advance of the requested date of issuance,  amendment, renewal, or extension, and (iii) subject to such US Issuing Bank’s authentication procedures  with results satisfactory to such US Issuing Bank.  Each such request shall be in form and substance  reasonably satisfactory to the Agent and US Issuing Bank and (i) shall specify (A) the amount of such US  Letter of Credit, (B) the date of issuance, amendment, renewal, or extension of such US Letter of Credit,  (C) the proposed expiration date of such US Letter of Credit, (D) the name and address of the beneficiary  of the US Letter of Credit, and (E) such other information (including, the conditions to drawing, and, in the  case of an amendment, renewal, or extension, identification of the US Letter of Credit to be so amended,  renewed, or extended) as shall be necessary to prepare, amend, renew, or extend such US Letter of Credit,  and (ii) shall be accompanied by such Issuer Documents as the Agent or US Issuing Bank may request or  require, to the extent that such requests or requirements are consistent with the Issuer Documents that such  US Issuing Bank generally requests for US Letters of Credit in similar circumstances.  Such US Issuing  Bank’s records of the content of any such request will be conclusive.    (b) An US Issuing Bank shall have no obligation to issue an US Letter of Credit if any  of the following would result after giving effect to the requested issuance:  (i) the US Letter of Credit Usage would exceed the US Letter of Credit  Sublimit, or  (ii) the US Letter of Credit Usage would exceed the Maximum Revolver  Amount less the sum of (x) the outstanding amount of US Revolving Loans (including Swing  Loans) and (y) the Canadian Revolver Usage, or  (iii) the US Letter of Credit Usage would exceed the US Borrowing Base at  such time less the outstanding principal balance of the US Revolving Loans (inclusive of Swing  Loans) at such time.  (c) In the event there is a Defaulting Lender as of the date of any request for the  issuance of a US Letter of Credit, a US Issuing Bank shall not be required to issue or arrange for such US  Letter of Credit to the extent (i) the Defaulting Lender’s US Letter of Credit Exposure with respect to such  US Letter of Credit may not be reallocated pursuant to Section 2.2(g)(ii), or (ii) the US Issuing Bank has  not otherwise entered into arrangements reasonably satisfactory to it and US Borrowers to eliminate the US  Issuing Bank’s risk with respect to the participation in such US Letter of Credit of the Defaulting Lender,  which arrangements may include US Borrowers cash collateralizing such Defaulting Lender’s US Letter of  Credit Exposure in accordance with Section 2.2(g)(ii).  Additionally, a US Issuing Bank shall have no  obligation to issue or extend a US Letter of Credit if (A) any order, judgment, or decree of any  Governmental Authority or arbitrator shall, by its terms, purport to enjoin or restrain such US Issuing Bank  





 






     -108-    from issuing such US Letter of Credit, or any law applicable to such US Issuing Bank or any request or  directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over  such US Issuing Bank shall prohibit or request that such US Issuing Bank refrain from the issuance of  letters of credit generally or such US Letter of Credit in particular, (B) the issuance of such US Letter of  Credit would violate one or more policies of such US Issuing Bank applicable to letters of credit generally,  or (C) if amounts demanded to be paid under any US Letter of Credit will not or may not be in the Agreed  Currency that such Letter of Credit was issued.  (d) Any US Issuing Bank (other than Wells Fargo or any of its Affiliates) shall notify  the Agent in writing no later than the Business Day prior to the Business Day on which such US Issuing  Bank issues any US Letter of Credit.  In addition, each US Issuing Bank (other than Wells Fargo or any of  its Affiliates) shall, on the first Business Day of each week, submit to the Agent a report detailing the daily  undrawn amount of each US Letter of Credit issued by US Issuing Bank during the prior calendar week.   The US Borrowers and the Lender Group hereby acknowledge and agree that all Existing US Letters of  Credit shall constitute US Letters of Credit under this Agreement on and after the Effective Date with the  same effect as if such Existing Letters of Credit were issued by a US Issuing Bank at the request of US  Borrowers on the Closing Date.  Each US Letter of Credit shall be in form and substance reasonably  acceptable to US Issuing Bank, including the requirement that the amounts payable thereunder must be  payable in US Dollars or Canadian Dollars.  If US Issuing Bank makes a payment under a US Letter of  Credit, US Borrowers shall pay to the Agent an amount equal to the applicable US Letter of Credit  Disbursement on the Business Day such US Letter of Credit Disbursement is made and, in the absence of  such payment, the amount of the US Letter of Credit Disbursement immediately and automatically shall be  deemed to be a US Revolving Loan hereunder (notwithstanding any failure to satisfy any condition  precedent set forth in Section 3) and, initially, shall bear interest at the rate then applicable to US Revolving  Loans that are Base Rate Loans. If a US Letter of Credit Disbursement is deemed to be a US Revolving  Loan hereunder, US Borrowers’ obligation to pay the amount of such US Letter of Credit Disbursement to  a US Issuing Bank shall be automatically converted into an obligation to pay the resulting US Revolving  Loan.  Promptly following receipt by the Agent of any payment from US Borrowers pursuant to this  paragraph, the Agent shall distribute such payment to such US Issuing Bank or, to the extent that any  Revolving Lenders have made payments pursuant to Section 2.10A(e) to reimburse such US Issuing Bank,  then to such Revolving Lenders and US Issuing Bank as their interests may appear.   (e) Promptly following receipt of a notice of a US Letter of Credit Disbursement  pursuant to Section 2.10A(d), each Revolving Lender agrees to fund its Pro Rata Share of any US Revolving  Loan deemed made pursuant to Section 2.10A(d) on the same terms and conditions as if Administrative  Borrower had requested the amount thereof as a US Revolving Loan and the Agent shall promptly pay to  the US Issuing Bank the amounts so received by it from the Revolving Lenders.  By the issuance of a US  Letter of Credit (or an amendment, renewal, or extension of a US Letter of Credit) and without any further  action on the part of US Issuing Bank or the Revolving Lenders, an US Issuing Bank shall be deemed to  have granted to each Revolving Lender with a US Revolver Commitment, and each Revolving Lender with  a US Revolver Commitment shall be deemed to have purchased, a participation in each US Letter of Credit  issued by US Issuing Bank, in an amount equal to its Pro Rata Share of such US Letter of Credit, and each  such Revolving Lender agrees to pay to the Agent, for the account of US Issuing Bank, such Revolving  Lender’s Pro Rata Share of any US Letter of Credit Disbursement made by US Issuing Bank under the  applicable US Letter of Credit.  In consideration and in furtherance of the foregoing, each Revolving Lender  with a US Revolver Commitment hereby absolutely and unconditionally agrees to pay to the Agent, for the  account of US Issuing Bank, such Revolving Lender’s Pro Rata Share of each US Letter of Credit  Disbursement made by an US Issuing Bank and not reimbursed by US Borrowers on the date due as  provided in Section 2.10A(d), or of any reimbursement payment that is required to be refunded (or that the  Agent or US Issuing Bank elects, based upon the advice of counsel, to refund) to US Borrowers for any  reason.  Each Revolving Lender acknowledges and agrees that its obligation to deliver to the Agent, for the  





 






     -109-    account of an US Issuing Bank, an amount equal to its respective Pro Rata Share of each US Letter of Credit  Disbursement pursuant to this Section 2.10A(e) shall be absolute and unconditional and such remittance  shall be made notwithstanding the occurrence or continuation of an Event of Default or Default or the  failure to satisfy any condition set forth in Section 3.  If any such Revolving Lender fails to make available  to the Agent the amount of such Revolving Lender’s Pro Rata Share of a US Letter of Credit Disbursement  as provided in this Section, such Revolving Lender shall be deemed to be a Defaulting Lender and the  Agent (for the account of the US Issuing Bank) shall be entitled to recover such amount on demand from  such Revolving Lender together with interest thereon at the Defaulting Lender Rate until paid in full.  (f) US Borrowers jointly and severally agree to indemnify, defend and hold harmless  each Letter of Credit Related Person (to the fullest extent permitted by law) from and against any Letter of  Credit Indemnified Costs, and which arise out of or in connection with, or as a result of:  (i) any US Letter of Credit or any pre-advice of its issuance;  (ii) any transfer, sale, delivery, surrender or endorsement (or lack thereof) of  any Drawing Document at any time(s) held by any such Letter of Credit Related Person in  connection with any US Letter of Credit;  (iii) any action or proceeding arising out of, or in connection with, any US  Letter of Credit (whether administrative, judicial or in connection with arbitration), including any  action or proceeding to compel or restrain any presentation or payment under any US Letter of  Credit, or for the wrongful dishonor of, or honoring a presentation under, any US Letter of Credit;  (iv) any independent undertakings issued by the beneficiary of any US Letter  of Credit;  (v) any unauthorized instruction or request made to US Issuing Bank in  connection with any US Letter of Credit or requested US Letter of Credit, or any error, omission,  interruption or delay in such instruction or request, whether transmitted by mail, courier, electronic  transmission, SWIFT, or any other telecommunication including communications through a  correspondent;  (vi) an adviser, confirmer or other nominated person seeking to be reimbursed,  indemnified or compensated in connection with any US Letter of Credit;  (vii) any third party seeking to enforce the rights of an applicant, beneficiary,  nominated person, transferee, assignee of US Letter of Credit proceeds or holder of an instrument  or document;  (viii) the fraud, forgery or illegal action of parties in connection with US Letter  of Credit other than the Letter of Credit Related Person;  (ix) any prohibition on payment or delay in payment of any amount payable  by US Issuing Bank to a beneficiary or transferee beneficiary of a US Letter of Credit arising out  of Anti-Corruption Laws, Anti-Money Laundering Laws, or Sanctions;   (x) US Issuing Bank’s performance of the obligations of a confirming  institution or entity that wrongfully dishonors a confirmation;   





 






     -110-    (xi) any foreign language translation provided to US Issuing Bank in  connection with any US Letter of Credit;    (xii) any foreign law or usage as it relates to US Issuing Bank’s issuance of a  US Letter of Credit in support of a foreign guaranty including without limitation the expiration of  such guaranty after the related US Letter of Credit expiration date and any resulting drawing paid  by US Issuing Bank in connection therewith; or   (xiii) the acts or omissions, whether rightful or wrongful, of any present or  future de jure or de facto governmental or regulatory authority or cause or event beyond the control  of the Letter of Credit Related Person related to a US Letter of Credit;  provided, that such indemnity shall not be available to any Letter of Credit Related Person claiming  indemnification under clauses (i) through (x) above to the extent that such  Letter of Credit Indemnified  Costs may be finally determined in a final, non-appealable judgment of a court of competent jurisdiction to  have resulted directly from the gross negligence or willful misconduct of the Letter of Credit Related Person  claiming indemnity.  US Borrowers hereby agree to pay the Letter of Credit Related Person claiming  indemnity on demand from time to time all amounts owing under this Section 2.10A(f).  If and to the extent  that the obligations of US Borrowers under this Section 2.10A(f) are unenforceable for any reason, US  Borrowers agree to make the maximum contribution to the Letter of Credit Indemnified Costs permissible  under applicable law.  This indemnification provision shall survive termination of this Agreement and all  US Letters of Credit.  (g) The liability of US Issuing Bank (or any other Letter of Credit Related Person)  under, in connection with or arising out of any US Letter of Credit (or pre-advice), regardless of the form  or legal grounds of the action or proceeding, shall be limited to direct damages suffered by US Borrowers  that are caused directly by US Issuing Bank’s gross negligence or willful misconduct in (i) honoring a  presentation under a US Letter of Credit that on its face does not at least substantially comply with the  terms and conditions of such US Letter of Credit, (ii) failing to honor a presentation under a US Letter of  Credit that strictly complies with the terms and conditions of such US Letter of Credit, or (iii) retaining  Drawing Documents presented under a US Letter of Credit.  US Borrowers’ aggregate remedies against US  Issuing Bank and any Letter of Credit Related Person for wrongfully honoring a presentation under any US  Letter of Credit or wrongfully retaining honored Drawing Documents shall in no event exceed the aggregate  amount paid by US Borrowers to US Issuing Bank in respect of the honored presentation in connection  with such US Letter of Credit under Section 2.10A(d), plus interest at the rate then applicable to US  Revolving Loans in the Agreed Currency that are Base Rate Loans hereunder. US Borrowers shall take  action to avoid and mitigate the amount of any damages claimed against any US Issuing Bank or any other  Letter of Credit Related Person, including by enforcing its rights against the beneficiaries of the US Letters  of Credit.  Any claim by US Borrowers under or in connection with any US Letter of Credit shall be reduced  by an amount equal to the sum of (x) the amount (if any) saved by US Borrowers as a result of the breach  or alleged wrongful conduct complained of, and (y) the amount (if any) of the loss that would have been  avoided had US Borrowers taken all reasonable steps to mitigate any loss, and in case of a claim of wrongful  dishonor, by specifically and timely authorizing such US Issuing Bank to effect a cure.  (h)  Administrative Borrower is responsible for the final text of the US Letter of Credit  as issued by any US Issuing Bank, irrespective of any assistance US Issuing Bank may provide such as  drafting or recommending text or by US Issuing Bank’s use or refusal to use text submitted by  Administrative Borrower. US Borrowers understand that the final form of any US Letter of Credit may be  subject to such revisions and changes as are deemed necessary or appropriate by US Issuing Bank, and US  Borrowers hereby consent to such revisions and changes not materially different from the application  executed in connection therewith. US Borrowers are solely responsible for the suitability of the US Letter  





 






     -111-    of Credit for US Borrowers’ purposes.  If US Borrowers request a US Issuing Bank to issue a Letter of  Credit for the account of a Restricted Subsidiary that is not a US Borrower (i) such Restricted Subsidiary  shall have no rights against any US Issuing Bank; (ii) US Borrowers shall be responsible for the application  and obligations under this Agreement; and (iii) communications (including notices) related to the respective  Letter of Credit shall be among the US Issuing Banks and US Borrowers.  US Borrowers will examine the  copy of the US Letter of Credit and any other documents sent by US Issuing Bank in connection therewith  and shall promptly notify the applicable US Issuing Bank (not later than three (3) Business Days following  US Borrowers’ receipt of documents from the applicable US Issuing Bank) of any non-compliance with  the US Borrowers’ instructions and of any discrepancy in any document under any presentment or other  irregularity.  US Borrowers understand and agree that no Issuing Bank is required to extend the expiration  date of any US Letter of Credit for any reason. With respect to any US Letter of Credit containing an  “automatic amendment” to extend the expiration date of such US Letter of Credit, a US Issuing Bank, in  its sole and absolute discretion, may give notice of nonrenewal of such US Letter of Credit and, if US  Borrowers do not at any time want the then current expiration date of such Letter of Credit to be extended,  US Borrowers will so notify the Agent and US Issuing Bank at least 30 calendar days before such US  Issuing Bank is required to notify the beneficiary of such US Letter of Credit or any advising bank of such  non-extension pursuant to the terms of such US Letter of Credit.  (i) US Borrowers’ reimbursement and payment obligations under this Section 2.10A  are absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of  this Agreement under any and all circumstances whatsoever, including:  (i) any lack of validity, enforceability or legal effect of any US Letter of  Credit, any Issuer Document, this Agreement, or any Loan Document, or any term or provision  therein or herein;  (ii) payment against presentation of any draft, demand or claim for payment  under any Drawing Document that does not comply in whole or in part with the terms of the  applicable US Letter of Credit or which proves to be fraudulent, forged or invalid in any respect or  any statement therein being untrue or inaccurate in any respect, or which is signed, issued or  presented by a Person or a transferee of such Person purporting to be a successor or transferee of  the beneficiary of such US Letter of Credit;  (iii) US Issuing Bank or any of its branches or Affiliates being the beneficiary  of any US Letter of Credit;  (iv) US Issuing Bank or any correspondent honoring a drawing against a  Drawing Document up to the amount available under any US Letter of Credit even if such Drawing  Document claims an amount in excess of the amount available under the US Letter of Credit;  (v) the existence of any claim, set-off, defense or other right that any Credit  Party or any of its Restricted Subsidiaries may have at any time against any beneficiary or transferee  beneficiary, any assignee of proceeds, US Issuing Bank or any other Person;  (vi) US Issuing Bank or any correspondent honoring a drawing upon receipt  of an electronic presentation under a US Letter of Credit requiring the same, regardless of whether  the original Drawing Documents arrive at US Issuing Bank’s counters or are different from the  electronic presentation;   (vii) any other event, circumstance or conduct whatsoever, whether or not  similar to any of the foregoing that might, but for this Section 2.10A(i), constitute a legal or  





 






     -112-    equitable defense to or discharge of, or provide a right of set-off against, any US Borrower’s or any  of its Restricted Subsidiaries’ reimbursement and other payment obligations and liabilities, arising  under, or in connection with, any US Letter of Credit, whether against US Issuing Bank, the  beneficiary or any other Person; or  (viii) the fact that any Default or Event of Default shall have occurred and be  continuing;   provided, that subject to Section 2.10A(g) above, the foregoing shall not release an US Issuing Bank from  such liability to US Borrowers as may be finally determined in a final, non-appealable judgment of a court  of competent jurisdiction against such US Issuing Bank following reimbursement or payment of the  obligations and liabilities, including reimbursement and other payment obligations, of US Borrowers to US  Issuing Bank arising under, or in connection with, this Section 2.10A or any US Letter of Credit.  (j) Without limiting any other provision of this Agreement, US Issuing Bank and each  other Letter of Credit Related Person (if applicable) shall not be responsible to US Borrowers for, and US  Issuing Bank’s rights and remedies against US Borrowers and the obligation of US Borrowers to reimburse  US Issuing Bank for each drawing under each US Letter of Credit shall not be impaired by:  (i) honor of a presentation under any US Letter of Credit that on its face  substantially complies with the terms and conditions of such US Letter of Credit, even if the US  Letter of Credit requires strict compliance by the beneficiary;  (ii) honor of a presentation of any Drawing Document that appears on its face  to have been signed, presented or issued (A) by any purported successor or transferee of any  beneficiary or other Person required to sign, present or issue such Drawing Document or (B) under  a new name of the beneficiary;  (iii) acceptance as a draft of any written or electronic demand or request for  payment under a US Letter of Credit, even if nonnegotiable or not in the form of a draft or  notwithstanding any requirement that such draft, demand or request bear any or adequate reference  to the US Letter of Credit;  (iv) the identity or authority of any presenter or signer of any Drawing  Document or the form, accuracy, genuineness or legal effect of any Drawing Document (other than  US Issuing Bank’s determination that such Drawing Document appears on its face substantially to  comply with the terms and conditions of the US Letter of Credit);  (v) acting upon any instruction or request relative to a US Letter of Credit or  requested US Letter of Credit that US Issuing Bank in good faith believes to have been given by a  Person authorized to give such instruction or request;  (vi) any errors, omissions, interruptions or delays in transmission or delivery  of any message, advice or document (regardless of how sent or transmitted) or for errors in  interpretation of technical terms or in translation or any delay in giving or failing to give notice to  any US Borrower;  (vii) any acts, omissions or fraud by, or the insolvency of, any beneficiary, any  nominated person or entity or any other Person or any breach of contract between any beneficiary  and any US Borrower or any of the parties to the underlying transaction to which the US Letter of  Credit relates;  





 






     -113-    (viii) assertion or waiver of any provision of the ISP or UCP that primarily  benefits an issuer of a letter of credit, including any requirement that any Drawing Document be  presented to it at a particular hour or place;  (ix) payment to any presenting bank (designated or permitted by the terms of  the applicable US Letter of Credit) claiming that it rightfully honored or is entitled to  reimbursement or indemnity under Standard Letter of Credit Practice applicable to it;  (x) acting or failing to act as required or permitted under Standard Letter of  Credit Practice applicable to where US Issuing Bank has issued, confirmed, advised or negotiated  such US Letter of Credit, as the case may be;  (xi) honor of a presentation after the expiration date of any US Letter of Credit  notwithstanding that a presentation was made prior to such expiration date and dishonored by US  Issuing Bank if subsequently US Issuing Bank or any court or other finder of fact determines such  presentation should have been honored;  (xii) dishonor of any presentation that does not strictly comply or that is  fraudulent, forged or otherwise not entitled to honor; or  (xiii) honor of a presentation that is subsequently determined by US Issuing  Bank to have been made in violation of international, federal, state or local restrictions on the  transaction of business with certain prohibited Persons.  (k) US Borrowers shall pay immediately upon demand to the Agent for the account of  US Issuing Bank as non-refundable fees, commissions, and charges (it being acknowledged and agreed that  any charging of such fees, commissions, and charges to the US Loan Account pursuant to the provisions of  Section 2.5(d) shall be deemed to constitute a demand for payment thereof for the purposes of this Section  2.10A(k)):  (i) a fronting fee which shall be imposed by US Issuing Bank equal to  .125% per annum times  the average amount of the US Letter of Credit Usage during the immediately preceding month, plus (ii) any  and all other customary commissions, fees and charges then in effect imposed by, and any and all expenses  incurred by, US Issuing Bank, or by any adviser, confirming institution or entity or other nominated person,  relating to US Letters of Credit, at the time of issuance of any US Letter of Credit and upon the occurrence  of any other activity with respect to any US Letter of Credit (including transfers, assignments of proceeds,  amendments, drawings, renewals or cancellations).  (l) If by reason of (x) any Change in Law, or (y) compliance by US Issuing Bank or  any other member of the Lender Group with any direction, request, or requirement (irrespective of whether  having the force of law) of any Governmental Authority or monetary authority including, Regulation D of  the Board of Governors as from time to time in effect (and any successor thereto):  (i) any reserve, deposit, or similar requirement is or shall be imposed or  modified in respect of any US Letter of Credit issued or caused to be issued hereunder or hereby,  or any Loans or obligations to make Loans hereunder or hereby, or  (ii) there shall be imposed on US Issuing Bank or any other member of the  Lender Group any other condition regarding any US Letter of Credit,  and the result of the foregoing is to increase, directly or indirectly, the cost to US Issuing Bank or any other  member of the Lender Group of issuing, making, participating in, or maintaining any US Letter of Credit  or to reduce the amount receivable in respect thereof, then, and in any such case, the Agent may, at any  





 






     -114-    time within a reasonable period after the additional cost is incurred or the amount received is reduced, notify  US Borrowers, and US Borrowers shall pay within 30 days after demand therefor, such amounts as the  Agent may specify to be necessary to compensate US Issuing Bank or any other member of the Lender  Group for such additional cost or reduced receipt, together with interest on such amount from the date of  such demand until payment in full thereof at the rate then applicable to US Revolving Loans in the Agreed  Currency that are Base Rate Loans hereunder; provided, that (A) US Borrowers shall not be required to  provide any compensation pursuant to this Section 2.10A(l) for any such amounts incurred more than 180  days prior to the date on which the demand for payment of such amounts is first made to US Borrowers,  and (B) if an event or circumstance giving rise to such amounts is retroactive, then the 180-day period  referred to above shall be extended to include the period of retroactive effect thereof.  The determination  by the Agent of any amount due pursuant to this Section 2.10A(l), as set forth in a certificate setting forth  the calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final  and conclusive and binding on all of the parties hereto.  (m) Each US Letter of Credit shall expire not later than the date that is 36 months after  the date of the issuance of such US Letter of Credit; provided, that any US Letter of Credit may provide for  the automatic extension thereof for any number of additional periods each of up to 36 months in duration;  provided further, that with respect to any US Letter of Credit which extends beyond the Maturity Date,  Letter of Credit Collateralization shall be provided therefor on or before the date that is five Business Days  prior to the Maturity Date.   (n)  If (i) any Event of Default shall occur and be continuing, or (ii) Excess Availability  shall at any time be less than zero, then on the Business Day following the date when the Administrative  Borrower receives notice from the Agent or the Supermajority Lenders (or, if the maturity of the Obligations  has been accelerated, Revolving Lenders with US Letter of Credit Exposure representing greater than  66.67% of the total Letter Credit Exposure) demanding Letter of Credit Collateralization pursuant to this  Section 2.10A(n) upon such demand, US Borrowers shall provide Letter of Credit Collateralization with  respect to the then existing US Letter of Credit Usage.  If US Borrowers are required to provide Letter of  Credit Collateralization hereunder as a result of the occurrence of an Event of Default, any cash collateral  held by Agent as a result of such Event of Default shall be returned by Agent to US Borrowers promptly,  but in no event later than seven Business Days, after such Event of Default has been waived in accordance  with this Agreement. If US Borrowers fail to provide Letter of Credit Collateralization as required by this  Section 2.10A(n), the applicable Revolving Lenders may (and, upon direction of the Agent, shall) advance,  as US Revolving Loans the amount of the cash collateral required pursuant to the Letter of Credit  Collateralization provision so that the then existing US Letter of Credit Usage is cash collateralized in  accordance with the Letter of Credit Collateralization provision (whether or not the US Revolver  Commitments have terminated, an US Overadvance exists or the conditions in Section 3 are satisfied).  (o) Unless otherwise expressly agreed by the applicable US Issuing Bank and US  Borrowers when a US Letter of Credit is issued, (i) the rules of the ISP shall apply to each standby US  Letter of Credit, and (ii) the rules of the UCP shall apply to each commercial US Letter of Credit.  (p) US Issuing Bank shall be deemed to have acted with due diligence and reasonable  care if US Issuing Bank’s conduct is in accordance with Standard Letter of Credit Practice or in accordance  with this Agreement.   (q) In the event of a direct conflict between the provisions of this Section 2.10A and  any provision contained in any Issuer Document, it is the intention of the parties hereto that such provisions  be read together and construed, to the fullest extent possible, to be in concert with each other.  In the event  of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this  Section 2.10A shall control and govern.  





 






     -115-    (r) The provisions of this Section 2.10A shall survive the termination of this  Agreement and the repayment in full of the Obligations with respect to any Letters of Credit that remain  outstanding.  (s) At US Borrowers’ costs and expense, US Borrowers shall execute and deliver to  US Issuing Bank such additional certificates, instruments and/or documents and take such additional action  as may be reasonably requested by US Issuing Bank to enable US Issuing Bank to issue any US Letter of  Credit pursuant to this Agreement and related Issuer Document, to protect, exercise and/or enforce such US  Issuing Banks’ rights and interests under this Agreement or to give effect to the terms and provisions of  this Agreement or any Issuer Document.  Each US Borrower irrevocably appoints each US Issuing Bank  as its attorney-in-fact and authorizes each US Issuing Bank, without notice to US Borrowers, to execute  and deliver ancillary documents and letters customary in the letter of credit business that may include but  are not limited to advisements, indemnities, checks, bills of exchange and issuance documents.  The power  of attorney granted by the US Borrowers is limited solely to such actions related to the issuance,  confirmation or amendment of any US Letter of Credit and to ancillary documents or letters customary in  the letter of credit business.  This appointment is coupled with an interest.  (t) Notwithstanding that a US Letter of Credit issued or outstanding hereunder is in  support of any obligations of, or is for the account of, a Guarantor or any Restricted Subsidiary, the US  Borrowers shall be obligated to reimburse each US Issuing Bank hereunder for any and all drawings under  such Letter of Credit issued hereunder by such US Issuing Bank.  Each US Borrower hereby acknowledge  that the issuance of US Letters of Credit for the account of any Guarantor, any Borrower or any other  Restricted Subsidiary inures to the benefit of such US Borrower, and that such US Borrower's business  (indirectly or directly) derives substantial benefits from the businesses of such other Persons.  B. Canadian Letters of Credit.  (a) Subject to the terms and conditions of this Agreement, upon the request of  Administrative Borrower made in accordance herewith, and prior to the Maturity Date, Canadian Issuing  Banks may, but shall not be obligated to, agree to issue, or if Canadian Issuing Bank is WF Canada, to  cause a Canadian Underlying Issuer (including as Canadian Issuing Bank’s agent) to issue, a requested  standby Canadian Letter of Credit or a sight commercial Canadian Letter of Credit for the account of  Canadian Borrowers on their behalf or on behalf of any other Restricted Subsidiary. If Canadian Issuing  Bank is WF Canada, it may, at its option, elect to cause a Canadian Underlying Issuer to issue a requested  Canadian Letter of Credit. If WF Canada makes such election, it agrees that it will enter into arrangements  relative to the reimbursement of such Canadian  Underlying  Issuer (which may include, among other  means, by becoming an applicant with respect to such Canadian Letter of Credit or entering into  undertakings or other arrangements that provide for reimbursement of such Canadian Underlying Issuer  with respect to such drawings under Canadian Letter of Credit; each such obligation or undertaking,  irrespective of whether  in writing, a "Canadian Reimbursement Undertaking") with respect to Canadian  Letters of Credit issued by such Canadian Underlying Issuer for the account of Canadian Borrower. By  submitting a request to a Canadian Issuing Bank for the issuance of a Canadian Letter of Credit, Canadian  Borrowers shall be deemed to have requested that (x) Canadian Issuing Bank issue the requested Canadian  Letter of Credit or (y) in the case in which WF Canada is the Canadian Issuing Bank a Canadian Underlying  Issuer issue the requested Canadian Letter of Credit (and, in such case, to have requested WF Canada to  issue a Canadian Reimbursement Undertaking with respect to such requested Canadian Letter of Credit).   Each request for the issuance of a Canadian Letter of Credit, or the amendment, renewal, or extension of  any outstanding Canadian Letter of Credit, shall be (i) irrevocable and  made in writing by an Authorized  Person, (ii) delivered to the Agent and Canadian Issuing Bank via telefacsimile or other electronic method  of transmission reasonably acceptable to the Agent and Canadian Issuing Bank and reasonably in advance  of the requested date of issuance, amendment, renewal, or extension, and (iii) subject to such Canadian  





 






     -116-    Issuing Bank’s authentication procedures with results satisfactory to such Canadian Issuing Bank.  Each  such request shall be in form and substance reasonably satisfactory to the Agent and Canadian Issuing Bank  and (i) shall specify (A) the amount of such Canadian Letter of Credit and whether such Canadian Letter  of Credit is to be issued in US Dollars or Canadian Dollars, (B) the date of issuance, amendment, renewal,  or extension of such Canadian Letter of Credit, (C) the proposed expiration date of such Canadian Letter  of Credit, (D) the name and address of the beneficiary of the Canadian Letter of Credit, and (E) such other  information (including, the conditions to drawing, and, in the case of an amendment, renewal, or extension,  identification of the Canadian Letter of Credit to be so amended, renewed, or extended) as shall be necessary  to prepare, amend, renew, or extend such Canadian Letter of Credit, and (ii) shall be accompanied by such  Issuer Documents as the Agent or Canadian Issuing Bank may request or require, to the extent that such  requests or requirements are consistent with the Issuer Documents that such Canadian Issuing Bank  generally requests for Canadian Letters of Credit in similar circumstances.  Such Canadian Issuing Bank’s  records of the content of any such request will be conclusive.    (b) A Canadian Issuing Bank shall have no obligation to issue a Canadian Letter of  Credit or a Canadian Reimbursement Undertaking in respect of a Canadian Letter of Credit, in either case,  if any of the following would result after giving effect to the requested issuance:  (i) the Canadian Letter of Credit Usage would exceed $3,000,000, or  (ii) the Canadian Letter of Credit Usage would exceed an amount equal to (A)  the lesser of (x) $30,000,000 and (y) Canadian Borrowing Base minus (B) the US Dollar Equivalent  of the outstanding amount of Canadian Revolving Loans, or  (iii) the Canadian Letter of Credit Usage would exceed the Canadian  Borrowing Base at such time less the outstanding principal balance of the US Dollar Equivalent of  the Canadian Revolving Loans (inclusive of Swing Loans) at such time.  (c) In the event there is a Defaulting Lender as of the date of any request for the  issuance of a Canadian Letter of Credit, a Canadian Issuing Bank shall not be required to issue or arrange  for such Canadian Letter of Credit or any applicable Canadian Reimbursement Undertaking to the extent  (i) the Defaulting Lender’s Canadian Letter of Credit Exposure with respect to such Canadian Letter of  Credit or any applicable Canadian Reimbursement Undertaking may not be reallocated pursuant to Section  2.2(g)(ii), or (ii) the Canadian Issuing Bank has not otherwise entered into arrangements reasonably  satisfactory to it and Canadian Borrowers to eliminate the Canadian Issuing Bank’s risk with respect to the  participation in such Canadian Letter of Credit or any applicable Canadian Reimbursement Undertaking of  the Defaulting Lender, which arrangements may include Canadian Borrowers cash collateralizing such  Defaulting Lender’s Canadian Letter of Credit Exposure in accordance with Section 2.2(g)(ii).   Additionally, a Canadian Issuing Bank shall have no obligation to issue or extend a Canadian Letter of  Credit or a Canadian Reimbursement Undertaking in respect of a Canadian Letter of Credit if (A) any order,  judgment, or decree of any Governmental Authority or arbitrator shall, by its terms, purport to enjoin or  restrain such Canadian Issuing Bank from issuing such Canadian Letter of Credit or a  Canadian  Reimbursement Undertaking or Canadian Underlying Issuer form issuing such Canadian Letter of Credit,  or any law applicable to a Canadian Issuing Bank or Canadian Underlying Issuer or any request or directive  (whether or not having the force of law) from any Governmental Authority with jurisdiction over such  Canadian Issuing Bank or Canadian Underlying Issuer shall prohibit or request that such Canadian Issuing  Bank or Canadian Underlying Issuer refrain from the issuance of letters of credit generally or such Canadian  Letter of Credit or Canadian Reimbursement Undertaking, as applicable,  in particular, (B) the issuance of  such Canadian Letter of Credit would violate one or more policies of such Canadian Issuing Bank or  Canadian Underlying Issuer applicable to letters of credit generally, or (C) if amounts demanded to be paid  under any Canadian Letter of Credit will not or may not be in US Dollars or Canadian Dollars.  





 






     -117-    (d) Any Canadian Issuing Bank (other than WF Canada or any of its Affiliates) shall  notify the Agent in writing no later than the Business Day prior to the Business Day on which such Canadian  Issuing Bank issues any Canadian Letter of Credit or Canadian Reimbursement Undertaking.  In addition,  each Canadian Issuing Bank (other than WF Canada or any of its Affiliates) shall, on the first Business Day  of each week, submit to the Agent a report detailing the daily undrawn amount of each Canadian Letter of  Credit issued by a Canadian Issuing Bank during the prior calendar week.  Each Canadian Letter of Credit  shall be in form and substance reasonably acceptable to Canadian Issuing Bank and Canadian Underlying  Issuer, including the requirement that the amounts payable thereunder must be payable in US Dollars or  Canadian Dollars.  If Canadian Issuing Bank makes a payment under a Canadian Letter of Credit or a  Canadian Reimbursement Undertaking, Canadian Borrowers shall pay to the Agent an amount equal to the  applicable Canadian Letter of Credit Disbursement on the Business Day such Canadian Letter of Credit  Disbursement is made and, in the absence of such payment, the amount of the Canadian Letter of Credit  Disbursement immediately and automatically shall be deemed to be a Canadian Revolving Loan in the  Agreed Currency hereunder (notwithstanding any failure to satisfy any condition precedent set forth in  Section 3) and, initially, shall bear interest at the rate then applicable to Canadian Revolving Loans in the  Agreed Currency that are Base Rate Loans. If a Canadian Letter of Credit Disbursement is deemed to be a  Canadian Revolving Loan hereunder, Canadian Borrowers’ obligation to pay the amount of such Canadian  Letter of Credit Disbursement to a Canadian Issuing Bank shall be automatically converted into an  obligation to pay the resulting Canadian Revolving Loan.  Promptly following receipt by the Agent of any  payment from Canadian Borrowers pursuant to this paragraph, the Agent shall distribute such payment to  such Canadian Issuing Bank or, to the extent that any Revolving Lenders have made payments pursuant to  Section 2.10B(e) to reimburse such Canadian Issuing Bank, then to such Revolving Lenders and Canadian  Issuing Bank as their interests may appear.  (e) Promptly following receipt of a notice of a Canadian Letter of Credit Disbursement  pursuant to Section 2.10B(d), each Revolving Lender agrees to fund its Pro Rata Share of any Canadian  Revolving Loan deemed made pursuant to Section 2.10B(d) on the same terms and conditions as if  Administrative Borrower had requested the amount thereof as a Canadian Revolving Loan and the Agent  shall promptly pay to Canadian Issuing Bank the amounts so received by it from the Revolving Lenders.   By the issuance of a Canadian Letter of Credit or Canadian Reimbursement Undertaking (or an amendment,  renewal, or extension of a Canadian Letter of Credit or Canadian Reimbursement Undertaking) and without  any further action on the part of Canadian Issuing Bank or the Revolving Lenders, Canadian Issuing Bank  shall be deemed to have granted to each Revolving Lender with a Canadian Revolver Commitment, and  each Revolving Lender with a Canadian Revolver Commitment shall be deemed to have purchased, a  participation in each Canadian Letter of Credit issued by Canadian Issuing Bank and each Canadian  Reimbursement Undertaking, in an amount equal to its Pro Rata Share of such Canadian Letter of Credit  or Canadian Reimbursement Undertaking, and each such Revolving Lender agrees to pay to the Agent, for  the account of Canadian Issuing Bank, such Revolving Lender’s Pro Rata Share of any Canadian Letter of  Credit Disbursement made by Canadian Issuing Bank under the applicable Canadian Letter of Credit or  Canadian Reimbursement Undertaking.  In consideration and in furtherance of the foregoing, each  Revolving Lender with a Canadian Revolver Commitment hereby absolutely and unconditionally agrees to  pay to the Agent, for the account of Canadian Issuing Bank, such Revolving Lender’s Pro Rata Share of  each Canadian Letter of Credit Disbursement made by a Canadian Issuing Bank and not reimbursed by  Canadian Borrowers on the date due as provided in Section 2.10B(d), or of any reimbursement payment  that is required to be refunded (or that the Agent or Canadian Issuing Bank elects, based upon the advice  of counsel, to refund) to Canadian Borrowers for any reason.  Each Revolving Lender with a Canadian  Revolver Commitment acknowledges and agrees that its obligation to deliver to the Agent, for the account  of a Canadian Issuing Bank, an amount equal to its respective Pro Rata Share of each Canadian Letter of  Credit Disbursement pursuant to this Section 2.10B(e) shall be absolute and unconditional and such  remittance shall be made notwithstanding the occurrence or continuation of an Event of Default or Default  or the failure to satisfy any condition set forth in Section 3.  If any such Revolving Lender fails to make  





 






     -118-    available to the Agent the amount of such Revolving Lender’s Pro Rata Share of a Canadian Letter of Credit  Disbursement as provided in this Section, such Revolving Lender shall be deemed to be a Defaulting Lender  and the Agent (for the account of Canadian Issuing Bank) shall be entitled to recover such amount on  demand from such Revolving Lender together with interest thereon at the Defaulting Lender Rate until paid  in full.  (f) Canadian Borrowers jointly and severally agree to indemnify, defend and hold  harmless each Letter of Credit Related Person (to the fullest extent permitted by law) from and against any  Letter of Credit Indemnified Costs, and which arise out of or in connection with, or as a result of:  (i) any Canadian Letter of Credit or any pre-advice of its issuance or  Canadian Reimbursement Undertaking;  (ii) any transfer, sale, delivery, surrender or endorsement (or lack thereof) of  any Drawing Document at any time(s) held by any such Letter of Credit Related Person in  connection with any Canadian Letter of Credit or Canadian Reimbursement Undertaking;  (iii) any action or proceeding arising out of, or in connection with, any  Canadian Letter of Credit or Canadian Reimbursement Undertaking (whether administrative,  judicial or in connection with arbitration), including any action or proceeding to compel or restrain  any presentation or payment under any Canadian Letter of Credit or Canadian Reimbursement  Undertaking, or for the wrongful dishonor of, or honoring a presentation under, any Canadian Letter  of Credit;  (iv) any independent undertakings issued by the beneficiary of any Canadian  Letter of Credit;  (v) any unauthorized instruction or request made to Canadian Issuing Bank or  Canadian Underlying Issuer in connection with any Canadian Letter of Credit or Canadian  Reimbursement Undertaking or requested Canadian Letter of Credit or Canadian Reimbursement  Undertaking, or any error, omission, interruption or delay in such instruction or request, whether  transmitted by mail, courier, electronic transmission, SWIFT, or any other telecommunication  including communications through a correspondent;  (vi) an adviser, confirmer or other nominated person seeking to be reimbursed,  indemnified or compensated in connection with any Canadian Letter of Credit or Canadian  Reimbursement Undertaking;  (vii) any third party seeking to enforce the rights of an applicant, beneficiary,  nominated person, transferee, assignee of Canadian Letter of Credit proceeds or holder of an  instrument or document;  (viii) the fraud, forgery or illegal action of parties in connection with a Canadian  Letter of Credit or Canadian Reimbursement Undertaking other than the Letter of Credit Related  Person;  (ix) any prohibition on payment or delay in payment of any amount payable  by Canadian Issuing Bank to a beneficiary or transferee beneficiary of a Canadian Letter of Credit  arising out of Anti-Corruption Laws, Anti-Money Laundering Laws, or Sanctions;   





 






     -119-    (x) Canadian Issuing Bank’s or Canadian Underlying Issuer’s performance of  the obligations of a confirming institution or entity that wrongfully dishonors a confirmation;   (xi) any foreign language translation provided to Canadian Issuing Bank in  connection with any Canadian Letter of Credit;    (xii) any foreign law or usage as it relates to Canadian Issuing Bank’s issuance  of a Canadian Letter of Credit in support of a foreign guaranty including without limitation the  expiration of such guaranty after the related Canadian Letter of Credit expiration date and any  resulting drawing paid by Canadian Issuing Bank in connection therewith; or   (xiii) the acts or omissions, whether rightful or wrongful, of any present or  future de jure or de facto governmental or regulatory authority or cause or event beyond the control  of the Letter of Credit Related Person related to a Canadian Letter of Credit or Canadian  Reimbursement Undertaking;  provided, that such indemnity shall not be available to any Letter of Credit Related Person claiming  indemnification under clauses (i) through (x) above to the extent that such  Letter of Credit Indemnified  Costs may be finally determined in a final, non-appealable judgment of a court of competent jurisdiction to  have resulted directly from the gross negligence or willful misconduct of the Letter of Credit Related Person  claiming indemnity.  Canadian Borrowers hereby agree to pay the Letter of Credit Related Person claiming  indemnity on demand from time to time all amounts owing under this Section 2.10B(f).  If and to the extent  that the obligations of Canadian Borrowers under this Section 2.10B(f) are unenforceable for any reason,  Canadian Borrowers agree to make the maximum contribution to the Letter of Credit Indemnified Costs  permissible under applicable law.  This indemnification provision shall survive termination of this  Agreement and all Canadian Letters of Credit and Canadian Reimbursement Undertaking.  (g) The liability of Canadian Issuing Bank (or any other Letter of Credit Related  Person) under, in connection with or arising out of any Canadian Letter of Credit (or pre-advice) or  Canadian Reimbursement Undertaking, regardless of the form or legal grounds of the action or proceeding,  shall be limited to direct damages suffered by Canadian Borrowers that are caused directly by Canadian  Issuing Bank’s gross negligence or willful misconduct in (i) honoring a presentation under a Canadian  Letter of Credit that on its face does not at least substantially comply with the terms and conditions of such  Canadian Letter of Credit, (ii) failing to honor a presentation under a Canadian Letter of Credit that strictly  complies with the terms and conditions of such Canadian Letter of Credit, or (iii) retaining Drawing  Documents presented under a Canadian Letter of Credit.  Canadian Borrowers’ aggregate remedies against  Canadian Issuing Bank and any Letter of Credit Related Person for wrongfully honoring a presentation  under any Canadian Letter of Credit or wrongfully retaining honored Drawing Documents shall in no event  exceed the aggregate amount paid by Canadian Borrowers to Canadian Issuing Bank in respect of the  honored presentation in connection with such Canadian Letter of Credit under Section 2.10B(d), plus  interest at the rate then applicable to Canadian Revolving Loans in the Agreed Currency that are Base Rate  Loans hereunder. Canadian Borrowers shall take action to avoid and mitigate the amount of any damages  claimed against any Canadian Issuing Bank or any other Letter of Credit Related Person, including by  enforcing its rights against the beneficiaries of the Canadian Letters of Credit.  Any claim by Canadian  Borrowers under or in connection with any Canadian Letter of Credit shall be reduced by an amount equal  to the sum of (x) the amount (if any) saved by Canadian Borrowers as a result of the breach or alleged  wrongful conduct complained of, and (y) the amount (if any) of the loss that would have been avoided had  Canadian Borrowers taken all reasonable steps to mitigate any loss, and in case of a claim of wrongful  dishonor, by specifically and timely authorizing such Canadian Issuing Bank or Canadian Underlying Issuer  to effect a cure.  





 






     -120-    (h)  Administrative Borrower is responsible for the final text of the Canadian Letter of  Credit as issued by any Canadian Issuing Bank or Canadian Underlying Issuer, irrespective of any  assistance Canadian Issuing Bank or Canadian Underlying Issuer may provide such as drafting or  recommending text or by Canadian Issuing Bank’s or Canadian Underlying Issuer’s use or refusal to use  text submitted by Administrative Borrower. Canadian Borrowers understand that the final form of any  Canadian Letter of Credit may be subject to such revisions and changes as are deemed necessary or  appropriate by Canadian Issuing Bank or Canadian Underlying Issuer, and Canadian Borrowers hereby  consent to such revisions and changes not materially different from the application executed in connection  therewith. Canadian Borrowers are solely responsible for the suitability of the Canadian Letter of Credit  for Canadian Borrowers’ purposes.  If Canadian Borrowers request a Canadian Issuing Bank to issue a  Letter of Credit for a Restricted Subsidiary that is not a Canadian Loan Party (i) such Restricted Subsidiary  shall have no rights against any Canadian Issuing Bank; (ii) Canadian Borrowers shall be responsible for  the application and obligations under this Agreement; and (iii) communications (including notices) related  to the respective Letter of Credit shall be among the Canadian Issuing Banks and Canadian Borrowers.   Canadian Borrowers will examine the copy of the Canadian Letter of Credit and any other documents sent  by Canadian Issuing Bank in connection therewith and shall promptly notify the applicable Canadian  Issuing Bank (not later than three (3) Business Days following Canadian Borrowers’ receipt of documents  from the applicable Canadian Issuing Bank) of any non-compliance with the Canadian Borrowers’  instructions and of any discrepancy in any document under any presentment or other irregularity.  Canadian  Borrowers understand and agree that no Canadian Issuing Bank is required to extend the expiration date of  any Canadian Letter of Credit for any reason. With respect to any Canadian Letter of Credit containing an  “automatic amendment” to extend the expiration date of such Canadian Letter of Credit, each of Canadian  Issuing Bank and Canadian Underlying Issuer, in its sole and absolute discretion, may give notice of  nonrenewal of such Canadian Letter of Credit and, if Canadian Borrowers do not at any time want the then  current expiration date of such Letter of Credit to be extended, Canadian Borrowers will so notify the Agent  and Canadian Issuing Bank at least 30 calendar days before such Canadian Issuing Bank or Canadian  Underlying Issuer is required to notify the beneficiary of such Canadian Letter of Credit or any advising  bank of such non-extension pursuant to the terms of such Canadian Letter of Credit.  (i) Canadian Borrowers’ reimbursement and payment obligations under this Section  2.10B are absolute, unconditional and irrevocable and shall be performed strictly in accordance with the  terms of this Agreement under any and all circumstances whatsoever, including:  (i) any lack of validity, enforceability or legal effect of any Canadian Letter  of Credit, any Canadian Reimbursement Undertaking, any Issuer Document, this Agreement, or  any Loan Document, or any term or provision therein or herein;  (ii) payment against presentation of any draft, demand or claim for payment  under any Drawing Document that does not comply in whole or in part with the terms of the  applicable Canadian Letter of Credit or which proves to be fraudulent, forged or invalid in any  respect or any statement therein being untrue or inaccurate in any respect, or which is signed, issued  or presented by a Person or a transferee of such Person purporting to be a successor or transferee  of the beneficiary of such Canadian Letter of Credit;  (iii) Canadian Issuing Bank or any of its branches or Affiliates or Canadian  Underlying Issuer being the beneficiary of any Canadian Letter of Credit;  (iv) Canadian Issuing Bank or Canadian Underlying Issuer or any  correspondent honoring a drawing against a Drawing Document up to the amount available under  any Canadian Letter of Credit even if such Drawing Document claims an amount in excess of the  amount available under the Canadian Letter of Credit;  





 






     -121-    (v) the existence of any claim, set-off, defense or other right that any Credit  Party or any of its Restricted Subsidiaries may have at any time against any beneficiary or transferee  beneficiary, any assignee of proceeds, Canadian Issuing Bank, Canadian Underlying Issuer or any  other Person;  (vi) Canadian Issuing Bank or any correspondent honoring a drawing upon  receipt of an electronic presentation under a Canadian Letter of Credit requiring the same,  regardless of whether the original Drawing Documents arrive at Canadian Issuing Bank’s counters  or are different from the electronic presentation;   (vii) any other event, circumstance or conduct whatsoever, whether or not  similar to any of the foregoing that might, but for this Section 2.10B(i), constitute a legal or  equitable defense to or discharge of, or provide a right of set-off against, any Canadian Borrower’s  or any of its Restricted Subsidiaries’ reimbursement and other payment obligations and liabilities,  arising under, or in connection with, any Canadian Letter of Credit, whether against Canadian  Issuing Bank, Canadian Underlying Issuer, the beneficiary or any other Person; or  (viii) the fact that any Default or Event of Default shall have occurred and be  continuing;   provided, that subject to Section 2.10B(g) above, the foregoing shall not release a Canadian Issuing Bank  or Canadian Underlying Issuer from such liability to Canadian Borrowers as may be finally determined in  a final, non-appealable judgment of a court of competent jurisdiction against such Canadian Issuing Bank  or Canadian Underlying Issuer following reimbursement or payment of the obligations and liabilities,  including reimbursement and other payment obligations, of Canadian Borrowers to Canadian Issuing Bank  arising under, or in connection with, this Section 2.10B or any Canadian Letter of Credit or Canadian  Reimbursement Undertaking or its correspondent.  (j) Without limiting any other provision of this Agreement, Canadian Issuing Bank  and each other Letter of Credit Related Person (if applicable) shall not be responsible to Canadian  Borrowers for, and Canadian Issuing Bank’s rights and remedies against Canadian Borrowers and the  obligation of Canadian Borrowers to reimburse Canadian Issuing Bank for each drawing under each  Canadian Letter of Credit and each Canadian Reimbursement Undertaking  shall not be impaired by:  (i) honor of a presentation under any Canadian Letter of Credit that on its face  substantially complies with the terms and conditions of such Canadian Letter of Credit, even if the  Canadian Letter of Credit requires strict compliance by the beneficiary;  (ii) honor of a presentation of any Drawing Document that appears on its face  to have been signed, presented or issued (A) by any purported successor or transferee of any  beneficiary or other Person required to sign, present or issue such Drawing Document or (B) under  a new name of the beneficiary;  (iii) acceptance as a draft of any written or electronic demand or request for  payment under a Canadian Letter of Credit, even if nonnegotiable or not in the form of a draft or  notwithstanding any requirement that such draft, demand or request bear any or adequate reference  to the Canadian Letter of Credit;  (iv) the identity or authority of any presenter or signer of any Drawing  Document or the form, accuracy, genuineness or legal effect of any Drawing Document (other than  Canadian Issuing Bank’s or Canadian Underlying Issuer’s determination that such Drawing  





 






     -122-    Document appears on its face substantially to comply with the terms and conditions of the Canadian  Letter of Credit);  (v) acting upon any instruction or request relative to a Canadian Letter of  Credit or requested Canadian Letter of Credit that each of Canadian Issuing Bank and Canadian  Underlying Issuer in good faith believes to have been given by a Person authorized to give such  instruction or request;  (vi) any errors, omissions, interruptions or delays in transmission or delivery  of any message, advice or document (regardless of how sent or transmitted) or for errors in  interpretation of technical terms or in translation or any delay in giving or failing to give notice to  any Canadian Borrower;  (vii) any acts, omissions or fraud by, or the insolvency of, any beneficiary, any  nominated person or entity or any other Person or any breach of contract between any beneficiary  and any Canadian Borrower or any of the parties to the underlying transaction to which the  Canadian Letter of Credit relates;  (viii) assertion or waiver of any provision of the ISP or UCP that primarily  benefits an issuer of a letter of credit, including any requirement that any Drawing Document be  presented to it at a particular hour or place;  (ix) payment to any presenting bank (designated or permitted by the terms of  the applicable Canadian Letter of Credit) claiming that it rightfully honored or is entitled to  reimbursement or indemnity under Standard Letter of Credit Practice applicable to it;  (x) acting or failing to act as required or permitted under Standard Letter of  Credit Practice applicable to where Canadian Issuing Bank or Canadian Underlying Issuer has  issued, confirmed, advised or negotiated such Canadian Letter of Credit, as the case may be;  (xi) honor of a presentation after the expiration date of any Canadian Letter of  Credit notwithstanding that a presentation was made prior to such expiration date and dishonored  by Canadian Issuing Bank or Canadian Underlying Issuer, as applicable, if subsequently Canadian  Issuing Bank or Canadian Underlying Issuer, as applicable, or any court or other finder of fact  determines such presentation should have been honored;  (xii) dishonor of any presentation that does not strictly comply or that is  fraudulent, forged or otherwise not entitled to honor; or  (xiii) honor of a presentation that is subsequently determined by Canadian  Issuing Bank or Canadian Underlying Issuer, as applicable, to have been made in violation of  international, federal, state or local restrictions on the transaction of business with certain prohibited  Persons.  (k) Canadian Borrowers shall pay immediately upon demand to the Agent for the  account of Canadian Issuing Bank as non-refundable fees, commissions, and charges (it being  acknowledged and agreed that any charging of such fees, commissions, and charges to the Canadian Loan  Account pursuant to the provisions of Section 2.5(d) shall be deemed to constitute a demand for payment  thereof for the purposes of this Section 2.10B(k)):  (i) a fronting fee which shall be imposed by Canadian  Issuing Bank upon the issuance of each Canadian Letter of Credit equal to  .125% per annum times the  average amount of the Canadian Letter of Credit Usage during the immediately preceding month, plus (ii)  





 






     -123-    any and all other customary commissions, fees and charges then in effect imposed by, and any and all  expenses incurred by, Canadian Issuing Bank or Canadian Underlying Issuer, or by any adviser, confirming  institution or entity or other nominated person, relating to US Letters of Credit, at the time of issuance of  any Canadian Letter of Credit and upon the occurrence of any other activity with respect to any Canadian  Letter of Credit (including transfers, assignments of proceeds, amendments, drawings, renewals or  cancellations).  (l) If by reason of (x) any Change in Law, or (y) compliance by Canadian Issuing  Bank or any other member of the Lender Group or Canadian Underlying Issuer with any direction, request,  or requirement (irrespective of whether having the force of law) of any Governmental Authority or  monetary authority including, Regulation D of the Board of Governors as from time to time in effect (and  any successor thereto):  (i) any reserve, deposit, or similar requirement is or shall be imposed or  modified in respect of any Canadian Letter of Credit or Canadian Reimbursement Undertaking  issued or caused to be issued hereunder or hereby, or any Loans or obligations to make Loans  hereunder or hereby, or  (ii) there shall be imposed on Canadian Issuing Bank or any other member of  the Lender Group or Canadian Underlying Issuer any other condition regarding any Canadian  Letter of Credit or any Canadian Reimbursement Undertaking,  and the result of the foregoing is to increase, directly or indirectly, the cost to Canadian Issuing Bank or  any other member of the Lender Group or Canadian Underlying Issuer of issuing, making, participating in,  or maintaining any Canadian Letter of Credit or to reduce the amount receivable in respect thereof, then,  and in any such case, the Agent may, at any time within a reasonable period after the additional cost is  incurred or the amount received is reduced, notify Canadian Borrowers, and Canadian Borrowers shall pay  within 30 days after demand therefor, such amounts as the Agent may specify to be necessary to compensate  Canadian Issuing Bank or any other member of the Lender Group or Canadian Underlying Issuer for such  additional cost or reduced receipt, together with interest on such amount from the date of such demand until  payment in full thereof at the rate then applicable to Canadian Revolving Loans in the Agreed Currency  that are Base Rate Loans hereunder; provided, that (A) Canadian Borrowers shall not be required to provide  any compensation pursuant to this Section 2.10B(l) for any such amounts incurred more than 180 days prior  to the date on which the demand for payment of such amounts is first made to Canadian Borrowers, and  (B) if an event or circumstance giving rise to such amounts is retroactive, then the 180-day period referred  to above shall be extended to include the period of retroactive effect thereof.  The determination by the  Agent of any amount due pursuant to this Section 2.10B(l), as set forth in a certificate setting forth the  calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final and  conclusive and binding on all of the parties hereto.  (m) Each standby Canadian Letter of Credit shall expire not later than the date that is  36 months after the date of the issuance of such Canadian Letter of Credit; provided, that any standby  Canadian Letter of Credit may provide for the automatic extension thereof for any number of additional  periods each of up to 36 months in duration; provided further, that with respect to any Canadian Letter of  Credit which extends beyond the Maturity Date, Letter of Credit Collateralization shall be provided therefor  on or before the date that is five Business Days prior to the Maturity Date.   (n)  If (i) any Event of Default shall occur and be continuing, or (ii) Excess Availability  shall at any time be less than zero, then on the Business Day following the date when the Administrative  Borrower receives notice from the Agent or the Supermajority Lenders (or, if the maturity of the Obligations  has been accelerated, Revolving Lenders with Canadian Letter of Credit Exposure representing greater than  





 






     -124-    66.67% of the total Letter Credit Exposure) demanding Letter of Credit Collateralization pursuant to this  Section 2.10B(n) upon such demand, Canadian Borrowers shall provide Letter of Credit Collateralization  with respect to the then existing Canadian Letter of Credit Usage.   If Canadian Borrowers are required to  provide Letter of Credit Collateralization hereunder as a result of the occurrence of such Event of Default,  any cash collateral held by Agent as a result of such Letter of Credit Collateralization shall be returned by  Agent to Canadian Borrowers promptly, but in no event later than seven Business Days, after such Event  of Default has been waived in accordance with this Agreement.  If Canadian Borrowers fail to provide  Letter of Credit Collateralization as required by this Section 2.10B(n), the applicable Revolving Lenders  may (and, upon direction of the Agent, shall) advance, as Canadian Revolving Loans the amount of the  cash collateral required pursuant to the Letter of Credit Collateralization provision so that the then existing  Canadian Letter of Credit Usage is cash collateralized in accordance with the Letter of Credit  Collateralization provision (whether or not the Canadian Revolver Commitments have terminated, a  Canadian Overadvance exists or the conditions in Section 3 are satisfied).  (o) Unless otherwise expressly agreed by Canadian Issuing Banks and Canadian  Borrowers when a Canadian Letter of Credit is issued, (i) the rules of the ISP shall apply to each standby  Canadian Letter of Credit, and (ii) the rules of the UCP shall apply to each commercial Canadian Letter of  Credit.  (p) Canadian Issuing Bank shall be deemed to have acted with due diligence and  reasonable care if Canadian Issuing Bank’s conduct is in accordance with Standard Letter of Credit Practice  or in accordance with this Agreement.   (q) In the event of a direct conflict between the provisions of this Section 2.10B and  any provision contained in any Issuer Document, it is the intention of the parties hereto that such provisions  be read together and construed, to the fullest extent possible, to be in concert with each other.  In the event  of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this  Section 2.10B shall control and govern.  (r) The provisions of this Section 2.10B shall survive the termination of this  Agreement and the repayment in full of the Obligations with respect to any Letters of Credit that remain  outstanding.  (s) At Canadian Borrowers’ costs and expense, Canadian Borrowers shall execute and  deliver to Canadian Issuing Bank such additional certificates, instruments and/or documents and take such  additional action as may be reasonably requested by Canadian Issuing Bank to enable Canadian Issuing  Bank to issue any Canadian Letter of Credit pursuant to this Agreement and related Issuer Document, to  protect, exercise and/or enforce such Canadian Issuing Banks’ rights and interests under this Agreement or  to give effect to the terms and provisions of this Agreement or any Issuer Document.  Each Canadian  Borrower irrevocably appoints each Canadian Issuing Bank as its attorney-in-fact and authorizes each  Canadian Issuing Bank, without notice to Canadian Borrowers, to execute and deliver ancillary documents  and letters customary in the letter of credit business that may include but are not limited to advisements,  indemnities, checks, bills of exchange and issuance documents.  The power of attorney granted by the  Canadian Borrowers is limited solely to such actions related to the issuance, confirmation or amendment  of any Canadian Letter of Credit and to ancillary documents or letters customary in the letter of credit  business.  This appointment is coupled with an interest.  (t) Notwithstanding that a Canadian Letter of Credit issued or outstanding hereunder  is in support of any obligations of, or is for the account of, a Guarantor or any Restricted Subsidiary, the  Canadian Borrowers shall be obligated to reimburse each Canadian Issuing Bank hereunder for any and all  drawings under such Letter of Credit issued hereunder by such Canadian Issuing Bank.  Each Canadian  





 






     -125-    Borrower hereby acknowledge that the issuance of Canadian Letters of Credit for the account of any Foreign  Guarantor, any Canadian Borrower or any other Restricted Subsidiary inures to the benefit of such Canadian  Borrower, and that such Canadian Borrower's business (indirectly or directly) derives substantial benefits  from the businesses of such other Persons.  2.11 Non-Base Rate Option.  (a) Interest and Interest Payment Dates.  In lieu of having interest charged at the  rate based upon the Base Rate, Borrowers shall have the option, subject to Section 2.11(b) below (the “Non- Base Rate Option”) to have interest on all or a portion of the Revolving Loans be charged (whether at the  time when made (unless otherwise provided herein), upon conversion from a Base Rate Loan to a Non- Base Rate Loan, or upon continuation of a Non-Base Rate Loan as a Non-Base Rate Loan) at a rate of  interest based upon the Non-Base Rate.  Interest on Non-Base Rate Loans shall be payable on the earliest  of (i) the last day of the Interest Period applicable thereto; provided, that subject to the following clauses  (ii) and (iii), in the case of any Interest Period greater than three months in duration, interest shall be payable  at three month intervals after the commencement of the applicable Interest Period and on the last day of  such Interest Period), (ii) the date on which all or any portion of the Obligations are accelerated pursuant  to the terms hereof, or (iii) the date on which this Agreement is terminated pursuant to the terms hereof.   On the last day of each applicable Interest Period, unless Borrowers have properly exercised the Non-Base  Rate Option with respect thereto, the interest rate applicable to such Non-Base Rate Loan automatically  shall convert to the rate of interest then applicable to Base Rate Loans of the same type hereunder.  At any  time that an Event of Default has occurred and is continuing, at the written election of the Agent or the  Supermajority Lenders, Borrowers no longer shall have the option to request that Revolving Loans bear  interest at a rate based upon the Non-Base Rate.  (b) Non-Base Rate Election.  (i) Borrowers may, at any time and from time to time, so long as no Event of  Default has occurred and is continuing, elect to exercise the Non-Base Rate Option by notifying Agent prior  to 1:00 p.m. at least three Business Days prior to the commencement of the proposed Interest Period (the  “Non-Base Rate Deadline”).  Notice of Borrowers’ election of the Non-Base Rate Option for a permitted  portion of the Revolving Loans and an Interest Period pursuant to this Section shall be made by delivery to  Agent of a Non-Base Rate Notice received by Agent before the Non-Base Rate Deadline.  Promptly upon  its receipt of each such Non-Base Rate Notice, Agent shall provide a copy thereof to each of the affected  Lenders.  (ii) Each Non-Base Rate Notice shall be irrevocable and binding on  Borrowers.  In connection with each Non-Base Rate Loan, US Borrowers, if such Non-Base Rate Loan is  a US Revolving Loan, or Canadian Borrowers if such Non-Base Rate Loan is a Canadian Revolving Loan,  shall jointly and severally indemnify, defend, and hold the Agent and the Lenders harmless against any  loss, cost, or expense incurred by the Agent or any Lender (but excluding any loss of Applicable Margin)  as a result of (A) the payment or required assignment of any principal of any Non-Base Rate Loan other  than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default),  (B) the conversion of any Non-Base Rate Loan other than on the last day of the Interest Period applicable  thereto, or (C) the failure to borrow, convert, continue or prepay any Non-Base Rate Loan on the date  specified in any Non-Base Rate Notice delivered pursuant hereto (such losses, costs, or expenses, “Funding  Losses”).  A certificate of the Agent or a Lender delivered to applicable Borrowers setting forth in  reasonable detail any amount or amounts that the Agent or such Lender is entitled to receive pursuant to  this Section 2.11 shall be conclusive absent manifest error.  US Borrowers, if such Non-Base Rate Loan is  a US Revolving Loan or Canadian Borrowers, if such Non-Base Rate Loan is a Canadian Revolving Loan,  shall jointly and severally pay such amount to the Agent or the Lender, as applicable, within 30 days of the  





 






     -126-    date of its receipt of such certificate.  If a payment of a Non-Base Rate Loan on a day other than the last  day of the applicable Interest Period would result in a Funding Loss, the Agent may, in its sole discretion  at the request of Borrowers, hold the amount of such payment as cash collateral in support of the Obligations  until the last day of such Interest Period and apply such amounts to the payment of the applicable Non-Base  Rate Loan on such last day, it being agreed that the Agent has no obligation to so defer the application of  payments to any Non-Base Rate Loan and that, in the event that the Agent does not defer such application,  Borrowers shall be obligated to pay any resulting Funding Losses.  The Borrowers’ obligations to  indemnify, defend and hold harmless under this clause (ii) shall survive the termination of this Agreement  and the repayment in full of the Obligations.  (iii) Unless the Agent, in its sole discretion, agrees otherwise, Borrowers shall  have not more than five Non-Base Rate Loans in effect at any given time.  Borrowers may only exercise  the Non-Base Rate Option for proposed Non-Base Rate Loans of at least $1,000,000.  (c) Conversion; Prepayment.  Borrowers may convert Non-Base Rate Loans to Base  Rate Loans in the Agreed Currency or prepay Non-Base Rate Loans at any time; provided, that in the event  that Non-Base Rate Loans are converted or prepaid on any date that is not the last day of the Interest Period  applicable thereto, including as a result of any prepayment through the required application by Agent of  any payments or proceeds of Collateral in accordance with Section 2.3(b) or for any other reason, including  early termination of the term of this Agreement or acceleration of all or any portion of the Obligations  pursuant to the terms hereof, each Borrower shall indemnify, defend, and hold the Agent and the Lenders  and their Participants harmless against any and all Funding Losses in accordance with Section 2.11(b)(ii).  (d) Special Provisions Applicable to Non-Base Rate.  (i) The Non-Base Rate may be adjusted by Agent with respect to any Lender  on a prospective basis to take into account any additional or increased costs to such Lender of maintaining  or obtaining any eurodollar deposits, Canadian Dollar deposits or increased costs (other than Taxes which  shall be governed by Section 16), in each case, due to any Changes in Law (including any changes in tax  laws (except with respect to Taxes excluded from the definition of “Indemnified Taxes)) occurring  subsequent to the commencement of the then applicable Interest Period and changes in the reserve  requirements imposed by the Board of Governors, which additional or increased costs would increase the  cost of funding or maintaining loans bearing interest at the Non-Base Rate. In any such event, the affected  Lender shall give Administrative Borrower and Agent notice of such a determination and adjustment and  the Agent promptly shall transmit the notice to each other Lender and, upon its receipt of the notice from  the affected Lender, Administrative Borrower may, by notice to such affected Lender (A) require such  Lender to furnish to Administrative Borrower a statement setting forth in reasonable detail the basis for  adjusting such Non-Base Rate and the method for determining the amount of such adjustment, or (B) repay  the Non-Base Rate Loans of such Lender with respect to which such adjustment is made (together with any  amounts due under Section 2.11(b)(ii)).  (ii) Subject to the provisions set forth in Section 2.11(d)(iii) below, in the  event that any change in market conditions or any Change in Law shall at any time after the date hereof, in  the reasonable opinion of any Lender, make it unlawful or impractical for such Lender to fund or maintain  Non-Base Rate Loans or to continue such funding or maintaining, or to determine or charge interest rates  at the Non-Base Rate, such Lender shall give notice of such changed circumstances to the Agent and  Administrative Borrower and the Agent promptly shall transmit the notice to each other Lender and (y) in  the case of any Non-Base Rate Loans of such Lender that are outstanding, the date specified in such Lender's  notice shall be deemed to be the last day of the Interest Period of such Non-Base Rate Loans, and interest  upon the Non-Base Rate Loans of such Lender thereafter shall accrue interest at the rate then applicable to  





 






     -127-    Base Rate Loans, and (z) Borrowers shall not be entitled to elect the Non-Base Rate Option until such  Lender determines that it would no longer be unlawful or impractical to do so.  (iii) Effect of Benchmark Transition Event.  (A) Benchmark Replacement.  (1) Notwithstanding anything to the  contrary herein or in any other Loan Document if a Benchmark Transition Event, an Early Opt-in Election  or an Other Benchmark Rate Election, as applicable, and its related Benchmark Replacement Date have  occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a  Benchmark Replacement is determined in accordance with clause (a)(i) or (a)(ii) of the definition of  “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will  replace such Benchmark for all purposes hereunder and under any other Loan Document in respect of such  Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or  consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark  Replacement is determined in accordance with clause (a)(iii) or clause (c) of the definition of “Benchmark  Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such  Benchmark for all purposes hereunder and under any other Loan Document in respect of any Benchmark  setting at or after 5:00 p.m. on the fifth (5th) Business Day after the date notice of such Benchmark  Replacement is provided to the Lenders without any amendment to, or further action or consent of any other  party to, this Agreement or any other Loan Document so long as Agent has not received, by such time,  written notice of objection to such Benchmark Replacement from Lenders comprising the Required  Lenders.  If an Unadjusted Benchmark Replacement Rate is SOFR Average, all interest payments will be  on a monthly basis.  (2) Notwithstanding anything to the contrary herein or in any other  Loan Document, if a Term SOFR Transition Event and its related Benchmark Replacement Date have  occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then the  applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or  under any other Loan Document in respect of such Benchmark setting and subsequent Benchmark settings,  without any amendment to, or further action or consent of any other party to, this Agreement or any other  Loan Document; provided that this clause (2) shall not be effective unless Agent has delivered to the  Lenders and Administrative Borrower a Term SOFR Notice.  For the avoidance of doubt, Agent shall not  be required to deliver a Term SOFR Notice after a Term SOFR Transition Event and may elect or not elect  to do so in its sole discretion.  (B) Benchmark Replacement Conforming Changes.  In connection  with the implementation of a Benchmark Replacement, Agent will have the right to make Benchmark  Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein  or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming  Changes will become effective without any further action or consent of any other party to this Agreement  or any other Loan Document.  (C) Notices; Standards for Decisions and Determinations.  Agent will  promptly notify Administrative Borrower and the Lenders of (1) any occurrence of a Benchmark Transition  Event, a Term SOFR Transition Event, an Early Opt-in Election or an Other Benchmark Rate Election, as  applicable, and its related Benchmark Replacement Date, (2) the implementation of any Benchmark  Replacement, (3) the effectiveness of any Benchmark Replacement Conforming Changes, (4) the removal  or reinstatement of any tenor of a Benchmark pursuant to Section 2.11(d)(iii)(D) below and (5) the  commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or  election that may be made by Agent or, if applicable, any Lender (or group of Lenders) pursuant to this  Section 2.11(d)(iii), including any determination with respect to a tenor, rate or adjustment or of the  





 






     -128-    occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from  taking any action or any selection, will be conclusive and binding absent manifest error and may be made  in its or their sole discretion and without consent from any other party to this Agreement or any other Loan  Document, except, in each case, as expressly required pursuant to this Section 2.11(d)(iii).  (D) Unavailability of Tenor of Benchmark. Notwithstanding anything  to the contrary herein or in any other Loan Document, at any time (including in connection with the  implementation of a Benchmark Replacement), (1) if the then-current Benchmark is a term rate (including  Term SOFR or USD LIBOR) and either (x) any tenor for such Benchmark is not displayed on a screen or  other information service that publishes such rate from time to time as selected by Agent in its discretion  or (y) the regulatory supervisor for the administrator of such Benchmark has provided a public statement  or publication of information announcing that any tenor for such Benchmark is or will be no longer  representative, then Agent may modify the definition of “Interest Period” for any Benchmark settings at or  after such time to remove such unavailable or non-representative tenor and (2) if a tenor that was removed  pursuant to clause (1) above either (x) is subsequently displayed on a screen or information service for a  Benchmark (including a Benchmark Replacement) or (y) is not, or is no longer, subject to an announcement  that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then  Agent may modify the definition of “Interest Period” for all Benchmark settings at or after such time to  reinstate such previously removed tenor.  (E) Benchmark Unavailability Period.  Upon Administrative  Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, Administrative  Borrower may revoke any request for a Borrowing of, conversion to or continuation of LIBOR Rate Loans  to be made, converted or continued during any Benchmark Unavailability Period and, failing that,  Administrative Borrower will be deemed to have converted any such request into a request for a Borrowing  of or conversion to Base Rate Loans. During any Benchmark Unavailability Period or at any time that a  tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon  the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any  determination of the Base Rate.  (F) London Interbank Offered Rate Benchmark Transition Event.  On  March 5, 2021, the IBA, the administrator of the London interbank offered rate, and the FCA, the regulatory  supervisor of the IBA, made Announcements that the final publication or representativeness date for Dollars  for (i) 1-week and 2-month London interbank offered rate tenor settings will be December 31, 2021 and  (ii) overnight, 1-month, 3-month, 6-month and 12-month London interbank offered rate tenor settings will  be June 30, 2023.  No successor administrator for the IBA was identified in such Announcements.  The  parties hereto agree and acknowledge that the Announcements resulted in the occurrence of a Benchmark  Transition Event with respect to the London interbank offered rate pursuant to the terms of this Agreement  and that any obligation of Agent to notify any parties of such Benchmark Transition Event pursuant to  Section 2.11(d)(iii)(C) shall be deemed satisfied.  (e) No Requirement of Matched Funding.  Anything to the contrary contained  herein notwithstanding, neither the Agent, nor any Lender, nor any of their Participants, is required actually  to acquire eurodollar deposits or Canadian Dollar deposits to fund or otherwise match fund any Obligation  as to which interest accrues at the Non-Base Rate.  2.12 Capital Requirements.  (a) If, after the date hereof, any Issuing Bank or any Lender reasonably determines  that (i) any Change in Law regarding capital, liquidity or reserve requirements for banks or bank holding  companies, or (ii) compliance by such Issuing Bank or such Lender, or their respective parent bank holding  





 






     -129-    companies, with any guideline, request or directive of any Governmental Authority regarding capital  adequacy or liquidity requirements (whether or not having the force of law), has the effect of reducing the  return on such Issuing Bank's, such Lender's, or such holding companies' capital as a consequence of such  Issuing Bank's or such Lender's commitments, Loans, participations or other obligations hereunder to a  level below that which such Issuing Bank, such Lender, or such holding companies could have achieved  but for such Change in Law or compliance (taking into consideration such Issuing Bank's, such Lender's,  or such holding companies' then existing policies with respect to capital adequacy or liquidity requirements  and assuming the full utilization of such entity's capital) by any amount deemed by such Issuing Bank or  such Lender to be material, then such Issuing Bank or such Lender may notify Administrative Borrower  and Agent thereof. Following receipt of such notice, Borrowers jointly and severally agree to pay such  Issuing Bank or such Lender on demand the amount of such reduction of return of capital as and when such  reduction is determined, payable within 30 days after presentation by such Issuing Bank or such Lender of  a statement in the amount and setting forth in reasonable detail such Issuing Bank's or such Lender's  calculation thereof and the assumptions upon which such calculation was based (which statement shall be  deemed true and correct absent manifest error). In determining such amount, such Issuing Bank or such  Lender may use any reasonable averaging and attribution methods. Failure or delay on the part of such  Issuing Bank or any Lender to demand compensation pursuant to this Section shall not constitute a waiver  of such Issuing Bank's or such Lender's right to demand such compensation; provided that Borrowers shall  not be required to compensate any Issuing Bank or a Lender pursuant to this Section for any reductions in  return incurred more than 180 days prior to the date that such Issuing Bank or such Lender notifies  Administrative Borrower of such Change in Law giving rise to such reductions and of such Lender's  intention to claim compensation therefor; provided further that if such claim arises by reason of the Change  in Law that is retroactive, then the 180-day period referred to above shall be extended to include the period  of retroactive effect thereof.  (b) If any Issuing Bank or any Lender requests additional or increased costs referred  to in Section 2.10A(l), Section 2.10B(1), or Section 2.11(d)(i) or amounts under Section 2.12(a) or sends a  notice under Section 2.11(d)(ii) relative to changed circumstances (such Issuing Bank or Lender, an  "Affected Lender"), then such Affected Lender shall use reasonable efforts to promptly designate a different  one of its lending offices or to assign its rights and obligations hereunder to another of its offices or  branches, if (i) in the reasonable judgment of such Affected Lender, such designation or assignment would  eliminate or reduce amounts payable pursuant to Section 2.10A(l), Section 2.10B(1), Section 2.11(d)(i) or  Section 2.12(a), as applicable, or would eliminate the illegality or impracticality of funding or maintaining  Non- Base Rate Loans and (ii) in the reasonable judgment of such Affected Lender, such designation or  assignment would not subject it to any material unreimbursed cost or expense and would not otherwise be  materially disadvantageous to it. Borrowers jointly and severally agree to pay all reasonable out-of-pocket  costs and expenses incurred by such Affected Lender in connection with any such designation or  assignment. If, after such reasonable efforts, such Affected Lender does not so designate a different one of  its lending offices or assign its rights to another of its offices or branches so as to eliminate Borrowers'  obligation to pay any future amounts to such Affected Lender pursuant to Section 2.10A(l), Section  2.10B(1), Section 2.11(d)(i) or Section 2.12(a), as applicable, or to enable Borrowers to obtain Non-Base  Rate Loans, then Administrative Borrower (without prejudice to any amounts then due to such Affected  Lender under Section 2.10A(l), Section 2.10B(1), Section 2.11(d)(i) or Section 2.12(a), as applicable) may,  unless prior to the effective date of any such assignment the Affected Lender withdraws its request for such  additional amounts under Section 2.10A(l), Section 2.10B(1), Section 2.11(d)(i) or Section 2.12(a), as  applicable, or indicates that it is no longer unlawful or impractical to fund or maintain Non-Base Rate  Loans, may designate a different Issuing Bank or substitute a Lender, in each case, reasonably acceptable  to Agent to purchase the Obligations owed to such Affected Lender (and its Affiliates) and such Affected  Lender's (and its Affiliates') commitments hereunder (a "Replacement Lender"), and if such Replacement  Lender agrees to such purchase, such Affected Lender (and its Affiliates) shall assign to the Replacement  Lender its Obligations and commitments, and upon such purchase by the Replacement Lender, which such  





 






     -130-    Replacement Lender shall be deemed to be "Issuing Bank" or a "Lender" (as the case may be) for purposes  of this Agreement and such Affected Lender shall cease to be an "Issuing Bank" or a "Lender" (as the case  may be) for purposes of this Agreement.  (c) Notwithstanding anything herein to the contrary, the protection of Sections  2.10A(l), 2.10B(1), 2.11(d), and 2.12 shall be available to each Issuing Bank and each Lender (as  applicable) regardless of any possible contention of the invalidity or inapplicability of the law, rule,  regulation, judicial ruling, judgment, guideline, treaty or other change or condition which shall have  occurred or been imposed, so long as it shall be customary for Issuing Banks or lenders affected thereby to  comply therewith. Notwithstanding any other provision herein, neither any Issuing Bank nor any Lender  shall demand compensation pursuant to this Section 2.12 if it shall not at the time be the general policy or  practice of such Issuing Bank or such Lender (as the case may be) to demand such compensation in similar  circumstances under comparable provisions of other credit agreements, if any.  (d) The Borrowers’ obligations under this Section 2.12 shall survive the termination  of this Agreement and the repayment in full of the Obligations.  2.13 Incremental Facilities.    (a) At any time during the period from and after the Closing Date, at the option of US  Borrowers (but subject to the conditions set forth in clause (b) below), the US Revolver Commitments and  the Maximum Revolver Amount may be increased by an amount in the aggregate for all such increases of  the US Revolver Commitments and the Maximum Revolver Amount not to exceed the Available Revolver  Increase Amount (each such increase, an “Increase”). The Agent shall invite each Lender to increase its US  Revolver Commitments (it being understood that no Lender shall be obligated to increase its US Revolver  Commitments) in connection with a proposed Increase at the interest margin proposed by US Borrowers,  and if sufficient Lenders do not agree to increase their US Revolver Commitments (as the case may be) in  connection with such proposed Increase, then the Agent or US Borrowers may invite any prospective lender  who is reasonably satisfactory to the Agent and US Borrowers to become a Lender in connection with a  proposed Increase.  Any Increase shall be in an amount of at least $20,000,000 and integral multiples of  $5,000,000 in excess thereof.  In no event may the US Revolver Commitments and the Maximum Revolver  Amount be increased pursuant to this Section 2.13 on more than 3 occasions in the aggregate for all such  Increases.  Additionally, for the avoidance of doubt, it is understood and agreed that in no event shall the  aggregate amount of the Increases to the US Revolver Commitments exceed $100,000,000.  (b) Each of the following shall be conditions precedent to any Increase of the US  Revolver Commitments and the Maximum Revolver Amount in connection therewith:  (i) the Agent or Borrowers have obtained the commitment of one or more  Lenders (or other prospective lenders) reasonably satisfactory to the Agent and Borrowers to provide the  applicable Increase and any such Lenders (or prospective lenders), Borrowers, and the Agent have signed  a joinder agreement to this Agreement (an “Increase Joinder”), in form and substance reasonably  satisfactory to the Agent, to which such Lenders (or prospective lenders), Borrowers, and the Agent are  party,  (ii) each of the conditions precedent set forth in Section 3.2 are satisfied,  (iii) in connection with any Increase, if any Credit Party or any of its Restricted  Subsidiaries owns any Margin Stock, Borrowers shall deliver to the Agent an updated Form U-1 (with  sufficient additional originals thereof for each Lender), duly executed and delivered by the Borrowers,  together with such other documentation as the Agent shall reasonably request, in order to enable Agent and  





 






     -131-    the Lenders to comply with any of the requirements under Regulations T, U or X of the Federal Reserve  Board,  (iv) Borrowers have delivered to the Agent reasonably detailed calculations  (after giving effect to the applicable Increase) for the Loan Parties and their Restricted Subsidiaries  evidencing that on a pro forma basis after giving effect to the applicable Increase, the Fixed Charge  Coverage Ratio of the Loan Parties and their Restricted Subsidiaries as of the end of the quarter most  recently ended as to which financial statements were required to be delivered pursuant to this Agreement  was at least equal to the minimum Fixed Charge Coverage Ratio permitted pursuant to Section 7 for such  fiscal quarter (calculated as if a Covenant Testing Period was in effect), and  (c) Unless otherwise specifically provided herein, all references in this Agreement and  any other Loan Document to Revolving Loans shall be deemed, unless the context otherwise requires, to  include Revolving Loans made pursuant to the increased US Revolver Commitments and Maximum  Revolver Amount pursuant to this Section 2.13.  (d) Each of the Lenders having a US Revolver Commitment prior to the Increase Date  (the “Pre-Increase Revolver Lenders”) shall assign to any Lender which is acquiring a new or additional  US Revolver Commitment on the Increase Date (the “Post-Increase Revolver Lenders”), and such Post- Increase Revolver Lenders shall purchase from each Pre-Increase Revolver Lender, at the principal amount  thereof, such interests in the Revolving Loans and participation interests in the applicable Letters of Credit  on such Increase Date as shall be necessary in order that, after giving effect to all such assignments and  purchases, such Revolving Loans and participation interests in the applicable Letters of Credit will be held  by Pre-Increase Revolver Lenders and Post-Increase Revolver Lenders ratably in accordance with their Pro  Rata Share after giving effect to such increased US Revolver Commitments.  (e) The Revolving Loans, US Revolver Commitments, and the Maximum Revolver  Amount established pursuant to this Section 2.13 shall constitute US Revolving Loans, US Revolver  Commitments, and the Maximum Revolver Amount under, and shall be entitled to all the benefits afforded  by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally  and ratably from any guarantees and the security interests created by the Loan Documents.  Borrowers shall  take any actions reasonably required by the Agent to ensure and demonstrate that the Liens and security  interests granted by the Loan Documents continue to be perfected under the Code or otherwise after giving  effect to the establishment of any such new US Revolver Commitments and the Maximum Revolver  Amount.  2.14 Joint and Several Liability of US Borrowers.  (a) Each US Borrower is accepting joint and several liability hereunder and under  the other Loan Documents in consideration of the financial accommodations to be provided by the  Lender Group under this Agreement, for the mutual benefit, directly and indirectly, of each US Borrower  and in consideration of the undertakings of the other US Borrowers to accept joint and several liability  for the US Obligations.  (b) Each US Borrower, jointly and severally, hereby irrevocably and unconditionally  accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other US  Borrowers, with respect to the payment and performance of all of the US Obligations (including any US  Obligations arising under this Section 2.14), it being the intention of the parties hereto that all the US  Obligations shall be the joint and several obligations of each US Borrower without preferences or  distinction among them. Accordingly, each US Borrower hereby waives any and all suretyship defenses  that would otherwise be available to such Borrower under applicable law.   





 






     -132-    (c) If and to the extent that any US Borrower shall fail to make any payment with  respect to any of the US Obligations as and when due, whether upon maturity, acceleration, or otherwise  or to perform any of the US Obligations in accordance with the terms thereof, then in each such event  the other US Borrowers will make such payment with respect to, or perform, such US Obligation until  such time as all of the US Obligations are paid in full, and without the need for demand, protest, or any  other notice or formality.  (d) The Obligations of each US Borrower under the provisions of this Section 2.14  constitute the absolute and unconditional, full recourse Obligations of each US Borrower enforceable  against each US Borrower to the full extent of its properties and assets, irrespective of the validity,  regularity or enforceability of the provisions of this Agreement (other than this Section 2.14(d)) or any  other circumstances whatsoever.  (e) Without limiting the generality of the foregoing and except as otherwise expressly  provided in this Agreement, each US Borrower hereby waives presentment, demands for performance,  protests and notices, including notice of acceptance of its joint and several liability, notice of any Revolving  Loans or any Letters of Credit issued under or pursuant to this Agreement, notice of the occurrence of any  Default, Event of Default, notices of nonperformance, notices of protest, notices of dishonor, notices of  acceptance of this Agreement, notices of the existence, creation or incurring of new or additional obligation  or other financial accommodations or of any demand for any payment under this Agreement, notice of any  action at any time taken or omitted by the Agent or Lenders under or in respect of any of the Obligations  (other than as required by any applicable law), any right to proceed against any other US Borrower or any  other Person, to proceed against or exhaust any security held from any other US Borrower or any other  Person, to protect, secure, perfect, or insure any security interest or Lien on any property subject thereto or  exhaust any right to take any action against any other US Borrower, any other Person, or any collateral, to  pursue any other remedy in any member of the Lender Group’s or any Bank Product Provider’s power  whatsoever, any requirement of diligence or to mitigate damages and, generally, to the extent permitted by  applicable law, all demands, notices and other formalities of every kind in connection with this Agreement  (except as otherwise provided in this Agreement), any right to assert against any member of the Lender  Group or any Bank Product Provider, any defense (legal or equitable), set-off, counterclaim, or claim which  each US Borrower may now or at any time hereafter have against any other US Borrower or any other party  liable to any member of the Lender Group or any Bank Product Provider, any defense, set-off, counterclaim,  or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection,  sufficiency, validity, or enforceability of the Obligations or any security therefor, and any right or defense  arising by reason of any claim or defense based upon an election of remedies by any member of the Lender  Group or any Bank Product Provider including any defense based upon an impairment or elimination of  such US Borrower’s rights of subrogation, reimbursement, contribution, or indemnity of such US Borrower  against any other US Borrower.  Without limiting the generality of the foregoing, each US Borrower hereby  assents to, and waives notice of, any extension or postponement of the time for the payment of any of the  Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial payment  thereon, any waiver, consent or other action or acquiescence by the Agent or Lenders at any time or times  in respect of any default by any US Borrower in the performance or satisfaction of any term, covenant,  condition or provision of this Agreement, any and all other indulgences whatsoever by the Agent or Lenders  in respect of any of the Obligations, and the taking, addition, substitution or release, in whole or in part, at  any time or times, of any security for any of the Obligations or the addition, substitution or release, in whole  or in part, of any US Borrower.  Without limiting the generality of the foregoing, each US Borrower hereby  assents to, and waives notice of, any extension or postponement of the time for the payment of any of the  Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial payment  thereon, any waiver, consent or other action or acquiescence by the Agent or Lenders at any time or times  in respect of any default by any US Borrower in the performance or satisfaction of any term, covenant,  condition or provision of this Agreement, any and all other indulgences whatsoever by the Agent or Lenders  





 






     -133-    in respect of any of the Obligations, and the taking, addition, substitution or release, in whole or in part, at  any time or times, of any security for any of the Obligations or the addition, substitution or release, in whole  or in part, of any US Borrower. Without limiting the generality of the foregoing, each US Borrower assents  to any other action or delay in acting or failure to act on the part of any Agent or Lender with respect to the  failure by any US Borrower to comply with any of its respective Obligations, including, without limitation,  any failure strictly or diligently to assert any right or to pursue any remedy or to comply fully with  applicable laws or regulations thereunder, which might, but for the provisions of this Section 2.14 afford  grounds for terminating, discharging or relieving any US Borrower, in whole or in part, from any of its  Obligations under this Section 2.14, it being the intention of each US Borrower that, so long as any of the  Obligations hereunder remain unsatisfied, the Obligations of each US Borrower under this Section 2.14  shall not be discharged except by performance and then only to the extent of such performance. The  Obligations of each US Borrower under this Section 2.14 shall not be diminished or rendered unenforceable  by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with  respect to any other US Borrower or any Agent or Lender. Each of the US Borrowers waives, to the fullest  extent permitted by law, the benefit of any statute of limitations affecting its liability hereunder or the  enforcement hereof.  Any payment by any US Borrower or other circumstance which operates to toll any  statute of limitations as to any US Borrower shall operate to toll the statute of limitations as to each of the  US Borrowers.  Each of the US Borrowers waives any defense based on or arising out of any defense of  any US Borrower or any other Person, other than payment of the Obligations to the extent of such payment,  based on or arising out of the disability of any US Borrower or any other Person, or the validity, legality,  or unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause  of the liability of any US Borrower other than payment of the Obligations to the extent of such payment.   Upon the occurrence and during the continuance of an Event of Default, the Agent may, at the election of  the Supermajority Lenders, foreclose upon any Collateral held by the Agent by one or more judicial or  nonjudicial sales or other dispositions, whether or not every aspect of any such sale is commercially  reasonable or otherwise fails to comply with applicable law or may exercise any other right or remedy the  Agent, any other member of the Lender Group, or any US Bank Product Provider may have against any US  Borrower or any other Person, or any security, in each case, without affecting or impairing in any way the  liability of any of the US Borrowers hereunder except to the extent the Obligations have been paid.  (f) Each US Borrower represents and warrants to the Agent and Lenders that such US  Borrower is currently informed of the financial condition of US Borrowers and of all other circumstances  which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations. Each  US Borrower further represents and warrants to the Agent and Lenders that such US Borrower has read and  understands the terms and conditions of the Loan Documents. Each US Borrower hereby covenants that  such US Borrower will continue to keep informed of US Borrowers' financial condition and of all other  circumstances which bear upon the risk of nonpayment or nonperformance of the Obligations.  (g) The provisions of this Section 2.14 are made for the benefit of the Agent, each  member of the Lender Group, each Bank Product Provider, and their respective successors and assigns, and  may be enforced by it or them from time to time against any or all US Borrowers as often as occasion  therefor may arise and without requirement on the part of the Agent, any member of the Lender Group, any  Bank Product Provider, or any of their successors or assigns first to marshal any of its or their claims or to  exercise any of its or their rights against any US Borrower or to exhaust any remedies available to it or them  against any US Borrower or to resort to any other source or means of obtaining payment of any of the  Obligations hereunder or to elect any other remedy. The provisions of this Section 2.14 shall remain in  effect until all of the Obligations shall have been paid in full or otherwise fully satisfied. If at any time, any  payment, or any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be  restored or returned by the Agent or any Lender upon the insolvency, bankruptcy or reorganization of any  US Borrower, or otherwise, the provisions of this Section 2.14 will forthwith be reinstated in effect, as  though such payment had not been made.    





 






     -134-    (h) Each US Borrower hereby agrees that it will not enforce any of its rights that arise  from the existence, payment, performance or enforcement of the provisions of this Section 2.14,  including  rights of subrogation, reimbursement, exoneration, contribution or indemnification and any right to  participate in any claim or remedy of the Agent, any other member of the Lender Group, or any Bank  Product Provider against any US Borrower, whether or not such claim, remedy or right arises in equity or  under contract, statute or common law, including the right to take or receive from any US Borrower, directly  or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on  account of such claim, remedy or right, unless and until such time as all of the Obligations have been paid  in full in cash. Any claim which any US Borrower may have against any other US Borrower with respect  to any payments to any Agent or any member of the Lender Group hereunder or under any of the Bank  Product Agreements are hereby expressly made subordinate and junior in right of payment, without  limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in  full in cash of the Obligations and, in the event of any insolvency, bankruptcy, receivership, liquidation,  reorganization or other similar proceeding under the laws of any jurisdiction relating to any US Borrower,  its debts or its assets, whether voluntary or involuntary, all such Obligations shall be paid in full in cash  before any payment or distribution of any character, whether in cash, securities or other property, shall be  made to any other US Borrower therefor. If any amount shall be paid to any US Borrower in violation of  the immediately preceding sentence, such amount shall be held in trust for the benefit of the Agent, for the  benefit of the Lender Group and the Bank Product Providers, and shall forthwith be paid to the Agent to be  credited and applied to the Obligations and all other amounts payable under this Agreement, whether  matured or unmatured, in accordance with the terms of this Agreement, or to be held as Collateral for any  Obligations or other amounts payable under this Agreement thereafter arising.  Notwithstanding anything  to the contrary contained in this Agreement, no US Borrower may exercise any rights of subrogation,  contribution, indemnity, reimbursement or other similar rights against, and may not proceed or seek  recourse against or with respect to any property or asset of, any other US Borrower (the “Foreclosed US  Borrower”), including after payment in full of the Obligations, if all or any portion of the Obligations have  been satisfied in connection with an exercise of remedies in respect of the Equity Interests of such  Foreclosed US Borrower whether pursuant to this Agreement or otherwise.  2.15 Joint and Several Liability of Canadian Borrowers.  (a) Each Canadian Borrower is accepting joint and several liability hereunder and  under the other Loan Documents in consideration of the financial accommodations to be provided by the  Lender Group under this Agreement, for the mutual benefit, directly and indirectly, of each Canadian  Borrower and in consideration of the undertakings of the other Canadian Borrowers to accept joint  and several liability for the Canadian Obligations.  (b) Each Canadian Borrower, jointly and severally, hereby irrevocably and  unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the  other Canadian Borrowers, with respect to the payment and performance of all of the Canadian  Obligations (including any Obligations arising under this Section 2.15), it being the intention of the  parties hereto that all the Canadian Obligations shall be the joint and several obligations of each  Canadian Borrower without preferences or distinction among them. Accordingly, each Canadian Borrower  hereby waives any and all suretyship defenses that would otherwise be available to such Borrower under  applicable law.   (c) If and to the extent that any Canadian Borrower shall fail to make any payment  with respect to any of the Canadian Obligations as and when due, whether upon maturity, acceleration,  or otherwise or to perform any of the Canadian Obligations in accordance with the terms thereof, then  in each such event the other Canadian Borrowers will make such payment with respect to, or perform,  





 






     -135-    such Obligation until such time as all of the Canadian Obligations are paid in full, and without the need  for demand, protest, or any other notice or formality.   (d) The Obligations of each Canadian Borrower under the provisions of this Section  2.15 constitute the absolute and unconditional, full recourse Obligations of each Canadian Borrower  enforceable against each Canadian Borrower to the full extent of its properties and assets, irrespective  of the validity, regularity or enforceability of the provisions of this Agreement (other than this Section  2.15(d)) or any other circumstances whatsoever.  (e) Without limiting the generality of the foregoing and except as otherwise expressly  provided in this Agreement, each Canadian Borrower hereby waives presentment, demands for  performance, protests and notices, including notice of acceptance of its joint and several liability, notice of  any Revolving Loans or any Letters of Credit issued under or pursuant to this Agreement, notice of the  occurrence of any Default, Event of Default, notices of nonperformance, notices of protest, notices of  dishonor, notices of acceptance of this Agreement, notices of the existence, creation or incurring of new or  additional obligation or other financial accommodations or of any demand for any payment under this  Agreement, notice of any action at any time taken or omitted by the Agent or Lenders under or in respect  of any of the Obligations (other than as required by any applicable law), any right to proceed against any  other Canadian Borrower or any other Person, to proceed against or exhaust any security held from any  other Canadian Borrower or any other Person, to protect, secure, perfect, or insure any security interest or  Lien on any property subject thereto or exhaust any right to take any action against any other Canadian  Borrower, any other Person, or any collateral, to pursue any other remedy in any member of the Lender  Group’s or any Bank Product Provider’s power whatsoever, any requirement of diligence or to mitigate  damages and, generally, to the extent permitted by applicable law, all demands, notices and other formalities  of every kind in connection with this Agreement (except as otherwise provided in this Agreement), any  right to assert against any member of the Lender Group or any Bank Product Provider, any defense (legal  or equitable), set-off, counterclaim, or claim which each Canadian Borrower may now or at any time  hereafter have against any other Canadian Borrower or any other party liable to any member of the Lender  Group or any Bank Product Provider, any defense, set-off, counterclaim, or claim, of any kind or nature,  arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or  enforceability of the Obligations or any security therefor, and any right or defense arising by reason of any  claim or defense based upon an election of remedies by any member of the Lender Group or any Bank  Product Provider including any defense based upon an impairment or elimination of such Canadian  Borrower’s rights of subrogation, reimbursement, contribution, or indemnity of such Canadian Borrower  against any other Canadian Borrower.  Without limiting the generality of the foregoing, each Canadian  Borrower hereby assents to, and waives notice of, any extension or postponement of the time for the  payment of any of the Obligations, the acceptance of any payment of any of the Obligations, the acceptance  of any partial payment thereon, any waiver, consent or other action or acquiescence by the Agent or Lenders  at any time or times in respect of any default by any Canadian Borrower in the performance or satisfaction  of any term, covenant, condition or provision of this Agreement, any and all other indulgences whatsoever  by the Agent or Lenders in respect of any of the Obligations, and the taking, addition, substitution or release,  in whole or in part, at any time or times, of any security for any of the Obligations or the addition,  substitution or release, in whole or in part, of any Canadian Borrower.  Without limiting the generality of  the foregoing, each Canadian Borrower hereby assents to, and waives notice of, any extension or  postponement of the time for the payment of any of the Obligations, the acceptance of any payment of any  of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or  acquiescence by the Agent or Lenders at any time or times in respect of any default by any Canadian  Borrower in the performance or satisfaction of any term, covenant, condition or provision of this  Agreement, any and all other indulgences whatsoever by the Agent or Lenders in respect of any of the  Obligations, and the taking, addition, substitution or release, in whole or in part, at any time or times, of  any security for any of the Obligations or the addition, substitution or release, in whole or in part, of any  





 






     -136-    Canadian Borrower. Without limiting the generality of the foregoing, each Canadian Borrower assents to  any other action or delay in acting or failure to act on the part of any Agent or Lender with respect to the  failure by any Canadian Borrower to comply with any of its respective Obligations, including, without  limitation, any failure strictly or diligently to assert any right or to pursue any remedy or to comply fully  with applicable laws or regulations thereunder, which might, but for the provisions of this Section 2.15  afford grounds for terminating, discharging or relieving any Canadian Borrower, in whole or in part, from  any of its Obligations under this Section 2.15, it being the intention of each Canadian Borrower that, so  long as any of the Obligations hereunder remain unsatisfied, the Obligations of each Canadian Borrower  under this Section 2.15 shall not be discharged except by performance and then only to the extent of such  performance. The Obligations of each Canadian Borrower under this Section 2.15 shall not be diminished  or rendered unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or  similar proceeding with respect to any other Canadian Borrower or any Agent or Lender. Each of the  Canadian Borrowers waives, to the fullest extent permitted by law, the benefit of any statute of limitations  affecting its liability hereunder or the enforcement hereof.  Any payment by any Canadian Borrower or  other circumstance which operates to toll any statute of limitations as to any Canadian Borrower shall  operate to toll the statute of limitations as to each of the Canadian Borrowers.  Each of the Canadian  Borrowers waives any defense based on or arising out of any defense of any Canadian Borrower or any  other Person, other than payment of the Obligations to the extent of such payment, based on or arising out  of the disability of any Canadian Borrower or any other Person, or the validity, legality, or unenforceability  of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any  Canadian Borrower other than payment of the Obligations to the extent of such payment.  Upon the  occurrence and during the continuation of any Event of Default, the Agent may, at the election of the  Supermajority Lenders, foreclose upon any Collateral held by the Agent by one or more judicial or  nonjudicial sales or other dispositions, whether or not every aspect of any such sale is commercially  reasonable or otherwise fails to comply with applicable law or may exercise any other right or remedy the  Agent, any other member of the Lender Group, or any US Bank Product Provider may have against any  Canadian Borrower or any other Person, or any security, in each case, without affecting or impairing in any  way the liability of any of the Canadian Borrowers hereunder except to the extent the Obligations have  been paid.  (f) Each Canadian Borrower represents and warrants to the Agent and Lenders that  such Canadian Borrower is currently informed of the financial condition of Canadian Borrowers and of all  other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of  the Obligations. Each Canadian Borrower further represents and warrants to the Agent and Lenders that  such Canadian Borrower has read and understands the terms and conditions of the Loan Documents. Each  Canadian Borrower hereby covenants that such Canadian Borrower will continue to keep informed of  Canadian Borrowers' financial condition and of all other circumstances which bear upon the risk of  nonpayment or nonperformance of the Obligations.  (g) The provisions of this Section 2.15 are made for the benefit of the Agent, each  member of the Lender Group, each Bank Product Provider, and their respective successors and assigns, and  may be enforced by it or them from time to time against any or all Canadian Borrowers as often as occasion  therefor may arise and without requirement on the part of the Agent, any member of the Lender Group, any  Bank Product Provider, or any of their successors or assigns first to marshal any of its or their claims or to  exercise any of its or their rights against any Canadian Borrower or to exhaust any remedies available to it  or them against any Canadian Borrower or to resort to any other source or means of obtaining payment of  any of the Obligations hereunder or to elect any other remedy. The provisions of this Section 2.15 shall  remain in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied. If at any  time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or must  otherwise be restored or returned by the Agent or any Lender upon the insolvency, bankruptcy or  





 






     -137-    reorganization of any Canadian Borrower, or otherwise, the provisions of this Section 2.15 will forthwith  be reinstated in effect, as though such payment had not been made.    (h) Each Canadian Borrower hereby agrees that it will not enforce any of its rights  that arise from the existence, payment, performance or enforcement of the provisions of this Section 2.15,   including rights of subrogation, reimbursement, exoneration, contribution or indemnification and any right  to participate in any claim or remedy of the Agent, any other member of the Lender Group, or any Bank  Product Provider against any Canadian Borrower, whether or not such claim, remedy or right arises in  equity or under contract, statute or common law, including the right to take or receive from any Canadian  Borrower, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or  security solely on account of such claim, remedy or right, unless and until such time as all of the Obligations  have been paid in full in cash. Any claim which any Canadian Borrower may have against any other  Canadian Borrower with respect to any payments to any Agent or any member of the Lender Group  hereunder or under any of the Bank Product Agreements are hereby expressly made subordinate and junior  in right of payment, without limitation as to any increases in the Obligations arising hereunder or  thereunder, to the prior payment in full in cash of the Obligations and, in the event of any insolvency,  bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any  jurisdiction relating to any Canadian Borrower, its debts or its assets, whether voluntary or involuntary, all  such Obligations shall be paid in full in cash before any payment or distribution of any character, whether  in cash, securities or other property, shall be made to any other Canadian Borrower therefor. If any amount  shall be paid to any Canadian Borrower in violation of the immediately preceding sentence, such amount  shall be held in trust for the benefit of the Agent, for the benefit of the Lender Group and the Bank Product  Providers, and shall forthwith be paid to the Agent to be credited and applied to the Obligations and all  other amounts payable under this Agreement, whether matured or unmatured, in accordance with the terms  of this Agreement, or to be held as Collateral for any Obligations or other amounts payable under this  Agreement thereafter arising.  Notwithstanding anything to the contrary contained in this Agreement, no  Canadian Borrower may exercise any rights of subrogation, contribution, indemnity, reimbursement or  other similar rights against, and may not proceed or seek recourse against or with respect to any property  or asset of, any other Canadian Borrower (the “Foreclosed Canadian Borrower”), including after payment  in full of the Obligations, if all or any portion of the Obligations have been satisfied in connection with an  exercise of remedies in respect of the Equity Interests of such Foreclosed Canadian Borrower whether  pursuant to this Agreement or otherwise.  (i) Notwithstanding anything to the contrary in this Section 2.15, or otherwise in this  Agreement or in the other Loan Documents, the parties hereto agree that (A) the obligations of the Canadian  Loan Parties as to the Canadian Obligations, on the one hand, and the obligations of the US Loan Parties  as to the US Obligations, on the other hand, are several and not joint, and (B) the Canadian Loan Parties  shall be liable only with respect to the Canadian Obligations.  2.16 Currencies.    (a) The US Revolving Loans and other US Obligations (unless such other US  Obligations expressly provide otherwise) shall be made and repaid in US Dollars. The Canadian Revolving  Loans shall be denominated in Canadian Dollars or US Dollars (as selected by Administrative Borrower in  accordance with Section 2.2 at the time such Canadian Revolving Loan is requested) except (a) Canadian  Protective Advances made by the Agent shall be denominated in Canadian Dollars or US Dollars (as  selected  by the Agent), and (b) Canadian Revolving Loans charged to the Canadian Loan Account pursuant  to Section 2.5 to pay fees, interest, expenses and other amounts shall be denominated in the Agreed  Currency of such fees, interest, expenses and other amounts.  All Canadian Obligations denominated in  Canadian Dollars shall be repaid in Canadian Dollars and all Canadian Obligations denominated in US  Dollars shall be repaid in US Dollars.  Payments made in a currency other than the currency in which the  





 






     -138-    applicable Obligations are denominated may be accepted by the Agent in its sole discretion and, if so  accepted, the Borrowers agree that the Agent may convert the payment made to the currency of the  applicable Obligations at the applicable Spot Rate in accordance with its normal practices.  (b) Within 5 Business Days of demand made by any Lender or Issuing Bank to the  Administrative Borrower (with a copy to the Agent) from time to time, Administrative Borrower shall  compensate such Lender or Issuing Bank for and hold such Lender or Issuing Bank harmless from any loss,  cost or expense incurred by it as a result of any payment by any Borrower of reimbursement drawings under  any Foreign Currency L/C in a currency other than such Foreign Currency, including any foreign exchange  losses or any loss or expense from the performance of any foreign exchange contract.  The Borrowers shall  also pay any customary administrative fees charged by such Lender or Issuing Bank in connection with the  foregoing.    2.17 Interest Act (Canada); Criminal Rate of Interest; Nominal Rate of Interest.   Notwithstanding anything to the contrary contained in this Agreement or in any other Loan Document,  solely to the extent that: (i) a court of competent jurisdiction finally determines that the calculation or  determination of interest payable by Canadian Borrowers in respect of the Canadian Obligations pursuant  to this Agreement and the other Loan Documents shall be governed by the laws of any province of Canada  and the federal laws of Canada; or (ii) the Interest Act (Canada) otherwise applies:  (a) whenever interest payable by Canadian Borrowers is calculated on the basis of a  period which is less than the actual number of days in a calendar year, each rate of interest determined  pursuant to such calculation is, for the purposes of the Interest Act (Canada), equivalent to such rate  multiplied by the actual number of days in the calendar year in which such rate is to be ascertained  and divided by the number of days used as the basis of such calculation,  (b) in no event shall the aggregate "interest" (as defined in Section 347 of the Criminal  Code (Canada), as the same shall be amended, replaced or re-enacted from time to time (the "Criminal Code  Section")) payable (whether by way of payment, collection or demand) by Canadian Borrower to the Agent  or any Lender under this Agreement or any other Loan Document exceed the effective annual rate of interest  on the "credit advanced" (as defined in that section) under this Agreement or such other Loan Document  lawfully permitted under that section and, if any payment, collection or demand pursuant to this Agreement  or any other Loan Document in respect of "interest" (as defined in that section) is determined to be contrary  to the provisions of that section and the amount of such payment or collection shall be refunded by the  Agent and Lenders to Canadian Borrowers with such "interest" deemed to have been adjusted with  retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so  prohibited by the Criminal Code Section to result in a receipt by the Agent or such Lender of interest at a  rate not in contravention of the Criminal Code Section, such adjustment to be effected, to the extent  necessary, as follows: firstly, by reducing the amounts or rates of interest required to be paid to the Agent  or that Lender; and then, by reducing any fees, charges, expenses and other amounts required to be paid to  the affected Agent or Lender which would constitute "interest". Notwithstanding the foregoing, and after  giving effect to all such adjustments, if the Agent or any Lender shall have received an amount in excess  of the maximum permitted by the Criminal Code Section, then Canadian Borrowers shall be entitled, by  notice in writing to the Agent or affected Lender, to obtain reimbursement from the Agent or that Lender  in an amount equal to such excess. For the purposes of this Agreement and each other Loan Document to  which Canadian Borrowers are a party, the effective annual rate of interest payable by Canadian Borrowers  shall be determined in accordance with generally accepted actuarial practices and principles over the term  of the loans on the basis of annual compounding for the lawfully permitted rate of interest and, in the event  of dispute, a certificate of a Fellow of the Institute of Actuaries appointed by the Agent for the account of  Canadian Borrowers will be conclusive for the purpose of such determination in the absence of evidence to  the contrary,  





 






     -139-    (c) all calculations of interest payable by Canadian Borrowers under this Agreement  or any other Loan Document are to be made on the basis of the nominal interest rate described herein and  therein and not on the basis of effective yearly rates or on any other basis which gives effect to the principle  of deemed reinvestment of interest. The parties acknowledge that there is a material difference between the  stated nominal interest rates and the effective yearly rates of interest and that they are capable of making  the calculations required to determine such effective yearly rates of interest,  (d) any provision of this Agreement that would oblige Canadian Borrowers to pay any  fine, penalty or rate of interest on any arrears of principal or interest secured by a mortgage on real property  or hypothec on immovables that has the effect of increasing the charge on arrears beyond the rate of interest  payable on principal money not in arrears shall not apply to Canadian Borrowers, which shall be required  to pay interest on money in arrears at the same rate of interest payable on principal money not in arrears,  and  (e) if there is a conflict, inconsistency, ambiguity or difference between any provision  of this Section 2.17 and any other Section of this Agreement or any other Loan Document with respect to  Canadian Borrowers then the provisions of this Section 2.17 shall prevail and be paramount.  3. CONDITIONS; TERM OF AGREEMENT.  3.1 Conditions Precedent to the Initial Extension of Credit.  The obligation of each Lender  to make the initial extensions of credit provided for hereunder is subject to the fulfillment, to the satisfaction  of Agent and each Lender, of each of the conditions precedent set forth on Schedule 3.1 to this Agreement  (the making of such initial extensions of credit by a Lender being conclusively deemed to be its satisfaction  or waiver of the conditions precedent).  3.2 Conditions Precedent to all Extensions of Credit.  The obligation of the Lender Group  (or any member thereof) to make any Revolving Loan hereunder (or to extend any other credit hereunder)  at any time shall be subject to the following conditions precedent:  (a) the representations and warranties of each Loan Party or its Restricted Subsidiaries  contained in this Agreement or in the other Loan Documents shall be true and correct in all material respects  (except that such materiality qualifier shall not be applicable to any representations and warranties that  already are qualified or modified by materiality in the text thereof) on and as of the date of such extension  of credit, as though made on and as of such date (except to the extent that such representations and  warranties relate solely to an earlier date, in which case such representations and warranties shall be true  and correct in all material respects (except that such materiality qualifier shall not be applicable to any  representations and warranties that already are qualified or modified by materiality in the text thereof) as  of such earlier date);   (b) no Default or Event of Default shall have occurred and be continuing on the date  of such extension of credit, nor shall either result from the making thereof; and  (c) As certified in the applicable notice of Borrowing, (i) upon the date of such  Borrowing, and (ii) immediately after giving pro forma effect to the making of such Borrowing, the Cash  Balance will not exceed each Cash Balance Sweep Limit described in clauses (a) and (b) of the definition  thereof.  3.3 Maturity.  The Commitments shall continue in full force and effect for a term ending on  the Maturity Date (unless terminated earlier in accordance with the terms hereof).  





 






     -140-    3.4 Effect of Maturity.  On the Maturity Date, all commitments of the Lender Group to  provide additional credit hereunder shall automatically be terminated and all of the Obligations (other than  Hedge Obligations) immediately shall become due and payable without notice or demand and Borrowers  shall be required to repay all of the Obligations (other than Hedge Obligations) in full.  No termination of  the obligations of the Lender Group (other than payment in full of the Obligations and termination of the  Commitments) shall relieve or discharge any Loan Party of its duties, obligations, or covenants hereunder  or under any other Loan Document and Agent’s Liens in the Collateral shall continue to secure the  Obligations and shall remain in effect until all Obligations have been paid in full.  When all of the  Obligations have been paid in full, Agent will, at Borrowers’ sole expense, execute and deliver any  termination statements, lien releases, discharges of security interests, and other similar discharge or release  documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record,  Agent’s Liens and all notices of security interests and liens previously filed by Agent.  3.5 Early Termination by Borrowers.  Borrowers have the option, at any time upon three  Business Days prior written notice to Agent (or such lesser time as Agent may agree), to repay all of the  Obligations in full and terminate the Commitments.  The foregoing notwithstanding, (a) Borrowers may  rescind termination notices relative to proposed payments in full of the Obligations with the proceeds of  third party Indebtedness if the closing for such issuance or incurrence does not happen on or before the date  of the proposed termination (in which case, a new notice shall be required to be sent in connection with any  subsequent termination), and (b) Borrowers may extend the date of termination at any time with the consent  of Agent (which consent shall not be unreasonably withheld or delayed).  3.6 Conditions Subsequent.  The obligation of the Lender Group (or any member thereof) to  continue to make Revolving Loans (or otherwise extend credit hereunder) is subject to the fulfillment, on  or before the date applicable thereto, of the conditions subsequent set forth on Schedule 3.6 to this  Agreement (the failure by Borrowers to so perform or cause to be performed such conditions subsequent  as and when required by the terms thereof (unless such date is extended, in writing, by Agent, which Agent  may do without obtaining the consent of the other members of the Lender Group), shall constitute an Event  of Default).  4. REPRESENTATIONS AND WARRANTIES.  In order to induce the Lender Group to enter into this Agreement, each of Parent and each  Borrower makes the following representations and warranties to the Lender Group which shall be true,  correct, and complete, in all material respects (except that such materiality qualifier shall not be applicable  to any representations and warranties that already are qualified or modified by materiality in the text  thereof), as of the Closing Date or the Amendment No. 3 Effective Date, as applicable, and shall be true,  correct, and complete, in all material respects (except that such materiality qualifier shall not be applicable  to any representations and warranties that already are qualified or modified by materiality in the text  thereof), as of the date of the making of each Revolving Loan (or other extension of credit) made thereafter,  as though made on and as of the date of such Revolving Loan (or other extension of credit) (except to the  extent that such representations and warranties relate solely to an earlier date, in which case such  representations and warranties shall be true and correct in all material respects (except that such materiality  qualifier shall not be applicable to any representations and warranties that already are qualified or modified  by materiality in the text thereof) as of such earlier date), and such representations and warranties shall  survive the execution and delivery of this Agreement:  4.1 Due Organization and Qualification; Subsidiaries.  (a) Each Loan Party and each of its Restricted Subsidiaries (i) is duly organized and  existing and in good standing under the laws of the jurisdiction of its organization, (ii) is qualified to do  





 






     -141-    business in any state where the failure to be so qualified could reasonably be expected to result in a Material  Adverse Effect, and (iii) has all requisite power and authority to own and operate its properties, to carry on  its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which  it is a party and to carry out the transactions contemplated thereby.  (b) [Reserved].    (c) As of the Amendment No. 3 Effective Date, set forth on Schedule 4.1(c) to this  Agreement is a complete and accurate list of the Loan Parties’ direct and indirect Restricted Subsidiaries,  showing: (i) the number of shares of each class of common and preferred Equity Interests authorized for  each of such Restricted Subsidiaries, and (ii) the number and the percentage of the outstanding shares of  each such class owned directly or indirectly by each Loan Party.  All of the outstanding Equity Interests of  each such Restricted Subsidiary has been validly issued and is fully paid and non-assessable.  As of the  Amendment No. 3 Effective Date, there are no Unrestricted Subsidiaries.  (d) Except as set forth on Schedule 4.1(d) to this Agreement, as of the Amendment  No. 3 Effective Date, there are no subscriptions, options, warrants, or calls relating to any shares of any  Loan Party’s or any of its Restricted Subsidiaries’ Equity Interests, including any right of conversion or  exchange under any outstanding security or other instrument.  As of the Closing Date, no Loan Party is  subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares  of its Equity Interests or any security convertible into or exchangeable for any of its Equity Interests.  4.2 Due Authorization; No Conflict.  (a) As to each Loan Party, the execution, delivery, and performance by such Loan  Party of the Loan Documents to which it is a party have been duly authorized by all necessary action on the  part of such Loan Party.  (b) As to each Loan Party, the execution, delivery, and performance by such Loan  Party of the Loan Documents to which it is a party do not and will not (i) violate any material provision of  federal, state, or local law or regulation applicable to any Loan Party or its Restricted Subsidiaries, the  Governing Documents of any Loan Party or its Restricted Subsidiaries, or any order, judgment, or decree  of any court or other Governmental Authority binding on any Loan Party or its Restricted Subsidiaries,  (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under  any material agreement of any Loan Party or its Restricted Subsidiaries where any such conflict, breach or  default could individually or in the aggregate reasonably be expected to have a Material Adverse Effect,  (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of  any Loan Party, other than Permitted Liens, or (iv) require any approval of any holder of Equity Interests  of a Loan Party or any approval or consent of any Person under any material agreement of any Loan Party,  other than consents or approvals that have been obtained and that are still in force and effect and except, in  the case of material agreements, for consents or approvals, the failure to obtain could not individually or in  the aggregate reasonably be expected to cause a Material Adverse Effect.  4.3 Governmental Consents.  The execution, delivery, and performance by each Loan Party  of the Loan Documents to which such Loan Party is a party and the consummation of the transactions  contemplated by the Loan Documents do not and will not require any registration with, consent, or approval  of, or notice to, or other action with or by, any Governmental Authority, other than registrations, consents,  approvals, notices, or other actions that have been obtained and that are still in force and effect and  immaterial registrations, consents, approvals, notices or other actions the failure to obtain which could not  reasonably be expected to be adverse to the interests of any member of the Lender Group, and except for  filings and recordings with respect to the Collateral to be made, or otherwise delivered to Agent for filing  or recordation, as of the Closing Date.  





 






     -142-    4.4 Binding Obligations; Perfected Liens.  (a) Each Loan Document has been duly executed and delivered by each Loan Party  that is a party thereto and is the legally valid and binding obligation of such Loan Party, enforceable against  such Loan Party in accordance with its respective terms, except as enforcement may be limited by equitable  principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting  creditors’ rights generally.  (b) Agent’s Liens are validly created, perfected (other than (i) in respect of motor  vehicles that are subject to a certificate of title, (ii) money, (iii) letter-of-credit rights (other than supporting  obligations), (iv) commercial tort claims (other than those that, by the terms of the Guaranty and Security  Agreement, are required to be perfected), and (v) any Deposit Accounts and Securities Accounts not subject  to a Control Agreement as permitted by Section 6.17(d) and subject only to the filing of financing  statements, in each case, in the appropriate filing offices), and first priority Liens, subject only to Permitted  Liens.  4.5 Title to Assets; No Encumbrances.  Each of the Loan Parties and its Restricted  Subsidiaries has (a) good, sufficient and legal title to (in the case of fee interests in Real Property), (b) valid  leasehold interests in (in the case of leasehold interests in real or personal property), and (c) good and  marketable title to (in the case of all other personal property), all of their respective assets reflected in their  most recent financial statements delivered pursuant to Section 5.1, in each case except for (i) assets disposed  of since the date of such financial statements to the extent permitted hereby and (ii) such defects in title or  interests as could not individually or in the aggregate reasonably be expected to cause a Material Adverse  Effect.  All of such assets are free and clear of Liens except for Permitted Liens.  4.6 Litigation.  (a) There are no actions, suits, or proceedings pending or, to the knowledge of any  Borrower, after due inquiry, threatened in writing against a Loan Party or any of its Restricted Subsidiaries  that either individually or in the aggregate could reasonably be expected to result in a Material Adverse  Effect.  (b) Additionally, except as disclosed in writing to the Agent and the Lenders, there is  no pending or, to the knowledge of any Loan Party or any of its Restricted Subsidiaries, threatened (in  writing) action or proceeding instituted against any Loan Party or any Restricted Subsidiary which seeks to  adjudicate any Loan Party or any Restricted Subsidiary as bankrupt or insolvent, or seeking liquidation,  winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts  under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry  of an order for relief or the appointment of a receiver, trustee or other similar official for it or for any  substantial part of its property.  4.7 Compliance with Laws.  No Loan Party nor any of its Restricted Subsidiaries (a) is in  violation of any applicable laws, rules, regulations, executive orders, or codes (including Environmental  Laws) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse  Effect, or (b) is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules  or regulations of any court or any federal, state, municipal or other governmental department, commission,  board, bureau, agency or instrumentality, domestic or foreign, that, individually or in the aggregate, could  reasonably be expected to result in a Material Adverse Effect.  4.8 No Material Adverse Effect.  All historical financial statements relating to the Loan  Parties and their Restricted Subsidiaries that have been delivered by Borrowers to Agent have been prepared  in accordance with GAAP (except, in the case of unaudited financial statements, for the lack of footnotes  





 






     -143-    and being subject to year-end audit adjustments) and present fairly in all material respects, the Loan Parties’  and their Restricted Subsidiaries’ consolidated financial condition as of the date thereof and results of  operations for the period then ended.  Since December 31, 2016, no event, circumstance, or change has  occurred that has resulted or could reasonably be expected to result in a Material Adverse Effect.  4.9 Solvency.  (a) The Loan Parties, when taken as a whole, are Solvent.  (b) No transfer of property is being made by any Loan Party and no obligation is being  incurred by any Loan Party in connection with the transactions contemplated by this Agreement or the other  Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of such Loan  Party.  4.10 Employee Benefits.    (a) Except as set forth on Schedule 4.10 (as such Schedule may be updated from time  to time, without the consent of any Lender or Agent, to include retirement and severance plans that are  required by a Governmental Authority outside of the United States so long as such updated Schedule is  delivered together with written notice thereof to Agent), no Loan Party, none of their Restricted  Subsidiaries, nor any of their ERISA Affiliates maintains or contributes to any Benefit Plan.  (b) Each Employee Benefit Plan is, and has been, maintained in substantial  compliance with ERISA, the IRC, all applicable laws and the terms of each such Employee Benefit Plan.   (c) Each Employee Benefit Plan that is intended to qualify under Section 401(a) of the  IRC has received a favorable determination letter from the Internal Revenue Service or is entitled to rely  on an opinion letter provided under a volume submitted program.  To the knowledge of each Loan Party  and the ERISA Affiliates, nothing has occurred which would prevent, or cause the loss of, such  qualification.   (d) There has been no failure to satisfy the “minimum funding standard” under  Sections 412 or 430 of the IRC or Sections 302 or 303 of ERISA with respect to any Pension Plan, or excise  tax imposed under Section 4971 of the IRC.  (e) The present value of all benefits vested under each Pension Plan (based on the  assumptions used to fund such Pension Plan) did not, as of the last annual valuation date applicable thereto,  exceed the value of the assets of such Pension Plan allocable to such vested benefits in an amount that could  reasonably be expected to result in a Material Adverse Effect.  (f) No liability to the PBGC (other than for the payment of current premiums which  are not past due) by any Loan Party or ERISA Affiliate has been incurred or is expected by any Loan Party  or ERISA Affiliate to be incurred with respect to any Pension Plan.   (g) No Termination Event exists or has occurred that would result in an Event of  Default under Section 8.12.  (h) No Loan Party or ERISA Affiliate has had a partial or complete withdrawal from  a Multiemployer Plan for which there is any unsatisfied withdrawal liability that could reasonably be  expected to result in a Material Adverse Effect or an Event of Default under Section 8.12.  





 






     -144-    (i) No Loan Party or ERISA Affiliate has incurred any liability as a result of a  Multiemployer Plan being insolvent that could reasonably be expected to result in a Material Adverse  Effect.  (j) No Loan Party, nor any of its Subsidiaries, maintains or contributes to any  Canadian Defined Benefit Plan nor has any liabilities or obligations in respect of a Canadian Defined  Benefit Plan that has been terminated or wound up other than a Canadian Multi-Employer Plan.  Except as  set forth on Schedule 4.10, as of the Closing Date, no Loan Party, nor any of their Subsidiaries, maintains  or contributes to any Canadian Pension Plan.  Each Canadian Pension Plan is, and has been maintained in  compliance to the Income Tax Act (Canada), all applicable pension benefit and other laws and the terms of  each such Canadian Pension Plan, except where the failure to do so would not reasonably be expected to  result in a Material Adverse Effect.  4.11 Environmental Condition.  Except as set forth on Schedule 4.11 to this Agreement, (a) to  each Borrower’s knowledge, no Loan Party’s nor any of its Restricted Subsidiaries’ properties or assets has  ever been used by a Loan Party, its Restricted Subsidiaries, or by previous owners or operators in the  disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous Materials, where such  disposal, production, storage, handling, treatment, release or transport was in violation, in any material  respect, of any applicable Environmental Law, (b) to each Borrower’s knowledge no Loan Party’s nor any  of its Restricted Subsidiaries’ properties or assets has ever been designated or identified in any manner  pursuant to any Environmental Law as a Hazardous Materials disposal site, (c) no Loan Party nor any of  its Restricted Subsidiaries has received notice that a Lien arising under any Environmental Law has attached  to any revenues or to any Real Property owned or operated by a Loan Party or its Restricted Subsidiaries  that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect,  and (d) no Loan Party nor any of its Restricted Subsidiaries nor any of their respective facilities or  operations is subject to any outstanding written order, consent decree, or settlement agreement with any  Person relating to any Environmental Law or Environmental Liability that, individually or in the aggregate,  could reasonably be expected to result in a Material Adverse Effect.  4.12 Complete Disclosure.  All factual information taken as a whole (other than forward- looking information and projections and information of a general economic nature and general information  about the industry of any Loan Party or its Restricted Subsidiaries) furnished by or on behalf of a Loan  Party or its Restricted Subsidiaries in writing to Agent or any Lender (including all information contained  in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this  Agreement or the other Loan Documents, and all other such factual information taken as a whole (other  than forward-looking information and projections and information of a general economic nature and general  information about the industry of any Loan Party or its Restricted Subsidiaries) hereafter furnished by or  on behalf of a Loan Party or its Restricted Subsidiaries in writing to Agent or any Lender are, true and  accurate, in all material respects, on the date as of which such information is dated or certified and not  incomplete by omitting to state any fact necessary to make such information (taken as a whole) not  misleading in any material respect at such time in light of the circumstances under which such information  was provided.  The Projections delivered to Agent on October 8, 2017 represent, and as of the date on which  any other Projections are delivered to Agent, such additional Projections represent, Borrowers’ good faith  estimate, on the date such Projections are delivered, of the Loan Parties’ and their Restricted Subsidiaries’  future performance for the periods covered thereby based upon assumptions believed by Borrowers to be  reasonable at the time of the delivery thereof to Agent (it being understood that such Projections are subject  to significant uncertainties and contingencies, many of which are beyond the control of the Loan Parties  and their Restricted Subsidiaries, and no assurances can be given that such Projections will be realized, and  although reflecting Borrowers’ good faith estimate, projections or forecasts based on methods and  assumptions which Borrowers believed to be reasonable at the time such Projections were prepared, are not  to be viewed as facts, and that actual results during the period or periods covered by the Projections may  





 






     -145-    differ materially from projected or estimated results). The information included in the most recent  Beneficial Ownership Certification delivered to the Lenders hereunder is true and correct.  4.13 Patriot Act; Canadian AML and Anti-Terrorism Laws.  To the extent applicable, each  Loan Party and each of its Subsidiaries is in compliance in all material respects with the (a) Trading with  the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury  Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive  order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required  to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (the "Patriot Act") and all applicable  Canadian Anti-Money Laundering & Anti-Terrorism Legislation.   4.14 Indebtedness.  Set forth on Schedule 4.14 to this Agreement is a true and complete list of  all Indebtedness of each Loan Party and each of its Restricted Subsidiaries outstanding immediately prior  to the Amendment No. 3 Effective Date (other than Permitted Indebtedness described in clauses (a) and (c)  through (z) of such definition) that is to remain outstanding immediately after the Amendment No. 3  Effective Date.  No such Indebtedness described on Schedule 4.14 is for borrowed money.  4.15 Payment of Taxes.  All federal income and other material Tax returns and reports of each  Loan Party and its Restricted Subsidiaries required to be filed by any of them have been timely filed, and  all Taxes shown on such Tax returns to be due and payable and all other material Taxes upon a Loan Party  and its Restricted Subsidiaries and upon their respective assets, income, businesses and franchises that are  due and payable have been paid when due and payable unless subject to Permitted Protest.  Each Loan Party  and each of its Restricted Subsidiaries have made adequate provision in accordance with GAAP for all  Taxes not yet due and payable.  No Borrower knows of any proposed Tax assessment against a Loan Party  or any of its Restricted Subsidiaries that is not subject to Permitted Protest.  4.16 Margin Stock.  Neither any Loan Party nor any of its Restricted Subsidiaries is engaged  principally, or as one of its important activities, in the business of extending credit for the purpose of  purchasing or carrying any Margin Stock or, as of the Closing Date, owns or carries any Margin Stock.  No  part of the proceeds of the loans made to Borrowers will be used to purchase or carry any Margin Stock or  to extend credit to others for the purpose of purchasing or carrying any Margin Stock or for any purpose  that violates the provisions of Regulation T, U or X of the Board of Governors.  4.17 Governmental Regulation.  No Loan Party nor any of its Restricted Subsidiaries is subject  to regulation under the Federal Power Act or the Investment Company Act of 1940 or under any other  federal or state statute or regulation which may limit its ability to incur Indebtedness or which may  otherwise render all or any portion of the Obligations unenforceable.  No Loan Party nor any of its  Restricted Subsidiaries is a “registered investment company” or a company “controlled” by a “registered  investment company” or a “principal underwriter” of a “registered investment company” as such terms are  defined in the Investment Company Act of 1940.  4.18 OFAC; Sanctions; Procedures.  No Loan Party or any of its Subsidiaries is in violation  of any Sanctions.  No Loan Party nor any of its Subsidiaries nor, to the knowledge of such Loan Party, any  director, officer, employee, agent or Affiliate of such Loan Party or such Subsidiary (a) is a Sanctioned  Person or a Sanctioned Entity, (b) has any assets located in Sanctioned Entities, or (c) derives revenues  from investments in, or transactions with Sanctioned Persons or Sanctioned Entities.  Each of the Loan  Parties and its Subsidiaries has implemented and maintains in effect policies and procedures designed to  ensure compliance with all Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws.  Each of  the Loan Parties and its Subsidiaries, and to the knowledge of each such Loan Party, each director, officer,  employee, agent and Affiliate of each such Loan Party and each such Subsidiary, is in compliance with all  Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws.  No proceeds of any Loan made or  Letter of Credit issued hereunder will be used to fund any operations in, finance any investments or  





 






     -146-    activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity, or otherwise used in  any manner that would result in a violation of any Sanction, Anti-Corruption Law or Anti-Money  Laundering Law by any Person (including any Lender, Bank Product Provider, or other individual or entity  participating in any transaction).  4.19 Employee and Labor Matters.  There is (i) no unfair labor practice complaint pending or,  to the knowledge of any Borrower, threatened in writing against any Loan Party or its Restricted  Subsidiaries before any Governmental Authority and no grievance or arbitration proceeding pending or, to  the knowledge of any Borrower, threatened in writing against any Loan Party or its Restricted Subsidiaries  which arises out of or under any collective bargaining agreement and that could reasonably be expected to  result in a Material Adverse Effect and (ii) no strike, labor dispute, slowdown, stoppage or similar action  or grievance pending or threatened in writing against any Loan Party or its Restricted Subsidiaries that  could reasonably be expected to result in a Material Adverse Effect.  None of any Loan Party or its  Restricted Subsidiaries has incurred any liability or obligation under the Worker Adjustment and Retraining  Notification Act or similar state, foreign, or provincial law, which remains unpaid or unsatisfied, except to  the extent a failure to pay or satisfy such liability or obligation could not reasonably be expected to result  in a Material Adverse Effect.  The hours worked and payments made to employees of each Loan Party and  its Restricted Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable  legal requirements, except to the extent such violations could not, individually or in the aggregate,  reasonably be expected to result in a Material Adverse Effect.  All material payments due from any Loan  Party or its Restricted Subsidiaries on account of wages and employee health and welfare insurance and  other benefits have been paid or accrued as a liability on the books of Parent, except where the failure to do  so could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  4.20 [Reserved].  4.21 Leases.  Each Loan Party and its Restricted Subsidiaries enjoy peaceful and undisturbed  possession under all leases material to their business and to which they are parties or under which they are  operating, and, subject to Permitted Protests, all of such material leases are valid and subsisting and no  material default by the applicable Loan Party or its Restricted Subsidiaries exists under any of them.  4.22 Eligible Accounts.  As to each Account that is identified by Borrowers as an Eligible  Account in a Borrowing Base Certificate submitted to Agent, such Account is (a) a bona fide existing  payment obligation of the applicable Account Debtor created by the sale and delivery of Inventory or the  rendition of services to such Account Debtor in the ordinary course of a Borrower’s business, (b) owed to  a Borrower without any known defenses, disputes, offsets, counterclaims, or rights of return or cancellation,  and (c) not excluded as ineligible by virtue of one or more of the excluding criteria (other than any Agent- discretionary criteria) set forth in the definition of Eligible Accounts.  4.23 Eligible Inventory.  As to each item of Inventory that is identified by Borrowers as US  Eligible Finished Goods Inventory, US Eligible In-Transit Inventory, US Eligible Raw Materials Inventory,  US Eligible Work-In-Process Inventory, Canadian Eligible Finished Goods Inventory, Canadian Eligible  In-Transit Inventory, Canadian Eligible Raw Materials Inventory, or Canadian Eligible Work-In-Process  Inventory in a Borrowing Base Certificate submitted to Agent, such Inventory is (a) of good and  merchantable quality, free from known defects, (b) not excluded as ineligible by virtue of one or more of  the excluding criteria (other than any Agent-discretionary criteria) set forth in the definition of US Eligible  Inventory (in the case of US Eligible In-Transit Inventory, after giving effect to any exclusions therefrom  specified in the definition of US Eligible In-Transit Inventory) and (c) not excluded as ineligible by virtue  of one or more of the excluding criteria (other than any Agent-discretionary criteria) set forth in the  definition of Canadian Eligible Inventory (in the case of Canadian Eligible In-Transit Inventory, after giving  effect to any exclusions therefrom specified in the definition of Canadian Eligible In-Transit Inventory).  





 






     -147-    4.24 [Reserved].  4.25 Location of Inventory.  The Inventory of Loan Parties and their Restricted Subsidiaries is  not stored with a bailee, warehouseman, or similar party and is located only at, or in-transit between, or in- transit to, the locations identified on Schedule 4.25 to this Agreement (as such Schedule may be updated  pursuant to Section 5.14).  4.26 Inventory Records.  Each Loan Party keeps correct and accurate records itemizing and  describing the type, quality, and quantity of its and its Restricted Subsidiaries’ Inventory and the book value  thereof.  5. AFFIRMATIVE COVENANTS.  Each of Parent and each Borrower covenants and agrees that, until the termination of all of  the Commitments and payment in full of the Obligations:  5.1 Financial Statements, Reports, Certificates.  Borrowers (a) will deliver to Agent, with  copies to each Lender, each of the financial statements, reports, and other items set forth on Schedule 5.1  to this Agreement no later than the times specified therein, (b) agree that no Restricted Subsidiary of a Loan  Party will have a fiscal year different from that of Parent, (c) agree to maintain a system of accounting that  enables Borrowers to produce financial statements in accordance with GAAP, and (d) agree that they will,  and will cause each other Loan Party to, (i) keep a reporting system that shows all additions, sales, claims,  returns, and allowances with respect to their and their Restricted Subsidiaries’ sales, and (ii) maintain their  billing systems and practices substantially as in effect as of the Amendment No. 3 Effective Date and shall  only make material modifications thereto with notice to, and with the consent of, Agent.  5.2 Reporting.  Borrowers (a) will deliver to Agent (and if so requested by Agent, with copies  for each Lender) each of the reports set forth on Schedule 5.2 to this Agreement at the times specified  therein, and (b) agree to use commercially reasonable efforts in cooperation with Agent to facilitate and  implement a system of electronic collateral reporting acceptable to the Agent in its sole discretion in order  to provide electronic reporting of each of the items set forth on such Schedule and to complete such  implementation within 180 days after the Closing Date.  5.3 Existence.  Except as otherwise permitted under Section 6.3 or Section 6.4, each Loan  Party will, and will cause each of its Restricted Subsidiaries to, at all times preserve and keep in full force  and effect such Person’s valid existence and good standing in its jurisdiction of organization and, except as  could not reasonably be expected to result in a Material Adverse Effect, good standing with respect to all  other jurisdictions in which it is qualified to do business and any rights, franchises, permits, licenses,  accreditations, authorizations, or other approvals material to their businesses.  5.4 Maintenance of Properties.  Each Loan Party will, and will cause each of its Restricted  Subsidiaries to, maintain and preserve all of its assets that are necessary or useful in the proper conduct of  its business in good working order and condition, ordinary wear, tear, casualty, and condemnation and  Permitted Dispositions excepted (and except where the failure to so maintain and preserve assets could not  reasonably be expected to result in a Material Adverse Effect)].  5.5 Taxes.  Each Loan Party will, and will cause each of its Restricted Subsidiaries  to, pay in  full before delinquency or before the expiration of any extension period all material Taxes imposed, levied,  or assessed against it, or any of its assets or in respect of any of its income, businesses, or franchises, other  than to the extent that the validity of such Tax is the subject of a Permitted Protest.  





 






     -148-    5.6 Insurance.  Each Loan Party will, and will cause each of its Restricted Subsidiaries to, at  Borrowers’ expense, maintain insurance respecting each of each Loan Party’s and its Restricted  Subsidiaries’ assets wherever located, covering liabilities, losses or damages as are customarily are insured  against by other Persons engaged in same or similar businesses and similarly situated and located.  All such  policies of insurance shall be with financially sound and reputable insurance companies reasonably  acceptable to Agent (it being agreed that, as of the Amendment No. 3 Effective Date, AIG, Lloyd’s of  London, Travelers Insurance and Zurich are acceptable to Agent) and in such amounts as is carried  generally in accordance with sound business practice by companies in similar businesses similarly situated  and located and, in any event, in amount, adequacy, and scope reasonably satisfactory to Agent (it being  agreed that the amount, adequacy, and scope of the policies of insurance of Borrowers in effect as of the  Closing Date are acceptable to Agent).  All property insurance policies in respect of the Collateral are to be  made payable to Agent for the benefit of Agent and the Lenders, as their interests may appear, in case of  loss, pursuant to a standard lender’s loss payable endorsement with a standard non-contributory “lender”  or “secured party” clause and are to contain such other provisions as Agent may reasonably require to fully  protect the Lenders’ interest in the Collateral and to any payments to be made under such policies.  All  certificates of property and general liability insurance are to be delivered to Agent, with the lender’s loss  payable and additional insured endorsements in favor of Agent and shall provide for not less than thirty  days (ten days in the case of non-payment) prior written notice to Agent of the exercise of any right of  cancellation.  If any Loan Party or its Restricted Subsidiaries fails to maintain such insurance, Agent may  arrange for such insurance, but at Borrowers’ expense and without any responsibility on Agent’s part for  obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the  collection of claims.  Borrowers shall give Agent prompt notice of any loss exceeding $5,000,000 covered  by the casualty or business interruption insurance of any Loan Party or its Restricted Subsidiaries.  Upon  the occurrence and during the continuance of any Event of Default, Agent shall have the sole right to file  claims under any property and general liability insurance policies in respect of the Collateral, to receive,  receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all  endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to  effect the collection, compromise or settlement of any claims under any such insurance policies.  5.7 Inspection.  (a) Each Loan Party will, and will cause each of its Restricted Subsidiaries to, permit  Agent, any Lender, and each of their respective duly authorized representatives or agents to visit any of its  properties and inspect any of its assets or books and records, to examine and make copies of its books and  records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its  officers and employees (provided, that an authorized representative of a Borrower shall be allowed to be  present) at such reasonable times and intervals as Agent or any Lender, as applicable, may designate and,  so long as no Default or Event of Default has occurred and is continuing, with reasonable prior notice to  Borrowers and during regular business hours, at Borrowers’ expense in accordance with the provisions of  the Fee Letter, subject to the limitations set forth below in Section 5.7(c).  (b) Each Loan Party will, and will cause each of its Restricted Subsidiaries to, permit  Agent and each of its duly authorized representatives or agents to conduct field examinations, appraisals or  valuations at such reasonable times and intervals as Agent may designate (including an audit of the then  effective US Borrowing Base and the Canadian Borrowing Base within 90 days of the Closing Date), at  Borrowers’ expense in accordance with the provisions of the Fee Letter, subject to the limitations set forth  below in Section 5.7(c).  (c) So long as no Event of Default shall have occurred and be continuing during a  calendar year, Borrowers shall not be obligated to reimburse Agent for more than 1 field examinations in  such calendar year (increasing to 2 field examinations if an Increased Reporting Event has occurred during  





 






     -149-    such calendar year), and 1 inventory appraisals in such calendar year (increasing to 2 inventory appraisals  if an Increased Reporting Event has occurred during such calendar year), in each case, except for (i) field  examinations and appraisals conducted in connection with a proposed Permitted Acquisition, Permitted  Investments or joinders (whether or not consummated) and (ii) an audit of the then effective US Borrowing  Base and the Canadian Borrowing Base within 90 days of the Closing Date.  For the avoidance of doubt, a  series of field examinations with respect to the US Borrowing Base and the Canadian Borrowing Base  conducted at or about the same time shall constitute a single field examination for purposes of the above  provisions and a series of appraisals under US Borrowing Base and the Canadian Borrowing Base  conducted at or about the same time shall constitute a single appraisal for purposes of the above provisions.  5.8 Compliance with Laws.  Each Loan Party will, and will cause each of its Restricted  Subsidiaries to, comply with the requirements of all applicable laws, rules, regulations, and orders of any  Governmental Authority, other than laws, rules, regulations, and orders the non-compliance with which,  individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.  5.9 Environmental.  Each Loan Party will, and will cause each of its Restricted Subsidiaries  to,  (a) Keep any property either owned or operated by any Loan Party or its Restricted  Subsidiaries free of any Environmental Liens or post bonds or other financial assurances sufficient to satisfy  the obligations or liability evidenced by such Environmental Liens, other than, in each case, to the extent  that the failure to do so could not reasonably be expected to result in a Material Adverse Effect,  (b) Comply with Environmental Laws, other than Environmental Laws the non- compliance with which, individually or in the aggregate, could not reasonably be expected to result in a  Material Adverse Effect,  (c) (i) Promptly notify Agent of any release of which any Loan Party has knowledge  of a Hazardous Material in any reportable quantity from or onto property owned or operated by any Loan  Party or its Restricted Subsidiaries and (ii) take any Remedial Actions required to abate said release or  otherwise to come into compliance with applicable Environmental Law, other than, in each case, to the  extent that the failure to do so could not reasonably be expected to result in the imposition of liability in  excess of $10,000,000 or require Remedial Action in excess of $10,000,000, and  (d) Promptly, but in any event within five Business Days of its receipt thereof, provide  Agent with written notice of any of the following:  (i) notice that an Environmental Lien has been filed  against any of the real or personal property of a Loan Party or its Restricted Subsidiaries, (ii)  commencement of any material Environmental Action or written notice that a material Environmental  Action will be filed against a Loan Party or its Restricted Subsidiaries, and (iii) written notice of a material  violation, citation, or other administrative order from a Governmental Authority.  5.10 Disclosure Updates.  Each Loan Party will, promptly and in no event later than five  Business Days after obtaining knowledge thereof, notify Agent if any written information, exhibit, or report  furnished to Agent or the Lenders contained, at the time it was furnished, any untrue statement of a material  fact or omitted to state any material fact necessary to make the statements contained therein not misleading  in light of the circumstances in which made.  The foregoing to the contrary notwithstanding, any notification  pursuant to the foregoing provision will not cure or remedy the effect of the prior untrue statement of a  material fact or omission of any material fact nor shall any such notification have the effect of amending or  modifying this Agreement or any of the Schedules hereto. Each Loan Party will (i) notify the Agent and  each Lender that previously received a Beneficial Ownership Certification (or a certification that each  Borrower qualifies for an express exclusion to the “legal entity customer” definition under the Beneficial  Ownership Regulation) of any change in the information provided in the Beneficial Ownership Certification  





 






     -150-    that would result in a change to the list of beneficial owners identified therein (or, if applicable, the  Borrowers ceasing to fall within an express exclusion to the definition of “legal entity customer” under the  Beneficial Ownership Regulation), and (ii) promptly upon the reasonable request of the Agent or any  Lender, provide the Agent or directly to such Lender, as the case may be, any information or documentation  requested by it for purposes of complying with the Beneficial Ownership Regulation.  5.11 Formation of Subsidiaries; Designation.    (a) Each US Loan Party will, at the time that any US Loan Party forms any direct or  indirect Restricted Subsidiary,  acquires any direct or indirect Restricted Subsidiary after the Closing Date,  or at any time when any direct or indirect Restricted Subsidiary of a Loan Party that previously was an  Immaterial Subsidiary becomes a Material Subsidiary, within fourteen days (with respect to a Domestic  Subsidiary) or thirty days (with respect to a Foreign Subsidiary) of such event (or such later date as  permitted by Agent in its sole discretion) (i) unless such Subsidiary is an Excluded Subsidiary (US), cause  such new Restricted Subsidiary (A) if such Subsidiary is a Domestic Subsidiary and Administrative  Borrower requests, subject to the consent of Agent, that such Domestic Subsidiary be joined as a US  Borrower hereunder, to provide to Agent a Joinder to this Agreement, and (B) to provide to Agent a joinder  to the Guaranty and Security Agreement, in each case, together with such other security agreements (other  than as to Real Property), as well as appropriate financing statements, all in form and substance reasonably  satisfactory to Agent (including being sufficient to grant Agent a first priority Lien (subject to Permitted  Liens) in and to the assets of such newly formed or acquired Subsidiary); provided, that for the avoidance  of doubt, a FSHCO can be a guarantor subject to the other limitations in this Section 5.11 with respect to  the pledging of 65% of the voting Equity Interests it owns in any CFC or other FSCHO provided, further,  that for the avoidance of doubt, no such limitation applies to the other interests in any CFC or other FSCHO,  (ii) provide, or cause the applicable Loan Party to provide, to Agent a pledge agreement (or an addendum  to the applicable Guaranty and Security Agreement) and appropriate certificates and powers or financing  statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary in form and  substance reasonably satisfactory to Agent; provided, that only 65% of the total outstanding voting Equity  Interests of any first tier Subsidiary of a Loan Party that is a CFC or a FSHCO (and none of the Equity  Interests of any Subsidiary of such CFC or FSHCO) shall be required to be pledged, and (iii) provide to  Agent all other documentation, including the Governing Documents of such Subsidiary and one or more  opinions of counsel reasonably satisfactory to Agent, which, in its opinion, is appropriate with respect to  the execution and delivery of the applicable documentation referred to above.  Any document, agreement,  or instrument executed or issued by a Loan Party pursuant to this Section 5.11(a) shall constitute a Loan  Document.  (b) Each Canadian Loan Party will, at the time that any Canadian Loan Party forms  any direct or indirect Restricted Subsidiary,  acquires any direct or indirect Restricted Subsidiary after the  Closing Date, or at any time when any direct or indirect Restricted Subsidiary of a Loan Party that  previously was an Immaterial Subsidiary becomes a Material Subsidiary, within fourteen days (with respect  to a Subsidiary organized under the laws of Canada or any province or territory thereof) or thirty days (with  respect to a Foreign Subsidiary organized under the laws of any jurisdiction other than Canada) of such  event (or such later date as permitted by Agent in its sole discretion) (i) unless such Subsidiary is an  Excluded Subsidiary (Canadian), cause such new Restricted Subsidiary (A) if such Subsidiary is a  Subsidiary domiciled in Canada or any province or territory thereof, and Administrative Borrower requests,  subject to the consent of Agent, that such Subsidiary be joined as a Canadian Borrower hereunder, to  provide to Agent a Joinder to this Agreement, and (B) to provide to Agent a joinder to the applicable  Guaranty and Security Agreement, in each case, together with such other security agreements (other than  as to Real Property) as well as appropriate financing statements, all in form and substance reasonably  satisfactory to Agent (including being sufficient to grant Agent a first priority Lien (subject to Permitted  Liens) in and to the assets of such newly formed or acquired Subsidiary); (ii) provide, or cause the  





 






     -151-    applicable Loan Party to provide, to Agent a pledge agreement (or an addendum to the applicable Guaranty  and Security Agreement) and appropriate certificates and powers or financing statements, pledging all of  the direct or beneficial ownership interest in such new Subsidiary in form and substance reasonably  satisfactory to Agent; and (iii) provide to Agent all other documentation, including the Governing  Documents of such Subsidiary and one or more opinions of counsel reasonably satisfactory to Agent, which,  in its opinion, is appropriate with respect to the execution and delivery of the applicable documentation  referred to above.  Any document, agreement, or instrument executed or issued by a Loan Party pursuant  to this Section 5.11(b) shall constitute a Loan Document.  (c) Any newly acquired or formed Subsidiary shall be deemed a Restricted Subsidiary  unless designated by the Borrowers as an Unrestricted Subsidiary in accordance with the terms of this  Section 5.11.  The Borrowers may designate or redesignate any Unrestricted Subsidiary as a Restricted  Subsidiary or designate or redesignate any Restricted Subsidiary or a newly created or acquired Subsidiary  as an Unrestricted Subsidiary, if each of the following conditions are satisfied: (i) immediately before and  after giving effect to such designation or redesignation, no Default or Event of Default shall exist and be  continuing; and (ii) if such designation or redesignation is to make an Unrestricted Subsidiary a Restricted  Subsidiary, the Borrower shall deliver to the Administrative Agent each of the applicable items required in  Section 5.11(a) and (b) above, within the time requirements set forth in therein.  If such designation or  redesignation is to make a Restricted Subsidiary an Unrestricted Subsidiary or to designate any newly  acquired or formed Subsidiary as an Unrestricted Subsidiary (other than as permitted under Section 5.11(d)  below), the Borrower can demonstrate compliance with Sections 6.1 – 6.4, 6.6, 6.7, 6.9 and 7.0 as of the  date of such designation or redesignation, assuming such designation or redesignation had not been made,  in such detail as is reasonably acceptable to the Administrative Agent; provided that (A) only two such  designations may be made as to any particular Subsidiary, and (B) such designation shall be made effective  as of a fiscal quarter end.  (d) Notwithstanding the foregoing, the Parent may designate any newly acquired or  formed Subsidiary as an Unrestricted Subsidiary if (i) such Subsidiary was acquired pursuant to, or formed  in connection with, a Permitted Acquisition and has not been otherwise designated as a Restricted  Subsidiary, (ii) such designation is made immediately following or concurrently with the acquisition or  formation of such Subsidiary, and (iii) within 30 days after such acquisition or formation, such Subsidiary  becomes a Joint Venture as a result of the sale, transfer, conveyance, redemption, repurchase, conversion  or other disposition of Equity Interests in such Subsidiary in compliance with the terms of this Agreement.   For the avoidance of doubt, the conditions set forth in Section 5.11(a) and Section 5.11(b) shall not be  required to be satisfied in connection with any designation pursuant to this clause (c).  (e) The Borrowers shall deliver to the Administrative Agent, within 20 Business Days  after any such designation, a certificate of the Parent stating the effective date of such designation and  stating that the applicable foregoing conditions have been satisfied.    (f) Notwithstanding anything herein to the contrary: (i) no Subsidiary may be  designated as an Unrestricted Subsidiary if it will be or is treated as a “restricted subsidiary” for purposes  of any other credit agreement, indenture or similar agreement (other than the Loan Documents), and such  Subsidiary shall be, for all purposes under the Loan Documents, a Restricted Subsidiary; (ii) the designation  of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the incurrence at the time of  designation of any Indebtedness and Liens of such Subsidiary existing at such time, and (iii) no Subsidiary  may be designated as an Unrestricted Subsidiary unless the Payment Conditions are met.  5.12 Further Assurances.    (a) Each US Loan Party will, and will cause each of the other US Loan Parties to, at  any time upon the reasonable request of Agent, execute or deliver to Agent any and all financing statements,  





 






     -152-    fixture filings, security agreements, pledges, assignments, opinions of counsel, and all other documents (the  “Additional Documents”) that Agent may reasonably request in form and substance reasonably satisfactory  to Agent, to create, perfect, and continue perfection or to better perfect Agent’s Liens in all of the assets of  each of the US Loan Parties (whether now owned or hereafter arising or acquired, tangible or intangible,  real or personal) (other than any assets expressly excluded from the Collateral pursuant to Section 3 of the  applicable Guaranty and Security Agreement but subject to clause (c) below), and in order to fully  consummate all of the transactions contemplated hereby and under the other Loan Documents; provided,  that the foregoing shall not apply to any Subsidiary of a Loan Party that is a CFC (unless such Subsidiary  has guaranteed or is otherwise liable for any Other Debt); provided, further, that the foregoing shall not  require any FSHCO to pledge more than 65% of the voting Equity Interests it owns in any CFC or other  FSCHO (unless such FSHCO has pledged more than 65% of the voting Equity Interests it owns in any CFC  or other FSCHO to secure any Other Debt); provided, however, for the avoidance of doubt, a FSHCO may  pledge 100% of the other interests in any CFC or other FSCHO (and, for the avoidance of doubt, shall  pledge whatever other interests it has pledged to secure such Other Debt to secure the Obligations subject  to the Intercreditor Agreement).  To the maximum extent permitted by applicable law, if any Borrower or  any other Loan Party refuses or fails to execute or deliver any reasonably requested Additional Documents  within a reasonable period of time not to exceed 5 Business Days following the request to do so, each US  Borrower and each other US Loan Party hereby authorizes Agent to execute any such Additional  Documents in the applicable Loan Party’s name and authorizes Agent to file such executed Additional  Documents in any appropriate filing office.  In furtherance of, and not in limitation of, the foregoing, each  US Loan Party shall take such actions as Agent may reasonably request from time to time to ensure that the  Obligations are guaranteed by the US Guarantors (and any other Person that has guaranteed Other Debt  pursuant to the Secured Notes Documents or otherwise) and are secured by substantially all of the assets of  the US Loan Parties (and of each other Person that has guaranteed, or is otherwise liable for, Other Debt),  including all of the outstanding capital Equity Interests of each US Borrower (other than the Parent) and its  Restricted Subsidiaries (and any other Subsidiaries in the case of such Person that has guaranteed, or is  otherwise liable for Other Debt pursuant to the Secured Notes Documents or otherwise) (in each case, other  than with respect to any assets expressly excluded from the Collateral (as defined in the applicable Guaranty  and Security Agreement) pursuant to Section 3 of the Guaranty and Security Agreement subject to clause  (c) below).  (b) Each Canadian Loan Party will, and will cause each of the other Canadian Loan  Parties to, at any time upon the reasonable request of Agent, execute or deliver to Agent any and all  Additional Documents that Agent may reasonably request in form and substance reasonably satisfactory to  Agent, to create, perfect, and continue perfected or to better perfect Agent’s Liens in all of the assets of  each of the Canadian Loan Parties (whether now owned or hereafter arising or acquired, tangible or  intangible, real or personal) (other than any assets expressly excluded from the Collateral pursuant to  Section 3 of the applicable Guaranty and Security Agreement but subject to clause (c) below), and in order  to fully consummate all of the transactions contemplated hereby and under the other Loan Documents.  To  the maximum extent permitted by applicable law, if any Canadian Borrower or any other Canadian Loan  Party refuses or fails to execute or deliver any reasonably requested Additional Documents within a  reasonable period of time not to exceed 5 Business Days following the request to do so, each Canadian  Borrower and each other Loan Party hereby authorizes Agent to execute any such Additional Documents  in the applicable Canadian Loan Party’s name and authorizes Agent to file such executed Additional  Documents in any appropriate filing office.  In furtherance of, and not in limitation of, the foregoing, each  Canadian Loan Party shall take such actions as Agent may reasonably request from time to time to ensure  that the Canadian Obligations are guaranteed by the Foreign Subsidiary Guarantors (and any other Foreign  Subsidiary that has guaranteed Other Debt pursuant to the Secured Notes Documents or otherwise) and are  secured by substantially all of the assets of the Canadian Loan Parties (and of each other Foreign Subsidiary  that has guaranteed, or is otherwise liable for, Other Debt), including all of the outstanding capital Equity  Interests of each Canadian Borrower (other than the Parent) and its Restricted Subsidiaries (and any other  





 






     -153-    Foreign Subsidiaries in the case of such Foreign Subsidiary that has guaranteed or is otherwise liable for,  Other Debt) (in each case, other than with respect to any assets expressly excluded from the Collateral (as  defined in the applicable Guaranty and Security Agreement) pursuant to Section 3 of the applicable  Guaranty and Security Agreement subject to clause (c) below).  (c) Notwithstanding anything in this Agreement or in any other Loan Document to the  contrary (including Section 3 of any applicable Guaranty and Security Agreement), the Loan Parties shall  at all times cause the Obligations to be guaranteed and secured by each Person (and by such Person’s assets  (other than Real Property unless agreed by all the Lenders in accordance with this Agreement and the  Intercreditor Agreement)) to the same extent any Other Debt is guaranteed or secured by such Person (and  by such Person’s assets), in each case, subject to the terms and conditions of the Intercreditor Agreement.  5.13 Lender Meetings.  Parent will, within 90 days after the close of each fiscal year of Parent,  at the request of Agent or of the Supermajority Lenders and upon reasonable prior notice, hold a meeting  (at a mutually agreeable location and time or, at the option of Agent, by conference call) with all Lenders  who choose to attend such meeting at which meeting shall be reviewed the financial results of the previous  fiscal year and the financial condition of the Loan Parties and their Restricted Subsidiaries and the  projections presented for the current fiscal year of Parent.  5.14 Location of Inventory; Chief Executive Office.  Each Loan Party will, and will cause  each of its Restricted Subsidiaries to, keep (a) their Inventory only at the locations identified on  Schedule 4.25 to this Agreement or  in-transit to such locations (provided that Borrowers may amend  Schedule 4.25 to this Agreement so long as such amendment occurs by written notice to Agent not less than  ten days prior to the date on which such Inventory is moved to such new location and so long as such new  location is within the continental United States or, in the case of Inventory of Canadian Loan Parties, within  Canada), and (b) their respective chief executive offices (and registered offices in the case of Canadian  Loan Parties) only at the locations identified on Schedule 7 to the Guaranty and Security Agreement (as  updated with no less than ten days’ prior written notice to Agent).  Each Loan Party will, and will cause  each of its Restricted Subsidiaries to, use their commercially reasonable efforts to obtain Collateral Access  Agreements for each of the locations identified on Schedule 7 to the Guaranty and Security Agreement and  Schedule 4.25 to this Agreement.   5.15 OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws.  Each Loan  Party will, and will cause each of its Subsidiaries to comply with all applicable Sanctions, Anti-Corruption  Laws and Anti-Money Laundering Laws.  Each of the Loan Parties and its Subsidiaries shall implement  and maintain in effect policies and procedures designed to ensure compliance by the Loan Parties and their  Subsidiaries and their respective directors, officers, employees, agents and Affiliates with all Sanctions,  Anti-Corruption Laws and Anti-Money Laundering Laws.    5.16 Canadian Compliance.  In addition to and without limiting the generality of Section 5.8,  each of Parent and each Borrower will, and will cause each of its Restricted Subsidiaries to, (a) comply  with applicable provisions and funding requirements of the Income Tax Act (Canada) and applicable federal  or provincial pension benefits legislation with respect to all Canadian Pension Plans except where the failure  to do so would not reasonably be expected to result in a Material Adverse Effect and (b) furnish to Agent  upon Agent's written request such additional information about any Canadian Pension Plan for which Parent  or its Restricted Subsidiaries would reasonably expect to incur any material liability.  All employer or  employee payments, contributions or premiums required to be remitted, paid to or in respect of Canadian  statutory benefit plans that Parent or any of its Restricted Subsidiaries is required to participate in or comply  with, including the Canada Pension Plan or Quebec Pension Plan as maintained by the Government of  Canada or Province of Quebec, respectively, and plans administered pursuant to applicable workplace  safety insurance and employment insurance legislation will be paid or remitted by each such Person in  





 






     -154-    accordance with the terms thereof, any agreements relating thereto and all applicable laws except to the  extent that any amount so payable is subject to a Permitted Protest and a Canadian Priority Payables Reserve  for such amount has been established.  5.17 Compliance with ERISA and the IRC.    (a) Except for matters that could not reasonably be expected to, individually or in the  aggregate, have a Material Adverse Effect, in addition to and without limiting the generality of Section 5.8,  each Loan Party will, and will cause each of its Subsidiaries to (a) comply with applicable provisions of  ERISA and the IRC with respect to all Employee Benefit Plans, (b) without the prior written consent of  Agent and the Supermajority Lenders, not take any action or fail to take action the result of which could  reasonably be expected to result in a Loan Party or ERISA Affiliate incurring a liability to the PBGC or to  a Multiemployer Plan (other than to pay contributions or premiums payable in the ordinary course), (c) not  participate in any prohibited transaction that could result in civil penalty excise tax, fiduciary liability or  correction obligation under ERISA or the IRC, and (d) operate each Employee Benefit Plan in such a  manner that will not incur any tax liability under the IRC (including Section 4980B of the IRC).  Each Loan  Party will, and will cause each of its Subsidiaries to furnish to Agent upon Agent’s written request such  additional information about any Employee Benefit Plan for which any Loan Party or ERISA Affiliate  could reasonably expect to incur any material liability.  With respect to each Pension Plan except as could  not reasonably be expected to result in material liability to the Loan Parties, the Loan Parties and the ERISA  Affiliates shall (i) satisfy in full and in a timely manner, without incurring any late payment or  underpayment charge or penalty and without giving rise to any Lien, all of the contribution and funding  requirements of the IRC and of ERISA, and (ii) pay, or cause to be paid, to the PBGC in a timely manner,  without incurring any late payment or underpayment charge or penalty, all material premiums required  pursuant to ERISA.  (b) As soon as possible and in any event (i) within 30 days after a Loan Party or any  ERISA Affiliate knows that any Termination Event described in clause (a) of the definition of Termination  Event has occurred, and (ii) within 10 days after the Loan Party or any ERISA Affiliate knows that any  other Termination Event has occurred, the Loan Party shall provide to Agent a statement of an authorized  officer of the Loan Party describing such Termination Event and the action, if any, which the Loan Party  or any ERISA Affiliate proposes to take with respect thereto.  (c) Promptly and in any event within five Business Days after receipt thereof by a  Loan Party or any ERISA Affiliate from the PBGC, the Loan Party shall provide to Agent copies of each  notice received by the Loan Party or any such ERISA Affiliate of the PBGC's intention to terminate any  Pension Plan or to have a trustee appointed to administer any Pension Plan.  (d) Promptly and in any event within five Business Days after receipt thereof by a  Loan Party or any ERISA Affiliate from a Multiemployer Plan sponsor, the Loan Party shall provide to  Agent a copy of each notice received by the Loan Party or any ERISA Affiliate concerning the imposition  or amount of Withdrawal Liability imposed on the Loan Party or any ERISA Affiliate pursuant to Section  4202 of ERISA.  5.18 Cash Balance Report.  The Administrative Borrower shall, on each Business Day  occurring on and after the thirtieth (30th) day following the Second Amendment Effective Date when any  Loans are outstanding as of such date of determination, provide the Agent a report setting forth the  calculation of the Loan Parties’ aggregate Cash Balance as of the end of the previous Business Day certified  by a Financial Officer of the Administrative Borrower (each a “Cash Balance Report”); provided that if at  any time the Loan Parties irrevocably agree with the Agent to allow for the Agent’s dominion over the Loan  Parties’ Controlled Accounts located in the United States (the “Dominion Condition”), then the  Administrative Borrower shall only be required to deliver a Cash Balance Report (a) if Loans are  





 






     -155-    outstanding as of such date, on the third (3rd) Business Day of each week demonstrating the Cash Balance  of the Loan Parties in Canadian deposit accounts and securities accounts as of the previous Business Day,  and (b) to the extent Loans were outstanding at any time during the previous month, on the third (3rd)  Business Day of each month, demonstrating the Cash Balance with respect to the Loan Parties’ deposit  accounts and securities accounts in all jurisdictions outside the United States and Canada as of the end of  the last Business Day of each week during the previous month.  6. NEGATIVE COVENANTS.  Each of Parent and each Borrower covenants and agrees that, until the termination of all of  the Commitments and the payment in full of the Obligations:  6.1 Indebtedness.  Each Loan Party will not, and will not permit any of its Restricted  Subsidiaries to, create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or  indirectly, liable with respect to any Indebtedness, except for Permitted Indebtedness.  6.2 Liens.  Each Loan Party will not, and will not permit any of its Restricted Subsidiaries to,  create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its assets,  of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for  Permitted Liens.  6.3 Restrictions on Fundamental Changes.  Each Loan Party will not, and will not permit  any of its Restricted Subsidiaries to,  (a) Other than in order to consummate a Permitted Acquisition, enter into any merger,  amalgamation, arrangement, consolidation, reorganization, or recapitalization, or reclassify its Equity  Interests, except for (i) any merger or amalgamation solely between or among US Loan Parties; provided,  that a Borrower must be the surviving entity of any such merger to which it is a party, (ii) any merger or  amalgamation solely between or among Canadian Loan Parties; provided, that a Borrower must be the  surviving entity of any such merger to which it is a party, (iii) any merger or amalgamation between a Loan  Party and a Restricted Subsidiary of such Loan Party that is not a Loan Party so long as such Loan Party is  the surviving entity of any such merger, and (iv) any merger or amalgamation between Restricted  Subsidiaries of any Loan Party that are not Loan Parties,  (b) liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution),  except for (i) the liquidation or dissolution of non-operating Restricted Subsidiaries of any Loan Party with  nominal assets and nominal liabilities, (ii) the liquidation or dissolution of a Loan Party (other than any  Borrower) or any of its wholly-owned Restricted Subsidiaries so long as all of the assets (including any  interest in any Equity Interests) of such liquidating or dissolving Loan Party or Restricted Subsidiary are  transferred to a Loan Party that is not liquidating or dissolving, or (iii) the liquidation or dissolution of a  Restricted Subsidiary of any Loan Party that is not a Loan Party (other than any such Restricted Subsidiary  the Equity Interests of which (or any portion thereof) is subject to a Lien in favor of Agent) so long as all  of the assets of such liquidating or dissolving Restricted Subsidiary are transferred to a Restricted  Subsidiary of a Loan Party that is not liquidating or dissolving,   (c) suspend or cease operating a substantial portion of its or their business, except as  permitted pursuant to clauses (a) or (b) above or in connection with a transaction otherwise expressly  permitted under this Agreement, or  (d) change its classification/status for United States federal income tax purposes if  such change reasonably could be expected to adversely affect the Lenders.  





 






     -156-    6.4 Disposal of Assets.  Other than Permitted Dispositions or transactions expressly permitted  by Sections 6.3 or 6.9, each Loan Party will not, and will not permit any of its Restricted Subsidiaries to,  convey, sell, lease, license, assign, transfer, or otherwise dispose of any of its or their assets (it being  understood and agreed that a designation of a Subsidiary as an Unrestricted Subsidiary is deemed to be a  disposition by its equity holder of assets).  6.5 Nature of Business.  Each Loan Party will not, and will not permit any of its Restricted  Subsidiaries to, make any change in the nature of its or their business as described in Schedule 6.5 to this  Agreement or acquire any properties or assets that are not reasonably related to the conduct of such business  activities; provided, that the foregoing shall not prevent any Loan Party and its Restricted Subsidiaries from  engaging in any business that is reasonably related or ancillary to its or their business.  6.6 Prepayments and Amendments.  Each Loan Party will not, and will not permit any of its  Restricted Subsidiaries to,  (a) Except in connection with any Refinancing Indebtedness, any Refinancing Senior  Notes, and any Refinancing Secured Notes, in each case, as permitted by Section 6.1,  (i) optionally prepay, redeem, defease, purchase, or otherwise acquire any  Indebtedness of any Loan Party or its Restricted Subsidiaries, other than (A) the Obligations in accordance  with this Agreement, (B) Hedge Obligations, (C) Permitted Intercompany Advances, (D) other  Indebtedness so long as the Payment Conditions are satisfied, or (E) the Secured Notes (or Refinancing  Secured Notes in respect thereof) pursuant to an optional conversion thereof into common Equity Interests  of the Parent in accordance with the terms of the Secured Notes Documents as in effect on the Second  Amendment Effective Date,   (ii) make any payment on account of Indebtedness that has been contractually  subordinated in right of payment to the Obligations if such payment is not permitted at such time under the  subordination terms and conditions, or  (b) Directly or indirectly, amend, modify, or change any of the terms or provisions of:  (i) (x) any agreement, instrument, document, indenture, or other writing   evidencing or concerning Indebtedness permitted under clauses (f), (g), (u) or (v) of the definition of  Permitted Indebtedness if (A) the effect thereof, either individually or in the aggregate, could reasonably  be expected to be materially adverse to the interests of the Lenders or (B) such amendment, modification  or change is prohibited by the intercreditor or subordination terms applicable to such Indebtedness, or  (y)  any agreement, instrument, document, indenture or other writing (including the Secured Notes Documents)  evidencing the Secured Notes (or Refinancing Secured Notes in respect thereof) and permitted by clause  (s) of the definition of “Permitted Indebtedness” if such amendment, modification or change is prohibited  by this Agreement (including the definition of Refinancing Secured Notes) or the Intercreditor Agreement,  or if such amendment modification or change to the Secured Notes or Refinancing Secured Notes (and the  Secured Notes Documents) would further expand the scope of the Real Property required to be subject to a  Lien to secure the Secured Notes unless consented to by the Agent and the Supermajority Lenders,  (ii) the Governing Documents of any Loan Party or any of its Restricted  Subsidiaries if the effect thereof, either individually or in the aggregate, could reasonably be expected to be  materially adverse to the interests of the Lenders, or  (iii) any agreement, instrument, document, or other writing evidencing or  concerning Liens permitted under clause (v) of the definition of Permitted Liens if (x) the effect thereof,  either individually or in the aggregate, could reasonably be expected to be materially adverse to the interests  





 






     -157-    of the Lenders, or (y) such amendment, modification or change is prohibited by the Intercreditor  Agreement.  6.7 Restricted Payments.  Each Loan Party will not, and will not permit any of its Restricted  Subsidiaries to, make any Restricted Payment; provided, that so long as it is permitted by law,  (a) so long as no Default or Event of Default shall have occurred and be continuing or  would result therefrom, Parent may make distributions to former employees, officers, or directors of Parent  (or any spouses, ex-spouses, or estates of any of the foregoing) on account of redemptions of Equity  Interests of Parent held by such Persons; provided, that the aggregate amount of such redemptions made by  Parent from and after the Amendment No. 3 Effective Date does not exceed $10,000,000 in the aggregate,  (b) so long as no Default or Event of Default shall have occurred and be continuing or  would result therefrom, Parent may make distributions to former employees, officers, or directors of Parent  (or any spouses, ex-spouses, or estates of any of the foregoing), solely in the form of forgiveness of  Indebtedness of such Persons owing to Parent on account of repurchases of the Equity Interests of Parent  held by such Persons; provided, that such Indebtedness was incurred by such Persons solely to acquire  Equity Interests of Parent,  (c) [Reserved],   (d) (i) any US Loan Party may make Restricted Payments to any other US Loan Party,  (ii) any Canadian Loan Party may make Restricted Payments to any other Canadian Loan Party, (iii) the  US Loan Parties may make Restricted Payments to Restricted Subsidiaries that are not US Loan Parties so  long as the funds or other property so distributed are immediately applied to make further Restricted  Payments to US Loan Parties, (iv) the Canadian Loan Parties may make Restricted Payments to Restricted  Subsidiaries that are not Canadian Loan Parties so long as the funds or other property so distributed are  immediately applied to make further Restricted Payments to Canadian Loan Parties, and (v) the Restricted  Subsidiaries that are not Loan Parties may make Restricted Payments to other Restricted Subsidiaries that  are not Loan Parties, and  (e) other Restricted Payments by the Parent so long as the Payment Conditions are  satisfied.  6.8 Accounting Methods.  Each Loan Party will not, and will not permit any of its Restricted  Subsidiaries to, modify or change its fiscal year or its method of accounting (other than as may be required  to conform to GAAP).  6.9 Investments.  Each Loan Party will not, and will not permit any of its Restricted  Subsidiaries to, directly or indirectly, make or acquire any Investment or incur any liabilities (including  contingent obligations) for or in connection with any Investment except for Permitted Investments.  6.10 Transactions with Affiliates.  Each Loan Party will not, and will not permit any of its  Restricted Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction with any  Affiliate of any Loan Party or any of its Restricted Subsidiaries except for:  (a) transactions between such Loan Party or its Restricted Subsidiaries, on the one  hand, and any Affiliate of such Loan Party or its Restricted Subsidiaries, on the other hand, so long as such  transactions are no less favorable, taken as a whole, to such Loan Party or its Restricted Subsidiaries, as  applicable, than would be obtained in an arm’s length transaction with a non-Affiliate,  





 






     -158-    (b) any indemnity provided for the benefit of directors (or comparable managers) of a  Loan Party or one of its Restricted Subsidiaries so long as it has been approved by such Loan Party’s or  such Restricted Subsidiary’s board of directors (or comparable governing body) in accordance with  applicable law,  (c) the payment of reasonable compensation, severance, or employee benefit  arrangements to employees, officers, and outside directors of a Loan Party or one of its Restricted  Subsidiaries in the ordinary course of business and consistent with industry practice so long as it has been  approved by such Loan Party’s or such Restricted Subsidiary’s board of directors (or comparable governing  body) in accordance with applicable law,  (d) (i) transactions solely among US Loan Parties, (ii) transactions solely among  Canadian Loan Parties, and (iii) transactions solely among Restricted Subsidiaries of Loan Parties that are  not Loan Parties,  (e) transactions permitted by Section 6.3, Section 6.7, or Section 6.9,  (f) agreements for the non-exclusive licensing of intellectual property, or distribution  of products, in each case, among the Loan Parties and their Restricted Subsidiaries for the purpose of the  counterparty thereof operating its business, and agreements for the assignment of intellectual property from  any Loan Party or any of its Restricted Subsidiaries to any Loan Party.  6.11 Use of Proceeds.  Each Loan Party will not, and will not permit any of its Restricted  Subsidiaries to, use the proceeds of any Loan made hereunder for any purpose other than (a) on the Closing  Date, (i) to repay, in full, the outstanding principal, accrued interest, and accrued fees and expenses owing  under or in connection with the Existing Credit Facility, and (ii) to pay the fees, costs, and expenses incurred  in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby  and thereby, in each case, as set forth in the Flow of Funds Agreement, and (b) thereafter, consistent with  the terms and conditions hereof, for their lawful and permitted purposes; provided that (x) no part of the  proceeds of the Loans will be used to purchase or carry any Margin Stock or to extend credit to others for  the purpose of purchasing or carrying any such Margin Stock or for any other purpose that violates the  provisions of Regulation T, U or X of the Board of Governors, (y) no part of the proceeds of any Loan or  Letter of Credit will be used, directly or to Borrowers’ knowledge, indirectly, to make any payments to a  Sanctioned Entity or a Sanctioned Person, to fund any investments, loans or contributions in, or otherwise  make such proceeds available to, a Sanctioned Entity or a Sanctioned Person, to fund any operations,  activities or business of a Sanctioned Entity or a Sanctioned Person, or in any other manner that would  result in a violation of Sanctions by any Person, and (z) no part of the proceeds of any Loan or Letter of  Credit will be used, directly or to Borrowers’ knowledge, indirectly, in furtherance of an offer, payment,  promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person  in violation of any Sanctions, Anti-Corruption Laws or Anti-Money Laundering Laws.  6.12 Limitation on Issuance of Equity Interests.  Except for the issuance or sale of Qualified  Equity Interests by Parent, each Loan Party will not, and will not permit any of its Restricted Subsidiaries  to, issue or sell any of its Equity Interests other than issuances and sales to a Loan Party or a Restricted  Subsidiary thereof or issuances expressly permitted by Section 6.7 or Section 6.9; provided that, for the  avoidance of doubt, this Section 6.12 shall not prohibit a Permitted Disposition of a Restricted Subsidiary.  6.13 Inventory with Bailees.  Each Borrower will not, and will not permit any of its Restricted  Subsidiaries to, store its Inventory at any time with a bailee, warehouseman, or similar party except as set  forth on Schedule 4.25 (as such Schedule may be amended in accordance with Section 5.14) or in transit to  a location set forth on Schedule 4.25.  





 






     -159-    6.14 Immaterial Subsidiaries.  Each Loan Party will not permit any Immaterial Subsidiary to  guarantee or otherwise become liable for any Other Debt of the Parent or any other Loan Party unless such  Immaterial Subsidiary is also a Guarantor.  6.15 Employee Benefits.  Except for matters which individually or in the aggregate could not  reasonably be expected to have a Material Adverse Effect, each Borrower will not, and will not permit any  of its Restricted Subsidiaries to:  (a) Terminate, or permit any ERISA Affiliate who is a Subsidiary of a Loan Party to  terminate, any Pension Plan in a manner, or take any other action with respect to any Plan, which could  reasonably be expected to result in any liability of any Loan Party or ERISA Affiliate to the PBGC;  (b) Fail to make, or permit any ERISA Affiliate to fail to make, full payment when  due of all amounts which, under the provisions of any Pension Plan, agreement relating thereto or applicable  Law, any Loan Party or ERISA Affiliate is required to pay;  (c) Permit to exist, or allow any ERISA Affiliate to permit to exist, any failure to  satisfy the “minimum funding standard” under Sections 412 or 430 of the IRC or Sections 302 or 303 of  ERISA with respect to any Pension Plan;  (d) Acquire, or permit any ERISA Affiliate to acquire, an interest in any Person that  causes such Person to become an ERISA Affiliate if such Person sponsors, maintains or contributes to, or  at any time in the six-year period preceding such acquisition has sponsored, maintained, or contributed to,  (1) any multiemployer plan within the meaning of Section 3(37) or 4001(a)(3) of ERISA, or (2) any  employee benefit plan, other than a multiemployer plan, which is subject to the provisions of Title IV or  Section 302 of ERISA or Sections 412 or 430 of the IRC;  (e) Contribute to or assume an obligation to contribute to, or permit any ERISA  Affiliate to contribute to or assume an obligation to contribute to, any multiemployer plan;   (f) Amend, or permit any ERISA Affiliate to amend, a Pension Plan resulting in a  material increase in current liability such that a Loan Party or ERISA Affiliate is required to provide security  to such Pension Plan under the IRC;  (g) Engage, or permit any ERISA Affiliate to engage, in any transaction in connection  with which the Loan Party or ERISA Affiliate could be subjected to either a civil penalty assessed pursuant  to Section 502(c), (i) or (l) of ERISA or a tax imposed by Chapter 43 of Subtitle D of the IRC; or  (h) Incur, or permit any ERISA Affiliate to incur, a liability to or on account of a  Pension Plan under Sections 515, 4062, 4063, 4064, 4201 or 4204 of ERISA.  6.16 Canadian Employee Benefits.  Neither Parent nor any Borrower will, or will permit any  of its Restricted Subsidiaries to:  (a) establish, maintain, sponsor, administer, contribute to, participate in or assume or  incur any liability in respect of any Canadian Defined Benefit Plan or amalgamate with any Person if such  Person, sponsors, administers, contributes to, participates in or has any liability in respect of, any Canadian  Defined Benefit Plan other than a Canadian Multi-Employer Plan,  (b) terminate any Canadian Pension Plan in a manner, or take any other action with  respect to any Canadian Pension Plan, which would reasonably be expected to result in a Material Adverse  Effect, or  





 






     -160-    (c) fail to make full payment when due of any amounts, under the provisions of any  Canadian Pension Plan, any agreement relating thereto or applicable law if such failure would reasonably  be expected to result in a Material Adverse Effect.  6.17 Controlled Accounts; Controlled Investments.  (a) Subject to any applicable time periods provided under Schedule 3.6 to this  Agreement, each Loan Party shall, and shall cause each of its Subsidiaries that are Loan Parties to  (i) establish and maintain United States and Canadian cash management services at one or more of the  Lenders and their respective Affiliates (each a “Controlled Account Bank”), (ii) take reasonable steps to  ensure that all of its Account Debtors forward payment of the amounts owed by them directly to a Collection  Account (as defined in the Guaranty and Security Agreement) at such Controlled Account Bank that is not  an Excluded Account (each, a “Controlled Account”) (by wire transfer to the applicable Controlled Account  Bank or to a lockbox maintained by the applicable Controlled Account Bank for deposit into such  Collection Account (as defined in the Guaranty and Security Agreement)), and (iii) deposit or cause to be  deposited promptly, and in any event no later than the first Business Day after the date of receipt thereof,  all of their Collections (including those sent directly by their Account Debtors to a Loan Party) and proceeds  of Collateral into a Controlled Account; provided that, notwithstanding anything herein to the contrary,  from and after the Amendment No. 3 Effective Date until the earlier of (A) June 30, 2022 (or such later  date as the Agent shall agree in its reasonable discretion) and (B) the date upon which all cash management  services are transferred from HSBC Bank USA, N.A. to another Controlled Account Bank, HSBC Bank  USA, N.A. shall be deemed to be a Controlled Account Bank for purposes of this Section 6.17.  (b) Subject to any applicable time periods provided under Schedule 3.6 to this  Agreement, each Loan Party shall, and shall cause each of its Subsidiaries that are Loan Parties to, establish  and maintain Control Agreements with Agent and the applicable Controlled Account Bank, in form and  substance reasonably acceptable to Agent.  Each such Control Agreement shall provide, among other things,  that (i) the Controlled Account Bank will comply with any instructions originated by Agent directing the  disposition of the funds in each applicable Controlled Account without further consent by the applicable  Loan Party, (ii) the Controlled Account Bank waives, subordinates, or agrees not to exercise any rights of  setoff or recoupment or any other claim against each applicable Controlled Account other than for payment  of its service fees and other charges directly related to the administration of such Controlled Account and  for returned checks or other items of payment, and (iii) upon the instruction of Agent (an “Activation  Instruction”), the Controlled Account Bank will forward by daily sweep all amounts in each applicable  Controlled Account to the Agent’s Account.  Agent agrees not to issue an Activation Instruction with  respect to the Controlled Accounts unless a Cash Dominion Event has occurred at the time such Activation  Instruction is issued.  Agent agrees to use commercially reasonable efforts to rescind an Activation  Instruction (the “Rescission”) after any Cash Dominion Period has ended;  (c) Each Loan Party shall, each Loan Party shall, and shall cause each of its  Subsidiaries that are Loan Parties to, close any of its Controlled Accounts (and establish replacement  Controlled Account accounts in accordance with the foregoing sentence) as promptly as practicable and in  any event within 45 days after notice from Agent that the operating performance, funds transfer, or  availability procedures or performance of the Controlled Account Bank with respect to Controlled Account  Accounts or Agent’s liability under any Control Agreement with such Controlled Account Bank is no longer  acceptable in Agent’s reasonable judgment; and  (d) Subject to any applicable time periods provided under Schedule 3.6 to this  Agreement, other than (i) with respect to Excluded Accounts, (ii) an aggregate amount of not more than  $250,000 (calculated at current exchange rates) at any one time, in the case of US Loan Parties, (iii) an  aggregate amount of not more than $250,000 (calculated at current exchange rates) at any one time, in the  





 






     -161-    case of Canadian Loan Parties, and (iv) so long as neither any Loan Party nor any Subsidiary thereof that  is a Loan Party directs any Account Debtor to remit the proceeds of any US Eligible Accounts or Canadian  Eligible Accounts to any such Deposit Account or Securities Account, with respect to any Deposit Accounts  or Securities Accounts established and maintained in a foreign jurisdiction (other than Canada), including,  without limitation, any such Deposit Account or Securities Account established and maintained at Bank of  China, The Saudi British Bank and Banco Bradesco S.A., no Loan Party will, and no Loan Party will permit  its Subsidiaries that are Loan Parties to, make, acquire, or permit to exist (x) Permitted Investments  consisting of cash, Cash Equivalents, or (y) amounts credited to Deposit Accounts or Securities Accounts,  unless Loan Party or such Restricted Subsidiary, as applicable, and the applicable bank or securities  intermediary have entered into Control Agreements or other arrangement or agreements under applicable  foreign law, governing such Permitted Investments, Deposit Accounts or Securities Accounts, as  applicable, in order to perfect (or further establish) Agent’s Liens in such Permitted Investments, Deposit  Accounts or Securities Accounts, as applicable.  7. FINANCIAL COVENANTS.   Each of Parent and each Borrower covenants and agrees that, until the termination of all of  the Commitments and the payment in full of the Obligations, Parent and Borrowers will maintain a Fixed  Charge Coverage Ratio, calculated for each 12 month period ending on the first day of any Covenant  Testing Period and the last day of each fiscal quarter occurring until the end of any Covenant Testing Period  (including the last day thereof), in each case of at least 1.00 to 1.00.  8. EVENTS OF DEFAULT.  Any one or more of the following events shall constitute an event of default (each, an  “Event of Default”) under this Agreement:  8.1 Payments.  If Borrowers fail to pay when due and payable, or when declared due and  payable, (a) all or any portion of the Obligations consisting of interest, fees, or charges due the Lender  Group, reimbursement of Lender Group Expenses, or other amounts (other than any portion thereof  constituting principal) constituting Obligations (including any portion thereof that accrues after the  commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in  part as a claim in any such Insolvency Proceeding), and such failure continues for a period of three Business  Days, (b) all or any portion of the principal of the Loans, or (c) any amount payable to Issuing Bank in  reimbursement of any drawing under a Letter of Credit;  8.2 Covenants.  If any Loan Party or any of its Restricted Subsidiaries:  (a) fails to perform or observe any covenant or other agreement contained in any of  (i) Sections 5.1, 5.2(a), 5.3 (solely if any Borrower is not in good standing in its jurisdiction of organization),  5.6, or 5.7 (solely if any Borrower refuses to allow Agent or its representatives or agents to visit any  Borrower’s properties, inspect its assets or books or records, examine and make copies of its books and  records, or discuss Borrowers’ affairs, finances, and accounts with officers and employees of any  Borrower), 5.10 or 5.11 of this Agreement, (ii) Section 6 of this Agreement, (iii) Section 7 of this  Agreement, or (iv) Section 8 of the Guaranty and Security Agreement;  (b) fails to perform or observe any covenant or other agreement contained in any of  Sections 5.3 (other than if any Borrower is not in good standing in its jurisdiction of organization), 5.5, 5.8,  5.12, 5.13 or 5.14 of this Agreement and such failure continues for a period of ten days after the earlier of  (i) the date on which such failure shall first become known to any officer of any Borrower, or (ii) the date  on which written notice thereof is given to Borrowers by Agent; or  





 






     -162-    (c) fails to perform or observe any covenant or other agreement contained in this  Agreement, or in any of the other Loan Documents, in each case, other than any such covenant or agreement  that is the subject of another provision of this Section 8 (in which event such other provision of this Section  8 shall govern), and such failure continues for a period of thirty days after the earlier of (i) the date on which  such failure shall first become known to any officer of any Borrower, or (ii) the date on which written notice  thereof is given to Borrowers by Agent;  8.3 Judgments.  If one or more judgments, orders, orders to pay issued by a Canadian  Governmental Authority, or awards for the payment of money involving an aggregate amount of  $25,000,000 or more (except to the extent fully covered (other than to the extent of customary deductibles)  by insurance pursuant to which the insurer has not denied coverage) is entered or filed against a Loan Party  or any of its Restricted Subsidiaries, or with respect to any of their respective assets, and either (a) there is  a period of thirty consecutive days at any time after the entry of any such judgment, order, or award during  which (i) the same is not discharged, satisfied, vacated, or bonded pending appeal, or (ii) a stay of  enforcement thereof is not in effect, or (b) enforcement proceedings are commenced upon such judgment,  order, or award;  8.4 Voluntary Bankruptcy, etc.  If an Insolvency Proceeding is commenced by a Loan Party  or any of its Restricted Subsidiaries;  8.5 Involuntary Bankruptcy, etc.  If an Insolvency Proceeding is commenced against a Loan  Party or any of its Restricted Subsidiaries and any of the following events occur: (a) such Loan Party or  such Restricted Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the  petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing  the Insolvency Proceeding is not dismissed within sixty calendar days of the date of the filing thereof, (d)  an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets  of, or to operate all or any substantial portion of the business of, such Loan Party or its Restricted Subsidiary,  or (e) an order for relief shall have been issued or entered therein;  8.6 Default Under Other Agreements.    (a) If there is a default in or under (i) the Senior Notes (or Refinancing Senior Notes  in respect thereof), or (ii) one or more other agreements to which a Loan Party or any of its Restricted  Subsidiaries is a party with one or more third Persons relative to a Loan Party’s or any of its Restricted  Subsidiaries’ Indebtedness involving an aggregate amount of $25,000,000 or more, and such default (i)  occurs at the final maturity of the obligations thereunder, or (ii) is beyond any applicable grace periods  therefor and results in a right by such third Person, irrespective of whether exercised, to accelerate the  maturity of such Loan Party’s or its Restricted Subsidiary’s obligations thereunder; or  (b) If an “Event of Default” (or analogous concept) has occurred and is continuing  under the Secured Notes Documents.  8.7 Representations, etc.  If any warranty, representation, certificate, statement, or Record  made herein or in any other Loan Document or delivered in writing to Agent or any Lender in connection  with this Agreement or any other Loan Document proves to be untrue in any material respect (except that  such materiality qualifier shall not be applicable to any representations and warranties that already are  qualified or modified by materiality in the text thereof) as of the date of issuance or making or deemed  making thereof;  8.8 Guaranty.  If the obligation of any Guarantor under the guaranty contained in the Guaranty  and Security Agreement is materially limited or terminated by operation of law or by such Guarantor (other  





 






     -163-    than in accordance with the terms of this Agreement) or if any Guarantor repudiates or revokes or purports  to repudiate or revoke any such guaranty;  8.9 Security Documents.  If the Guaranty and Security Agreement or any other Loan  Document that purports to create a Lien, shall, for any reason, fail or cease to create a valid and perfected  and, (except to the extent of Permitted Liens which are non-consensual Permitted Liens or possessory in  nature, permitted purchase money Liens or the interests of lessors under Capital Leases) first priority Lien  on the Collateral covered thereby, except (a) as a result of a sale or other disposition of the applicable  Collateral in a transaction permitted under this Agreement, (b) with respect to ABL Collateral the aggregate  value of which, for all such ABL Collateral, does not exceed at any time, $2,200,000, (c) with respect to  Collateral other than ABL Collateral and other Collateral in which the Secured Notes have a first priority  Lien, the aggregate value of which, for all such other Collateral, does not exceed at any time, $25,000,000,  (d) as the result of an action or failure to act on the part of Agent, and (e) to the extent such Lien is intended  be subordinated to the Permitted Liens under clause (v) of the definition thereof securing the Secured Notes  pursuant to, and in accordance with, the Intercreditor Agreement;  8.10 Loan Documents.  The validity or enforceability of any Loan Document or any material  provision therein shall at any time for any reason  (other than solely as the result of an action or failure to  act on the part of Agent) be declared to be null and void, or a proceeding shall be commenced by a Loan  Party or its Restricted Subsidiaries, or by any Governmental Authority having jurisdiction over a Loan  Party or its Restricted Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or a Loan  Party or its Restricted Subsidiaries shall deny that such Loan Party or its Subsidiaries has any liability or  obligation purported to be created under any Loan Document; or  8.11 Change of Control.  A Change of Control shall occur; or  8.12 ERISA.  The occurrence of any of the following events:  (a) any Termination Event shall  have occurred, and, 30 days after the occurrence of such Termination Event, such Termination Event shall  not have been corrected and shall have created and caused to be continuing a material risk of Pension Plan  termination or liability for withdrawal from the Pension Plan as a "substantial employer" (as defined in  Section 4001(a)(2) of ERISA), which termination could reasonably be expected to result in a liability of,  or liability for withdrawal could reasonably be expected to be, greater than $25,000,000 or (b) any Loan  Party or ERISA Affiliate completely or partially withdraws from one or more Multiemployer Plans and  incurs Withdrawal Liability in an annual amount in excess of $25,000,000 in the aggregate.  8.13 Intercreditor Agreement.  The Intercreditor Agreement shall, for any reason, except to  the extent permitted in accordance with the terms hereof or thereof, (i) cease to be in full force and effect,  (ii) cease to be valid, binding and enforceable in accordance with its terms against any Borrower, any other  Loan Party, or any other party thereto, (iii) shall be repudiated by any party thereto, or (iv) shall cease to  establish the relative lien priorities required or purported thereby.  9. RIGHTS AND REMEDIES.  9.1 Rights and Remedies.  Upon the occurrence and during the continuation of an Event of  Default, Agent may, and, at the instruction of the Supermajority Lenders, shall, in addition to any other  rights or remedies provided for hereunder or under any other Loan Document or by applicable law, do any  one or more of the following:  (a) by written notice to Borrowers, (i) declare the principal of, and any and all accrued  and unpaid interest and fees in respect of, the Loans and all other Obligations (other than the Bank Product  Obligations), whether evidenced by this Agreement or by any of the other Loan Documents to be  immediately due and payable, whereupon the same shall become and be immediately due and payable and  





 






     -164-    Borrowers shall be obligated to repay all of such Obligations in full, without presentment, demand, protest,  or further notice or other requirements of any kind, all of which are hereby expressly waived by each  Borrower, and (ii) direct Borrowers to provide (and Borrowers agree that upon receipt of such notice  Borrowers will provide) Letter of Credit Collateralization to Agent to be held as security for Borrowers’  reimbursement obligations for drawings that may subsequently occur under issued and outstanding Letters  of Credit;  (b) by written notice to Borrowers, declare the Commitments terminated, whereupon  the Commitments shall immediately be terminated together with (i) any obligation of any Revolving Lender  to make Revolving Loans, (ii) the obligation of the Swing Line Lenders to make Swing Loans, and (iii) the  obligation of Issuing Bank to issue Letters of Credit; and  exercise all other rights and remedies available to Agent or the Lenders under the Loan Documents, under  applicable law, or in equity.  The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in  Section 8.4 or Section 8.5, in addition to the remedies set forth above, without any notice to Borrowers or  any other Person or any act by the Lender Group, the Commitments shall automatically terminate and the  Obligations (other than the Bank Product Obligations), inclusive of the principal of, and any and all accrued  and unpaid interest and fees in respect of, the Loans and all other Obligations (other than the Bank Product  Obligations), whether evidenced by this Agreement or by any of the other Loan Documents, shall  automatically become and be immediately due and payable and Borrowers shall automatically be obligated  to repay all of such Obligations in full (including Borrowers being obligated to provide (and Borrowers  agree that they will provide) (1) Letter of Credit Collateralization to Agent to be held as security for  Borrowers’ reimbursement obligations in respect of drawings that may subsequently occur under issued  and outstanding Letters of Credit and (2) Bank Product Collateralization to be held as security for  Borrowers’ or their Restricted Subsidiaries’ obligations in respect of outstanding Bank Products), without  presentment, demand, protest, or notice or other requirements of any kind, all of which are expressly waived  by the Borrowers.  9.2 Remedies Cumulative.  The rights and remedies of the Lender Group under this  Agreement, the other Loan Documents, and all other agreements shall be cumulative.  The Lender Group  shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in  equity.  No exercise by the Lender Group of one right or remedy shall be deemed an election, and no waiver  by the Lender Group of any Default or Event of Default shall be deemed a continuing waiver.  No delay by  the Lender Group shall constitute a waiver, election, or acquiescence by it.  10. WAIVERS; INDEMNIFICATION.  10.1 Demand; Protest; etc.  Each Borrower waives demand, protest, notice of protest, notice  of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release, compromise,  settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees at any time held  by the Lender Group on which any Borrower may in any way be liable.  10.2 The Lender Group’s Liability for Collateral.  Each Borrower hereby agrees that:  (a) so  long as Agent complies with its obligations, if any, under the Code or the PPSA, as applicable, the Lender  Group shall not in any way or manner be liable or responsible for:  (i) the safekeeping of the Collateral, (ii)  any loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any  diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding  agency, or other Person, and (b) all risk of loss, damage, or destruction of the Collateral shall be borne by  the Loan Parties.  





 






     -165-    10.3 Indemnification.  Each Borrower shall pay, indemnify, defend, and hold the Agent- Related Persons, the Lender-Related Persons and the Issuing Banks (each, an “Indemnified Person”)  harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits,  actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable and  documented out-of-pocket fees and disbursements of attorneys, experts, or consultants and all other costs  and expenses incurred in connection therewith or in connection with the enforcement of this  indemnification (as and when they are incurred and irrespective of whether suit is brought), at any time  asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related  to the execution and delivery (provided, that Borrowers shall not be liable for costs and expenses (including  attorneys’ fees) of any Lender (other than Wells Fargo or any of its Affiliates) incurred in advising,  structuring, drafting, reviewing, administering or syndicating the Loan Documents), enforcement,  performance, or administration (including any restructuring or workout with respect hereto) of this  Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or the  monitoring of Loan Parties’ and their Subsidiaries’ compliance with the terms of the Loan Documents  (provided, that the indemnification in this clause (a) shall not extend to (i) disputes solely between or among  the Lenders that do not involve any acts or omissions of any Loan Party or any Affiliate thereof, or (ii)  disputes solely between or among the Lenders and their respective Affiliates that do not involve any acts  or omissions of any Loan Party or any Affiliate thereof; it being understood and agreed that the  indemnification in this clause (a) shall extend to Wells Fargo and its Affiliates, in their respective capacity  as Agent, Issuing Bank, Swing Line Lender, arranger, bookrunner or any other similar capacity (but not the  Lenders unless the dispute involves an act or omission of a Loan Party or any Affiliate thereof) relative to  disputes between or among Wells Fargo (or one or more of its Affiliates) on the one hand, and one or more  Lenders, or one or more of their Affiliates, on the other hand, or (iii) any claims for Taxes, which shall be  governed by Section 16, other than Taxes which relate to primarily non-Tax claims), (b) with respect to  any actual or prospective investigation, litigation, or proceeding related to this Agreement, any other Loan  Document, the making of any Loans or issuance of any Letters of Credit hereunder, or the use of the  proceeds of the Loans or the Letters of Credit provided hereunder (irrespective of whether any Indemnified  Person is a party thereto and irrespective of whether such investigation, litigation, or proceeding is brought  by any Loan Party, any of its Affiliates, any Indemnified Party or any other Person), or any act, omission,  event, or circumstance in any manner related thereto, and (c) in connection with or arising out of any  presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned, leased  or operated by any Loan Party or any of its Subsidiaries or any Environmental Actions, Environmental  Liabilities or Remedial Actions related in any way to any such assets or properties of any Loan Party or any  of its Subsidiaries (each and all of the foregoing, the “Indemnified Liabilities”).  The foregoing to the  contrary notwithstanding, no Borrower shall have any obligation to any Indemnified Person under this  Section 10.3 with respect to any Indemnified Liability that a court of competent jurisdiction finally  determines to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnified  Person or its officers, directors, employees, attorneys, or agents.  This provision shall survive the  termination of this Agreement and the repayment in full of the Obligations.  If any Indemnified Person  makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which  Borrowers were required to indemnify the Indemnified Person receiving such payment, the Indemnified  Person making such payment is entitled to be indemnified and reimbursed by Borrowers with respect  thereto.  WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH  INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN  WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR  OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON AND  REGARDLESS OF WHETHER SUCH NEGLIGENCE IS SOLE OR CONTRIBUTORY, ACTIVE  OR PASSIVE, IMPUTED, JOINT OR SEVERAL.  No Indemnified Person shall be liable for any  damages arising from the use by unintended recipients of any information or other materials distributed to  such unintended recipients by such Indemnitee through telecommunications, electronic or other information  transmission systems in connection with this Agreement or the other Loan Documents or the transactions  





 






     -166-    contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence,  bad faith or willful misconduct of such Indemnitee as determined by a final and non-appealable judgment  of a court of competent jurisdiction.  11. NOTICES.  Unless otherwise provided in this Agreement, all notices or demands relating to this  Agreement or any other Loan Document shall be in writing and (except for financial statements and other  informational documents which may be sent by first-class mail, postage prepaid) shall be personally  delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight  courier, electronic mail (at such email addresses as a party may designate in accordance herewith), or  telefacsimile.  In the case of notices or demands to any Loan Party or Agent, as the case may be, they shall  be sent to the respective address set forth below:  If to any Loan Party: c/o Forum Energy Technologies, Inc.  920 Memorial City Way, Suite 1000   Houston, Texas   77024   Attn: General Counsel   Fax No. (713) 583-9346     with copies to: Baker Botts L.L.P.   30 Rockefeller Plaza   New York, New York  10112-4498   Attn:  Martin Toulouse, Esq.   Fax No.:  (212) 259-2559     If to Agent: WELLS FARGO BANK, NATIONAL  ASSOCIATION   14241 Dallas Parkway Suite 900   Dallas TX 75254   Attn: Paul Truax, Relationship Manager, VP    Fax No.: 866-718-6291   Email: paul.truax@wellsfargo.com  with copies to: Bracewell LLP   711 Louisiana St., Suite 2300   Houston, Texas  77401   Attn:  Stephanie K. Song   Email:  stephanie.song@bracewell.com     Any party hereto may change the address at which they are to receive notices hereunder,  by notice in writing in the foregoing manner given to the other party.  All notices or demands sent in  accordance with this Section 11, shall be deemed received on the earlier of the date of actual receipt or three  Business Days after the deposit thereof in the mail; provided, that (a) notices sent by overnight courier  service shall be deemed to have been given when received, (b) notices 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) and (c)  notices by electronic mail shall be deemed received upon the sender’s receipt of an acknowledgment from  





 






     -167-    the intended recipient (such as by the “return receipt requested” function, as available, return email or other  written acknowledgment).  12. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE  PROVISION.  (a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN  DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN  DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION,  INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, THE RIGHTS OF THE  PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING  HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO, AND ANY  CLAIMS, CONTROVERSIES OR DISPUTES ARISING HEREUNDER OR THEREUNDER OR  RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  (b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS  ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN  DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE  EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE  COUNTY OF NEW YORK, STATE OF NEW YORK; PROVIDED, THAT ANY SUIT SEEKING  ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE  BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE  AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER  PROPERTY MAY BE FOUND.  EACH OF PARENT AND EACH BORROWER AND EACH  MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER  APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF  FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY  PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 12(b).  (c) TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,  EACH OF PARENT AND EACH BORROWER AND EACH MEMBER OF THE LENDER  GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS, IF ANY, TO A JURY TRIAL OF ANY  CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY  BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE  TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT  CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY  CLAIMS (EACH A “CLAIM”).  EACH OF PARENT AND EACH BORROWER AND EACH  MEMBER OF THE LENDER GROUP REPRESENT THAT EACH HAS REVIEWED THIS  WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL  RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  IN THE EVENT OF  LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT  TO A TRIAL BY THE COURT.  (d) EACH OF PARENT AND EACH BORROWER HEREBY IRREVOCABLY  AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE  AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK AND THE STATE OF  NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY  LOAN DOCUMENTS, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT.   EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH  ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER  





 






     -168-    JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED  BY LAW.  NOTHING IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL  AFFECT ANY RIGHT THAT AGENT MAY OTHERWISE HAVE TO BRING ANY ACTION OR  PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT  AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY  JURISDICTION.  (e) (i) NO CLAIM MAY BE MADE BY ANY LOAN PARTY AGAINST  THE AGENT, ANY SWING LINE LENDER, ANY OTHER LENDER, ISSUING BANK, OR ANY  AFFILIATE, DIRECTOR, OFFICER, EMPLOYEE, COUNSEL, REPRESENTATIVE, AGENT,  OR ATTORNEY-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT,  CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOSSES IN RESPECT OF  ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY  ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS  AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT  OCCURRING IN CONNECTION THEREWITH, AND EACH LOAN PARTY HEREBY WAIVES,  RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES,  WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO  EXIST IN ITS FAVOR.      (ii) NO CLAIM MAY BE MADE BY ANY AGENT, ANY SWING LINE LENDER, ANY  LENDER, OR ANY ISSUING BANK, AGAINST ANY LOAN PARTY OR ANY AFFILIATE,  DIRECTOR, OFFICER, EMPLOYEE, COUNSEL, REPRESENTATIVE, AGENT, OR  ATTORNEY-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT,  CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOSSES IN RESPECT OF  ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY  ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS  AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT  OCCURRING IN CONNECTION THEREWITH, AND EACH AGENT, SWING LINE LENDER,  LENDER, AND ISSUING BANK HEREBY WAIVES, RELEASES, AND AGREES NOT TO SUE  UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER  OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR; PROVIDED THAT, for the  avoidance of doubt, nothing contained in this clause (ii) shall limit any Loan Party’s indemnification, hold  harmless or reimbursement obligations to extent set forth in Section 10.3 to the extent such special, indirect,  consequential, punitive or exemplary damages or losses are included in any third party claim in which such  Indemnified Person  is otherwise entitled to indemnification, hold harmless or reimbursement hereunder.  13. ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.  13.1 Assignments and Participations.  (a) (i)  Subject to the conditions set forth in clause (a)(ii) below, any Lender may  assign and delegate all or any portion of its rights and duties under the Loan Documents (including the  Obligations owed to it and its Commitments) to one or more assignees (each, an “Assignee”), with the prior  written consent (such consent not be unreasonably withheld or delayed) of:   (A) Borrowers; provided, that no consent of Borrowers shall be required (1)  if  an Event of Default has occurred and is continuing, or (2) in connection with an assignment to a Person  that is a Lender or an Affiliate (other than natural persons) of a Lender or a Related Fund; provided further,  that Borrowers shall be deemed to have consented to a proposed assignment unless they object thereto by  written notice to Agent within five Business Days after having received notice thereof; and  





 






     -169-     (B) Agent, Swing Line Lender, and Issuing Bank.  (ii) Assignments shall be subject to the following additional conditions:   (A) no assignment may be made to a natural person,   (B) no assignment may be made to a Loan Party, any Affiliate of a Loan Party  or any Subsidiary of a Loan Party or to any Defaulting Lender,   (C) the amount of the Commitments and the other rights and obligations of the  assigning Lender hereunder and under the other Loan Documents subject to each such assignment  (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to  Agent) shall be in a minimum amount (unless waived by Agent) of $5,000,000 (except such minimum  amount shall not apply to (I) an assignment or delegation by any Lender to any other Lender, an Affiliate  of any Lender, or a Related Fund of such Lender, or (II) a group of new Lenders, each of which is an  Affiliate of each other or a Related Fund of such new Lender to the extent that the aggregate amount to be  assigned to all such new Lenders is at least $5,000,000),   (D) each partial assignment shall be made as an assignment of a proportionate  part of all the assigning Lender’s rights and obligations under this Agreement,    (E) the parties to each assignment shall execute and deliver to Agent an  Assignment and Acceptance; provided, that Borrowers and Agent may continue to deal solely and directly  with the assigning Lender in connection with the interest so assigned to an Assignee until written notice of  such assignment, together with payment instructions, addresses, and related information with respect to the  Assignee, have been given to Borrowers and Agent by such Lender and the Assignee,   (F) unless waived by Agent, the assigning Lender or Assignee has paid to  Agent, for Agent’s separate account, a processing fee in the amount of $3,500, and   (G) the assignee, if it is not a Lender, shall deliver to Agent an Administrative  Questionnaire in a form approved by Agent (the “Administrative Questionnaire”).  (b) From and after the date that Agent receives the executed Assignment and  Acceptance and, if applicable, payment of the required processing fee, (i) the Assignee thereunder shall be  a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to  such Assignment and Acceptance, shall be a “Lender” and shall have the rights and obligations of a Lender  under the Loan Documents, and (ii) the assigning Lender shall, to the extent that rights and obligations  hereunder and under the other Loan Documents have been assigned by it pursuant to such Assignment and  Acceptance, relinquish its rights (except with respect to Section 10.3) and be released from any future  obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or the  remaining portion of an assigning Lender’s rights and obligations under this Agreement and the other Loan  Documents, such Lender shall cease to be a party hereto and thereto); provided, that nothing contained  herein shall release any assigning Lender from obligations that survive the termination of this Agreement,  including such assigning Lender’s obligations under Section 15 and Section 17.9(a).  (c) By executing and delivering an Assignment and Acceptance, the assigning Lender  thereunder and the Assignee thereunder confirm to and agree with each other and the other parties hereto  as follows:  (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes  no representation or warranty and assumes no responsibility with respect to any statements, warranties or  representations made in or in connection with this Agreement or the execution, legality, validity,  





 






     -170-    enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished  pursuant hereto, (ii) such assigning Lender makes no representation or warranty and assumes no  responsibility with respect to the financial condition of any Loan Party or the performance or observance  by any Loan Party of any of its obligations under this Agreement or any other Loan Document furnished  pursuant hereto, (iii) such Assignee confirms that it has received a copy of this Agreement, together with  such other documents and information as it has deemed appropriate to make its own credit analysis and  decision to enter into such Assignment and Acceptance, (iv) such Assignee will, independently and without  reliance upon Agent, such assigning Lender or any other Lender, and based on such documents and  information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or  not taking action under this Agreement, (v) such Assignee appoints and authorizes Agent to take such  actions and to exercise such powers under this Agreement and the other Loan Documents as are delegated  to Agent, by the terms hereof and thereof, together with such powers as are reasonably incidental thereto,  and (vi) such Assignee agrees that it will perform all of the obligations which by the terms of this Agreement  are required to be performed by it as a Lender.  (d) Immediately upon Agent’s receipt of the required processing fee, if applicable, and  delivery of notice to the assigning Lender pursuant to Section 13.1(b), this Agreement shall be deemed to  be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the  resulting adjustment of the Commitments arising therefrom.  The Commitment allocated to each Assignee  shall reduce such Commitments of the assigning Lender pro tanto.  (e) Any Lender may, without the consent of any other party to this Agreement, at any  time sell to one or more commercial banks, financial institutions, or other Persons (a “Participant”)  participating interests in all or any portion of its Obligations, its Commitment, and the other rights and  interests of that Lender (the “Originating Lender”) hereunder and under the other Loan Documents;  provided, that (i) the Originating Lender shall remain a “Lender” for all purposes of this Agreement and  the other Loan Documents and the Participant receiving the participating interest in the Obligations, the  Commitments, and the other rights and interests of the Originating Lender hereunder shall not constitute a  “Lender” hereunder or under the other Loan Documents and the Originating Lender’s obligations under  this Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for the  performance of such obligations, (iii) Borrowers, Agent, and the Lenders shall continue to deal solely and  directly with the Originating Lender in connection with the Originating Lender’s rights and obligations  under this Agreement and the other Loan Documents, (iv) no Lender shall transfer or grant any participating  interest under which the Participant has the right to approve any amendment to, or any consent or waiver  with respect to, this Agreement or any other Loan Document, except to the extent such amendment to, or  consent or waiver with respect to this Agreement or of any other Loan Document would (A) extend the  final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the  interest rate applicable to the Obligations hereunder in which such Participant is participating, (C) release  all or substantially all of the Collateral or guaranties (except to the extent expressly provided herein or in  any of the Loan Documents) supporting the Obligations hereunder in which such Participant is  participating, (D) postpone the payment of, or reduce the amount of, the interest or fees payable to such  Participant through such Lender (other than a waiver of default interest), or (E) decreases the amount or  postpones the due dates of scheduled principal repayments or prepayments or premiums payable to such  Participant through such Lender, (v) no participation shall be sold to a natural person, (vi) no participation  shall be sold to a Loan Party, an Affiliate of a Loan Party, or any Sponsor Affiliated Entity, and (vii) all  amounts payable by Borrowers hereunder shall be determined as if such Lender had not sold such  participation, except that, if amounts outstanding under this Agreement are due and unpaid, or shall have  been declared or shall have become due and payable upon the occurrence of an Event of Default, each  Participant shall be deemed to have the right of set off in respect of its participating interest in amounts  owing under this Agreement to the same extent as if the amount of its participating interest were owing  directly to it as a Lender under this Agreement.  The rights of any Participant only shall be derivative  





 






     -171-    through the Originating Lender with whom such Participant participates and no Participant shall have any  rights under this Agreement or the other Loan Documents or any direct rights as to the other Lenders, Agent,  Borrowers, the Collateral, or otherwise in respect of the Obligations.  No Participant shall have the right to  participate directly in the making of decisions by the Lenders among themselves.  (f) In connection with any such assignment or participation or proposed assignment  or participation or any grant of a security interest in, or pledge of, its rights under and interest in this  Agreement, a Lender may, subject to the provisions of Section 17.9,  disclose all documents and information  which it now or hereafter may have relating to any Loan Party and its Subsidiaries and their respective  businesses.  (g) Any other provision in this Agreement notwithstanding, any Lender may at any  time create a security interest in, or pledge, all or any portion of its rights under and interest in this  Agreement to secure obligations of such Lender, including any pledge in favor of any Federal Reserve Bank  in accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24,  and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under  applicable law; provided, that no such pledge shall release such Lender from any of its obligations  hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.  (h) Agent (as a non-fiduciary agent on behalf of Borrowers) shall maintain, or cause  to be maintained, a register (the “Register”) on which it enters the name and address of each Lender as the  registered owner of the Commitments (and the principal amount thereof and stated interest thereon) held  by such Lender (each, a “Registered Loan”).  Other than in connection with an assignment by a Lender of  all or any portion of its portion of the Commitments to an Affiliate of such Lender or a Related Fund of  such Lender (i) a Registered Loan (and the registered note, if any, evidencing the same) may be assigned  or sold in whole or in part only by registration of such assignment or sale on the Register (and each  registered note shall expressly so provide) and (ii) any assignment or sale of all or part of such Registered  Loan (and the registered note, if any, evidencing the same) may be effected only by registration of such  assignment or sale on the Register, together with the surrender of the registered note, if any, evidencing the  same duly endorsed by (or accompanied by a written instrument of assignment or sale duly executed by)  the holder of such registered note, whereupon, at the request of the designated assignee(s) or transferee(s),  one or more new registered notes in the same aggregate principal amount shall be issued to the designated  assignee(s) or transferee(s).  Prior to the registration of assignment or sale of any Registered Loan (and the  registered note, if any evidencing the same), Borrowers shall treat the Person in whose name such  Registered Loan (and the registered note, if any, evidencing the same) is registered as the owner thereof for  the purpose of receiving all payments thereon and for all other purposes, notwithstanding notice to the  contrary.  In the case of any assignment by a Lender of all or any portion of its Commitments to an Affiliate  of such Lender or a Related Fund of such Lender, and which assignment is not recorded in the Register, the  assigning Lender, on behalf of Borrowers, shall maintain a register comparable to the Register.  (i) In the event that a Lender sells participations in the Registered Loan, such Lender,  as a non-fiduciary agent on behalf of Borrowers, shall maintain (or cause to be maintained) a register on  which it enters the name of all participants in the Registered Loans held by it (and the principal amount  (and stated interest thereon) of the portion of such Registered Loans that is subject to such participations)  (the “Participant Register”).  A Registered Loan (and the registered Note, if any, evidencing the same) may  be participated in whole or in part only by registration of such participation on the Participant Register (and  each registered note shall expressly so provide).  Any participation of such Registered Loan (and the  registered note, if any, evidencing the same) may be effected only by the registration of such participation  on the Participant Register. No Lender shall have any obligation to disclose all or any portion of the  Participant Register (including the identity of any Participant or any information relating to a Participant’s  interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to  





 






     -172-    any Person except to the extent that such disclosure is necessary to establish that such commitment, loan,  letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States  Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and  such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such  participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the  avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining a  Participant Register.   (j) Agent shall make a copy of the Register (and each Lender shall make a copy of its  Participant Register to the extent it has one) available for review by Borrowers from time to time as  Borrowers may reasonably request.  13.2 Successors.  This Agreement shall bind and inure to the benefit of the respective successors  and assigns of each of the parties; provided, that no Borrower may assign this Agreement or any rights or  duties hereunder without the Lenders’ prior written consent and any prohibited assignment shall be  absolutely void ab initio.  No consent to assignment by the Lenders shall release any Borrower from its  Obligations.  A Lender may assign this Agreement and the other Loan Documents and its rights and duties  hereunder and thereunder pursuant to Section 13.1 and, except as expressly required pursuant to Section  13.1, no consent or approval by any Borrower is required in connection with any such assignment.  13.3 Intercreditor Matters.  The Agent is hereby authorized to enter into any other usual and  customary intercreditor agreements to the extent contemplated by the terms hereof, and the parties hereto  acknowledge that each such intercreditor agreement is binding upon them. Each member of the Lender  Group (a) hereby agrees that it will be bound by and will take no actions contrary to the provisions of the  intercreditor agreements and (b) hereby authorizes and instructs the Agent to enter into usual and customary  intercreditor agreements and to subject the Liens on the Collateral securing the Obligations to the provisions  thereof. In addition, but in conformance with the terms hereof, each member of the Lender Group hereby  authorizes the Agent to enter into (i) any amendments to any intercreditor agreements, and (ii) any other  intercreditor arrangements, in the case of clauses (i), and (ii) to the extent required to give effect to the  establishment of intercreditor rights and privileges as contemplated and required by Section 6.2 of this  Agreement.  Each member of the Lender Group waives any conflict of interest, now contemplated or arising  hereafter, in connection therewith and agrees not to assert against any Agent or any of its affiliates any  claims, causes of action, damages or liabilities of whatever kind or nature relating thereto.  13.4 Collection Allocation Mechanism.  (a) On the first date after the Amendment No. 3 Effective Date on which there shall  occur an Event of Default under Section 8.4 or Section 8.5 or the acceleration of Obligations pursuant to  Section 9  (the “CAM Exchange Date”), (A) each Lender shall immediately be deemed to have acquired  (and shall promptly make payment therefor to the Agent in accordance with Section 2.2(e)) participations  in the Loans, in an amount equal to such Lender’s Pro Rata Share of each Loan outstanding on such date,  (B) each Lender shall immediately be deemed to have acquired (and shall promptly make payment therefor  to the Agent in accordance with Section 2.10) participations in the Obligations with respect to each Letter  of Credit in an amount equal to such Lender’s Pro Rata Share of the aggregate amount available to be drawn  under such Letter of Credit, and (C) the Lenders shall automatically and without further act be deemed to  have exchanged interests in the Loans and participations in all Swing Loans and Letters of Credit, such that  in lieu of the interest of each Lender in each Loan and the Obligations with respect to each Swing Loan and  Letter of Credit in which it shall participate as of such date (including such Lender’s interest in the  Obligations, Guaranties and Collateral of each Loan Party in respect thereof), such Lender shall hold an  interest in every one of the Loans and a participation in all of the Obligations in respect of Swing Loans  and Letters of Credit (including the Obligations, Guaranties and Collateral of each Loan Party in respect  





 






     -173-    thereof), whether or not such Lender shall previously have participated therein, equal to such Lender’s  CAM Percentage thereof (the foregoing exchange being referred to as the “CAM Exchange”).  Each Lender  and each Loan Party hereby consents and agrees to the CAM Exchange, and each Lender agrees that the  CAM Exchange shall be binding upon its successors and assigns and any person that acquires a participation  in its interests in any Loan or any participation in any Swing Loan or Letter of Credit.  Each Loan Party  agrees from time to time to execute and deliver to the Agent all such promissory notes and other instruments  and documents as the Agent shall reasonably request to evidence and confirm the respective interests of the  Lenders after giving effect to the CAM Exchange, and each Lender agrees to surrender any promissory  notes originally received by it in connection with its Loans hereunder to the Agent against delivery of any  promissory notes evidencing its interests in the Loans so executed and delivered; provided, however, that  the failure of any Loan Party to execute or deliver or of any Lender to accept any such promissory note,  instrument or document shall not affect the validity or effectiveness of the CAM Exchange.  (b) As a result of the CAM Exchange, upon and after the CAM Exchange Date, each  payment received by Agent pursuant to any Loan Document in respect of any of the Obligations related to  the Loans, the Letters of Credit and the Swing Loans, and all fees, costs and expenses arising out of or  related to any of the foregoing, in each case as provided in the Loan Documents, and each distribution made  by the Agent in respect of such Obligations, shall be distributed to the Lenders pro rata in accordance with  their respective CAM Percentages.  Any direct payment received by a Lender upon or after the CAM  Exchange Date, including by way of setoff, in respect of an Obligation shall be paid over to the Agent for  distribution to the Lenders in accordance herewith.  (c) The provisions of this Section 13.4 are solely an agreement among the Lenders  and Agent for the purpose of allocating risk and the Loan Parties have no additional obligations with respect  thereto.  The provisions of this Section 13.4 shall apply notwithstanding anything to the contrary set forth  in this Agreement.  (d) For purposes of this Section 13.4, “CAM Percentage” means, as to each Lender, a  fraction, expressed as a decimal, of which (A) the numerator shall be the aggregate amount of all  Obligations owed to such Lender, and (B) the denominator shall be the aggregate amount of all Obligations  owed to the Lenders.  14. AMENDMENTS; WAIVERS.  14.1 Amendments and Waivers.  (a) No amendment, waiver or other modification of any provision of this Agreement  or any other Loan Document (other than the Fee Letter), and no consent with respect to any departure by  any Borrower therefrom, shall be effective unless the same shall be in writing and signed by the  Supermajority Lenders (or by Agent at the written request of the Supermajority Lenders) and the Loan  Parties that are party thereto and then any such waiver or consent shall be effective, but only in the specific  instance and for the specific purpose for which given; provided, that no such waiver, amendment, or consent  shall, unless in writing and signed by all of the Lenders directly and adversely affected thereby and all of  the Loan Parties that are party thereto, do any of the following:  (i) increase the amount of or extend the expiration date of any Commitment  of any Lender or amend, modify, or eliminate the penultimate sentence of Section 2.3(c),  (ii) postpone or delay any date fixed by this Agreement or any other Loan  Document for any payment of principal, interest, fees, or other amounts due hereunder or  under any other Loan Document,  





 






     -174-    (iii) reduce the principal of, or the rate of interest on, any loan or other  extension of credit hereunder, or reduce any fees or other amounts payable hereunder or  under any other Loan Document (except (y) in connection with the waiver of applicability  of Section 2.5(c) (which waiver shall be effective with the written consent of the  Supermajority Lenders), and (z) that any amendment or modification of defined terms used  in the financial covenants in this Agreement shall not constitute a reduction in the rate of  interest or a reduction of fees for purposes of this clause (iii)),  (iv) amend, modify, or eliminate this Section 14.1 or any provision of this  Agreement providing for consent or other action by all Lenders,  (v) amend, modify, or eliminate Section 3.1,  (vi) amend, modify, or eliminate Section 15.11,  (vii) other than as permitted by Section 15.11 or in connection with Permitted  Indebtedness incurred pursuant to clause (s) of the definition thereof, release or  contractually subordinate Agent’s Lien in and to any of the Collateral,  (viii) amend, modify, or eliminate the definitions of “Supermajority Lenders”,  “Required Lenders” or “Pro Rata Share”,  (ix) other than in connection with a merger, amalgamation, arrangement,  liquidation, dissolution or sale of such Person expressly permitted by the terms hereof or  the other Loan Documents, release any Borrower or any Guarantor from any obligation for  the payment of money or consent to the assignment or transfer by any Borrower or any  Guarantor of any of its rights or duties under this Agreement or the other Loan Documents,  (x) amend, modify, or eliminate any of the provisions of Section 2.3(b)(i), (ii)  or (iii) or Section 2.3(d) or (e), or  (xi) amend, modify, or eliminate any of the provisions of Section 13.1 with  respect to assignments to, or participations with, Persons who are Loan Parties, Affiliates  of a Loan Party, or Sponsor Affiliated Entities;   (b) No amendment, waiver, modification, or consent shall amend, modify, waive, or  eliminate,  (i) the definition of, or any of the terms or provisions of, the Fee Letter,  without the written consent of Agent and Borrowers (and shall not require the written  consent of any of the Lenders),  (ii) any provision of Section 15 pertaining to Agent, or any other rights or  duties of Agent under this Agreement or the other Loan Documents, without the written  consent of Agent, Borrowers, and the Supermajority Lenders, or  (iii) require Real Property to be Collateral without the written consent of  Agent, Borrowers and each Lender (which consent shall not be unreasonably withheld,  conditioned or delayed).  (c) No amendment, waiver, modification, elimination, or consent shall amend, without  written consent of Agent, Borrowers and the Supermajority Lenders, modify, or eliminate the definition of  





 






     -175-    Borrowing Base or any of the defined terms (including the definitions of US Eligible Accounts, US Eligible  Finished Goods Inventory, US Eligible Raw Materials Inventory, US Eligible Work-in-Process Inventory,  US Eligible Inventory, US Eligible In-Transit Inventory, Canadian Eligible In-Transit Inventory, Canadian  Eligible Accounts, Canadian Eligible Finished Goods Inventory, Canadian Eligible Raw Materials  Inventory, Canadian Eligible Work-in-Process Inventory and Canadian Eligible Inventory) that are used in  such definition to the extent that any such change results in more credit being made available to Borrowers  based upon the Borrowing Base, but not otherwise, or the definition of Maximum Revolver Amount, or  change Section 2.1(d);  (d) No amendment, waiver, modification, elimination, or consent shall amend,  modify, or waive any provision of this Agreement or the other Loan Documents pertaining to Issuing Bank,  or any other rights or duties of Issuing Bank under this Agreement or the other Loan Documents, without  the written consent of Issuing Bank, Agent, Borrowers, and the Supermajority Lenders;  (e) No amendment, waiver, modification, elimination, or consent shall amend,  modify, or waive any provision of this Agreement or the other Loan Documents pertaining to Swing Line  Lender, or any other rights or duties of Swing Line Lender under this Agreement or the other Loan  Documents, without the written consent of Swing Line Lender, Agent, Borrowers, and the Supermajority  Lenders; and  (f) Anything in this Section 14.1 to the contrary notwithstanding, (i) any amendment,  modification, elimination, waiver, consent, termination, or release of, or with respect to, any provision of  this Agreement or any other Loan Document that relates only to the relationship of the Lender Group among  themselves, and that does not affect the rights or obligations of any Loan Party, shall not require consent  by or the agreement of any Loan Party, (ii) any amendment, waiver, modification, elimination, or consent  of or with respect to any provision of this Agreement or any other Loan Document may be entered into  without the consent of, or over the objection of, any Defaulting Lender other than any of the matters  governed by Section 14.1(a)(i) through (iii) that affect such Lender, and (iii) any amendment contemplated  by Section 2.11(d)(iii) of this Agreement in connection with a Benchmark Transition Event or an Early  Opt-in Election shall be effective as contemplated by such Section 2.11(d)(iii) hereof.  14.2 Replacement of Certain Lenders.  (a) If (i) any action to be taken by the Lender Group or Agent hereunder requires the  consent, authorization, or agreement of all Lenders or all Lenders affected thereby and if such action has  received the consent, authorization, or agreement of the Supermajority Lenders but not of all Lenders or all  Lenders affected thereby, or (ii) any Lender makes a claim for compensation under Section 16, then  Borrowers or Agent, upon at least five Business Days prior irrevocable notice, may permanently replace  any Lender that failed to give its consent, authorization, or agreement (a “Non-Consenting Lender”) or any  Lender that made a claim for compensation (a “Tax Lender”) with one or more Replacement Lenders, and  the Non-Consenting Lender or Tax Lender, as applicable, shall have no right to refuse to be replaced  hereunder.  Such notice to replace the Non-Consenting Lender or Tax Lender, as applicable, shall specify  an effective date for such replacement, which date shall not be later than 15 Business Days after the date  such notice is given.  (b) Prior to the effective date of such replacement, the Non-Consenting Lender or Tax  Lender, as applicable, and each Replacement Lender shall execute and deliver an Assignment and  Acceptance, subject only to the Non-Consenting Lender or Tax Lender, as applicable, being repaid in full  its share of the outstanding Obligations (without any premium or penalty of any kind whatsoever, but  including (i) all interest, fees and other amounts that may be due in payable in respect thereof, (ii) an  assumption of its Pro Rata Share of participations in the Letters of Credit, and (iii) Funding Losses).  If the  Non-Consenting Lender or Tax Lender, as applicable, shall refuse or fail to execute and deliver any such  





 






     -176-    Assignment and Acceptance prior to the effective date of such replacement, Agent may, but shall not be  required to, execute and deliver such Assignment and Acceptance in the name or and on behalf of the Non- Consenting Lender or Tax Lender, as applicable, and irrespective of whether Agent executes and delivers  such Assignment and Acceptance, the Non-Consenting Lender or Tax Lender, as applicable, shall be  deemed to have executed and delivered such Assignment and Acceptance.  The replacement of any Non- Consenting Lender or Tax Lender, as applicable, shall be made in accordance with the terms of Section  13.1.  Until such time as one or more Replacement Lenders shall have acquired all of the Obligations, the  Commitments, and the other rights and obligations of the Non-Consenting Lender or Tax Lender, as  applicable, hereunder and under the other Loan Documents, the Non-Consenting Lender or Tax Lender, as  applicable, shall remain obligated to make the Non-Consenting Lender’s or Tax Lender’s, as applicable,  Pro Rata Share of Revolving Loans and to purchase a participation in each Letter of Credit, in an amount  equal to its Pro Rata Share of participations in such Letters of Credit.  14.3 No Waivers; Cumulative Remedies.  No failure by Agent or any Lender to exercise any  right, remedy, or option under this Agreement or any other Loan Document, or delay by Agent or any  Lender in exercising the same, will operate as a waiver thereof.  No waiver by Agent or any Lender will be  effective unless it is in writing, and then only to the extent specifically stated.  No waiver by Agent or any  Lender on any occasion shall affect or diminish Agent’s and each Lender’s rights thereafter to require strict  performance by the Borrowers of any provision of this Agreement.  Agent’s and each Lender’s rights under  this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or  remedy that Agent or any Lender may have.  15. AGENT; THE LENDER GROUP.  15.1 Appointment and Authorization of Agent.  Each Lender hereby designates and appoints  Wells Fargo as its agent under this Agreement and the other Loan Documents and each Lender hereby  irrevocably authorizes (and by entering into a Bank Product Agreement, each Bank Product Provider shall  be deemed to designate, appoint, and authorize) Agent to execute and deliver each of the other Loan  Documents on its behalf and to take such other action on its behalf under the provisions of this Agreement  and each other Loan Document and to exercise such powers and perform such duties as are expressly  delegated to Agent by the terms of this Agreement or any other Loan Document, together with such powers  as are reasonably incidental thereto.  Agent agrees to act as agent for and on behalf of the Lenders (and the  Bank Product Providers) on the conditions contained in this Section 15.  Any provision to the contrary  contained elsewhere in this Agreement or in any other Loan Document notwithstanding, Agent shall not  have any duties or responsibilities, except those expressly set forth herein or in the other Loan Documents,  nor shall Agent have or be deemed to have any fiduciary relationship with any Lender (or Bank Product  Provider), and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be  read into this Agreement or any other Loan Document or otherwise exist against Agent.  Without limiting  the generality of the foregoing, the use of the term “agent” in this Agreement or the other Loan Documents  with reference to Agent is not intended to connote any fiduciary or other implied (or express) obligations  arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter of market  custom, and is intended to create or reflect only a representative relationship between independent  contracting parties.  Each Lender hereby further authorizes (and by entering into a Bank Product  Agreement, each Bank Product Provider shall be deemed to authorize) Agent to act as the secured party  under each of the Loan Documents that create a Lien on any item of Collateral.  Except as expressly  otherwise provided in this Agreement, Agent shall have and may use its sole discretion with respect to  exercising or refraining from exercising any discretionary rights or taking or refraining from taking any  actions that Agent expressly is entitled to take or assert under or pursuant to this Agreement and the other  Loan Documents.  Without limiting the generality of the foregoing, or of any other provision of the Loan  Documents that provides rights or powers to Agent, Lenders agree that Agent shall have the right to exercise  the following powers as long as this Agreement remains in effect:  (a) maintain, in accordance with its  





 






     -177-    customary business practices, ledgers and records reflecting the status of the Obligations, the Collateral,  payments and proceeds of Collateral, and related matters, (b) execute or file any and all financing or similar  statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim,  notices and other written agreements with respect to the Loan Documents, or to take any other action with  respect to any Collateral or Loan Documents which may be necessary to perfect, and maintain perfected,  the security interests and Liens upon Collateral pursuant to the Loan Documents, (c) make Revolving  Loans, for itself or on behalf of Lenders, as provided in the Loan Documents, (d) exclusively receive, apply,  and distribute payments and proceeds of the Collateral as provided in the Loan Documents, (e) open and  maintain such bank accounts and cash management arrangements as Agent deems necessary and  appropriate in accordance with the Loan Documents for the foregoing purposes, (f) perform, exercise, and  enforce any and all other rights and remedies of the Lender Group with respect to any Loan Party or its  Subsidiaries, the Obligations, the Collateral, or otherwise related to any of same as provided in the Loan  Documents, and (g) incur and pay such Lender Group Expenses as Agent may deem necessary or  appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan  Documents.  15.2 Delegation of Duties.  Agent may execute any of its duties under this Agreement or any  other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice  of counsel concerning all matters pertaining to such duties.  Agent shall not be responsible for the  negligence or misconduct of any agent or attorney in fact that it selects as long as such selection was made  without gross negligence or willful misconduct.  15.3 Liability of Agent.  None of the Agent-Related Persons shall (a) be liable for any action  taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan  Document or the transactions contemplated hereby (except for its own gross negligence or willful  misconduct), or (b) be responsible in any manner to any of the Lenders (or Bank Product Providers) for any  recital, statement, representation or warranty made by any Loan Party or any of its Subsidiaries or Affiliates,  or any officer or director thereof, contained in this Agreement or in any other Loan Document, or in any  certificate, report, statement or other document referred to or provided for in, or received by Agent under  or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness,  genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure  of any Loan Party or its Subsidiaries or any other party to any Loan Document to perform its obligations  hereunder or thereunder.  No Agent-Related Person shall be under any obligation to any Lenders (or Bank  Product Providers) to ascertain or to inquire as to the observance or performance of any of the agreements  contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the books and  records or properties of any Loan Party or its Subsidiaries.  No Agent-Related Person shall have any liability  to any Lender, and Loan Party or any of their respective Affiliates if any request for a Loan, Letter of Credit  or other extension of credit was not authorized by the applicable Borrower.  Agent shall not be required to  take any action that, in its opinion or in the opinion of its counsel, may expose it to liability or that is  contrary to any Loan Document or applicable law or regulation.  15.4 Reliance by Agent.  Agent shall be entitled to rely, and shall be fully protected in relying,  upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, telefacsimile or other  electronic method of transmission, telex or telephone message, statement or other document or conversation  believed by it to be genuine and correct and to have been signed, sent, or made by the proper Person or  Persons, and upon advice and statements of legal counsel (including counsel to Borrowers or counsel to  any Lender), independent accountants and other experts selected by Agent.  Agent shall be fully justified  in failing or refusing to take any action under this Agreement or any other Loan Document unless Agent  shall first receive such advice or concurrence of the Lenders as it deems appropriate and until such  instructions are received, Agent shall act, or refrain from acting, as it deems advisable.  If Agent so requests,  it shall first be indemnified to its reasonable satisfaction by the Lenders (and, if it so elects, the Bank Product  





 






     -178-    Providers) against any and all liability and expense that may be incurred by it by reason of taking or  continuing to take any such action.  Agent shall in all cases be fully protected in acting, or in refraining  from acting, under this Agreement or any other Loan Document in accordance with a request or consent of  the Supermajority Lenders and such request and any action taken or failure to act pursuant thereto shall be  binding upon all of the Lenders (and Bank Product Providers).  15.5 Notice of Default or Event of Default.  Agent shall not be deemed to have knowledge or  notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment  of principal, interest, fees, and expenses required to be paid to Agent for the account of the Lenders and,  except with respect to Events of Default of which Agent has actual knowledge, unless Agent shall have  received written notice from a Lender or Borrowers referring to this Agreement, describing such Default  or Event of Default, and stating that such notice is a “notice of default.”  Agent promptly will notify the  Lenders of its receipt of any such notice or of any Event of Default of which Agent has actual knowledge.   If any Lender obtains actual knowledge of any Event of Default, such Lender promptly shall notify the  other Lenders and Agent of such Event of Default.  Each Lender shall be solely responsible for giving any  notices to its Participants, if any.  Subject to Section 15.4, Agent shall take such action with respect to such  Default or Event of Default as may be requested by the Supermajority Lenders in accordance with Section  9; provided, that unless and until Agent has received any such request, Agent may (but shall not be obligated  to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as  it shall deem advisable.  15.6 Credit Decision.  Each Lender (and Bank Product Provider) acknowledges that none of  the Agent-Related Persons has made any representation or warranty to it, and that no act by Agent  hereinafter taken, including any review of the affairs of any Loan Party and its Subsidiaries or Affiliates,  shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender  (or Bank Product Provider).  Each Lender represents (and by entering into a Bank Product Agreement, each  Bank Product Provider shall be deemed to represent) to Agent that it has, independently and without  reliance upon any Agent-Related Person and based on such due diligence, documents and information as it  has deemed appropriate, made its own appraisal of and investigation into the business, prospects,  operations, property, financial and other condition and creditworthiness of each Borrower or any other  Person party to a Loan Document, and all applicable bank regulatory laws relating to the transactions  contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to  Borrowers.  Each Lender also represents (and by entering into a Bank Product Agreement, each Bank  Product Provider shall be deemed to represent) that it will, independently and without reliance upon any  Agent-Related Person and based on such documents and information as it shall deem appropriate at the  time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under  this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to  inform itself as to the business, prospects, operations, property, financial and other condition and  creditworthiness of each Borrower or any other Person party to a Loan Document.  Except for notices,  reports, and other documents expressly herein required to be furnished to the Lenders by Agent, Agent shall  not have any duty or responsibility to provide any Lender (or Bank Product Provider) with any credit or  other information concerning the business, prospects, operations, property, financial and other condition or  creditworthiness of any Borrower or any other Person party to a Loan Document that may come into the  possession of any of the Agent-Related Persons.  Each Lender acknowledges (and by entering into a Bank  Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that Agent does not  have any duty or responsibility, either initially or on a continuing basis (except to the extent, if any, that is  expressly specified herein) to provide such Lender (or Bank Product Provider) with any credit or other  information with respect to any Borrower, its Affiliates or any of their respective business, legal, financial  or other affairs, and irrespective of whether such information came into Agent’s or its Affiliates’ or  representatives’ possession before or after the date on which such Lender became a party to this Agreement  (or such Bank Product Provider entered into a Bank Product Agreement).  





 






     -179-    15.7 Costs and Expenses; Indemnification.  Agent may incur and pay Lender Group Expenses  to the extent Agent reasonably deems necessary or appropriate for the performance and fulfillment of its  functions, powers, and obligations pursuant to the Loan Documents, including court costs, attorneys’ fees  and expenses, fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of  collection by outside collection agencies, auctioneer fees and expenses, and costs of security guards or  insurance premiums paid to maintain the Collateral, whether or not Borrowers are obligated to reimburse  Agent or Lenders for such expenses pursuant to this Agreement or otherwise.  Agent is authorized and  directed to deduct and retain sufficient amounts from payments or proceeds of the Collateral received by  Agent to reimburse Agent for such Lender Group Expenses prior to the distribution of any amounts to  Lenders (or Bank Product Providers).  In the event Agent is not reimbursed for such Lender Group Expenses  by the Loan Parties and their Subsidiaries, each Lender hereby agrees that it is and shall be obligated to pay  to Agent such Lender’s ratable thereof.  Whether or not the transactions contemplated hereby are  consummated, each of the Lenders, on a ratable basis, shall indemnify and defend the Agent-Related  Persons (to the extent not reimbursed by or on behalf of Borrowers and without limiting the obligation of  Borrowers to do so) from and against any and all Indemnified Liabilities; provided, that no Lender shall be  liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting  solely from such Person’s gross negligence or willful misconduct nor shall any Lender be liable for the  obligations of any Defaulting Lender in failing to make a Revolving Loan or other extension of credit  hereunder.  Without limitation of the foregoing, each Lender shall reimburse Agent upon demand for such  Lender’s ratable share of any costs or out of pocket expenses (including attorneys, accountants, advisors,  and consultants fees and expenses) incurred by Agent in connection with the preparation, execution,  delivery, administration, modification, amendment, or enforcement (whether through negotiations, legal  proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement  or any other Loan Document to the extent that Agent is not reimbursed for such expenses by or on behalf  of Borrowers.  The undertaking in this Section shall survive the payment of all Obligations hereunder and  the resignation or replacement of Agent.  15.8 Agent in Individual Capacity.  Wells Fargo and its Affiliates may make loans to, issue  letters of credit for the account of, accept deposits from, provide Bank Products to, acquire Equity Interests  in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business  with any Loan Party and its Subsidiaries and Affiliates and any other Person party to any Loan Document  as though Wells Fargo were not Agent hereunder, and, in each case, without notice to or consent of the  other members of the Lender Group.  The other members of the Lender Group acknowledge (and by  entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge)  that, pursuant to such activities, Wells Fargo or its Affiliates may receive information regarding a Loan  Party or its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality  obligations in favor of such Loan Party or such other Person and that prohibit the disclosure of such  information to the Lenders (or Bank Product Providers), and the Lenders acknowledge (and by entering  into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, in such  circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver Agent will  use its reasonable best efforts to obtain), Agent shall not be under any obligation to provide such information  to them.  The terms “Lender” and “Lenders” include Wells Fargo in its individual capacity.  15.9 Successor Agent.  Agent may resign as Agent upon 30 days (ten days if an Event of Default  has occurred and is continuing) prior written notice to the Lenders (unless such notice is waived by the  Supermajority Lenders) and Borrowers (unless such notice is waived by Borrowers or a Default or Event  of Default has occurred and is continuing) and without any notice to the Bank Product Providers.  If Agent  resigns under this Agreement, the Supermajority Lenders shall be entitled, with (so long as no Event of  Default has occurred and is continuing) the consent of Borrowers (such consent not to be unreasonably  withheld, delayed, or conditioned), appoint a successor Agent for the Lenders (and the Bank Product  Providers).  If, at the time that Agent’s resignation is effective, it is acting as Issuing Bank or Swing Line  





 






     -180-    Lender, such resignation shall also operate to effectuate its resignation as Issuing Bank or Swing Line  Lender, as applicable, and it shall automatically be relieved of any further obligation to issue Letters of  Credit, or to make Swing Loans.  If no successor Agent is appointed prior to the effective date of the  resignation of Agent, Agent may appoint, after consulting with the Lenders and Borrowers, a successor  Agent.  If Agent has materially breached or failed to perform any material provision of this Agreement or  of applicable law, the Supermajority Lenders may agree in writing to remove and replace Agent with a  successor Agent from among the Lenders with (so long as no Event of Default has occurred and is  continuing) the consent of Borrowers (such consent not to be unreasonably withheld, delayed, or  conditioned).  In any such event, upon the acceptance of its appointment as successor Agent hereunder,  such successor Agent shall succeed to all the rights, powers, and duties of the retiring Agent and the term  “Agent” shall mean such successor Agent and the retiring Agent’s appointment, powers, and duties as  Agent shall be terminated.  After any retiring Agent’s resignation hereunder as Agent, the provisions of this  Section 15 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent  under this Agreement.  If no successor Agent has accepted appointment as Agent by the date which is 30  days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless  thereupon become effective and the Lenders shall perform all of the duties of Agent hereunder until such  time, if any, as the Lenders appoint a successor Agent as provided for above.  15.10 Lender in Individual Capacity.  Any Lender and its respective Affiliates may make loans  to, issue letters of credit for the account of, accept deposits from, provide Bank Products to, acquire Equity  Interests in and generally engage in any kind of banking, trust, financial advisory, underwriting, or other  business with any Loan Party and its Subsidiaries and Affiliates and any other Person party to any Loan  Documents as though such Lender were not a Lender hereunder without notice to or consent of the other  members of the Lender Group (or the Bank Product Providers).  The other members of the Lender Group  acknowledge (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed  to acknowledge) that, pursuant to such activities, such Lender and its respective Affiliates may receive  information regarding a Loan Party or its Affiliates or any other Person party to any Loan Documents that  is subject to confidentiality obligations in favor of such Loan Party or such other Person and that prohibit  the disclosure of such information to the Lenders, and the Lenders acknowledge (and by entering into a  Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, in such  circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such Lender  will use its reasonable best efforts to obtain), such Lender shall not be under any obligation to provide such  information to them.  15.11 Collateral Matters.  (a) The Lenders hereby irrevocably authorize (and by entering into a Bank Product  Agreement, each Bank Product Provider shall be deemed to authorize) Agent to release any Lien on any  Collateral (i) upon the termination of the Commitments and payment and satisfaction in full by the Loan  Parties and their Restricted Subsidiaries of all of the Obligations, (ii) constituting property being sold or  disposed of in accordance with the Loan Documents if a release is required or desirable in connection  therewith and, at the request of the Agent, if Borrowers certify to Agent that the sale or disposition is  permitted under Section 6.4 (and Agent may rely conclusively on any such certificate, without further  inquiry), (iii) constituting property in which no Loan Party or any of its Restricted Subsidiaries owned any  interest at the time Agent’s Lien was granted nor at any time thereafter, (iv) constituting property leased or  licensed to a Loan Party or its Restricted Subsidiaries under a lease or license that has expired or is  terminated in a transaction permitted under this Agreement, or (v) in connection with a credit bid or  purchase authorized under this Section 15.11.  The Loan Parties and the Lenders hereby irrevocably  authorize (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed  to authorize) Agent, based upon the instruction of the Supermajority Lenders, to (a) consent to the sale of,  credit bid, or purchase (either directly or indirectly through one or more entities) all or any portion of the  





 






     -181-    Collateral at any sale thereof conducted under the provisions of the Bankruptcy Code, or similar Insolvency  Laws in any other relevant jurisdiction, including Section 363 of the Bankruptcy Code, (b) credit bid or  purchase (either directly or indirectly through one or more entities) all or any portion of the Collateral at  any sale or other disposition thereof conducted under the provisions of the Code, the PPSA, including  pursuant to Sections 9-610 or 9-620 of the Code, the PPSA or similar Insolvency Laws in any other relevant  jurisdiction or any similar provision of the PPSA, or (c) credit bid or purchase (either directly or indirectly  through one or more entities) all or any portion of the Collateral at any other sale or foreclosure conducted  or consented to by Agent in accordance with applicable law in any judicial action or proceeding or by the  exercise of any legal or equitable remedy.  In connection with any such credit bid or purchase, (i) the  Obligations owed to the Lenders and the Bank Product Providers shall be entitled to be, and shall be, credit  bid on a ratable basis (with Obligations with respect to contingent or unliquidated claims being estimated  for such purpose if the fixing or liquidation thereof would not impair or unduly delay the ability of Agent  to credit bid or purchase at such sale or other disposition of the Collateral and, if such contingent or  unliquidated claims cannot be estimated without impairing or unduly delaying the ability of Agent to credit  bid at such sale or other disposition, then such claims shall be disregarded, not credit bid, and not entitled  to any interest in the Collateral that is the subject of such credit bid or purchase) and the Lenders and the  Bank Product Providers whose Obligations are credit bid shall be entitled to receive interests (ratably based  upon the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so  credit bid) in the Collateral that is the subject of such credit bid or purchase (or in the Equity Interests of  the any entities that are used to consummate such credit bid or purchase), and (ii) Agent, based upon the  instruction of the Supermajority Lenders, may accept non-cash consideration, including debt and equity  securities issued by any entities used to consummate such credit bid or purchase and in connection therewith  Agent may reduce the Obligations owed to the Lenders and the Bank Product Providers (ratably based upon  the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit  bid) based upon the value of such non-cash consideration; provided, that Bank Product Obligations not  entitled to the application set forth in Section 2.3(b)(iii)A(tenth) shall not be entitled to be, and shall not be,  credit bid, or used in the calculation of the ratable interest of the Lenders and Bank Product Providers in  the Obligations which are credit bid.  Except as provided above, Agent will not execute and deliver a release  of any Lien on any Collateral without the prior written authorization of (y) if the release is of all or  substantially all of the Collateral, all of the Lenders (without requiring the authorization of the Bank Product  Providers), or (z) otherwise, the Supermajority Lenders (without requiring the authorization of the Bank  Product Providers).  Upon request by Agent or Borrowers at any time, the Lenders will (and if so requested,  the Bank Product Providers will) confirm in writing Agent’s authority to release any such Liens on  particular types or items of Collateral pursuant to this Section 15.11; provided, that (1) anything to the  contrary contained in any of the Loan Documents notwithstanding, Agent shall not be required to execute  any document or take any action necessary to evidence such release on terms that, in Agent’s opinion, could  expose Agent to liability or create any obligation or entail any consequence other than the release of such  Lien without recourse, representation, or warranty, and (2) such release shall not in any manner discharge,  affect, or impair the Obligations or any Liens (other than those expressly released) upon (or obligations of  Borrowers in respect of) any and all interests retained by any Borrower, including, the proceeds of any sale,  all of which shall continue to constitute part of the Collateral.  Each Lender further hereby irrevocably  authorize (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed  to irrevocably authorize) Agent, at its option and in its sole discretion, to subordinate (by contract or  otherwise) any Lien granted to or held by Agent on any property under any Loan Document (a) to the holder  of any Permitted Lien on such property if such Permitted Lien secures purchase money Indebtedness  (including Capitalized Lease Obligations) which constitute Permitted Indebtedness and (b) to the extent  Agent has the authority under this Section 15.11 to release its Lien on such property.  (b) Agent shall have no obligation whatsoever to any of the Lenders (or the Bank  Product Providers) (i) to verify or assure that the Collateral exists or is owned by a Loan Party or any of its  Restricted Subsidiaries or is cared for, protected, or insured or has been encumbered, (ii) to verify or assure  





 






     -182-    that Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, or enforced  or are entitled to any particular priority, (iii) to verify or assure that any particular items of Collateral meet  the eligibility criteria applicable in respect thereof, (iv) to impose, maintain, increase, reduce, implement,  or eliminate any particular reserve hereunder or to determine whether the amount of any reserve is  appropriate or not, or (v) to exercise at all or in any particular manner or under any duty of care, disclosure  or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to Agent  pursuant to any of the Loan Documents, it being understood and agreed that in respect of the Collateral, or  any act, omission, or event related thereto, subject to the terms and conditions contained herein, Agent may  act in any manner it may deem appropriate, in its sole discretion given Agent’s own interest in the Collateral  in its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to any  Lender (or Bank Product Provider) as to any of the foregoing, except as otherwise expressly provided  herein.  15.12 Restrictions on Actions by Lenders; Sharing of Payments.  (a) Each of the Lenders agrees that it shall not, without the express written consent of  Agent, set off against the Obligations, any amounts owing by such Lender to any Loan Party or its Restricted  Subsidiaries or any deposit accounts of any Loan Party or its Restricted Subsidiaries now or hereafter  maintained with such Lender.  Each of the Lenders further agrees that it shall not, unless specifically  requested to do so in writing by Agent, take or cause to be taken any action, including, the commencement  of any legal or equitable proceedings to enforce any Loan Document against any Borrower or any Guarantor  or to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral.  (b) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff,  or otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for any  such proceeds or payments received by such Lender from Agent pursuant to the terms of this Agreement,  or (ii) payments from Agent in excess of such Lender’s Pro Rata Share of all such distributions by Agent,  such Lender promptly shall (A) turn the same over to Agent, in kind, and with such endorsements as may  be required to negotiate the same to Agent, or in Same Day Funds, as applicable, for the account of all of  the Lenders and for application to the Obligations in accordance with the applicable provisions of this  Agreement, or (B) purchase, without recourse or warranty, an undivided interest and participation in the  Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as  among the Lenders in accordance with their Pro Rata Shares; provided, that to the extent that such excess  payment received by the purchasing party is thereafter recovered from it, those purchases of participations  shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid  therefor shall be returned to such purchasing party, but without interest except to the extent that such  purchasing party is required to pay interest in connection with the recovery of the excess payment.  15.13 Agency for Perfection.  Agent hereby appoints each other Lender (and each Bank Product  Provider) as its agent (and each Lender hereby accepts (and by entering into a Bank Product Agreement,  each Bank Product Provider shall be deemed to accept) such appointment) for the purpose of perfecting  Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code or the  applicable provisions of the PPSA can be perfected by possession or control.  Should any Lender obtain  possession or control of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon  Agent’s request therefor shall deliver possession or control of such Collateral to Agent or in accordance  with Agent’s instructions.  15.14 Payments by Agent to the Lenders.  All payments to be made by Agent to the Lenders  (or Bank Product Providers) shall be made by bank wire transfer of Same Day Funds pursuant to such wire  transfer instructions as each party may designate for itself by written notice to Agent.  Concurrently with  





 






     -183-    each such payment, Agent shall identify whether such payment (or any portion thereof) represents principal,  premium, fees, or interest of the Obligations.  15.15 Concerning the Collateral and Related Loan Documents.  Each member of the Lender  Group authorizes and directs Agent to enter into this Agreement and the other Loan Documents.  Each  member of the Lender Group agrees (and by entering into a Bank Product Agreement, each Bank Product  Provider shall be deemed to agree) that any action taken by Agent in accordance with the terms of this  Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent of its powers  set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be  binding upon all of the Lenders (and such Bank Product Provider).  15.16 Field Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports  and Information.  By becoming a party to this Agreement, each Lender:  (a) is deemed to have requested that Agent furnish such Lender, promptly after it  becomes available, a copy of each field examination report respecting any Loan Party or its Restricted  Subsidiaries (each, a “Report”) prepared by or at the request of Agent, and Agent shall so furnish each  Lender with such Reports,  (b) expressly agrees and acknowledges that Agent does not (i) make any  representation or warranty as to the accuracy of any Report, and (ii) shall not be liable for any information  contained in any Report,  (c) expressly agrees and acknowledges that the Reports are not comprehensive audits  or examinations, that Agent or other party performing any field examination will inspect only specific  information regarding the Loan Parties and their Restricted Subsidiaries and will rely significantly upon  Borrowers’ and their Restricted Subsidiaries’ books and records, as well as on representations of  Borrowers’ personnel,  (d) agrees to keep all Reports and other material, non-public information regarding the  Loan Parties and their Restricted Subsidiaries and their operations, assets, and existing and contemplated  business plans in a confidential manner in accordance with Section 17.9, and  (e) without limiting the generality of any other indemnification provision contained in  this Agreement, agrees:  (i) to hold Agent and any other Lender preparing a Report harmless from any  action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may  reach or draw from any Report in connection with any loans or other credit accommodations that the  indemnifying Lender has made or may make to Borrowers, or the indemnifying Lender’s participation in,  or the indemnifying Lender’s purchase of, a loan or loans of Borrowers, and (ii) to pay and protect, and  indemnify, defend and hold Agent, and any such other Lender preparing a Report harmless from and  against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including,  attorneys’ fees and costs) incurred by Agent and any such other Lender preparing a Report as the direct or  indirect result of any third parties who might obtain all or part of any Report through the indemnifying  Lender.  In addition to the foregoing,  (x) any Lender may from time to time request of Agent in writing that Agent  provide to such Lender a copy of any report or document provided by any Loan Party or its Restricted  Subsidiaries to Agent that has not been contemporaneously provided by such Loan Party or such Restricted  Subsidiary to such Lender, and, upon receipt of such request, Agent promptly shall provide a copy of same  to such Lender, (y) to the extent that Agent is entitled, under any provision of the Loan Documents, to  request additional reports or information from any Loan Party or its Restricted Subsidiaries, any Lender  may, from time to time, reasonably request Agent to exercise such right as specified in such Lender’s notice  





 






     -184-    to Agent, whereupon Agent promptly shall request of Borrowers the additional reports or information  reasonably specified by such Lender, and, upon receipt thereof from such Loan Party or such Restricted  Subsidiary, Agent promptly shall provide a copy of same to such Lender, and (z) any time that Agent  renders to Borrowers a statement regarding the Loan Account, Agent shall send a copy of such statement  to each Lender.  15.17 Several Obligations; No Liability.  Notwithstanding that certain of the Loan Documents  now or hereafter may have been or will be executed only by or in favor of Agent in its capacity as such,  and not by or in favor of the Lenders, any and all obligations on the part of Agent (if any) to make any  credit available hereunder shall constitute the several (and not joint) obligations of the respective Lenders  on a ratable basis, according to their respective Commitments, to make an amount of such credit not to  exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments.   Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability  for, or in respect of, the business, assets, profits, losses, or liabilities of any other Lender.  Each Lender  shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to  the extent any such notice may be required, and no Lender shall have any obligation, duty, or liability to  any Participant of any other Lender.  Except as provided in Section 15.7, no member of the Lender Group  shall have any liability for the acts of any other member of the Lender Group.  No Lender shall be  responsible to any Borrower or any other Person for any failure by any other Lender (or Bank Product  Provider) to fulfill its obligations to make credit available hereunder, nor to advance for such Lender (or  Bank Product Provider) or on its behalf, nor to take any other action on behalf of such Lender (or Bank  Product Provider) hereunder or in connection with the financing contemplated herein.  15.18 Joint Lead Arrangers, Joint Book Runners, Co-Syndication Agents, and  Documentation Agent.  Each of the Joint Lead Arrangers, Joint Book Runners, Co-Syndication Agents,  and Documentation Agent, in such capacities, shall not have any right, power, obligation, liability,  responsibility, or duty under this Agreement other than those applicable to it in its capacity as a Lender, as  Agent, as Swing Line Lender, or as Issuing Bank.  Without limiting the foregoing, each of the Joint Lead  Arrangers, Joint Book Runners, Co-Syndication Agents, and Documentation Agent, in such capacities,  shall not have or be deemed to have any fiduciary relationship with any Lender or any Loan Party.  Each  Lender, Agent, Swing Line Lender, Issuing Bank, and each Loan Party acknowledges that it has not relied,  and will not rely, on the Joint Lead Arrangers, Joint Book Runners, Co-Syndication Agents, and  Documentation Agent in deciding to enter into this Agreement or in taking or not taking action hereunder.   Each of the Joint Lead Arrangers, Joint Book Runners, Co-Syndication Agents, and Documentation Agent,  in such capacities, shall be entitled to resign at any time by giving notice to Agent and Borrowers.  15.19 Quebec Security.  In its capacity as Agent, for the purposes of holding any hypothec  granted to Agent, Wells Fargo is hereby appointed and shall serve as the hypothecary representative for all  present and future Lenders and Bank Product Providers as contemplated by Article 2692 of the Civil Code  of Québec.  Any person who becomes a Lender or a Bank Product Provider shall, by its execution of an  Assignment and Acceptance (in the case of a Lender), or by entering into a Bank Product Agreement (in  the case of a Bank Product Provider) be deemed to have consented to and confirmed Agent as the person  acting as hypothecary representative holding the aforesaid hypothecs as aforesaid and to have ratified, as  of the date it becomes a Lender or Bank Product Provider, as the case may be, all actions taken by Agent  in such capacity.  The substitution of Agent pursuant to the provisions of this Section 15 also constitute the  substitution of the hypothecary representative.   16. WITHHOLDING TAXES.  16.1 Payments.  All payments made by any Loan Party under any Loan Document will be made  free and clear of, and without deduction or withholding for, any Taxes, except as otherwise required by  





 






     -185-    applicable law, and in the event any deduction or withholding of Taxes is required, the applicable Loan  Party or Agent, as the case may be, shall make the requisite withholding, and promptly pay over to the  applicable Governmental Authority the withheld tax. Upon request by Agent, after the payment of Taxes  by any Loan Party to a Governmental Authority as provided in this Section 16.1, such Loan Party shall  furnish to Agent certified copies of tax receipts evidencing such payment by the Loan Parties or other  evidence of payment by the Loan Parties reasonably acceptable to Agent.   Furthermore, if any such Tax is  an Indemnified Tax or an Indemnified Tax is so levied or imposed, the Loan Parties agree to pay the full  amount of such Indemnified Taxes and such additional amounts as may be necessary so that every payment  of all amounts due under this Agreement, any note, or any other Loan Document, including any amount  paid pursuant to this Section 16.1 after withholding or deduction for or on account of any Indemnified  Taxes, will not be less than the amount provided for herein.  The Loan Parties will promptly pay any Other  Taxes or reimburse Agent for such Other Taxes upon Agent's demand.  The Loan Parties shall jointly and  severally indemnify each Indemnified Person (as defined in Section 10.3) (collectively a "Tax Indemnitee")  for the full amount of Indemnified Taxes arising in connection with this Agreement, any note, or any other  Loan Document or breach thereof by any Loan Party (including, without limitation, any Indemnified Taxes  imposed or asserted on, or attributable to, amounts payable under this Section 16.1) imposed on, or paid  by, such Tax Indemnitee and all reasonable costs and expenses related thereto (including reasonable fees  and disbursements of attorneys and other tax professionals), as and when they are incurred and irrespective  of whether suit is brought, whether or not such Indemnified Taxes were correctly or legally imposed or  asserted by the relevant Governmental Authority (other than Indemnified Taxes and additional amounts  that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful  misconduct of such Tax Indemnitee).  The obligations of the Loan Parties under this Section 16 shall survive  the termination of this Agreement, the resignation and replacement of the Agent, and the repayment of the  Obligations.  16.2 Exemptions.  (a) If a Lender  is entitled to claim an exemption or reduction from United States  federal withholding Tax (including backup withholding Tax), such Lender  agrees  to deliver to Agent and  the Administrative Borrower on behalf of all Borrowers one of the following before receiving its first  payment under this Agreement:  (i) if such Lender is entitled to claim an exemption from United States federal  withholding Tax pursuant to the portfolio interest exception, (A) a statement of the Lender, signed under  penalty of perjury, that it is not a (I) a “bank” as described in Section 881(c)(3)(A) of the IRC, (II) a 10%  shareholder of Administrative Borrower (within the meaning of Section 871(h)(3)(B) of the IRC), or (III)  a controlled foreign corporation related to Administrative Borrower within the meaning of Section  864(d)(4) of the IRC, and (B) a properly completed and executed IRS Form W-8BEN, Form W-8BEN-E  or Form W-8IMY (or any successor forms) (with proper attachments as applicable);  (ii) if such Lender  is entitled to claim an exemption from, or a reduction of,  withholding Tax under a United States income tax treaty, a properly completed and executed copy of IRS  Form W-8BEN or Form W-8BEN-E (or any successor forms), as applicable;  (iii) if such Lender  is entitled to claim that interest paid under this Agreement  is exempt from United States federal withholding Tax because it is effectively connected with a United  States trade or business of such Lender, a properly completed and executed copy of IRS Form W-8ECI (or  any successor forms);  (iv) if such Lender  is entitled to claim that interest paid under this Agreement  is exempt from United States federal withholding Tax because such Lender  serves as an intermediary, a  properly completed and executed copy of IRS Form W-8IMY (or any successor forms) (including a  





 






     -186-    withholding statement and copies of the tax certification documentation for its beneficial owner(s) of the  income paid to the intermediary, if required based on its status provided on the Form W-8IMY); or  (v) a properly completed and executed copy of any other form or forms,  including IRS Form W-9 (or any successor forms), as may be required under the IRC or other laws of the  United States as a condition to exemption from, or reduction of, United States federal withholding or backup  withholding Tax.  (b) Each Lender  shall provide new forms (or successor forms) upon the expiration or  obsolescence of any previously delivered forms and to promptly notify Agent and Administrative Borrower   of any change in circumstances which would modify or render invalid any claimed exemption or reduction.  (c) If a Lender  claims an exemption from withholding Tax in a jurisdiction other than  the United States, such Lender  agrees with and in favor of Agent and Borrowers, to deliver to Agent and  Administrative Borrower  any such form or forms, as may be required under the laws of such jurisdiction  as a condition to exemption from, or reduction of, foreign withholding or backup withholding Tax, but only  if such Lender  is legally able to deliver such forms, or the providing of or delivery of such forms in the  Lender's reasonable judgment would not subject such Lender to any material unreimbursed cost or expense  or materially prejudice the legal or commercial position of such Lender (or its Affiliates); provided, further,  that nothing in this Section 16.2(c) shall require a Lender  to disclose any information that it deems to be  confidential (including without limitation, its tax returns).  Each Lender  shall provide new forms (or  successor forms) upon the expiration or obsolescence of any previously delivered forms and to promptly  notify Agent and Administrative Borrower of any change in circumstances which would modify or render  invalid any claimed exemption or reduction.  (d) If a payment made to a Lender under any Loan Document would be subject to  United States federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the  applicable due diligence and reporting requirements of FATCA (including those contained in Section  1471(b) or 1472(b) of the IRC, as applicable), such Lender shall deliver to Agent  at the time or times  prescribed by law and at such time or times reasonably requested by Agent  such documentation prescribed  by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the IRC) and such additional  documentation reasonably requested by Agent  as may be necessary for Agent or Borrowers to comply with  their obligations under FATCA and to determine that such Lender has complied with such Lender's  obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely  for purposes of this clause (d), "FATCA" shall include any amendments made to FATCA after the date of  this Agreement.  16.3 Reductions.  On or prior to the date of this Agreement, the Agent shall (and any successor  or replacement  Agent shall, on or before the date on which it becomes the Agent hereunder), deliver to the  Borrower two duly executed originals of either (i) IRS Form W-9 or (ii) IRS Form W-8ECI or IRS Form  W-8BEN-E (with respect to any payments to be received on its own behalf) and IRS Form W-8IMY (for  all other payments), in each case, establishing that Borrower can make payments to the Agent without  deduction or withholding of any United States federal withholding Tax, including Taxes imposed under  FATCA. The Agent agrees that if any form or certification it previously delivered expires or becomes  obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify Borrower  in writing of its legal inability to do so.  16.4 Refunds.  If Agent or a Lender determines, in its sole discretion, that it has received a  refund of any Indemnified Taxes to which the Loan Parties have paid additional amounts pursuant to this  Section 16, so long as no Default or Event of Default has occurred and is continuing, it shall pay over such  refund to the Administrative Borrower on behalf of the Loan Parties (but only to the extent of payments  made, or additional amounts paid, by the Loan Parties under this Section 16 with respect to Indemnified  





 






     -187-    Taxes giving rise to such a refund), net of all reasonable out-of-pocket expenses of Agent or such Lender  and without interest (other than any interest paid by the applicable Governmental Authority with respect to  such a refund); provided, that the Loan Parties, upon the request of Agent or such Lender, agrees to repay  the amount paid over to the Loan Parties (plus any penalties, interest or other charges, imposed by the  applicable Governmental Authority, other than such penalties, interest or other charges imposed as a result  of the willful misconduct or gross negligence of Agent or Lender hereunder as finally determined by a court  of competent jurisdiction) to Agent or such Lender in the event Agent or such Lender is required to repay  such refund to such Governmental Authority.  Notwithstanding anything in this Agreement to the contrary,  this Section 16 shall not be construed to require Agent or any Lender to make available its tax returns (or  any other information which it deems confidential) to Loan Parties or any other Person or require Agent or  any Lender to pay any amount to an indemnifying party pursuant to Section 16.4, the payment of which  would place Agent or such Lender (or their Affiliates) in a less favorable net after-Tax position than such  Person would have been in if the Tax subject to indemnification and giving rise to such refund had not been  deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with  respect to such Tax had never been paid.  17. GENERAL PROVISIONS.  17.1 Effectiveness.  This Agreement shall be binding and deemed effective when executed by  each Borrower, Agent, and each Lender whose signature is provided for on the signature pages hereof.  17.2 Section Headings.  Headings and numbers have been set forth herein for convenience only.   Unless the contrary is compelled by the context, everything contained in each Section applies equally to  this entire Agreement.  17.3 Interpretation.  Neither this Agreement nor any uncertainty or ambiguity herein shall be  construed against the Lender Group or any Borrower, whether under any rule of construction or otherwise.   On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted  according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions  of all parties hereto.  17.4 Severability of Provisions.  Each provision of this Agreement shall be severable from  every other provision of this Agreement for the purpose of determining the legal enforceability of any  specific provision.  17.5 Bank Product Providers.  Each Bank Product Provider in its capacity as such shall be  deemed a third party beneficiary hereof and of the provisions of the other Loan Documents for purposes of  any reference in a Loan Document to the parties for whom Agent is acting.  Agent hereby agrees to act as  agent for such Bank Product Providers and, by virtue of entering into a Bank Product Agreement, the  applicable Bank Product Provider shall be automatically deemed to have appointed Agent as its agent and  to have accepted the benefits of the Loan Documents.  It is understood and agreed that the rights and benefits  of each Bank Product Provider under the Loan Documents consist exclusively of such Bank Product  Provider’s being a beneficiary of the Liens and security interests (and, if applicable, guarantees) granted to  Agent and the right to share in payments and collections out of the Collateral as more fully set forth herein.  In addition, each Bank Product Provider, by virtue of entering into a Bank Product Agreement, shall be  automatically deemed to have agreed that Agent shall have the right, but shall have no obligation, to  establish, maintain, relax, or release reserves in respect of the Bank Product Obligations and that if reserves  are established there is no obligation on the part of Agent to determine or insure whether the amount of any  such reserve is appropriate or not.  In connection with any such distribution of payments or proceeds of  Collateral, Agent shall be entitled to assume no amounts are due or owing to any Bank Product Provider  unless such Bank Product Provider has provided a written certification (setting forth a reasonably detailed  calculation) to Agent as to the amounts that are due and owing to it and such written certification is received  





 






     -188-    by Agent a reasonable period of time prior to the making of such distribution.  Agent shall have no  obligation to calculate the amount due and payable with respect to any Bank Products, but may rely upon  the written certification of the amount due and payable from the applicable Bank Product Provider.  In the  absence of an updated certification, Agent shall be entitled to assume that the amount due and payable to  the applicable Bank Product Provider is the amount last certified to Agent by such Bank Product Provider  as being due and payable (less any distributions made to such Bank Product Provider on account thereof).   Borrowers may obtain Bank Products from any Bank Product Provider, although Borrowers are not required  to do so.  Each Borrower acknowledges and agrees that no Bank Product Provider has committed to provide  any Bank Products and that the providing of Bank Products by any Bank Product Provider is in the sole  and absolute discretion of such Bank Product Provider.  Notwithstanding anything to the contrary in this  Agreement or any other Loan Document, no provider or holder of any Bank Product shall have any voting  or approval rights hereunder (or be deemed a Lender) solely by virtue of its status as the provider or holder  of such agreements or products or the Obligations owing thereunder, nor shall the consent of any such  provider or holder be required (other than in their capacities as Lenders, to the extent applicable) for any  matter hereunder or under any of the other Loan Documents, including as to any matter relating to the  Collateral or the release of Collateral or Guarantors.  17.6 Debtor-Creditor Relationship.  The relationship between the Lenders and Agent, on the  one hand, and the Loan Parties, on the other hand, is solely that of creditor and debtor.  No member of the  Lender Group has (or shall be deemed to have) any fiduciary relationship or duty to any Loan Party arising  out of or in connection with the Loan Documents or the transactions contemplated thereby, and there is no  agency or joint venture relationship between the members of the Lender Group, on the one hand, and the  Loan Parties, on the other hand, by virtue of any Loan Document or any transaction contemplated therein.  17.7 Counterparts; Electronic Execution.  This Agreement may be executed in any number  of counterparts and by different parties on separate counterparts, each of which, when executed and  delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one  and the same Agreement.  Execution of any such counterpart may be by means of (a) an electronic signature  that complies with the federal Electronic Signatures in Global and National Commerce Act, as in effect  from time to time, state enactments of the Uniform Electronic Transactions Act, as in effect from time to  time, or any other relevant and applicable electronic signatures law; (b) an original manual signature; or  (c) a faxed, scanned, or photocopied manual signature. Each electronic signature or faxed, scanned, or  photocopied manual signature shall for all purposes have the same validity, legal effect, and admissibility  in evidence as an original manual signature.  Agent reserves the right, in its discretion, to accept, deny, or  condition acceptance of any electronic signature on this Agreement.  Any party delivering an executed  counterpart of this Agreement by faxed, scanned or photocopied manual signature shall also deliver an  original manually executed counterpart, but the failure to deliver an original manually executed counterpart  shall not affect the validity, enforceability and binding effect of this Agreement.  The foregoing shall apply  to each other Loan Document, and any notice delivered hereunder or thereunder, mutatis mutandis.  17.8 Revival and Reinstatement of Obligations; Certain Waivers.  If any member of the  Lender Group or any Bank Product Provider repays, refunds, restores, or returns in whole or in part, any  payment or property (including any proceeds of Collateral) previously paid or transferred to such member  of the Lender Group or such Bank Product Provider in full or partial satisfaction of any Obligation or on  account of any other obligation of any Loan Party under any Loan Document or any Bank Product  Agreement, because the payment, transfer, or the incurrence of the obligation so satisfied is asserted  or declared to be void, voidable, or otherwise recoverable under any law relating to creditors’ rights,  including provisions of the Bankruptcy Code or other Insolvency Laws relating to fraudulent transfers,  preferences, or other voidable or recoverable obligations or transfers (each, a “Voidable Transfer”), or  because such member of the Lender Group or Bank Product Provider elects to do so on the reasonable  advice of its counsel in connection with a claim that the payment, transfer, or incurrence is or may be a  





 






     -189-    Voidable Transfer, then, as to any such Voidable Transfer, or the amount thereof that such member of the  Lender Group or Bank Product Provider elects to repay, restore, or return (including pursuant to a  settlement of any claim in respect thereof), and as to all reasonable costs, expenses, and attorneys’ fees  of such member of the Lender Group or Bank Product Provider related thereto, (i) the liability of the Loan  Parties with respect to the amount or property paid, refunded, restored, or returned will automatically and  immediately be revived, reinstated, and restored and will exist, and (ii) Agent’s Liens securing such liability  shall be effective, revived, and remain in full force and effect, in each case, as fully as if such Voidable  Transfer had never been made.  If, prior to any of the foregoing, (A) Agent’s Liens shall have been released  or terminated, or (B) any provision of this Agreement shall have been terminated or cancelled, Agent’s  Liens, or such provision of this Agreement, shall be reinstated in full force and effect and such prior release,  termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the  obligation of any Loan Party in respect of such liability or any Collateral securing such liability. This  provision shall survive the termination of this Agreement and the repayment in full of the Obligations.  17.9 Confidentiality.  (a) Agent and Lenders each individually (and not jointly or jointly and severally) agree  that material, non-public information regarding the Loan Parties and their Restricted Subsidiaries, their  operations, assets, and existing and contemplated business plans (“Confidential Information”) shall be  treated by Agent and the Lenders in a confidential manner, and shall not be disclosed by Agent and the  Lenders to Persons who are not parties to this Agreement, except:  (i) to attorneys for and other advisors,  accountants, auditors, and consultants to any member of the Lender Group  and to employees, directors and  officers of any member of the Lender Group (the Persons in this clause (i), “Lender Group  Representatives”) on a “need to know” basis in connection with this Agreement and the transactions  contemplated hereby and on a confidential basis, (ii) to Subsidiaries and Affiliates of any member of the  Lender Group (including the Bank Product Providers); provided, that any such Subsidiary or Affiliate shall  have agreed to receive such information hereunder subject to the terms of this Section 17.9, (iii) as may be  required by regulatory authorities so long as such authorities are informed of the confidential nature of such  information, (iv) as may be required by statute, decision, or judicial or administrative order, rule, or  regulation; provided, that (x) prior to any disclosure under this clause (iv), the disclosing party agrees to  provide Borrowers with prior notice thereof, to the extent that it is practicable to do so and to the extent that  the disclosing party is permitted to provide such prior notice to Borrowers pursuant to the terms of the  applicable statute, decision, or judicial or administrative order, rule, or regulation and (y) any disclosure  under this clause (iv) shall be limited to the portion of the Confidential Information as may be required by  such statute, decision, or judicial or administrative order, rule, or regulation, (v) as may be agreed to in  advance in writing by Borrowers, (vi) as requested or required by any Governmental Authority pursuant to  any subpoena or other legal process; provided, that (x) prior to any disclosure under this clause (vi) the  disclosing party agrees to provide Borrowers with prior written notice thereof, to the extent that it is  practicable to do so and to the extent that the disclosing party is permitted to provide such prior written  notice to Borrowers pursuant to the terms of the subpoena or other legal process and (y) any disclosure  under this clause (vi) shall be limited to the portion of the Confidential Information as may be required by  such Governmental Authority pursuant to such subpoena or other legal process, (vii) as to any such  information that is or becomes generally available to the public (other than as a result of prohibited  disclosure by Agent or the Lenders or the Lender Group Representatives), (viii) in connection with any  assignment, participation  or pledge of any Lender’s interest under this Agreement; provided, that prior to  receipt of Confidential Information any such assignee, participant, or pledgee shall have agreed in writing  to receive such Confidential Information either subject to the terms of this Section 17.9 or pursuant to  confidentiality requirements substantially similar to those contained in this Section 17.9 (and such Person  may disclose such Confidential Information to Persons employed or engaged by them as described in clause  (i) above), (ix) in connection with any litigation or other adversary proceeding involving parties hereto  which such litigation or adversary proceeding involves claims related to the rights or duties of such parties  





 






     -190-    under this Agreement or the other Loan Documents; provided, that prior to any disclosure to any Person  (other than any Loan Party, Agent, any Lender, any of their respective Affiliates, or their respective counsel)  under this clause (ix) with respect to litigation involving any Person (other than any Borrower, Agent, any  Lender, any of their respective Affiliates, or their respective counsel), the disclosing party agrees to provide  Borrowers with prior written notice thereof, and (x) in connection with, and to the extent reasonably  necessary for, the exercise of any secured creditor remedy under this Agreement or under any other Loan  Document.  (b) Anything in this Agreement to the contrary notwithstanding, Agent may disclose  information concerning the terms and conditions of this Agreement and the other Loan Documents to loan  syndication and pricing reporting services or in its marketing or promotional materials, with such  information to consist of deal terms and other information customarily found in such publications or  marketing or promotional materials and may otherwise use the name, logos, and other insignia of any  Borrower or the other Loan Parties and the Commitments provided hereunder in any “tombstone” or other  advertisements, on its website or in other marketing materials of the Agent.  (c) Each Loan Party agrees that Agent may make Borrower Materials available to the  Lenders by posting the Communications on IntraLinks, SyndTrak or a substantially similar secure  electronic transmission system (the “Platform”).  The Platform is provided “as is” and “as available.”  Agent  does not warrant the accuracy or completeness of the Borrower Materials, or the adequacy of the Platform  and expressly disclaim liability for errors or omissions in the communications.  No warranty of any kind,  express, implied or statutory, including, without limitation, 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 Agent in connection with the Borrower Materials or the Platform.  In no event shall Agent or any  of the Agent-Related Persons have any liability to the Loan Parties, any Lender or any other person 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 Agent’s transmission of  communications through the Internet, except to the extent the liability of such person is found in a final  non-appealable judgment by a court of competent jurisdiction to have resulted from such person’s gross  negligence or willful misconduct.  Each Loan Party further agrees that certain of the Lenders may be  “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect  to the Loan Parties or their securities) (each, a “Public Lender”).  The Loan Parties shall be deemed to have  authorized Agent and its Affiliates and the Lenders to treat Borrower Materials marked “PUBLIC” or  otherwise at any time filed with the SEC as not containing any material non-public information with respect  to the Loan Parties or their securities for purposes of United States federal and state securities laws.  All  Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform  designated as “Public Investor” (or another similar term).  Agent and its Affiliates and the Lenders shall be  entitled to treat any Borrower Materials that are not marked “PUBLIC” or that are not at any time filed with  the SEC as being suitable only for posting on a portion of the Platform not marked as “Public Investor” (or  such other similar term).  17.10 Survival.  All representations and warranties made by the Loan Parties in the Loan  Documents and in the certificates or other instruments delivered in connection with or pursuant to this  Agreement or any other Loan Document shall be considered to have been relied upon by the other parties  hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans  and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on  its behalf and notwithstanding that Agent, Issuing Bank, or any Lender may have had notice or knowledge  of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended  hereunder, and shall continue in full force and effect as long as the principal of, or any accrued interest on,  any Loan or any fee or any other amount payable under this Agreement is outstanding or unpaid or any  Letter of Credit is outstanding and so long as the Commitments have not expired or been terminated.  





 






     -191-    17.11 Patriot Act; Due Diligence.  Each Lender that is subject to the requirements of the Patriot  Act hereby notifies the Loan Parties that pursuant to the requirements of the Patriot Act, it is required to  obtain, verify and record information that identifies each Loan Party, which information includes the name  and address of each Loan Party and other information that will allow such Lender to identify each Loan  Party in accordance with the Patriot Act.  In addition, Agent and each Lender shall have the right to  periodically conduct due diligence on all Loan Parties, their senior management and key principals and  legal and beneficial owners.  Each Loan Party agrees to cooperate in respect of the conduct of such due  diligence and further agrees that the reasonable costs and charges for any such due diligence by Agent shall  constitute Lender Group Expenses hereunder and be for the account of Borrowers.  17.12 Integration.  This Agreement, together with the other Loan Documents, reflects the entire  understanding of the parties with respect to the transactions contemplated hereby and shall not be  contradicted or qualified by any other agreement, oral or written, before the date hereof.  The foregoing to  the contrary notwithstanding, all Bank Product Agreements, if any, are independent agreements governed  by the written provisions of such Bank Product Agreements, which will remain in full force and effect,  unaffected by any repayment, prepayments, acceleration, reduction, increase, or change in the terms of any  credit extended hereunder, except as otherwise expressly provided in such Bank Product Agreement.  17.13 Parent as Agent for Borrowers.  Each Borrower hereby irrevocably appoints the Parent  as the borrowing agent and attorney-in-fact for all Borrowers (the “Administrative Borrower”) which  appointment shall remain in full force and effect unless and until Agent shall have received prior written  notice signed by each Borrower that such appointment has been revoked and that another Borrower has  been appointed Administrative Borrower.  Each Borrower hereby irrevocably appoints and authorizes the  Administrative Borrower (a) to provide Agent with all notices with respect to Revolving Loans and Letters  of Credit obtained for the benefit of any Borrower and all other notices and instructions under this  Agreement and the other Loan Documents (and any notice or instruction provided by Administrative  Borrower shall be deemed to be given by Borrowers hereunder and shall bind each Borrower), (b) to receive  notices and instructions from members of the Lender Group (and any notice or instruction provided by any  member of the Lender Group to the Administrative Borrower in accordance with the terms hereof shall be  deemed to have been given to each Borrower), and (c) to enter into Bank Product Provider Agreements on  behalf of Borrowers and their Restricted Subsidiaries, and (d) to take such action as the Administrative  Borrower deems appropriate on its behalf to obtain Revolving Loans and Letters of Credit and to exercise  such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement.  It is  understood that the handling of the Loan Account and Collateral in a combined fashion, as more fully set  forth herein, is done solely as an accommodation to Borrowers in order to utilize the collective borrowing  powers of Borrowers in the most efficient and economical manner and at their request, and that Lender  Group shall not incur liability to any Borrower as a result hereof.  Each Borrower expects to derive benefit,  directly or indirectly, from the handling of the Loan Account and the Collateral in a combined fashion since  the successful operation of each Borrower is dependent on the continued successful performance of the  integrated group.  To induce the Lender Group to do so, and in consideration thereof, each Borrower hereby  jointly and severally agrees to indemnify each member of the Lender Group and hold each member of the  Lender Group harmless against any and all liability, expense, loss or claim of damage or injury, made  against the Lender Group by any Borrower or by any third party whosoever, arising from or incurred by  reason of (i) the handling of the Loan Account and Collateral of Borrowers as herein provided, or (ii) the  Lender Group’s relying on any instructions of the Administrative Borrower, except that Borrowers will  have no liability to the relevant Agent-Related Person or Lender-Related Person under this Section 17.13  with respect to any liability that has been finally determined by a court of competent jurisdiction to have  resulted solely from the gross negligence, bad faith or willful misconduct of such Agent-Related Person or  Lender-Related Person, as the case may be.  





 






     -192-    17.14 Judgment Currency.  If for the purposes of obtaining judgment in any court it is necessary  to convert a sum due from a Loan Party hereunder in the currency expressed to be payable herein (the  "Specified Currency") into another currency, the parties hereto agree, to the fullest extent that they may  effectively do so, that the rate of exchange used shall be that at which in accordance with usual and  customary banking procedures the Agent could purchase the Specified Currency with such other currency  at any of the Agent's offices in the United States of America on the Business Day preceding that on which  final judgment is given.  The obligations of the Loan Parties in respect of any sum due to any member of  the Lender Group hereunder shall, notwithstanding any judgment in a currency other than the Specified  Currency, be discharged only to the extent that on the Business Day following receipt by such Lender, such  Issuing Bank, such Swing Line Lender or the Agent (as the case may be) of any sum adjudged to be so due  in such other currency such Lender, such Issuing Bank, such Swing Line Lender or the Agent (as the case  may be) may in accordance with normal, reasonable banking procedures purchase the Specified Currency  with such other currency.  If the amount of the Specified Currency so purchased is less than the sum  originally due to such Lender, such Issuing Bank, such Swing Line Lender or the Agent, as the case may  be, in the Specified Currency, each Loan Party agrees, to the fullest extent that it may effectively do so, as  a separate obligation and notwithstanding any such judgment, to indemnify such Lender, such Issuing Bank,  such Swing Line Lender, and the Agent, as the case may be, against such loss, and if the amount of the  Specified Currency so purchased exceeds (a) the sum originally due to any Lender, such Issuing Bank, such  Swing Line Lender or the Agent, as the case may be, in the Specified Currency and (b) any amounts shared  with other Lenders as a result of allocations of such excess as a disproportionate payment to such Lender  under Section 15.12, each Lender, each Issuing Bank, each Swing Line Lender or Agent, as the case may  be, agrees to promptly remit such excess to the applicable Borrower.  17.15 Amendment and Restatement.  The parties hereto have agreed that this Agreement is an  amendment and restatement of the Existing Credit Facility in its entirety, and this Agreement is not a  novation of the Existing Credit Facility.  The outstanding commitments under the Existing Credit Facility  have been assigned, renewed, extended, modified, and rearranged as Revolver Commitments under and  pursuant to the terms of this Agreement.  Certain of the Lenders (as Lenders under the Existing Credit  Facility) have agreed among themselves, in consultation with the Borrowers, to adjust their respective  Commitments and to terminate the commitments of certain lenders under the Existing Credit Facility who  will not become a Lender hereunder (each an “Exiting Lender”).  The Agent, the Lenders, the Parent and  each other Borrower, and each Exiting Lender (by receipt of the payment in full of the Advances as defined  in, and owing to it under, the Existing Credit Facility and, at such Exiting Lender’s request, under a separate  exiting agreement executed by such Exiting Lender) consented to such reallocation and each Exiting  Lender’s adjustment of, and each Exiting Lender’s assignment of, an interest in the commitments and the  Exiting Lenders’ assignments of their respective commitments.  On the Closing Date, and after giving effect  to such reallocations, adjustments, assignments and decreases, the Commitments of each Lender shall be  as set forth on Schedule C-1.  The Lenders shall make all appropriate adjustments and payments between  and among themselves to account for the revised pro rata shares resulting from the initial allocation of the  Lenders’ commitments under the Existing Credit Facility to under this Agreement.  The Parent and each  Lender party hereto that was a “Lender” under the Existing Credit Facility hereby agrees and this Section  17.15 and any exiting agreement executed by an Exiting Lender that is acceptable to the Agent and the  Parent shall be deemed approved assignment forms as required under the Existing Credit Facility.  17.16 Acknowledgement and Consent to Bail-In of Affected Financial Institutions.   Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement  or understanding among any such parties, each party hereto acknowledges that any liability of any Affected  Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be  subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and  consents to, and acknowledges and agrees to be bound by:   





 






     -193-    (a) the application of any Write-Down and Conversion Powers by the applicable  Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party  hereto that is an Affected Financial Institution; and  (b) the effects of any Bail-in Action on any such liability, including, if applicable:  (i) a reduction in full or in part or cancellation of any such liability;  (ii) a conversion of all, or a portion of, such liability into shares or other  instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge  institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of  ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement  or any other Loan Document; or  (iii) the variation of the terms of such liability in connection with the exercise  of the write-down and conversion powers of the applicable Resolution Authority.  17.17 Certain ERISA Matters.  (a) Each Lender (x) represents and warrants, as of the date such Person became a  Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the  date such Person ceases being a Lender party hereto, for the benefit of, the Agent, each Joint Lead Arranger  and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or  any other Loan Party, that at least one of the following is and will be true:     (i) such Lender is not using “plan assets” (within the meaning of Section  3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into,  participation in, administration of and performance of the Loans, the Letters of Credit or the Commitments;     (ii) the transaction exemption set forth in one or more PTEs, such as PTE 84- 14 (a class exemption for certain transactions determined by independent qualified professional asset  managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general  accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled  separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective  investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset  managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and  performance of the Loans, the Letters of Credit, the Commitments and this Agreement;     (iii) (A) such Lender is an investment fund managed by a “Qualified  Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional  Asset Manager made the investment decision on behalf of such Lender to enter into, participate in,  administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the  entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the  Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of  PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of  PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and  performance of the Loans, the Letters of Credit, the Commitments and this Agreement; or     (iv) such other representation, warranty and covenant as may be agreed in  writing between the Agent, in its sole discretion, and such Lender.  





 






     -194-    (b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a)  is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant  in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x)  represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants,  from the date such Person became a Lender party hereto to the date such Person ceases being a Lender  party hereto, for the benefit of, the Agent, each Joint Lead Arranger and their respective Affiliates, and not,  for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that none of the  Agent, any Joint Lead Arranger and their respective Affiliates is a fiduciary with respect to the assets of  such Lender involved in such Lender’s entrance into, participation in, administration of and performance  of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the  reservation or exercise of any rights by the Agent under this Agreement, any Loan Document or any  documents related hereto or thereto).  17.18 Acknowledgement Regarding Any Supported QFCs.  To the extent that the Loan  Documents provide support, through a guarantee or otherwise, for Hedge Agreements or any other  agreement or instrument that is a QFC (such support, “QFC Credit Support” and, each such QFC, a  “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of  the FDIC under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and  Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special  Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions  below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated  to be governed by the laws of the State of New York and/or of the United States or any other state of the  United States):  (a) In the event a Covered Entity that is party to a Supported QFC (each, a “Covered  Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such  Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under  such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported  QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the  transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC  Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the  United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a  Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights  under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support  that may be exercised against such Covered Party are permitted to be exercised to no greater extent than  such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC  and the Loan Documents were governed by the laws of the United States or a state of the United States.  Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with  respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a  Supported QFC or any QFC Credit Support.  (b) As used in this Section 17.18, the following terms have the following meanings:    “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and  interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.    “Covered Entity” means any of the following:  (i) a “covered entity” as that term is defined in, and interpreted in accordance  with, 12 C.F.R. § 252.82(b);  





 






     -195-    (ii) a “covered bank” as that term is defined in, and interpreted in accordance  with, 12 C.F.R. § 47.3(b); or  (iii) a “covered FSI” as that term is defined in, and interpreted in accordance  with, 12 C.F.R. § 382.2(b).  “Default Right” has the meaning assigned to that term in, and shall be interpreted in  accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.  “QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be  interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).  17.19 Erroneous Payments.    (a) Each Lender, each Issuing Bank, each other Bank Product Provider and any other  party hereto hereby severally agrees that if (i) the Agent notifies (which such notice shall be conclusive  absent manifest error) such Lender or Issuing Bank or any Bank Product Provider (or the Lender which is  an Affiliate of a Lender, Issuing Bank or Bank Product Provider) or any other Person that has received  funds from the Agent or any of its Affiliates, either for its own account or on behalf of a Lender, Issuing  Bank or Bank Product Provider (each such recipient, a “Payment Recipient”) that the Agent has determined  in its sole discretion that any funds received by such Payment Recipient were erroneously transmitted to,  or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such  Payment Recipient) or (ii) any Payment Recipient receives any payment from the Agent (or any of its  Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of  payment, prepayment or repayment sent by the Agent (or any of its Affiliates) with respect to such payment,  prepayment or repayment, as applicable, (y) that was not preceded or accompanied by a notice of payment,  prepayment or repayment sent by the Agent (or any of its Affiliates) with respect to such payment,  prepayment or repayment, as applicable, or (z) that such Payment Recipient otherwise becomes aware was  transmitted or received in error or by mistake (in whole or in part) then, in each case, an error in payment  shall be presumed to have been made (any such amounts specified in clauses (i) or (ii) of this Section  17.19(a), whether received as a payment, prepayment or repayment of principal, interest, fees, distribution  or otherwise; individually and collectively, an “Erroneous Payment”), then, in each case, such Payment  Recipient is deemed to have knowledge of such error at the time of its receipt of such Erroneous Payment;  provided that nothing in this Section shall require the Agent to provide any of the notices specified in  clauses (i) or (ii) above.  Each Payment Recipient agrees that it shall not assert any right or claim to any  Erroneous Payment, and hereby waives any claim, counterclaim, defense or right of set-off or recoupment  with respect to any demand, claim or counterclaim by the Agent for the return of any Erroneous Payments,  including without limitation waiver of any defense based on “discharge for value” or any similar doctrine.  (b) Without limiting the immediately preceding clause (a), each Payment Recipient  agrees that, in the case of clause (a)(ii) above, it shall promptly notify the Agent in writing of such  occurrence.  (c) In the case of either clause (a)(i) or (a)(ii) above, such Erroneous Payment shall at  all times remain the property of the Agent and shall be segregated by the Payment Recipient and held in  trust for the benefit of the Agent, and upon demand from the Agent such Payment Recipient shall (or, shall  cause any Person who received any portion of an Erroneous Payment on its behalf to), promptly, but in all  events no later than one Business Day thereafter, return to the Agent the amount of any such Erroneous  Payment (or portion thereof) as to which such a demand was made in same day funds and in the currency  so received, together with interest thereon in respect of each day from and including the date such Erroneous  Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to  





 






     -196-    the Agent at the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with  banking industry rules on interbank compensation from time to time in effect.  (d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the  Agent for any reason, after demand therefor by the Agent in accordance with immediately preceding clause  (c), from any Lender that is a Payment Recipient or an Affiliate of a Payment Recipient (such unrecovered  amount as to such Lender, an “Erroneous Payment Return Deficiency”), then at the sole discretion of the  Agent and upon the Agent’s written notice to such Lender (i) such Lender shall be deemed to have made a  cashless assignment of the full face amount of the portion of its Loans (but not its Commitments) with  respect to which such Erroneous Payment was made (the “Erroneous Payment Impacted Loans”) to the  Agent or, at the option of the Agent, the Agent’s applicable lending affiliate (such assignee, the “Agent  Assignee”) in an amount that is equal to the Erroneous Payment Return Deficiency (or such lesser amount  as the Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment  Impacted Loans, the “Erroneous Payment Deficiency Assignment”) plus any accrued and unpaid interest  on such assigned amount, without further consent or approval of any party hereto and without any payment  by the Agent Assignee as the assignee of such Erroneous Payment Deficiency Assignment.  Without  limitation of its rights hereunder, following the effectiveness of the Erroneous Payment Deficiency  Assignment, the Agent may make a cashless reassignment to the applicable assigning Lender of any  Erroneous Payment Deficiency Assignment at any time by written notice to the applicable assigning Lender  and upon such reassignment all of the Loans assigned pursuant to such Erroneous Payment Deficiency  Assignment shall be reassigned to such Lender without any requirement for payment or other consideration.   The parties hereto acknowledge and agree that (1) any assignment contemplated in this clause (d) shall be  made without any requirement for any payment or other consideration paid by the applicable assignee or  received by the assignor, (2) the provisions of this clause (d) shall govern in the event of any conflict with  the terms and conditions of Section 13 and (3) the Agent may reflect such assignments in the Register  without further consent or action by any other Person.  (e) Each party hereto hereby agrees that (x) in the event an Erroneous Payment (or  portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment  (or portion thereof) for any reason, the Agent (1) shall be subrogated to all the rights of such Payment  Recipient and (2) is authorized to set off, net and apply any and all amounts at any time owing to such  Payment Recipient under any Loan Document, or otherwise payable or distributable by the Agent to such  Payment Recipient from any source, against any amount due to the Agent under this Section 17.19 or under  the indemnification provisions of this Agreement, (y) the receipt of an Erroneous Payment by a Payment  Recipient shall not for the purpose of this Agreement be treated as a payment, prepayment, repayment,  discharge or other satisfaction of any Obligations owed by the Borrowers or any other Loan Party, except,  in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such  Erroneous Payment that is, comprised of funds received by the Agent from the Borrowers or any other Loan  Party for the purpose of making a payment on the Obligations and (z) to the extent that an Erroneous  Payment was in any way or at any time credited as payment or satisfaction of any of the Obligations, the  Obligations or any part thereof that were so credited, and all rights of the Payment Recipient, as the case  may be, shall be reinstated and continue in full force and effect as if such payment or satisfaction had never  been received.  (f) Each party’s obligations under this Section 17.19 shall survive the resignation or  replacement of the Agent or any transfer of right or obligations by, or the replacement of, a Lender, the  termination of the Commitments or the repayment, satisfaction or discharge of all Obligations (or any  portion thereof) under any Loan Document.  (g) The provisions of this Section 17.19 to the contrary notwithstanding, (i) nothing in  this Section 17.19 will constitute a waiver or release of any claim of any party hereunder arising from any  





 






     -197-    Payment Recipient’s receipt of an Erroneous Payment and (ii) there will only be deemed to be a recovery  of the Erroneous Payment to the extent that Agent has received payment from the Payment Recipient in  immediately available funds of the Erroneous Payment Return Deficiency, whether directly from the  Payment Recipient, as a result of the exercise by Agent of its rights of subrogation or set off as set forth  above in clause (e) or as a result of the receipt by Agent Assignee of a payment of the outstanding principal  balance of the Loans assigned to Agent Assignee pursuant to an Erroneous Payment Deficiency  Assignment, but excluding any other amounts in respect thereof (it being agreed that any payments of  interest, fees, expenses or other amounts (other than principal) received by Agent Assignee in respect of  the Loans assigned to Agent Assignee pursuant to an Erroneous Payment Deficiency Assignment shall be  the sole property of the Agent Assignee and shall not constitute a recovery of the Erroneous Payment).     [Signature pages to follow.]  





 






[SCHEDULE C-1 TO FORUM AMENDMENT NO. 3]    SCHEDULE C-1  COMMITMENTS    Revolving Lenders US Revolver  Commitment  Canadian Revolver  Commitment    Wells Fargo Bank, National Association $62,500,000.00 $0.00  Wells Fargo Capital Finance Corporation Canada $0.00 $8,379,888.27  JPMorgan Chase Bank, N.A.  $62,500,000.00 $0.00  JPMorgan Chase Bank, N.A., Toronto Branch    $0.00 $6,983,240.22  Citibank, N.A. $0.00 $0.00  Bank of America, N.A. $41,500,000.00 $0.00  Bank of America, N.A. Canada Branch $0.00 $4,636,871.51  HSBC BANK USA, N.A. $0.00 $0.00  Deutsche Bank AG, New York Branch $0.00 $0.00  Deutsche Bank AG, Canada Branch $0.00 $0.00  Zions Bancorporation, N.A. DBA Amegy Bank $12,500,000.00 $0.00  Total: $179,000,000 $20,000,000  





 






[SCHEDULE 5.1 TO FORUM AMENDMENT NO. 3]    SCHEDULE 5.1  [See Attached.]  





 






      #6214447.2  Schedule 5.1   Deliver to Agent (and if so requested by a member of the Lender Group, to such Person) each of  the financial statements, reports, or other items set forth below at the following times:      as soon as available,  but in any event  within 45 days after  the end of each of the  first three fiscal  quarters of each of  Parent’s fiscal years  (or, if an Increased  Reporting Period is  in effect, within 30  days (45 days in the  case of a month that  is the end of one of  Parent’s fiscal  quarters) after the  end of each month),      (a) an unaudited consolidated and consolidating balance sheet, income  statement, and statement of cash flow, covering Parent’s and its Subsidiaries’  operations during such period and compared to the prior period; provided that  for such consolidating financial information, the Parent shall provide in  reasonable detail the differences between the balance sheet and income statement  shown in the consolidated financial statements of the Parent and its Subsidiaries,  on the one hand, and the balance sheet and income statement  related to each of  (i) the Loan Parties, (ii) the Restricted Subsidiaries that are not Loan Parties, and  (iii) the Unrestricted Subsidiaries, if any, in each case, on the other hand, in such  form acceptable to the Agent, and   (b) a Compliance Certificate along with the underlying calculations, including  the calculations to arrive at EBITDA and Fixed Charge Coverage Ratio  regardless of whether the covenant in Section 7 applies, and Total Net Leverage  Ratio.       as soon as available,  but in any event  within 120 days after  the end of each of  Parent’s fiscal years,      (c) consolidated and consolidating financial statements of Parent and its  Subsidiaries, audited by PricewaterhouseCoopers LLP or any other independent  certified public accountants reasonably acceptable to Agent and certified, without  any qualifications (including any (i) “going concern” or like qualification or  exception (other than with regard to (A) the current maturity of the Obligations  or a portion thereof in any opinion delivered for the fiscal year ending  immediately before the Maturity Date or (B) the current maturity of the Senior  Notes or a portion thereof in any opinion delivered for the fiscal year ending  immediately before the final maturity date thereof), (ii) qualification or exception  as to the scope of such audit, or (iii) qualification which relates to the treatment  or classification of any item and which, as a condition to the removal of such  qualification, would require an adjustment to such item, the effect of which would  be to cause any noncompliance with the provisions of Section 7 of the  Agreement), by such accountants to have been prepared in accordance with  GAAP (such audited financial statements to include a balance sheet, income  statement, statement of cash flow, and statement of shareholder’s equity, in each  case, with respect to such Persons, and, if prepared, such accountants’ letter to  management solely with respect to the consolidated financial statements of the  Parent and its Subsidiaries); provided that for such audited consolidating financial  information, the Parent shall provide in reasonable detail, only to the extent  required to be included in the footnotes to the audited financial statements, the  differences between the audited consolidated financial statements of the Parent  and its Subsidiaries, on the one hand, and the information related to each of (i)  the Loan Parties, (ii) the Restricted Subsidiaries that are not Loan Parties, and (iii)  





 






      #6214447.2  the Unrestricted Subsidiaries, if any, in each case, on the other hand, in such form  acceptable to the Agent,  (d) to the extent the audited consolidating information provided in clause (c)  above is not included in the footnotes to the audited consolidated financial  statements of the Parent and its Subsidiaries, the Parent shall provide, on an  unaudited basis, in reasonable detail the differences between the balance sheet  and income statement shown in the audited consolidated financial statements of  the Parent and its Subsidiaries, on the one hand, and the balance sheet and income  statement  related to each of (i) the Loan Parties, (ii) the Restricted Subsidiaries  that are not Loan Parties, and (iii) the Unrestricted Subsidiaries, if any, in each  case, on the other hand, in such form acceptable to the Agent, and  (e) a Compliance Certificate along with the underlying calculations, including  the calculations to arrive at EBITDA and Fixed Charge Coverage Ratio  regardless of whether the covenant in Section 7 applies, and Total Net Leverage  Ratio.    as soon as available,  but in any event  within 60 days after  the start of each of  Parent’s fiscal years,    (f) copies of Parent’s Projections, in form and substance (including as to scope  and underlying assumptions) satisfactory to Agent, in its Permitted Discretion,  for the forthcoming three years, year by year, and for the forthcoming fiscal year,  fiscal quarter by fiscal quarter, certified by the chief financial officer of Parent  as being such officer’s good faith estimate of the financial performance of Parent  and its Restricted Subsidiaries during the period covered thereby.    if and when filed by  Parent,    (g) Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K  current reports,      promptly, but in any  event within 5  Business Days after  any officer  of any  Borrower (or if  applicable, any  general partner of a  Borrower) has  knowledge of any  event or condition  that constitutes a  Default or an Event  of Default,      (h) notice of such event or condition and a statement of the curative action that  Borrowers propose to take with respect thereto.      promptly after the  commencement  thereof, but in any  event within 5  Business Days after    (i) notice of all actions, suits, or proceedings brought by or against any Borrower  or any of its Restricted Subsidiaries before any Governmental Authority which  reasonably could be expected to result in a Material Adverse Effect.  





 






      #6214447.2  the service of  process with respect  thereto on Parent or  any Borrower or any  of its Subsidiaries,     upon the request of  Agent,      (j) subject to the confidentiality provisions of Section 17.9 of the Agreement,  any other information reasonably requested relating to the financial condition of  any Borrower or its Restricted Subsidiaries.    Documents required to be delivered pursuant to this Schedule 5.1 shall be delivered electronically and shall  be deemed to have been delivered (subject to the proviso below) on the date (i) on which the Borrowers  provides a link thereto on the Borrowers’ website on the Internet at the website as identified to the Agent  in writing pursuant to the proviso below; or (ii) on which such documents are posted on the Borrowers’  behalf on an Internet or intranet website, if any, to which each member of the Lender Group and the Agent  have access (whether a commercial, third-party website or whether sponsored by the Agent); provided  that: the Borrowers shall notify the Agent (by electronic mail) of the posting of (and the relevant website  for) any such documents and provide to the Agent by electronic mail electronic versions of such  documents.  The Agent shall have no obligation to request the delivery or to maintain copies of the  documents referred to above, and in any event shall have no responsibility to monitor compliance by the  Borrowers with any such request for delivery, and each member of the Lender Group shall be solely  responsible for requesting delivery to it or maintaining its copies of such documents.