Credit Agreement dated as of October 3, 2005



 Exhibit 10.38 
  
 EXECUTION COPY 

  
 CREDIT AGREEMENT 
  
 dated as of 
  
 October 3, 2005 
  
 among 
  
 PROJECT SNOW, INC.

  
 and 
  
 AMERISOURCEBERGEN CORPORATION 
  
 and 
  
 The Lenders Party Hereto 
  
 and 
  
 THE BANK OF NOVA SCOTIA, 
 as Administrative Agent and Lead Arranger. 
  








 TABLE OF CONTENTS 
  


					
	 	  	 	  	Page


	 ARTICLE I
 DEFINITIONS
	  	1
			
	 SECTION 1.01.
	  	 Defined Terms
	  	1
			
	 SECTION 1.02.
	  	 Classification of Loans and Borrowings
	  	23
			
	 SECTION 1.03.
	  	 Terms Generally
	  	23
			
	 SECTION 1.04.
	  	 Accounting Terms; GAAP
	  	23
		
	 ARTICLE II
 THE CREDITS
	  	24
			
	 SECTION 2.01.
	  	 Commitments
	  	24
			
	 SECTION 2.02.
	  	 Loans and Borrowings
	  	24
			
	 SECTION 2.03.
	  	 Requests for Revolving Borrowings
	  	25
			
	 SECTION 2.04.
	  	 Swingline Loans
	  	26
			
	 SECTION 2.05.
	  	 Letters of Credit
	  	27
			
	 SECTION 2.06.
	  	 Bankers’ Acceptances
	  	32
			
	 SECTION 2.07.
	  	 Funding of Borrowings
	  	35
			
	 SECTION 2.08.
	  	 Interest Elections
	  	35
			
	 SECTION 2.09.
	  	 Termination and Reduction of Commitments
	  	37
			
	 SECTION 2.10.
	  	 Repayment of Loans; Evidence of Debt
	  	37
			
	 SECTION 2.11.
	  	 Prepayment of Loans
	  	38
			
	 SECTION 2.12.
	  	 Fees
	  	39
			
	 SECTION 2.13.
	  	 Interest
	  	41
			
	 SECTION 2.14.
	  	 Alternate Rate of Interest
	  	42
			
	 SECTION 2.15.
	  	 Increased Costs
	  	42
			
	 SECTION 2.16.
	  	 Break Funding Payments
	  	43

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page


	 SECTION 2.17.
	  	 Taxes
	  	44
			
	 SECTION 2.18.
	  	 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	  	45
			
	 SECTION 2.19.
	  	 Mitigation Obligations; Replacement of Lenders
	  	47
		
	 ARTICLE III
 REPRESENTATIONS AND WARRANTIES
	  	48
			
	 SECTION 3.01.
	  	 Organization; Powers
	  	48
			
	 SECTION 3.02.
	  	 Authorization; Enforceability
	  	48
			
	 SECTION 3.03.
	  	 Governmental Approvals; No Conflicts
	  	49
			
	 SECTION 3.04.
	  	 Financial Condition; No Material Adverse Change
	  	49
			
	 SECTION 3.05.
	  	 Properties
	  	49
			
	 SECTION 3.06.
	  	 Litigation and Environmental Matters
	  	50
			
	 SECTION 3.07.
	  	 Compliance with Laws and Agreements
	  	50
			
	 SECTION 3.08.
	  	 Investment and Holding Company Status
	  	50
			
	 SECTION 3.09.
	  	 Taxes
	  	50
			
	 SECTION 3.10.
	  	 ERISA
	  	50
			
	 SECTION 3.11.
	  	 Disclosure
	  	51
			
	 SECTION 3.12.
	  	 Subsidiaries
	  	51
			
	 SECTION 3.13.
	  	 Insurance
	  	51
			
	 SECTION 3.14.
	  	 Labor Matters
	  	51
			
	 SECTION 3.15.
	  	 Senior Indebtedness
	  	51
			
	 SECTION 3.16.
	  	 Restrictions on Securing of Obligations
	  	52
		
	 ARTICLE IV
 CONDITIONS
	  	52
			
	 SECTION 4.01.
	  	 Effective Date
	  	52

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page


	 SECTION 4.02.
	  	 Each Credit Event
	  	53
		
	 ARTICLE V
 AFFIRMATIVE COVENANTS
	  	54
			
	 SECTION 5.01.
	  	 Financial Statements and Other Information
	  	54
			
	 SECTION 5.02.
	  	 Notices of Material Events
	  	55
			
	 SECTION 5.03.
	  	 Existence; Conduct of Business
	  	56
			
	 SECTION 5.04.
	  	 Payment of Obligations
	  	56
			
	 SECTION 5.05.
	  	 Maintenance of Properties; Insurance
	  	57
			
	 SECTION 5.06.
	  	 Books and Records; Inspection and Audit Rights
	  	57
			
	 SECTION 5.07.
	  	 Compliance with Laws
	  	57
			
	 SECTION 5.08.
	  	 Use of Proceeds and Letters of Credit
	  	57
			
	 SECTION 5.09.
	  	 [Intentionally Omitted.]
	  	57
			
	 SECTION 5.10.
	  	 Maintenance of Corporate Separateness
	  	57
			
	 SECTION 5.11.
	  	 Senior Debt Status
	  	58
		
	 ARTICLE VI
 NEGATIVE COVENANTS
	  	58
			
	 SECTION 6.01.
	  	 Indebtedness
	  	58
			
	 SECTION 6.02.
	  	 Liens
	  	59
			
	 SECTION 6.03.
	  	 Fundamental Changes
	  	60
			
	 SECTION 6.04.
	  	 Investments, Loans, Advances, Guarantees and Acquisitions
	  	61
			
	 SECTION 6.05.
	  	 Asset Sales
	  	62
			
	 SECTION 6.06.
	  	 Hedging Agreements
	  	62
			
	 SECTION 6.07.
	  	 Restricted Payments; Certain Payments of Indebtedness
	  	63

  

 -iii- 








 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page


	 SECTION 6.08.
	  	 Transactions with Affiliates
	  	64
			
	 SECTION 6.09.
	  	 Restrictive Agreements
	  	64
			
	 SECTION 6.10.
	  	 Material Documents
	  	65
			
	 SECTION 6.11.
	  	 Fixed Charge Coverage Ratio
	  	65
			
	 SECTION 6.12.
	  	 Leverage Ratio
	  	65
			
	 SECTION 6.13.
	  	 Restricted Properties
	  	65
			
	 SECTION 6.14.
	  	 Fiscal Quarters
	  	65
			
	 SECTION 6.15.
	  	 Amount of Permitted Debt under the Debt Instruments
	  	65
		
	 ARTICLE VII
 EVENTS OF DEFAULT
	  	66
			
	 SECTION 7.01.
	  	 	  	66
		
	 ARTICLE VIII
 THE ADMINISTRATIVE AGENT
	  	68
			
	 SECTION 8.01.
	  	 	  	68
			
	 SECTION 8.02.
	  	 	  	68
			
	 SECTION 8.03.
	  	 	  	69
			
	 SECTION 8.04.
	  	 	  	69
			
	 SECTION 8.05.
	  	 	  	69
			
	 SECTION 8.06.
	  	 	  	70
			
	 SECTION 8.07.
	  	 	  	70
		
	 ARTICLE IX
 MISCELLANEOUS
	  	70
			
	 SECTION 9.01.
	  	 Notices
	  	70
			
	 SECTION 9.02.
	  	 Waivers; Amendments
	  	71

  

 -iv- 








 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page


	 SECTION 9.03.
	  	 Expenses; Indemnity; Damage Waiver
	  	72
			
	 SECTION 9.04.
	  	 Successors and Assigns
	  	74
			
	 SECTION 9.05.
	  	 Survival
	  	78
			
	 SECTION 9.06.
	  	 Counterparts; Integration; Effectiveness
	  	78
			
	 SECTION 9.07.
	  	 Severability
	  	78
			
	 SECTION 9.08.
	  	 Right of Setoff
	  	79
			
	 SECTION 9.09.
	  	 Governing Law; Jurisdiction; Consent to Service of Process
	  	79
			
	 SECTION 9.10.
	  	 WAIVER OF JURY TRIAL
	  	79
			
	 SECTION 9.11.
	  	 Headings
	  	79
			
	 SECTION 9.12.
	  	 Confidentiality
	  	79
			
	 SECTION 9.13.
	  	 Interest Rate Limitations and Calculations
	  	81
			
	 SECTION 9.14.
	  	 Reimbursement
	  	81
			
	 SECTION 9.15.
	  	 U.S.A. PATRIOT Act
	  	82
			
	 SECTION 9.16.
	  	 Judgment Currency
	  	82
			
	 SECTION 9.17.
	  	 Dollar Equivalent
	  	82
		
	 ARTICLE X
 PARENT GUARANTEE
	  	83
			
	 SECTION 10.01.
	  	 Guarantee
	  	83
			
	 SECTION 10.02.
	  	 Acceleration of Parent Guarantee
	  	83
			
	 SECTION 10.03.
	  	 Guarantee Absolute, etc.
	  	83
			
	 SECTION 10.04.
	  	 Reinstatement, etc.
	  	84
			
	 SECTION 10.05.
	  	 Waiver, etc.
	  	85
			
	 SECTION 10.06.
	  	 Postponement of Subrogation, etc.
	  	85
			
	 SECTION 10.07.
	  	 Successors, Transferees and Assigns; Transfers of Notes, etc.
	  	85

  

 -v- 









			
	 SCHEDULES:
	  	 
		
	 Schedule 2.01
	  	 Commitments

		
	 Schedule 3.12
	  	 Subsidiaries

		
	 Schedule 3.13
	  	 Insurance

		
	 Schedule 6.02
	  	 Existing Liens

		
	 Schedule 6.04
	  	 Existing Investments

		
	 Schedule 6.09
	  	 Existing Restrictions

		
	 EXHIBITS:
	  	 
		
	 Exhibit A
	  	 Form of Assignment and Assumption

		
	 Exhibit B-1
	  	 Form of Opinion of Dechert LLP, Counsel for the Parent

		
	 Exhibit B-2
	  	 Form of Opinion of John G. Chou, Deputy General Counsel of the Parent and the Borrower

		
	 Exhibit B-3
	  	 Form of Opinion of McMillan Binch Mendelsohn LLP, Counsel for the Borrower

		
	 Exhibit C
	  	 Form of Acknowledgement and Confirmation











 CREDIT AGREEMENT dated as of October 3, 2005, among PROJECT SNOW, INC. (“PSI”),
AMERISOURCEBERGEN CORPORATION (the “Parent”), the LENDERS party hereto, and THE BANK OF NOVA SCOTIA (“Scotia Capital”), as Administrative Agent. 
  
 The Borrower has requested the Lenders to establish a senior unsecured revolving credit facility in an aggregate principal
amount of C$135,000,000 (the “Facility”). The proceeds of loans under the Facility, and letters of credit issued under the Facility, will be used by the Borrower for general corporate purposes, including investments and acquisitions
and the repayment of outstanding Indebtedness. The Lenders are willing to establish the Facility upon the terms and subject to the conditions set forth herein. The Parent has agreed to guarantee the obligations of the Borrower under the Facility.

  
 Simultaneously, with the execution of this Agreement, PSI will
be amalgamated (the “Amalgamation”) with Trent Drugs (Wholesale) Ltd., a corporation amalgamated under the laws of Canada (“Target Co.”), with the amalgamated corporation having the name Trent Drugs (Wholesale) Ltd.
and continuing as the “Borrower” hereunder. 
  
 Accordingly, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 SECTION 1.01. Defined Terms. As used in this Agreement, the following
terms have the meanings specified below: 
  
 “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 
  
 “Acknowledgement and Confirmation” means the acknowledgement
and confirmation substantially in the form of Exhibit C hereto. 
  
 “Administrative Agent” means Scotia Capital, in its capacity as administrative agent for the Lenders hereunder. 
  
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
  
 “Affiliate” means, with respect to a specified Person,
another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 









 “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of
(a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus  1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds
Effective Rate, respectively. 
  
 “Applicable
Percentage” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon
the Commitments most recently in effect, giving effect to any assignments. 
  
 “Applicable Rate” means, for any day, the applicable rate per annum set forth below under the caption “ABR and Canadian Prime Spread”, “LIBOR and BA Stamping Fee Spread” or
“Facility Fee Rate”, as the case may be, based upon the ratings established by S&P and Moody’s for the Index Debt as of the most recent determination date: 
  

									
	 Category

	  	 Ratings
 (S&P/Moody’s)

	  	 Facility Fee
 (basis
 points per
 annum)

	  	 LIBOR and
 BA Stamping
 Fee Spread
 (basis points
 per annum)

	  	 ABR and
 Canadian
 Prime Spread
 (basis points
 per annum)


	 Category 1
	  	A/A2 or higher	  	8.0	  	32.0	  	0.0
	 Category 2
	  	A-/A3	  	10.0	  	35.0	  	0.0
	 Category 3
	  	BBB+/Baa1	  	12.5	  	37.5	  	0.0
	 Category 4
	  	BBB/Baa2	  	15.0	  	47.5	  	0.0
	 Category 5
	  	BBB-/Baa3	  	17.5	  	57.5	  	0.0
	 Category 6
	  	BB+/Ba1	  	20.0	  	67.5	  	0.0
	 Category 7
	  	BB/Ba2	  	25.0	  	87.5	  	0.0
	 Category 8
	  	BB-/Ba3 or lower	  	30.0	  	120.0	  	20.0

  
 For purposes of the foregoing,
(i) if either Moody’s or S&P shall not have in effect a rating for the Index Debt (other than by reason of the circumstances referred to in the last sentence of this definition), then such rating agency shall be deemed to have
established a rating in Category 8; (ii) if the ratings established or deemed to have been established by 

  

 2 








 
Moody’s and S&P for the Index Debt shall fall within different Categories, the Applicable Rate shall be based on the higher of the two ratings
unless one of the two ratings is two or more Categories above the other, in which case the Applicable Rate shall be determined by reference to the Category one level above the Category corresponding to the lower rating; and (iii) if the ratings
established or deemed to have been established by Moody’s and S&P for the Index Debt shall be changed (other than as a result of a change in the rating system of Moody’s or S&P), such change shall be effective as of the date on
which it is first announced by the applicable rating agency. Each change in the Applicable Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next
such change; provided that in the case of a Loan by way of Bankers’ Acceptance or BA Equivalent Note outstanding, any such change to the applicable BA Stamping Fee shall not take effect until the maturity date of such Loan. If the rating
system of Moody’s or S&P shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect
such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be determined by reference to the rating of the other rating agency (or, if the
circumstances referred to in this sentence shall affect both rating agencies, the ratings most recently in effect prior to such changes or cessations). 
  
 “Approved Fund” has the meaning assigned to such term in Section 9.04. 
  
 “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee
(with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent. 
  
 “Authorized Foreign Bank” has the meaning ascribed thereto
in subsection 248(1) of the ITA and, by reference therein, the meaning ascribed thereto by section 2 of the Bank Act (Canada), as amended, and any successor thereto. 
  
 “Availability Period” means the period from and including the Effective Date to but excluding the earlier
of the Maturity Date and the date of termination of the Commitments. 
  
 “BA Discount Proceeds” means, with respect to a particular Bankers’ Acceptance or BA Equivalent Note, the following amount: 
  

	
	F
	1+D x T
	365

  
 where 
  
 F means the face amount of such Bankers’ Acceptance or BA Equivalent
Note; 
  

 3 








 D means the applicable BA Discount Rate for such Bankers’ Acceptance or BA Equivalent Note; and

  
 T means the number of days to maturity of such Bankers’
Acceptance or BA Equivalent Note (but excluding the maturity date thereof), 
  
 with the amount as so determined being rounded up or down to the fifth decimal place and .000005 being rounded up. 
  
 “BA Discount Rate” means, (a) for any Bankers’ Acceptance or BA Equivalent Note to be accepted by a BA Lender that is a
Schedule I Lender on the date of any Borrowing, continuance or conversion, as the case may be, CDOR on such date, for a period identical to the term to maturity of the relevant Bankers’ Acceptance or BA Equivalent Note and (b) for any
Bankers’ Acceptance or BA Equivalent Note to be accepted by a BA Lender that is not a Schedule I Lender, the lesser of (i) such Lender’s own bankers’ acceptance rate and (ii) the Administrative Agent’s own bankers’
acceptance rate plus 0.10% per annum in either case for a period identical to the term to maturity of the relevant Bankers’ Acceptance or BA Equivalent Note. 
  
 “BA Equivalent Note” when used in reference to a Loan or Borrowing refers to whether such Loan, or the
Loans comprising such Borrowing are made in the form of non-interest bearing promissory notes of the Borrower issued in favour of a Non BA Lender. 
  
 “BA Lender” means any Lender which has not notified the Administrative Agent in writing that it is unwilling or unable to accept Drafts
as provided for in Section 2.06. 
  
 “BA Stamping
Fee” means the amount calculated by multiplying the face amount of a Bankers’ Acceptance or a BA Equivalent Note by the BA Stamping Fee Rate and then multiplying the result by a fraction, the numerator of which is the number of days to
elapse from and including the date of acceptance of such Bankers’ Acceptance or purchase of such BA Equivalent Note by a Lender up to but excluding the maturity date of such Bankers’ Acceptance or BA Equivalent Note and the denominator of
which is 365. 
  
 “BA Stamping Fee Rate” means,
with respect to a Bankers’ Acceptance or a BA Equivalent Note, the applicable percentage rate per annum indicated below the references to “BA Stamping Fee Spread” in the definition of “Applicable Rate” relevant to the period
in respect of which a determination is being made, as adjusted pursuant to the definition of “Applicable Rate”. 
  
 “Bankers’ Acceptance” when used in reference to any Loan or Borrowing refers to whether such Loan, or the Loans comprising such
Borrowing are made in the form of a depository bill, as defined in the Depository Bills and Notes Act (Canada) in Canadian dollars that is in the form of a Draft signed by or on behalf of the Borrower and 

  

 4 








 
accepted by a BA Lender as contemplated under Section 2.06 or, for Lenders not participating in clearing services as contemplated in that Act, a draft
or other bill of exchange in Canadian Dollars that is signed on behalf of the Borrower and accepted by a Lender. 
  
 “Beneficiaries” has the meaning assigned to such term in Section 10.01(b). 
  
 “Board” means the Board of Governors of the Federal Reserve
System of the United States of America. 
  
 “Borrower” means PSI (prior to the Amalgamation), and following the Amalgamation, Trent Drugs (Wholesale) Ltd., the corporation resulting from the Amalgamation. 
  
 “Borrowing” means (a) Loans of the same Class and Type made, converted or continued on the same date
and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect and in the case of Bankers’ Acceptances (or BA Equivalent Notes) have the same term to maturity, or (b) a Swingline Loan. 
  
 “Borrowing Request” means a request by the Borrower for a
Borrowing in accordance with Section 2.03. 
  
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City or Toronto, Ontario are authorized or required by law to remain closed; provided that, when used in
connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market. 
  
 “Canadian Banking Business” has the meaning ascribed thereto
in subsection 248(1) of the ITA. 
  
 “Canadian
Banking Business Asset” means an amount receivable the interest on which is, or would be, an amount paid or credited to an Authorized Foreign Bank in respect of its Canadian Banking Business. 
  
 “Canadian Dollars”, “Cdn Dollars”,
“Cdn $” or “C$” refers to the lawful money of Canada. 
  
 “Canadian Prime” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the
Canadian Prime Rate. 
  
 “Canadian Prime Rate”
means a fluctuating rate of interest per annum, expressed on the basis of a year of 365 days, which is equal at all times to the greater of (a) the reference rate of interest (however designated) of the Administrative Agent for determining
interest chargeable by it on Canadian Dollar commercial loans made in Canada; and (b) 1.0% above CDOR from time to time for one month Canadian Dollar 

  

 5 








 
bankers’ acceptances having a face amount comparable to the face amount in respect of which the applicable Prime Rate calculation is being made.

  
 “Capital Lease Obligations” of any Person
means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
  
 “CDOR” means, for any day and relative to Bankers’ Acceptances having any specified term and face
amount, the average of the annual rates for Bankers’ Acceptances having such specified term and face amount (or a term and face amount as closely as possible comparable to such specified term and face amount) of the banks named in Schedule I of
the Bank Act (Canada) that appears on the Reuters Screen CDOR page as of 10:00 a.m. on such day (or, if such day is not a Business Day, as of 10:00 a.m. (Toronto time) on the preceding Business Day), provided that if such rate does not
appear on the Reuters Screen CDOR page at such time on such date, CDOR for such date will be the annual discount rate of interest (rounded upward to the nearest whole multiple of 1/100 of 1%) as of 10:00 a.m. (Toronto time) on such date at which the
Administrative Agent is then offering to purchase bankers’ acceptances accepted by it having a comparable aggregate face amount and identical maturity date to the aggregate face amount and maturity date of such Bankers’ Acceptances.

  
 “Change in Control” means (a) the
acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof), of Equity Interests representing more than 30% of either the aggregate ordinary voting power or the aggregate equity value represented by the issued and outstanding Equity Interests of the Parent or the Borrower; (b) occupation of
a majority of the seats (other than vacant seats) on the board of directors of the Parent or the Borrower by Persons who were not (i) directors of the Parent or the Borrower on the date of this Agreement, (ii) nominated by the board of
directors of the Parent or the Borrower or (iii) appointed by directors referred to in the preceding clauses (i) and (ii); or (c) the occurrence of a “Change of Control” (or other similar event or condition however
denominated) under any Material Indebtedness. 
  
 “Change
in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 
  

 6 








 “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 “Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate permitted amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from
time to time pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Commitment is set forth on Schedule
2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable. The initial aggregate amount of the Lenders’ Commitments is C$135,000,000. 
  
 “Consolidated Cash Interest Expense” means, for any period,
the sum, without duplication, of (i) the cash interest expense of the Parent and the Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP, excluding premiums, transaction expenses, discounts and other amounts
required to be amortized and (ii) all discount, interest, fees, premiums and other charges in respect of all Securitizations for such period. 
  
 “Consolidated EBITDA” means, for any period, Consolidated Net Income for such period plus (a) without duplication and to the extent
deducted in determining such Consolidated Net Income, the sum, without duplication, of (i) consolidated interest expense for such period, (ii) consolidated income tax expense for such period, (iii) all amounts attributable to
depreciation and amortization for such period, (iv) any special one-time or extraordinary charges or extraordinary losses for such period, in each case to the extent not involving cash payments by the Parent or any Subsidiary, and (vi) any
LIFO adjustment (if negative) or charge for such period, and minus (b) without duplication and to the extent included in determining such Consolidated Net Income, any extraordinary non-cash gains for such period and any LIFO adjustment (if
positive) or credit, all determined on a consolidated basis in accordance with GAAP. In the event that the Parent or any Subsidiary shall have completed an acquisition or disposition of any material Person, division or business unit since the
beginning of the relevant period, Consolidated EBITDA shall be determined for such period on a pro forma basis as if such acquisition or disposition, and any related incurrence or repayment of Indebtedness, had occurred at the beginning of such
period. 
  
 “Consolidated EBITDAR” means, for any
period, Consolidated EBITDA for such period plus rental payments by the Parent and the Subsidiaries for such period (other than under capital leases), determined on a consolidated basis in accordance with GAAP. 
  

 7 








 “Consolidated Net Income” means, for any period, the net income or loss of the Parent
and the Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income or loss of any Person (other than the Parent) that is not a Subsidiary, except to the
extent of the amount of dividends or other distributions actually paid to the Parent or any of the Subsidiaries during such period, and (b) the income or loss of any Person accrued prior to the date it becomes a Subsidiary or is merged into or
consolidated with the Parent or any Subsidiary or the date that such Person’s assets are acquired by the Parent or any Subsidiary. 
  
 “Consolidated Tangible Assets” shall mean the book value of the total consolidated assets of the Parent and the Subsidiaries less the
book value of all intangible assets, including goodwill, trademarks, non-compete agreements, customer relationships, patents, unamortized deferred financing fees, and other rights or nonphysical resources that are presumed to represent an advantage
to ABC in the marketplace, in each case determined on a consolidated basis in accordance with GAAP. 
  
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
  
 “Crown” means Her Majesty the Queen in right of Canada or any Province thereof. 
  
 “Default” means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 
  
 “dollars” or “$” or “U.S.$” refers to lawful money of the United States of America. 
  
 “Draft” has the meaning assigned to such term in
Section 2.06(a). 
  
 “Effective Date” means
the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02). 
  
 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to
health and safety matters. 
  
 “Environmental
Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Parent or any Subsidiary directly or indirectly resulting from or
based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to 

  

 8 








 
any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
  
 “Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest. 
  
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended from time to time. 
  
 “ERISA
Affiliate” means any trade or business (whether or not incorporated) that, together with the Parent, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and
Section 412 of the Code, is treated as a single employer under Section 414 of the Code. 
  
 “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the
incurrence by the Parent or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Parent or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Parent or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal
from any Plan or Multiemployer Plan; or (g) the receipt by the Parent or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Parent or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  
 “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are
bearing interest at a rate determined by reference to the LIBO Rate. 
  
 “Event of Default” has the meaning assigned to such term in Article VII. 
  
 “Excess Amount” is defined in Section 2.11(b). 
  
 “Exchange Rate” means, on any day, for the purpose of calculations under this agreement, the amount of
Canadian Dollars into which US Dollars may be converted (or vice versa) using the Administrative Agent’s mid rate for converting the first currency into the other currency at or about 11:00 a.m. (New York time) on the relevant day. 

 

 9 








 “Excluded Subsidiary” means (a) Subsidiaries that do not own any assets (other than
nominal assets) or conduct any operations, or directly or indirectly own any Equity Interests in Subsidiaries not described in this clause (a), (b) Foreign Subsidiaries (other than the Borrower) and Securitization Entities,
(c) Subsidiaries that are less than 100% owned by the Parent to the extent such Subsidiaries are prohibited by shareholders agreements, joint venture agreements or other similar organizational documents from guaranteeing the Obligations,
(d) Subsidiaries that have assets of less than $10,000,000 for any such Subsidiary (provided that all such Subsidiaries’ assets shall not be in excess of $100,000,000 in the aggregate) and (e) JM Blanco, Inc. 
  
 “Excluded Taxes” means, with respect to the Administrative
Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of the Borrower or the Guarantor hereunder, (a) taxes on (or measured by) net income or capital, or branch profits taxes, in
each case imposed by a Governmental Authority based on the connection of such Administrative Agent, Lender or Issuing Bank to the jurisdiction of such Governmental Authority, excluding any connection arising solely on account of the Administrative
Agent, Lender or Issuing Bank, as applicable, being a party to, receiving any payment in respect of, performing under, or exercising any enforcement rights under this Agreement, and (b) in the case of a Foreign Lender or a Foreign Issuing Bank
(other than an assignee pursuant to a request by the Borrower under Section 2.19(b)), at any time prior to the occurrence and continuation of a Default under clauses (a), (b), (h), (i) or (j) of Section 7.01, any withholding tax
imposed by Canada that (i) is in effect and would apply to amounts payable to such Foreign Lender or Foreign Issuing Bank at the time such Foreign Lender or Foreign Issuing Bank becomes a party to this Agreement (or designates a new lending
office), except to the extent that (I) such Foreign Lender or Foreign Issuing Bank (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrower with
respect to any such withholding tax pursuant to Section 2.17(a), and (II) such additional amounts after the assignment or designation are no greater than the additional amounts that would be payable pursuant to Section 2.17(a) prior to the
designation or assignment, or (ii) is imposed as a result of the representations and warranties made by such Foreign Lender or Foreign Issuing Bank pursuant to Section 2.17(e) not being true, or the failure of the Foreign Lender or Foreign
Issuing Bank to comply with its agreements made pursuant to such Section 2.17(e). 
  
 “Facility” has the meaning assigned thereto in the preamble hereto. 
  
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, 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 that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it. 
  

 10 








 “Financed Amount” means, at any time, with respect to any Securitization, (a) if
such Securitization involves any transfer of interests in accounts receivable or inventory (i) to a trust, partnership, corporation or other entity (other than a Subsidiary) or (ii) in the case of a Securitization of accounts receivable,
directly to one or more investors or other purchasers (other than any Subsidiary), the aggregate amount of the interests in accounts receivable so transferred, net of collections applied to such interests and net of any such interests that have been
written off as uncollectible, or the aggregate book value of the interests in inventory transferred pursuant to such Securitization and not sold or otherwise disposed of by the purchaser or purchasers, or (b) if such Securitization involves a
transaction in which a Subsidiary incurs Indebtedness secured by Liens on accounts receivable, the aggregate outstanding principal amount of the Indebtedness secured by Liens on accounts receivable incurred pursuant to such Securitization.

  
 “Financial Officer” means the chief financial
officer, principal accounting officer, treasurer or controller of the Parent or the Borrower as the context indicates. 
  
 “Fitch” means Fitch, Inc. 
  
 “Foreign Issuing Bank” means any Issuing Bank that is a “non-resident” of Canada for purposes of Part I of the ITA. 

 
 “Foreign Lender” means any Lender that is a
“non-resident” of Canada for purposes of Part I of the ITA. 
  
 “Foreign Subsidiary” means any Subsidiary that is organized under the laws of a jurisdiction other than the United States of America or any state thereof or the District of Columbia. 
  
 “GAAP” means generally accepted accounting principles in the
United States of America. 
  
 “Governmental
Authority” means the government of the United States of America, the Government of Canada, any other nation or any political subdivision thereof, whether, state, provincial or local, 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. 
  
 “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof,
(b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness of the payment thereof, (c) to maintain working capital, equity capital or any other financial 

  

 11 








 
statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or (d) as an account party in
respect of any letter of credit or letter of guaranty issued to support such Indebtedness; provided, that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. 
  
 “Guarantor” means the Parent. 
  
 “Hazardous Materials” means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and
all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
  
 “Hedging Agreement” means any interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement or other interest or currency exchange rate or commodity
price hedging arrangement. 
  
 “Indebtedness” of
any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits (other than customer deposits in respect of accounts receivable maintained in the ordinary course of business consistent
with past practices) or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid (excluding
trade accounts payable and obligations to pay salary or benefits under deferred compensation, executive compensation or other benefit programs), (d) all obligations of such Person under conditional sale or other title retention agreements
relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby
has been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations and Synthetic Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances and (k) all obligations of such Person incurred under or in
connection with a Securitization. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of
such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. 
  
 “Indemnified Taxes” means Taxes other than Excluded Taxes and Other Taxes. 
  

 12 








 “Index Debt” means the Parent’s senior, unsecured, non-credit-enhanced long-term
Indebtedness for borrowed money. 
  
 “Interest Election
Request” means a request by the Borrower to convert or continue a Revolving Borrowing in accordance with Section 2.08. 
  
 “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan) and each Canadian Prime Loan (other
than a Swingline Loan), the first day of each January, April, July and October, (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day that occurs at intervals of three months’ duration after the first day of such Interest Period and continuing until the end of such Interest Period,
and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid. 
  
 “Interest Period” means (a) with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending
on the numerically corresponding day in the calendar month that is one, two, three or six months (or, with the consent of each Lender that will make a Loan as part of such Borrowing, nine or 12 months) thereafter, as the Borrower may elect; and
(b) with respect to each Bankers’ Acceptance or BA Equivalent Note Borrowing, the period commencing on the date of such Borrowing, conversion or continuance and being of 30, 60, 90 or 180 days duration, as selected by the Borrower;
provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in
the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and
thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. 
  
 “Issuing Bank” means Scotia Capital and any other Lender, that shall have become an Issuing Bank hereunder as provided in
Section 2.05(k), each in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.05(i). Each Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to
be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. 
  
 “ITA” means the Income Tax Act (Canada), as amended, and any successor thereto, and any regulations
promulgated thereunder. 
  
 “LC Disbursement”
means a payment made by any Issuing Bank pursuant to a Letter of Credit. 
  

 13 








 “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of
all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its
Applicable Percentage of the total LC Exposure at such time. 
  
 “Lead Arranger” means Scotia Capital, in its capacity as lead arranger for the Lenders hereunder. 
  
 “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a Lender pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender. 
  
 “Letter of Credit” means any letter of credit issued
pursuant to this Agreement. 
  
 “Leverage Ratio”
means, on any date, the ratio of (a) Total Indebtedness as of such date to (b) Consolidated EBITDA for the period of four consecutive fiscal quarters of the Parent ended on such date (or, if such date is not the last day of a fiscal
quarter, ended on the last day of the fiscal quarter of the Parent most recently ended prior to such date); provided that for purposes of determining the Leverage Ratio at any time, the outstanding amount of all revolving Indebtedness, and
the Financed Amount of all Securitizations, included in Total Indebtedness shall be deemed to equal the average outstanding amount of such revolving Indebtedness, and the average Financed Amount of all Securitizations, in each case on the last day
of each of the four most recently ended fiscal quarters, net of Permitted Investments not to exceed $50,000,000 on the last day of each such quarter. 
  
 “Leverage Test” means, with respect to the Parent, that the Leverage Ratio of the Parent is not greater than 2.00 to 1.00. 
  
 “LIBO Rate” means, with respect to any Eurodollar Borrowing
for any Interest Period, the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00
a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason,
then the “LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate (rounded upwards, if necessary, to the next 1/100 of 1%) at which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 

  

 14 








 
11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 
  
 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation,
encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. 
  
 “Loan Documents” means this Agreement and each promissory
note issued hereunder. 
  
 “Loan Parties” means
the Parent, the Borrower and the Subsidiary Loan Parties. 
  
 “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement, including by way of the discounting and acceptance of Bankers’ Acceptances and purchase of BA Equivalent Notes; provided
that where reference is made to a Borrowing of Bankers’ Acceptances or Bankers’ Acceptance Loans, such Loan or Borrowing shall be deemed to include BA Equivalent Notes to the extent such Loan or Borrowing is to be made by a Non BA Lender.

  
 “Material Adverse Effect” means a material
adverse effect on (a) the business, results of operations or financial condition of the Parent and the Subsidiaries taken as a whole, (b) the ability of any Loan Party (other than any Subsidiaries that are not Significant Subsidiaries) to
perform any of its obligations under any Loan Document or (c) the rights of or benefits available to the Lenders under any Loan Document. 
  
 “Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Hedging
Agreements, of any one or more of the Parent and its Subsidiaries in an aggregate principal amount exceeding $25,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Parent or any
Subsidiary in respect of any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Parent or such Subsidiary would be required to pay if such Hedging Agreement were terminated at such
time. 
  
 “Maturity Date” means December 2,
2009. 
  
 “Moody’s” means Moody’s
Investors Service, Inc. 
  
 “Multiemployer Plan”
means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 
  
 “New York UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York. 
  

 15 








 “Non BA Lender” means any Lender which is not a BA Lender. 
  
 “Obligations” means (a) the principal of and premium,
if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (b) each payment required to be made by the Borrower under this Agreement in respect of any Letter of Credit, when and as due, including payments in respect of
reimbursement of reasonable disbursements, interest thereon and obligations to provide cash collateral, (c) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Loan Parties under this
Agreement and the other Loan Documents and (d) the due and punctual payment and performance of all obligations of the Parent, the Borrower and the other Subsidiaries under any Hedging Agreement and cash management arrangements or agreements
(i) existing on the date hereof and with a Person that is a Lender on the date hereof (or an Affiliate of such a Lender) or (ii) with a Person that shall have been a Lender at the time such Hedging Agreement or cash management arrangement
or agreement was entered into (or an Affiliate of such a Lender). 
  
 “Obligors” means the Parent, the Borrower, each Subsidiary, each Affiliate and each other Subsidiary of Parent obligated under a Loan Document, and “Obligor” means any one of them. 
  
 “Other Taxes” means any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made under any Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, any Loan Document. 

 
 “Parent” has the meaning assigned to such term in the
preamble hereto. 
  
 “Participant” has the
meaning set forth in Section 9.04. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions. 
  
 “Permitted Acquisition” means any non-hostile acquisition by the Parent or any wholly owned Subsidiary of
all or substantially all the assets of, or all the Equity Interests (other than Equity Interests to be owned by management of such Person that does not constitute more than 10% of the Equity Interests in such Person) in, a Person or division or line
of business of a Person (including any such acquisition effected by a merger or an amalgamation of a Person into the Parent or a Subsidiary in which the Parent or a wholly owned Subsidiary is the surviving Person) if, immediately after giving effect
thereto, (a) no Default has occurred and is continuing or would result therefrom, (b) the principal business of such Person shall be reasonably related, ancillary or 

  

 16 








 
complementary to a business in which the Parent and its Subsidiaries are engaged immediately prior to such acquisition or shall be a health care business,
(c) in the case of any Subsidiary formed for the purpose of or resulting from such acquisition organized and existing under the laws of the United States, all the Equity Interests of each such Subsidiary shall be owned directly by the Parent
and/or a wholly owned Subsidiary organized and existing under the laws of the United States (other than Equity Interests permitted to be owned by management), (d) the Parent and the Subsidiaries shall be in compliance, on a pro forma basis
after giving effect to such acquisition (without giving effect to operating expense reductions other than cost savings permitted to be included under Regulation S X), with the covenants contained in Sections 6.11 and 6.12 recomputed as at the last
day of the most recently ended fiscal quarter of the Parent for which financial statements are available, as if such acquisition had occurred on the first day of each relevant period for testing such compliance, and (e) if the consideration to
be paid in respect of such acquisition (including Indebtedness to be assumed or repaid by the Parent or any Subsidiary) is greater than $25,000,000, the Parent shall have delivered to the Administrative Agent an officers’ certificate to the
effect set forth in clauses (a), (b), (c) and (d) above, together with all relevant financial information for the Person or assets to be acquired and reasonably detailed calculations demonstrating satisfaction of the requirement set forth
in clause (d) above. 
  
 “Permitted
Encumbrances” means: 
  
 (a) Liens
imposed by law for taxes that are not yet due or are being contested in compliance with Section 5.04; 
  
 (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law,
arising in the ordinary course of business and securing obligations that are not overdue by more than 60 days or are being contested in compliance with Section 5.04; 
  
 (c) pledges and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or regulations; 
  
 (d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature, in each case in the ordinary course of business; 
  
 (e) judgment liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII; and

  
 (f) easements, zoning restrictions,
rights-of-way, reservations, limitations, provisos and conditions, if any, expressed in any original grants of real property from the Crown and similar encumbrances on real property imposed by law or arising in the ordinary course of business that
do not secure any monetary obligations and do not materially detract from the value of the affected 

  

 17 








 
property or interfere with the ordinary conduct of business of the Parent or any Subsidiary; 
  
 provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness. 
  
 “Permitted Investments” means: 
  
 (a) direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America) or Canada (or by any agency
thereof to the extent such obligations are backed by the full faith and credit of Canada), in each case maturing within one year from the date of acquisition thereof; 
  
 (b) Indebtedness maturing within 12 months issued by and constituting direct obligations of any of the
following agencies or any other like governmental or government-sponsored agency, as follows: Federal Farm Credit Bank; Federal Intermediate Credit Bank; Federal Financings Bank; Federal Home Loan Bank System; Federal Home Loan Mortgage Corporation;
Federal National Mortgage Association; Tennessee Valley Authority; Student Loan Marketing Association; Export-Import Bank of the United States; Farmers Home Administration; Small Business Administration; Inter-American Development Bank;
International Bank for Reconstruction and Development; Federal Land Banks; and Government National Mortgage Association; 
  
 (c) direct and general obligations maturing within 12 months of any state of the United States of America or any province of Canada or any
municipality or political subdivision of such state, including auction rate securities and non rated pre-funded debt, or obligations of any corporation, if such obligations, except pre-refunded debt, are rated in the highest credit rating obtainable
from at least two out of three Ratings Agencies; 
  
 (d) obligations (including asset-backed obligations) maturing within 12 months of any corporation, partnership, trust or other entity which are rated in one of the three highest credit ratings obtainable from at least two out of three
Rating Agencies. 
  
 (e) investments in
commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody’s (within which there may be sub-categories or gradations
indicating relative standing), and investments in master notes that are rated (or that have been issued by an issuer that is rated with respect to a class of short-term debt obligations, or any security within that class, that is comparable in
priority and security with said master note) by S&P or Moody’s in the highest rating categories for short-term debt obligations (within which there may be sub-categories or gradations indicating relative standing); 
  

 18 








 (f) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of
America or any State thereof or Canada or any province thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000; 
  
 (g) fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria described in clause (c) above (or subsidiaries or Affiliates of such financial institutions); and 
  
 (h) money market funds. 
  
 “Permitted Other Acquisition” means any acquisition or investment (other than a Permitted Acquisition) by
the Parent or any Subsidiary of or in a Person or division or line of business of a Person (including any such acquisition or investment resulting from a merger or an amalgamation of a Person into a Subsidiary) if, immediately after giving effect
thereto, (a) no Default has occurred and is continuing or would result therefrom, (b) the principal business of such Person shall be reasonably related, ancillary or complementary to a business in which the Parent and its Subsidiaries are
engaged immediately prior to such acquisition or investment or shall be a health care business, (c) the Parent and the Subsidiaries shall be in compliance, on a pro forma basis after giving effect to such acquisition or investment (without
giving effect to operating expense reductions other than cost savings permitted to be included under Regulation S X), with the covenants contained in Sections 6.11 and 6.12 recomputed as at the last day of the most recently ended fiscal quarter of
the Parent for which financial statements are available, as if such acquisition or investment had occurred on the first day of each relevant period for testing such compliance, and (d) if the consideration to be paid in respect of such
acquisition or investment is greater than $25,000,000, the Parent shall have delivered to the Administrative Agent an officers’ certificate to the effect set forth in clauses (a), (b) and (c) above, together with all relevant
financial information for the Person or assets to be acquired and reasonably detailed calculations demonstrating satisfaction of the requirement set forth in clause (c) above. 
  
 “Person” means any natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity. 
  
 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in
respect of which the Parent or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  

 19 








 “Prime Rate” means the rate of interest per annum publicly announced from time to time
by Scotia Capital as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. 
  
 “Proceeds” has the meaning specified in Section 9-102
of the New York UCC. 
  
 “Ratings Agencies” mean
S&P, Moody’s or Fitch. 
  
 “Ratings
Test” means, with respect to the Parent, that the rating established by S&P or Moody’s of the Index Debt of the Parent is not less than BBB- or Baa3, respectively. 
  
 “Register” has the meaning set forth in Section 9.04. 
  
 “Related Parties” means, with respect to any specified
Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
  

“Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and unused Commitments representing more than 50% of
the sum of the total Revolving Credit Exposures and unused Commitments at such time. 
  
 “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Parent or any Subsidiary, or any payment
(whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Equity Interests in the Parent or any Subsidiary or
any option, warrant or other right to acquire any such Equity Interests in the Parent or any Subsidiary; provided that no such dividend, distribution or payment shall constitute a “Restricted Payment” to the extent made
solely with common stock of the Parent. 
  
 “Revolving
Borrowing” means a Borrowing comprised of Revolving Loans. 
  
 “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline Exposure at such time.

  
 “Revolving Loan” means a Loan made pursuant
to Section 2.01. 
  
 “S&P” means
Standard & Poor’s. 
  
 “Schedule I
Lender” means a bank which is chartered under the Bank Act (Canada) and named in Schedule I thereto. 
  

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 “Scotia Capital” has the meaning assigned to such term in the preamble hereto.

  
 “Securitization” means any transfer or pledge
of accounts receivable, inventory and/or Proceeds thereof or interests therein (a) to a special purpose trust, partnership or corporation or other special purpose entity (which may but need not be a Subsidiary), which transfer or pledge is
funded by such entity in whole or in part by (i) the issuance to one or more lenders or investors of indebtedness or other securities that are to receive payments principally from the cash flow derived from such accounts receivable, inventory
and/or Proceeds thereof or interests therein or (ii) the transfer or pledge of such accounts, inventory and/or Proceeds thereof (or interest therein) to one or more investors or other purchasers, or (b) in the case of accounts receivable,
directly to one or more investors or other purchasers. 
  
 “Securitization Entity” means AmeriSource Receivables Financial Corporation , a Delaware corporation, and any other wholly owned limited purpose Subsidiary of the Parent that purchases accounts receivable or inventory of
the Parent or any Subsidiary pursuant to a Securitization. 
  
 “Significant Subsidiary” means each Subsidiary other than any Subsidiary or Subsidiaries that individually or in the aggregate did not account for more than 1% of the assets or revenues of the Parent and the Subsidiaries on
a consolidated basis at the end of or for the most recent four fiscal quarter period for which financial statements have been delivered under Section 5.01(a) or (b). 
  
 “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared
in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more
than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or
one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. 
  
 “Subsidiary” means any subsidiary of the Parent (including the Borrower). 
  
 “Subsidiary Loan Party” means each Subsidiary that is not an Excluded Subsidiary. 
  
 “Swingline Exposure” means, at any time, the aggregate
principal amount of all Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall be its Applicable Percentage of the total Swingline Exposure at such time. 
  

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 “Swingline Lender” means Scotia Capital, in its capacity as lender of Swingline Loans
hereunder. 
  
 “Swingline Loan” means a Loan made
pursuant to Section 2.04. 
  
 “Synthetic
Lease” means a lease of property or assets designed to permit the lessees (i) to claim depreciation on such property or assets under U. S. tax law and (ii) to treat such lease as an operating lease or not to reflect the leased
property or assets on the lessee’s balance sheet under GAAP. 
  
 “Synthetic Lease Obligations” shall mean, with respect to any Synthetic Lease, at any time, an amount equal to the higher of (x) the aggregate termination value or purchase price or similar payments in the nature of
principal payable thereunder and (y) the then aggregate outstanding principal amount of the notes or other instruments issued by, and the amount of the equity investment, if any, in the lessor under such Synthetic Lease. 
  
 “2003 Securitization” means the receivables Securitization
as contemplated by the Receivables Purchase Agreement dated as of July 10, 2003, among Amerisource Receivables Financial Corporation, as seller, AmerisourceBergen Drug Corporation, as initial servicer, various purchaser groups from time to time
and Wachovia Bank National Association, as administrator. 
  
 “Target Co.” is defined in the recitals. 
  
 “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority. 
  
 “Termination Date” means the date of termination of all of the commitments, and the date on which all
Obligations have been paid in full in cash and all Letters of Credit have been terminated or expired (or cash collateralized in accordance with the terms of this Agreement). 
  
 “Total Indebtedness” means, as of any date, the sum, without duplication of (a) the aggregate
principal amount of Indebtedness of the Parent and the Subsidiaries outstanding as of such date, in the amount that would be reflected on a balance sheet prepared as of such date on a consolidated basis in accordance with GAAP, (b) the
aggregate amount of the Financed Amounts of all Securitizations of the Parent and the Subsidiaries, and (c) the aggregate principal amount of Indebtedness of the Parent and the Subsidiaries outstanding as of such date that is not required to be
reflected on a balance sheet in accordance with GAAP, determined on a consolidated basis. 
  
 “Transactions” means the execution, delivery and performance by each Loan Party of the Loan Documents to which it is to be a party, the borrowing of Loans, the use of the proceeds thereof, the
issuance of the Letters of Credit, the creation of the Guarantee provided for herein and in the other Loan Documents. 
  

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 “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the LIBO Rate, the Alternate Base Rate, the Canadian Prime Rate or whether such Loan or Borrowing has been effected by the issuance and acceptance of
Bankers’ Acceptances or BA Equivalent Notes hereunder. 
  
 “wholly owned” means, as to any Subsidiary, that all the Equity Interests in such Subsidiary (other than directors’ qualifying shares) are owned, directly or indirectly, by the Parent. 
  
 “Withdrawal Liability” means liability 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. 
  
 SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred to
by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”). 
  
 SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise
(a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) 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, including cash, securities, accounts and contract rights. 
  
 SECTION 1.04. Accounting Terms; GAAP. (a) Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an 

  

 23 








 
amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

  
 (b) All pro forma computations required to be made hereunder
giving effect to any acquisition, investment, sale, disposition, merger, amalgamation or similar event shall reflect on a pro forma basis such event as if it occurred on the first day of the relevant period and, to the extent applicable, the
historical earnings and cash flows associated with the assets acquired or disposed of for such relevant period and any related incurrence or reduction of Indebtedness for such relevant period, but shall not take into account any projected synergies
or similar benefits expected to be realized as a result of such event other than cost savings permitted to be included under Regulation S X. 
  
 ARTICLE II 
  
 The Credits 
  
 SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to make Revolving Loans to the Borrower in dollars or Canadian Dollars from time to time during the Availability Period in an
aggregate principal amount that will not result in such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Revolving Loans. 
  
 SECTION 2.02. Loans
and Borrowings. (a) Each Revolving Loan shall be made as part of a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to
be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.

  
 (b) Subject to Section 2.11, each Revolving Borrowing
shall be comprised entirely of ABR Loans, Canadian Prime Loans and Bankers’ Acceptance Loans and BA Equivalent Note Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Swingline Loan shall be an ABR Loan or a
Canadian Prime Loan. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the
obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. Borrowings of more than one Type may be outstanding at the same time. 
  
 (c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount
that is an integral multiple 

  

 24 








 
of C$5,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of
US$1,000,000 and at the time each Canadian Prime Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of C$1,000,000; provided in either case that such a Revolving Borrowing may be in an aggregate
amount that is equal to the entire unused balance of the total Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e). Each Borrowing, conversion or continuance of Bankers’
Acceptances and BA Equivalent Notes shall be in a minimum aggregate face amount of C$1,000,000 and integral multiples thereof. 
  
 (d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 
  
 SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving Borrowing, the Borrower shall notify the Administrative Agent of such
request by telephone (a) in the case of a Eurodollar Borrowing, not later than 12:00 noon, New York City time, three Business Days before the date of the proposed Borrowing, (b) in the case of an ABR Borrowing or a Canadian Prime
Borrowing, not later than 12:00 noon, New York City time, one Business Day prior to the date of the proposed Borrowing or (c) in the case of a Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing, not later than 12:00 noon, New
York City time, two Business Days before the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing
Request in a form approved by the Administrative Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02: 
  
 (i) the aggregate amount of such Borrowing; 
  
 (ii) the date of such Borrowing, which shall be a Business
Day; 
  
 (iii) whether such Borrowing is to be an
ABR Borrowing, Canadian Prime Borrowing, Bankers’ Acceptance Borrowing, BA Equivalent Note Borrowing or a Eurodollar Borrowing; 
  
 (iv) in the case of a Eurodollar Borrowing, Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing the initial Interest Period
to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and 
  
 (v) the location and number of the Borrower’s account with the Administrative Agent to which funds are to be disbursed. 

 

 25 








 If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no
Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration and if the Interest Period is specified with respect to any requested
Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing then the Borrower shall be deemed to have selected an Interest Period of 30 days’ duration. Promptly following receipt of a Borrowing Request in accordance with this Section,
the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing. 
  
 SECTION 2.04. Swingline Loans. (a) Subject to the terms and conditions set forth herein, the Swingline Lender
agrees to make Swingline Loans to the Borrower from time to time during the Availability Period in dollars or Canadian Dollars, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount
of outstanding Swingline Loans exceeding C$100,000,000 or (ii) the aggregate Revolving Credit Exposures exceeding the aggregate Commitments; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance
an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans. 
  
 (b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telephone (confirmed
by telecopy), not later than 2:00 p.m., New York City time, on the day of such proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day), currency and amount of the requested
Swingline Loan. The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the Borrower. The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a credit to the general
deposit account of the Borrower with the Swingline Lender in the applicable currency specified in the notice referenced in this clause (b) (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as provided
in Section 2.05(e), by remittance to the applicable Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan. 
  
 (c) The Swingline Lender may by written notice given to the Administrative Agent not later than 12:00 noon, New York City time, on any Business Day
require the Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in which the Lenders will participate. Promptly upon receipt
of such notice, the Administrative Agent will give notice thereof to each Lender, specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Lender hereby absolutely and unconditionally agrees, upon
receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Lender acknowledges and agrees that its obligation to
acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any 

  

 26 








 
circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment
shall be made without any offset, abatement, withholding or reduction whatsoever. Each Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.07
with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it
from the Lenders. The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent
and not to the Swingline Lender. Any amounts received by the Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of
participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments pursuant
to this paragraph and to the Swingline Lender, as their interests may appear; provided that any such payment so remitted shall be repaid to the Swingline Lender or to the Administrative Agent, as applicable, if and to the extent such payment
is required to be refunded to the Borrower for any reason. The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the payment thereof. 
  
 SECTION 2.05. Letters of Credit. (a) General. Subject to
the terms and conditions set forth herein, the Borrower may request the issuance of Letters of Credit in dollars or Canadian Dollars for its own account, in a form reasonably acceptable to the Administrative Agent and the applicable Issuing Bank, at
any time and from time to time during the Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted
by the Borrower to, or entered into by the Borrower with, an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. 
  
 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of
Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the applicable Issuing Bank)
to an Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended,
renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount
of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by an Issuing Bank, the Borrower also shall submit a
letter of credit application on such Issuing Bank’s standard form in connection with any request 

  

 27 








 
for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each
Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed C$25,000,000 and (ii) the aggregate Revolving Credit
Exposures shall not exceed the aggregate Commitments. 
  
 (c)
Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension
thereof, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the Maturity Date; provided that at the request of the Borrower any Letter of Credit may contain customary “evergreen”
provisions pursuant to which such Letter of Credit will, in the absence of a notice given by the Issuing Bank, be automatically renewed (but in no event beyond the date that is five Business Days prior to the Maturity Date) for successive one-year
periods. 
  
 (d) Participations. By the issuance of a
Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the applicable Issuing Bank or the Lenders, each Issuing Bank hereby grants to each Lender, and each Lender hereby
acquires from the applicable Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of
the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of such Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank and not
reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence
and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. 
  
 (e) Reimbursement. If an Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower
shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 2:00 p.m., New York City time, on the date that such LC Disbursement is made, if the Borrower shall have received
notice of such LC Disbursement prior to 11:00 a.m., New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 2:00 p.m., New York City time, on (i) the
Business Day that the Borrower receives such notice, if such notice is received prior to 11:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day immediately following the day that the Borrower receives such notice, if
such notice is not received prior to such time on the day of 

  

 28 








 
receipt; provided that, if such LC Disbursement is not less than C$1,000,000 (if denominated in C$) or U.S.$1,000,000 (if denominated in U.S.$), the
Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or 2.04 that such payment be financed with an ABR Revolving Borrowing, or a U.S.$ denominated Swingline Loan, if such LC Disbursement
was in U.S.$, or with a Canadian Prime Borrowing or a C$ denominated Swingline Loan, if such Borrowing was in C$, in an equivalent amount and, to the extent so financed, the obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing or Swingline Loan. If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof
and such Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in
Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the applicable Issuing Bank the
amounts so received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the applicable Issuing Bank or,
to the extent that Lenders have made payments pursuant to this paragraph to reimburse an Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear. Any payment made by a Lender pursuant to this paragraph to reimburse an
Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans, Canadian Prime Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such
LC Disbursement. 
  
 (f) Obligations Absolute. The
Borrower’s obligations to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any
and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of
Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by an Issuing Bank under a Letter of Credit against presentation of a draft or other document
that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or
equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder. None of the Administrative Agent, the Lenders, the Issuing Banks, nor any of their Related Parties shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical
terms or 

  

 29 








 
any consequence arising from causes beyond the control of the applicable Issuing Bank; provided that the foregoing shall not be construed to excuse
the applicable Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by
the Borrower that are caused by an Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the
absence of gross negligence or willful misconduct on the part of an Issuing Bank (as finally determined by a court of competent jurisdiction), an Issuing Bank shall be deemed to have exercised care in each such determination. In furtherance of the
foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, an Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are
not in strict compliance with the terms of such Letter of Credit. 
  
 (g) Disbursement Procedures. An Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. Such Issuing Bank shall promptly notify the
Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such
notice shall not relieve the Borrower of its obligation to reimburse such Issuing Bank and the Lenders with respect to any such LC Disbursement. 
  
 (h) Interim Interest. If an Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on
the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per
annum then applicable to ABR Revolving Loans if such LC Disbursement was made in US$ or at the rate per annum then applicable to Canadian Prime Loans in such LC Disbursement was made in C$; provided that, if the Borrower fails to reimburse
such LC Disbursement when due pursuant to clause (e) of this Section, then Section 2.13(d) shall apply. Interest accrued pursuant to this paragraph shall be for the account of the applicable Issuing Bank, except that interest accrued on
and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse an Issuing Bank shall be for the account of such Lender to the extent of such payment. 
  
 (i) Replacement of an Issuing Bank. An Issuing Bank may be replaced at
any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank, if any. The Administrative Agent shall notify the Lenders of any such replacement of an Issuing Bank. At the time
any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). 

  

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From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of an Issuing Bank
under this Agreement with respect to Letters of Credit to be issued by such Issuing Bank thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or
to such successor and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit. 
  
 (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on the Business Day that the
Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposures representing greater than 50% of the total LC Exposure) demanding the deposit of cash
collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an amount in cash equal to the LC Exposure as of such date
plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any
kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (h) or (i) of Article VII. Each such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits,
which investments shall be made at the option and sole discretion of the Administrative Agent (which will use reasonable efforts to obtain a return at market rates for such cash deposits) and at the Borrower’s risk and expense, such deposits
shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Banks for LC Disbursements for which they have
not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the
consent of Lenders with LC Exposures representing greater than 50% of the total LC Exposure), be applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount of cash collateral hereunder
as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived. 
  
 (k) Designation of Additional Issuing Banks. From time to time, the
Borrower may by notice to the Administrative Agent and the Lenders designate as additional Issuing Banks one or more Lenders that agree to serve in such capacity as provided below. The acceptance by a Lender of an appointment as an Issuing Bank
hereunder shall be evidenced by an agreement (an “Issuing Bank Agreement”), which 

  

 31 








 
shall be in a form satisfactory to the Borrower and the Administrative Agent, shall set forth the LC Commitment of such Lender and shall be executed by such
Lender, the Borrower and the Administrative Agent and, from and after the effective date of such agreement, (i) such Lender shall have all the rights and obligations of an Issuing Bank under this Agreement and the other Loan Documents and
(ii) references herein and in the other Loan Documents to the term “Issuing Bank” shall be deemed to include such Lender in its capacity as an Issuing Bank. 
  
 SECTION 2.06. Bankers’ Acceptances. (a) To facilitate the procedures contemplated in this Agreement, the
Borrower irrevocably appoints each Lender from time to time as the attorney-in-fact of the Borrower to execute, endorse and deliver on behalf of the Borrower in handwriting or by facsimile or mechanical signature as and when deemed necessary by such
Lender, drafts in the forms prescribed by such Lender (if such Lender is a BA Lender), for bankers’ acceptances denominated in Cdn. Dollars (each such executed draft which has not yet been accepted by a Lender being referred to as a
“Draft”) or BA Equivalent Note. Each Bankers’ Acceptance and BA Equivalent Note executed and delivered by a Lender on behalf of the Borrower as provided for in this Section will be as binding upon the Borrower as if it had been
executed and delivered by a duly authorized officer of the Borrower. 
  
 (b) All such Drafts or BA Equivalent Notes will be held by each Lender subject to the same degree of care as if they were such Lender’s own property kept at the place at which the Drafts or BA Equivalent Notes are ordinarily kept by
such Lender. Each Lender, upon written request of the Borrower, will promptly advise the Borrower of the number and designation, if any, of the Drafts and BA Equivalent Notes then held by it. 
  
 (c) The Administrative Agent, promptly following receipt of a Borrowing
Request requesting Bankers’ Acceptances, will (i) advise each BA Lender of the face amount and the term of the Draft to be accepted by it, and (ii) advise each applicable Non BA Lender of the face amount and term of the BA Equivalent
Note to be purchased by it. All Drafts to be accepted from time to time by each BA Lender that is a member of a clearing service will be payable to such clearing service. The term of all Bankers’ Acceptances and BA Equivalent Notes issued
pursuant to any Borrowing Request will be identical. Each Bankers’ Acceptance and BA Equivalent Note will be dated the date on which it is issued and will be for a term of 30, 60, 90 or 180 days provided that in no event will the term of
a Bankers’ Acceptance or a BA Equivalent Note extend beyond the Maturity Date. The face amount of the Draft (or the aggregate face amount of the Drafts) to be accepted at any time by each Lender which is a BA Lender, and the face amount of the
BA Equivalent Notes to be purchased at any time by each Lender which is a Non BA Lender, will be determined by the Administrative Agent based upon the Applicable Percentage of the respective Commitments of the Lenders. In determining a Lender’s
Applicable Percentage of a request for Bankers’ Acceptances, the Administrative Agent, in its sole discretion, will be entitled to increase or decrease the face amount of any Draft, or BA Equivalent Note to the nearest $1,000. 
  

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 (d) Each BA Lender will complete and accept on the applicable date of Borrowing a Draft having a face
amount (or Drafts having the face amounts) and term advised by the Administrative Agent pursuant to Section 2.06(c). Each applicable BA Lender will purchase on the applicable date of Borrowing the Bankers’ Acceptance or Bankers’
Acceptances accepted by it, for an aggregate price equal to the BA Discount Proceeds of such Bankers’ Acceptance (or Bankers’ Acceptances). Each applicable BA Lender that is a member of a clearing service is hereby authorized to release
the Bankers’ Acceptance accepted by it to such clearing house upon receipt of confirmation that such clearing house holds such Bankers’ Acceptance for the account of such BA Lender. 
  
 (e) Each Non BA Lender, in lieu of accepting Drafts or purchasing
Bankers’ Acceptances on any date of Borrowing, will complete and purchase from the Borrower on such date of Borrowing a BA Equivalent Note in a face amount and for a term identical to the face amount and term of the Draft or Drafts which such
Non BA Lender would have been required to accept on such date of Borrowing if it were a BA Lender, for a price equal to the BA Discount Proceeds of such BA Equivalent Note. 
  
 (f) The Borrower will pay to each BA Lender in respect of each Draft tendered by the Borrower to and accepted by such BA
Lender, and to each Non BA Lender in respect of each BA Equivalent Note tendered to and purchased by such Non BA Lender, as a condition of such acceptance or purchase, the BA Stamping Fee in accordance with Section 2.06(g) below. 
  
 (g) Upon acceptance of each Draft or purchase of each BA Equivalent Note, the
Borrower will pay to the applicable Lender the related fee specified in Section 2.06(f), and to facilitate payment such Lender will be entitled to deduct and retain for its own account the amount of such fee from the amount to be transferred by
such Lender to the Administrative Agent for the account of the Borrower pursuant to this Agreement in respect of the sale of the related Bankers’ Acceptance or of such BA Equivalent Note. 
  
 (h) If the Administrative Agent determines in good faith, which determination
will be final, conclusive and binding upon the Borrower, and so notifies the Borrower, that there does not exist at the applicable time a normal market in Canada for the purchase and sale of bankers’ acceptances, any right of the Borrower to
require the Lenders to purchase Bankers’ Acceptances and BA Equivalent Notes under this Agreement will be suspended until the Administrative Agent determines that such market does exist and gives notice thereof to the Borrower and any Borrowing
Request requesting Bankers’ Acceptances will be deemed to be a Borrowing Request requesting a Canadian Prime Loan in a similar aggregate principal amount. 
  

(i) On the date of maturity of each Bankers’ Acceptance or BA Equivalent Note, the Borrower will pay to the Administrative Agent, for the account
of the holder of such Bankers’ Acceptance or BA Equivalent Note, in Canadian Dollars an amount equal to the face amount of such Bankers’ Acceptance or BA Equivalent Note, as the case may be. In the case of a continuance of a Bankers’
Acceptance or BA Equivalent Note, in order to satisfy the continuing liability of the Borrower to a Lender for the face amount of the maturing Bankers’ Acceptance or BA Equivalent Note, the 

  

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Lender will determine and retain the BA Discount Proceeds of the new Bankers’ Acceptance or BA Equivalent Note, and the Borrower will, on the maturity
date of the maturing Bankers’ Acceptance or BA Equivalent Note, pay to the Administrative Agent for the account of the relevant Lender (i) the difference between the principal amount of the maturing Bankers’ Acceptance or BA
Equivalent Note and the BA Discount Proceeds from the new Bankers’ Acceptance or BA Equivalent Note, and (ii) the BA Stamping Fee in respect of the new Bankers’ Acceptance or BA Equivalent Note. The obligation of the Borrower to make
such payment will not be prejudiced by the fact that the holder of such Bankers’ Acceptance is the Lender that accepted such Bankers’ Acceptances. No days of grace will be claimed by the Borrower for the payment at maturity of any
Bankers’ Acceptance or BA Equivalent Note. If the Borrower does not make such payment, from the proceeds of a Borrowing obtained under this Agreement or otherwise, the amount of such required payment will be deemed to be a Canadian Prime Loan
to the Borrower from the Lender that accepted such Bankers’ Acceptance or purchased such BA Equivalent Note. 
  
 (j) The signature of any duly authorized officer of the Borrower (or its attorneys, including attorneys appointed pursuant to Section 2.06(a)) on a
Draft or a BA Equivalent Note may be mechanically reproduced in facsimile, and all Drafts and BA Equivalent Notes bearing such facsimile signature will be as binding upon the Borrower (or its attorneys, including attorneys appointed pursuant to
Section 2.06(a)) as if they had been manually signed by such officer, notwithstanding that such Person whose manual or facsimile signature appears on such Draft or BA Equivalent Note may no longer hold office at the date of such Draft or BA
Equivalent Note or at the date of acceptance of such Draft by a BA Lender or at any time thereafter. 
  
 (k) If any Event of Default has occurred and is continuing, the Borrower will deposit in an account with the Administrative Agent, established in the name
of the Administrative Agent for the benefit of the Lenders, an amount in cash equal to the face amount of all Bankers’ Acceptances then outstanding; provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (h) or (i) of Article VII.
Each such deposit shall be held by the Administrative Agent as collateral for the payment and performance by the Borrower of its obligations under this Agreement. The Borrower will take all steps reasonably necessary to ensure that the security
interest of the Lender in such deposit has priority over all other interests therein. The Administrative Agent shall have exclusive dominion and control, including exclusive right of withdrawal, over such account. Other than any interest earned on
the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent (which will use reasonable efforts to obtain a return at market rates for such cash deposits) and at the Borrower’s
risk and expense, such deposits shall not bear interest. Interest or profits, if any , on such investments shall accumulate in such account. Moneys in such account will be applied by the Administrative Agent to reimburse the Lenders for payments
made under Bankers’ Acceptances for which they have not been reimbursed and, to the extent not so applied, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of 

  

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the Borrower under this Agreement. If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of
Default, such amount (to the extent not applied as aforesaid) will be returned to the Borrower within three Business Days after all Events of Default have been cured or waived. 
  
 SECTION 2.07. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 2:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that
Swingline Loans shall be made as provided in Section 2.04. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account designated by the Borrower in the
applicable Borrowing Request; provided that ABR Revolving Loans, or Canadian Prime Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be remitted by the Administrative Agent to the
applicable Issuing Bank. 
  
 (b) Unless the Administrative Agent
shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such
Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made
its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation (it being understood that any payment of such interest by the Borrower will be in lieu of any payment by the Borrower of interest on such amount to the applicable Lender). If such
Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing. 
  
 SECTION 2.08. Interest Elections. (a) Each Revolving Borrowing initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurodollar Borrowing, Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing, may elect Interest Periods therefor, all as provided in this Section. The
Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate 

  

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Borrowing. This Section shall not apply to Swingline Borrowings, which may not be converted or continued. 
  
 (b) To make an election pursuant to this Section, the Borrower shall notify
the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the
effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a form approved
by the Administrative Agent and signed by the Borrower. 
  
 (c)
Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02 and paragraph (e) of this Section: 
  
 (i) the Borrowing to which such Interest Election Request applies and, if different options are being
elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each
resulting Borrowing); 
  
 (ii) the effective date
of the election made pursuant to such Interest Election Request, which shall be a Business Day; 
  
 (iii) whether the resulting Borrowing is to be an ABR Borrowing, Canadian Prime Borrowing, Bankers’ Acceptance Borrowing, BA
Equivalent Note Borrowing or a Eurodollar Borrowing; and 
  
 (iv) if the resulting Borrowing is a Eurodollar Borrowing, a Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of the term “Interest Period”. 
  
 If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration or
requests a Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of 30 days’ duration. 
  
 (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 
  
 (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period
applicable 

  

 36 








 
thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing.
If the Borrower fails to deliver a timely Interest Election Request with respect to a Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is
repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to a Canadian Prime Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing or a
Bankers’ Acceptance Borrowing or BA Equivalent Note Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto and each Bankers’ Acceptance
Borrowing or BA Equivalent Note Borrowing shall be converted to a Canadian Prime Borrowing at the end of the Interest Period applicable thereto. 
  
 SECTION 2.09. Termination and Reduction of Commitments. (a) Unless previously terminated, the Commitments shall terminate at 5:00 p.m., New
York City time, on the Maturity Date. 
  
 (b) The Borrower may at
any time terminate, or from time to time reduce, the Commitments of any Class; provided that (i) each reduction of the Commitments of any Class shall be in an amount that is an integral multiple of C$5,000,000 and not less than
C$10,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans in accordance with Section 2.11, the aggregate Revolving Credit Exposures would
exceed the aggregate Commitments. 
  
 (c) The Borrower shall
notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least two Business Days prior to the effective date of such termination or reduction, specifying such election and the
effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a
notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked or extended by the Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such condition is not satisfied or the effectiveness of such other credit facilities is delayed. Any termination or reduction of the Commitments of any Class shall be permanent.
Each reduction of the Commitments of any Class shall be made ratably among the Lenders in accordance with their respective Commitments of such Class. 
  
 SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay (i) to the Administrative
Agent for the account of each Lender the then unpaid principal amount of each Revolving Loan of such Lender on the Maturity Date and (ii) to the Swingline Lender the then unpaid principal 

  

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amount of each Swingline Loan on the earlier of the Maturity Date and the seventh day after such Swingline Loan is made; provided that on each date
that a Revolving Borrowing is made, the Borrower shall repay all Swingline Loans that were outstanding on the date such Borrowing was requested. 
  
 (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
  
 (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof
and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof. 
  
 (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein;
provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this
Agreement. 
  
 (e) Any Lender may request that Loans of any Class
made by it be evidenced by a promissory note. In such event, the Borrower shall execute and deliver to such Lender one or more promissory notes payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such promissory notes and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 
  
 SECTION 2.11. Prepayment of Loans. (a) The Borrower shall have the right at any time and from time to time to
prepay any Borrowing in whole or in part, subject to the requirements of this Section. 
  
 (b) In the event and on such occasion that the aggregate Revolving Credit Exposures exceed the aggregate Commitments, due to currency fluctuations or otherwise, the Borrower shall prepay Revolving Borrowings or
Swingline Borrowings (or, if no such Borrowings are outstanding, deposit cash collateral in an account with the Administrative Agent pursuant to Section 2.05(j)) in an aggregate amount equal to such excess; provided that if, due to
exchange rate fluctuations or for any reason whatsoever, the aggregate Revolving Credit Exposures outstanding shall, at any time, exceed 105% of the aggregate Commitments (the amount of such excess, an “Excess Amount”), based on the
Exchange Rate in effect from time to time, then upon written notice from the 

  

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Administrative Agent, the Borrower shall first, prepay the Revolving Loans and/or Swingline Loans in an amount so as to, as nearly as possible,
eliminate such Excess Amount; and second, if any Excess Amount shall remain after such prepayment, provide cash collateral (such cash collateral to be held in accordance with Section 2.06(k)) as the Administrative Agent may require in
Canadian Dollars or dollars, as applicable, in an amount equal to the remaining Excess Amount, which collateral shall secure all Obligations outstanding and shall remain in the Administrative Agent’s possession until such Excess Amount is
eliminated whereupon the collateral shall be released by the Administrative Agent to the Borrower. Notwithstanding any other provision of this Agreement, including any provision contemplating a continuation or conversion, whenever an Excess Amount
exists, (A) upon the maturity date of any Banker’s Acceptance, the Borrower shall repay the Banker’s Acceptance, or (B) upon the last day of the Interest Period in respect of a Eurodollar Loan, the Borrower shall repay the
Eurodollar Loan, in each case to the extent necessary to cover the Excess Amount and any repayments under clauses (A) and (B) shall be applied in reduction of the Excess Amount. 
  
 (c) Prior to any prepayment of Borrowings hereunder, the Borrower shall select the Borrowing or Borrowings to be prepaid and
shall specify such selection in the notice of such prepayment pursuant to paragraph (e) of this Section. 
  
 (d) The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed
by telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing a Bankers’ Acceptance Borrowing or a BA Equivalent Note Borrowing, not later than 12:00 noon, New York City time, three Business Days before
the date of prepayment, (ii) in the case of prepayment of an ABR Borrowing or a Canadian Prime Borrowing, not later than 12:00 noon, New York City time, on the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not
later than 12:00 noon, New York City time, on the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date, the principal amount of each Borrowing or portion thereof to be prepaid; provided that if a
notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked or extended if such notice of termination is revoked or
extended in accordance with Section 2.09. Promptly following receipt of any such notice (other than a notice relating solely to Swingline Loans), the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment
of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.13. Notwithstanding the foregoing, Bankers’ Acceptances may only be paid on their maturity dates unless the Borrower cash collateralizes
the face amount of such Bankers’ Acceptance in accordance with Section 2.06(k) 
  
 SECTION 2.12. Fees. (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a facility fee in Canadian Dollars, 

  

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which shall accrue at the Applicable Rate on the daily amount of the Commitment of such Lender (whether used or unused) during the period from and including
the Effective Date to but excluding the date on which such Commitment terminates; provided that, if such Lender continues to have any Revolving Credit Exposure after its Commitment terminates, then such facility fee shall continue to accrue
on the daily amount of such Lender’s Revolving Credit Exposure from and including the date on which its Commitment terminates to but excluding the date on which such Lender ceases to have any Revolving Credit Exposure. Accrued facility fees
shall be payable in arrears on the first day of January, April, July and October of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof; provided that any facility
fees accruing after the date on which the Commitments terminate shall be payable on demand. All facility fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day
but excluding the last day). 
  
 (b) The Borrower agrees to pay
(i) to the Administrative Agent for the account of each Lender a participation fee in dollars or Canadian Dollars, as applicable, with respect to its participations in Letters of Credit, which shall accrue at the Applicable Rate used to
determine the interest rate applicable to Eurodollar Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to each Issuing Bank a fronting fee, which shall accrue at the
rate of 0.125% per annum (or as otherwise agreed with the applicable Issuing Bank) on the average daily amount of the LC Exposure attributable to Letters of Credit issued by such Issuing Bank (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure, as well as such Issuing
Bank’s standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Accrued participation fees and fronting fees shall be payable on the first day of January, April,
July and October of each year, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which
the Commitments terminate shall be payable on demand. Any other fees payable to the Issuing Banks pursuant to this paragraph shall be payable within 10 days after demand. All participation fees and fronting fees shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
  
 (c) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon
between the Borrower and the Administrative Agent. 
  
 (d) All
fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to an Issuing Bank, in the 

  

 40 








 
case of fees payable to it) for distribution, in the case of facility fees and participation fees, to the Lenders entitled thereto. Fees paid shall not be
refundable under any circumstances (except that overpayments made in error shall be refunded or credited against future payments of fees). 
  
 SECTION 2.13. Interest. (a) The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear interest at the Alternate Base
Rate plus the Applicable Rate. 
  
 (b) The Loans comprising each
Canadian Prime Borrowing shall bear interest at the Canadian Prime Rate plus the Applicable Rate. 
  
 (c) The Loans comprising each Eurodollar Borrowing shall bear interest at the LIBO Rate for the Interest Period in effect for such Borrowing plus the
Applicable Rate. 
  
 (d) Notwithstanding the foregoing, if any
principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount
denominated in U.S.$, 2% plus the rate applicable to ABR Revolving Loans as provided in paragraph (a) of this Section, and (iii) in the case of any other amount denominated in C$, 2% plus the rate applicable to Canadian Prime Revolving
Loans as provided in paragraph (b) of this Section. 
  
 (e)
Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the Commitments; provided that (i) interest accrued pursuant to
paragraph (d) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR or Canadian Prime Revolving Loan prior to the end of the Availability Period),
accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor,
accrued interest on such Loan shall be payable on the effective date of such conversion. 
  
 (f) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate
or interest computed by reference to the Canadian Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but
excluding the last day). The applicable Alternate Base Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error. 
  

 41 








 SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any Interest Period for
a Eurodollar Borrowing: 
  
 (a) the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the LIBO Rate for such Interest Period; or 
  
 (b) the Administrative Agent is advised by the Required
Lenders that the LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 
  
 then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that
requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing.

  
 SECTION 2.15. Increased Costs. (a) If any Change
in Law shall: 
  
 (i) impose, modify or deem
applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the LIBO Rate) or any Issuing Bank; or

  
 (ii) impose on any Lender or any Issuing Bank
or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of Credit or participation therein; 
  
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of
maintaining its obligation to make any such Loan) or to increase the cost to such Lender or such Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender
or such Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank,
as the case may be, for such additional costs incurred or reduction suffered. 
  
 (b) If any Lender or any Issuing Bank determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s
capital or on the capital of such Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit
issued by such Issuing Bank, to a level below that which such Lender or 

  

 42 








 
such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration
such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or such Issuing
Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered. 
  
 (c) A certificate of a Lender or an Issuing Bank setting forth the amount or
amounts necessary to compensate such Lender or such Issuing Bank or its holding company, as the case may be, and the manner in which such amount or amounts have been calculated, as specified in paragraph (a) or (b) of this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or such Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof. 

 
 (d) Failure or delay on the part of any Lender or any Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an
Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than six months prior to the date that such Lender or such Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then
the six month period referred to above shall be extended to include the period of retroactive effect thereof. 
  
 SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan 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 Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue
or prepay any Revolving Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked or extended under Section 2.11(d) and is revoked or extended in accordance therewith), or (d) the
assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense (but not for any lost profit) attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of
(i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the LIBO Rate (not including the Applicable Rate) that would have been applicable to such Loan, for the period from the
date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of
interest which would accrue on such principal amount for such period at 

  

 43 








 
the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from
other banks in the eurodollar market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Administrative Agent (which shall advise the Borrower of
the amount due to such Lender) and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof. 
  
 SECTION 2.17. Taxes. (a) Any and all payments by or on account of
any obligation of the Borrower or the Guarantor hereunder or under any other Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower, the Guarantor, or the
Administrative Agent, as applicable, shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section), the Administrative Agent, Lender or Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the
Borrower or the Guarantor shall make such deductions and (iii) the Borrower or the Guarantor shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law. 
  
 (b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law. 
  
 (c)
The Borrower shall indemnify the Administrative Agent, each Lender and each Issuing Bank, within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or such
Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower hereunder or under any other Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender or an Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or an Issuing Bank, shall be
conclusive absent manifest error. 
  
 (d) As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by the Borrower or the Guarantor to a Governmental Authority, the Borrower or the Guarantor shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. The Administrative Agent shall supply a copy of such documentation to
any Lender upon such Lender’s request. 
  

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 (e) Any Foreign Lender or Foreign Issuing Bank: (i) either (I)(A) shall designate, for the purpose
and throughout the term of such Loan, an office of such Person in Canada as its applicable lending office; (B) severally represent and warrant that, as of the date such Person becomes a party to this Agreement, it is an Authorized Foreign Bank;
(C) covenant and agree that at all material times other than by reason of a change in treaty, law, rule or regulation occurring after the date of this Agreement (1) such Person will continue to be an Authorized Foreign Bank, (2) such
Loan will be a Canadian Banking Business Asset, and (3) such Person will record such Canadian Banking Business Asset and any income thereon in all financial statements for its Canadian Banking Business that are filed (or are required to be
filed) with the Superintendent of Financial Institutions, and will include in its income for a taxation year from the Canadian Banking Business any income in respect of that Canadian Banking Business Asset or (II) if such Person becomes a Foreign
Lender or Foreign Issuing Bank pursuant to an assignment under Section 9.04, shall represent to the Borrower, at any time prior to the occurrence and continuation of an Event of Default under clause (a), (b), (h), (i) or (j) of
Section 7.01, that it is entitled to receive payments of interest hereunder without imposition of Canadian withholding tax or subject to Canadian withholding tax at no greater rate than applied to the transferor; and (ii) shall, upon
request, provide the Borrower and the Administrative Agent with such documentation as may be reasonably necessary to establish the Lender’s entitlement to an exemption from Canadian withholding tax on payments hereunder (but only so long as
such Person is or remains lawfully entitled to do so). Each Foreign Lender or Foreign Issuing Bank shall promptly notify the Borrower in writing upon becoming aware at any time that it is not in compliance with the provisions of this
Section 2.17(e). 
  
 (f) If the Administrative Agent, a
Lender, or an Issuing Bank determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant
to this Section 2.17, it shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section 2.17 with respect to the Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender or Issuing Bank and without interest; provided, that the Borrower, upon the request of the Administrative Agent or such Lender or Issuing Bank,
agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority in respect of such refunded amounts) to the Administrative Agent or such Lender or Issuing Bank in the
event the Administrative Agent or such Lender or Issuing Bank is required to repay such refund to such Governmental Authority. This Section shall not be construed to require the Administrative Agent or any Lender or Issuing Bank to make available to
the Borrower its tax returns or any other information relating to its taxes which it reasonably deems confidential and which is not otherwise generally available to the public. 
  
 SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The Borrower shall make each
payment required to be made by it hereunder or under any other Loan Document (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) 

  

 45 








 
prior to the time expressly required hereunder or under such other Loan Document for such payment (or, if no such time is expressly required, prior to 1:00
p.m., New York City time), on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on
the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at 720 King Street West, 3rd Floor, Toronto, Ontario, Canada, M5V2T3, Attention: John Hall, except payments to be made directly to the Issuing Banks or the Swingline Lender as expressly
provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto and payments pursuant to other Loan Documents shall be made to the Persons specified therein. The
Administrative Agent shall distribute any such payments received by it in like funds for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment under any Loan Document shall be due on a day
that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments under each
Loan Document shall be made in dollars. 
  
 (b) If at any time
insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of
interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then
due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 
  
 (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Revolving Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans and participations in
LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans and
participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued
interest on their respective Revolving Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered,
such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to
and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans 

  

 46 








 
or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise
against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 
  
 (d) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or an Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has
made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or such Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment,
then each of the Lenders or such Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation. 
  
 (e) If any Lender
shall fail to make any payment required to be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.18(d) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 
  
 SECTION 2.19. Mitigation Obligations; Replacement of Lenders.
(a) If any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such
Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 
  
 (b) If (i) any Lender requests compensation under Section 2.15,
(ii) the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, (iii) any Lender fails to execute and deliver any consent, amendment or
waiver to this Agreement requested by 

  

 47 








 
the Borrower by a date specified by the Borrower (or gives the Borrower written notice prior to such date of its intention not to do so), or (iv) any
Lender defaults in its obligation to fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in Section 9.04), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent (and, if a Commitment is being assigned, the Issuing Banks and Swingline Lender), which consent shall not unreasonably
be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts), and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a material reduction in such compensation or payments. A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver, consent or amendment by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 
  
 ARTICLE III 
  
 Representations and Warranties 
  
 The Borrower and the Parent jointly and severally represent and warrant to the Lenders that: 
  
 SECTION 3.01. Organization; Powers. Each Loan Party is duly organized,
validly existing and in good standing (where applicable) under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or
in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 
  
 SECTION 3.02. Authorization; Enforceability. The Transactions to be
entered into by each Loan Party are within such Loan Party’s corporate powers and have been duly authorized by all necessary corporate and, if required, stockholder action. This Agreement has been duly executed and delivered by the Borrower and
the Parent and constitutes, and each other Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan Party, will constitute, a legal, valid and binding obligation of the Borrower, the Parent or such Loan Party
(as the case may be), enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject 

  

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to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
  
 SECTION 3.03. Governmental Approvals; No Conflicts. (a) The
Transactions (i) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, (ii) will not violate any applicable law or regulation or the charter, by laws or other
organizational documents of any Loan Party or any order of any Governmental Authority, (iii) will not violate or result in a default under any indenture, material agreement or other material instrument binding upon any Loan Party or its assets,
or give rise to a right thereunder to require any payment to be made by any Loan Party, and (iv) will not result in the creation or imposition of any Lien on any asset of any Loan Party (other than Liens created hereunder). 
  
 (b) Neither the Parent nor any of the Subsidiaries is engaged principally, or
as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System). No part of the proceeds of any Loan
will be used, whether directly or indirectly, for any purpose that would entail a violation of such Regulation U. 
  
 SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Parent has heretofore furnished to the Lenders its consolidated and
consolidating balance sheet and statements of income, stockholders equity and cash flows (i) audited as of and for the fiscal year ended September 30, 2004, reported on by Ernst & Young LLP, independent public accountants, and
(ii) as of and for the fiscal quarter and the portion of the fiscal year ended June 30, 2005, certified by its chief financial officer. Such financial statements present fairly, in all material respects, the financial position and results
of operations and cash flows of the Parent and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to
in clause (ii) above. 
  
 (b) Since September 30, 2004,
there has been no material adverse change in the business, assets, operations, prospects or condition (financial or otherwise) of the Parent and its Subsidiaries, taken as a whole. 
  
 SECTION 3.05. Properties. (a) The Parent and each of its Subsidiaries has good title to, or valid leasehold
interests in, all its real and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended
purposes. 
  
 (b) Each of the Parent and its Subsidiaries owns, or
is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Parent and its Subsidiaries does not infringe upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
  

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 SECTION 3.06. Litigation and Environmental Matters. (a) There are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority (including, but not limited to, the United States Food and Drug Administration) pending against or, to the knowledge of the Borrower and the Parent, threatened against or affecting
the Parent or any of its Subsidiaries (i) as to which there is a reasonable likelihood of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material
Adverse Effect or (ii) that involve any of the Loan Documents or the Transactions. 
  
 (b) Except with respect to any matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither the Parent nor any of its Subsidiaries (i) has
failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice
of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability. 
  
 SECTION 3.07. Compliance with Laws and Agreements. Each of the Parent and its Subsidiaries is in compliance with all laws, regulations and orders
of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. No Default has occurred and is continuing. 
  
 SECTION 3.08. Investment and Holding Company Status. Neither the Parent nor any of its Subsidiaries is (a) an “investment company” as defined in, or subject to regulation under, the Investment
Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935. 
  
 SECTION 3.09. Taxes. Each of the Parent and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) any Taxes that are being contested in good faith by appropriate proceedings and for which the Parent or such Subsidiary, as applicable, has set
aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with
all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated benefit obligations under each Plan (based on the assumptions
used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $25,000,000 the fair market value of the assets of such Plan,
and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of 

  

 50 








 
Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by
more than $25,000,000 the fair market value of the assets of all such underfunded Plans. 
  
 SECTION 3.11. Disclosure. The Borrower and the Parent have disclosed to the Lenders all agreements, instruments and corporate or other restrictions to which the Parent or any of its Subsidiaries is subject, and
all other matters known to any of them, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. No reports, financial statements, certificates or other information furnished by or on behalf of any
Loan Party to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or supplemented by other information so furnished), taken as a
whole, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to
projected financial information, the Parent and the Borrower represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. 
  
 SECTION 3.12. Subsidiaries. Schedule 3.12 sets forth the name of, and the ownership interest of the Parent in, each
Subsidiary of the Parent as of the Effective Date. 
  
 SECTION
3.13. Insurance. Schedule 3.13 sets forth a description of all insurance maintained by or on behalf of the Parent and its Subsidiaries as of the Effective Date. As of the Effective Date, all premiums in respect of such insurance have been
paid to the extent due. The Parent believes that the insurance maintained by or on behalf of the Parent and its Subsidiaries is adequate. 
  
 SECTION 3.14. Labor Matters. As of the Effective Date, there are no strikes, lockouts or slowdowns against the Parent or any Subsidiary pending or,
to the knowledge of the Parent, threatened. The hours worked by and payments made to employees of the Parent and the Subsidiaries have not been in violation in any material respect of the Fair Labor Standards Act or any other applicable Federal,
provincial, state, local or foreign law dealing with such matters. All payments due from the Parent or any Subsidiary, or for which any claim may be made against the Parent or any Subsidiary, 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 the Parent or such Subsidiary. The consummation of the Transactions will not give rise to any right of termination or right of renegotiation on the part of any
union under any collective bargaining agreement to which the Parent or any Subsidiary is bound. 
  
 SECTION 3.15. Senior Indebtedness. The Obligations constitute, and have been designated as, “Senior Indebtedness”, “Designated
Senior Debt”, “Designated Guarantor Senior Debt” or any equivalent term, however defined, under and as defined in each document or instrument governing subordinated Indebtedness of the Parent or the Borrower. 
  

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 SECTION 3.16. Restrictions on Securing of Obligations. Except as set forth in Schedule 6.09 or
expressly permitted by the proviso in Section 6.09 (other than clause (iv) thereof), neither the Parent nor any Subsidiary is on the date hereof party to any agreement or other arrangement that prohibits, restricts or imposes any condition
upon the ability of the Parent or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets to secure the Obligations or any of them (including, without limitation, negative pledges). 
  
 ARTICLE IV 
  
 Conditions 
  
 SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not
become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02): 
  
 (a) The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement
signed on behalf of such party or (ii) written evidence reasonably satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement. 
  
 (b) The Administrative Agent shall
have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of (i) Dechert LLP, counsel for the Guarantor, substantially in the form of Exhibit B-1, (ii) John G. Chou,
Deputy General Counsel of the Guarantor, in substantially the form of Exhibit B-2, and (iii) McMillan Binch Mendelsohn LLP, counsel for the Borrower, in substantially the form of Exhibit B-3 and each otherwise in a form reasonably satisfactory
to the Administrative Agent and covering such other matters relating to the Loan Parties, the Loan Documents or the Transactions as the Administrative Agent or the Required Lenders shall reasonably request. The Borrower hereby requests such counsel
to deliver such opinions. 
  
 (c) The
Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of each Loan Party, the authorization of the
Transactions and any other legal matters relating to the Loan Parties, the Loan Documents or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel. 
  
 (d) The Administrative Agent shall have received a
certificate, dated the Effective Date and signed by the President, a Vice President or a Financial Officer of the Borrower, confirming compliance with the conditions set 

  

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forth in paragraphs (a) and (b) of Section 4.02. Such certificate shall include all relevant calculations in detail satisfactory to the
Administrative Agent. 
  
 (e) The Administrative
Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including fees, charges and disbursements of counsel)
required to be reimbursed or paid by any Loan Party hereunder or under any other Loan Document. 
  
 (f) The Lenders shall have received all documentation and other information required by bank regulatory authorities under applicable
“know your customer” and anti-money laundering rules and regulations, including the U.S.A. Patriot Act. 
  
 (g) There has been no material adverse effect on the financial condition, results of operations, assets, business, properties or prospects
of the Parent and its Subsidiaries since September 30, 2004. 
  
 The
Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Banks to issue
Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 5:00 p.m., New York City time, on October 3, 2005 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at such time). 
  
 SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of each Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to
receipt of the request therefor in accordance herewith and to the satisfaction of the following conditions: 
  
 (a) The representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material
respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable. 
  
 (b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter
of Credit, as applicable, no Default shall have occurred and be continuing. 
  
 Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and
(b) of this Section. 
  
 SECTION 4.03. Condition
Subsequent. The obligations of the Lenders to continue to make Loans and of the Issuing Banks to continue to issue Letters of Credit hereunder shall be subject to the Administrative Agent’s receipt of the Acknowledgement and Confirmation
duly executed and delivered by Target Co. and Parent. 
  

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 ARTICLE V 
  
 Affirmative Covenants 
  
 Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full
and all Letters of Credit have expired or terminated and all LC Disbursements have been reimbursed, the Borrower and the Parent jointly and severally covenant and agree with the Lenders that: 
  
 SECTION 5.01. Financial Statements and Other Information. The Parent
will furnish to the Administrative Agent, which will make available by means of electronic posting to each Lender: 
  
 (a) within 95 days after the end of each fiscal year of the Parent, its audited consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows as of the end of and for such year, in each case setting forth in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized
national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all
material respects the financial condition and results of operations of the Parent and the consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied; 
  
 (b) within 50 days after the end of each of the first three fiscal quarters of each fiscal year of the
Parent, its unaudited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, in each case setting forth
in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by a Financial Officer as presenting fairly in all material respects the
financial condition and results of operations of the Parent and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;

  
 (c) within 95 days after the end of each
fiscal year of the Parent, its unaudited consolidating balance sheet and related statements of operations in respect of each of (i) AmerisourceBergen Drug Company, (ii) PharMerica, Inc., (iii) the Borrower and (iv) all other
Subsidiaries, taken as a whole, in each case as of the end of and for such year; 
  

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 (d) (concurrently with any delivery of financial statements under clause (a) or
(b) above, a certificate of a Financial Officer of the Parent (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Sections 6.11 and 6.12 and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the Parent’s
audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate; 
  
 (e) promptly after the same become publicly available, the
Parent will provide to each Lender copies of all periodic and other reports, proxy statements and other materials filed by the Parent or any Subsidiary with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or
all of the functions of said Commission, or with any national securities exchange, or distributed by the Parent to its shareholders generally, as the case may be; 
  
 (f) promptly following a request therefor, any documentation or other information that a Lender reasonably
requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the USA Patriot Act; and 
  
 (g) promptly following any request therefor, such other
information regarding the operations, business affairs, assets and financial condition of the Parent or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent, or any Lender through the Administrative Agent,
may reasonably request, it being understood that the Parent may require any Lender receiving such information to confirm in writing its confidentiality obligations under Section 9.12. 
  
 Information required to be delivered pursuant to this Section shall be deemed
to have been delivered on the date on which the Parent provides notice to the Administrative Agent that such information has been posted on the Parent’s website on the Internet at http://www.amerisourcebergen.com or at the appropriate Parent
designated website at http://www.sec.gov or http://intralinks.com; provided that the Parent shall deliver paper copies of the information referred to in this Section after the date delivery is required thereunder to any Lender which requests
such delivery within 5 Business Days after such request. 
  
 SECTION 5.02. Notices of Material Events. The Parent or the Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the following: 
  
 (a) the occurrence of any Default; 
  

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 (b) the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Parent or any Affiliate thereof that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; 
  
 (c) the occurrence of any ERISA Event that, alone or
together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Parent and its Subsidiaries in an aggregate amount exceeding $25,000,000; 
  
 (d) the amendment, modification or waiver of any provision
of any agreement or instrument relating to any Securitization in effect on the date hereof or to the 2003 Securitization to (i) add any termination event or other similar event, however denominated, or to make any existing such event more
onerous to the Parent, any Subsidiary or any Securitization Entity, (ii) advance the stated date on which such Securitization terminates, (iii) reduce the Financed Amount of such Securitization or (iv) materially reduce the advance
rate of such Securitization; and 
  
 (e) any
other development that results in, or could reasonably be expected to result in, a Material Adverse Effect. 
  
 Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Parent or the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto. 
  
 SECTION 5.03. Existence; Conduct of Business. The Parent and the Borrower will, and will cause each of their respective Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep
in full force and effect its legal existence and the rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks and trade names material to the conduct of its business; provided that the foregoing shall not prohibit
any merger, amalgamation, consolidation, liquidation or dissolution permitted under Section 6.03. 
  
 SECTION 5.04. Payment of Obligations. The Parent and the Borrower will, and will cause each of their respective Subsidiaries to, pay its
Indebtedness and other obligations, including Tax liabilities, before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the
Parent or such Subsidiary or the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP, (c) such contest effectively suspends collection of the contested obligation and the
enforcement of any Lien securing such obligation and (d) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 
  

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 SECTION 5.05. Maintenance of Properties; Insurance. The Parent and the Borrower will, and will
each cause each of their respective Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and (b) maintain, with financially sound
and reputable insurance companies insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations. 
  
 SECTION 5.06. Books and Records; Inspection and Audit Rights. The
Parent and the Borrower will, and will cause each of their respective Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and
activities. The Parent and the Borrower will, and will cause each of their respective Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender to visit and inspect its properties, to examine and make extracts
from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested, subject to such reasonable notice requirements and other
procedures as shall from time to time be agreed upon by the Parent, the Borrower and the Administrative Agent. 
  
 SECTION 5.07. Compliance with Laws. The Parent and the Borrower will, and will cause each of their respective Subsidiaries to, comply with all
laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

  
 SECTION 5.08. Use of Proceeds and Letters of Credit.
The proceeds of the Loans will be used only for the purposes set forth in the preamble of this Agreement. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the
Regulations of the Board, including Regulations U and X. Letters of Credit will be issued only for general corporate purposes. 
  
 SECTION 5.09. [Intentionally Omitted.] 
  
 SECTION 5.10. Maintenance of Corporate Separateness. The Parent and the Borrower will, and will cause each of their respective Subsidiaries to,
satisfy customary corporate or limited liability company formalities, including the maintenance of corporate and business records. No Loan Party or other Subsidiary (i) shall make any payment to a creditor of another Loan Party or Subsidiary in
respect of any liability of such other Loan Party or Subsidiary or (ii) shall receive any payment from a creditor of another Loan Party or Subsidiary in respect of any liability owing to such other Loan Party or Subsidiary, and the Borrower and
the Parent shall ensure that to the extent that cash of any Loan Party or Subsidiary or payments by any creditor to such Loan Party or Subsidiary shall have been commingled with cash of any other Loan Party or Subsidiary in any bank account or
otherwise, accurate records exist to ensure that all such monies are able to be traced to each such Loan Party or Subsidiary. No Loan Party nor any 

  

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Subsidiary shall take any action, or conduct its affairs in a manner, which is reasonably likely to result in the corporate existence of such Loan Party or
Subsidiary, or any other Loan Party or Subsidiary, being ignored, or in the assets and liabilities of any Loan Party or Subsidiary being substantively consolidated with those of any other Loan Party or Subsidiaries in a bankruptcy, reorganization or
other insolvency proceeding. 
  
 SECTION 5.11. Senior Debt
Status. In the event that the Parent or any Subsidiary Loan Party shall at any time issue or have outstanding any Indebtedness that by its terms is subordinated to any other Indebtedness of the Parent or such Subsidiary, the Parent shall take or
cause such Subsidiary to take all such actions as shall be necessary to cause the Obligations to constitute senior indebtedness (however denominated) in respect of such subordinated Indebtedness and to enable the Lenders to have and exercise any
payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such subordinated Indebtedness. Without limiting the foregoing, the Obligations are hereby designated as “senior
indebtedness” and, if relevant, as “designated senior indebtedness” in respect of all such subordinated Indebtedness and are further given all such other designations as shall be required under the terms of any such subordinated
Indebtedness in order that the Lenders may have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such subordinated indebtedness. 
  
 ARTICLE VI 
  
 Negative Covenants 
  
 Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements have been reimbursed, the Borrower and the Parent jointly and severally covenant and agree with the Lenders that: 
  
 SECTION 6.01. Indebtedness. The Parent and the Borrower will not, and will not permit any of their respective
Subsidiaries to, create, incur, assume or permit to exist any Indebtedness under any Securitization of inventory, or any Indebtedness of an Excluded Subsidiary, other than: 
  
 (a) Indebtedness existing or deemed to exist under any inventory Securitization, to the extent that the
aggregate Financed Amount of all such Securitizations does not exceed $500,000,000; provided that, in the event any Indebtedness existing or deemed to exist under any inventory Securitization shall contain any financial covenants, change of
control provisions or event of default, termination event, amortization event or similar thresholds with respect to cross-defaults or analogous events, non-payment of judgments or ERISA liabilities more restrictive than those contained in this
Agreement, such financial covenants, change of control provisions or thresholds, for so long as they shall 

  

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remain in effect, shall be deemed to be incorporated by reference, mutatis mutandis, into this Agreement; 
  
 (b) Indebtedness under the 2003 Securitization or any other
receivables Securitization; 
  
 (c) Indebtedness
of Excluded Subsidiaries (other than JM Blanco, Inc., any Subsidiary of Borrower and any Securitization Entity) in an aggregate principal amount not exceeding $300,000,000 at any time outstanding; 
  
 (d) Indebtedness of JM Blanco, Inc. in an aggregate
principal amount not exceeding $55,000,000 at any time outstanding; and 
  
 (e) Indebtedness of the Borrower in respect of Loans hereunder. 
  
 SECTION 6.02. Liens. The Parent and the Borrower will not, and will not permit any of their respective Subsidiaries to, create, incur, assume or
permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except: 
  
 (a) Permitted Encumbrances; 
  
 (b) any Lien on any property or asset of the Parent or any
Subsidiary existing on the date hereof and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of the Parent or any Subsidiary and (ii) such Lien shall secure only those obligations
which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof; 
  
 (c) any Lien existing on any property or asset prior to the acquisition thereof by the Parent or any Subsidiary or existing on any
property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or
such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of the Parent or any Subsidiary and (iii) such Lien shall secure only those obligations which it secures on the date of
such acquisition or the date such Person becomes a Subsidiary, as the case may be and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof; 
  
 (d) Liens on fixed or capital assets acquired, constructed
or improved by the Parent or any Subsidiary; provided that (i) such Liens secure only Indebtedness incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including any Capital Lease Obligations
or other Indebtedness assumed in connection with the acquisition of 

  

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any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such Indebtedness
that do not increase the outstanding principal amount thereof or result in an earlier maturity date or decreased weighted average life thereof, (ii) such security interests and the Indebtedness secured thereby are incurred prior to or within 90
days after such acquisition or the completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such
security interests shall not apply to any other property or assets of the Parent or any Subsidiary; 
  
 (e) Liens on accounts receivable, inventory and the Proceeds thereof existing or deemed to exist in connection with any Securitization
permitted pursuant to Section 6.01; and 
  
 (f) other Liens securing obligations not greater than $50,000,000 in the aggregate. 
  
 SECTION 6.03. Fundamental Changes. (a) The Parent and the Borrower will not, and will not permit any of their respective Subsidiaries to, merge into or consolidate with any other Person, or permit any
other Person to merge into, amalgamate with or consolidate with it, or liquidate or dissolve, except that if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing, (i) any Subsidiary
may merge into or amalgamate with the Parent in a transaction in which the Parent is the surviving corporation, (ii) any Subsidiary may merge into or amalgamate with any Subsidiary in a transaction in which the surviving entity is a Subsidiary,
including the Amalgamation of PSI and Target Co. and (if any party to such merger is a Subsidiary Loan Party) is a Subsidiary Loan Party; (iii) any Permitted Acquisition or Permitted Other Acquisition permitted under Section 6.04 may be
accomplished by a merger of one or more Subsidiaries in a transaction in which the surviving entity is a Subsidiary and (if any Subsidiary party to such merger is a Subsidiary Loan Party) is a Subsidiary Loan Party and (iv) any Subsidiary
(other than a Subsidiary Loan Party) may liquidate or dissolve if the Parent determines in good faith that such liquidation or dissolution is in the best interests of the Parent and is not materially disadvantageous to the Lenders; provided
that any such merger or amalgamation involving a Person that is not a wholly owned Subsidiary immediately prior to such merger or amalgamation shall not be permitted unless also permitted by Section 6.04. 
  
 (b) The Parent and the Borrower will not, and will not permit any of their
respective Subsidiaries to, engage to any material extent in any business other than businesses of the type conducted by the Parent and the Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto or to the
healthcare industry or such other business as shall have been approved by the Required Lenders. 
  

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 SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The Parent and the
Borrower will not, and will not permit any of their respective Subsidiaries to, purchase, hold or acquire (including pursuant to any merger or amalgamation with any Person that was not a wholly owned Subsidiary prior to such merger or amalgamation)
any Equity Interests in or evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or
permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit, except: 
  
 (a) investments of the Parent, Borrower or Subsidiaries
under Hedging Agreements entered into in accordance with Section 6.06; 
  
 (b) Permitted Investments; 
  
 (c) investments existing on the date hereof and set forth on Schedule 6.04; 
  
 (d) Permitted Acquisitions; provided that the cumulative aggregate consideration to be paid in respect of (x) all such
Permitted Acquisitions of Foreign Subsidiaries under this paragraph and (y) all Permitted Other Acquisitions permitted under paragraph (e), in each case during the term of this Agreement (including Indebtedness to be assumed or repaid by the
Parent or any Subsidiary) shall not exceed $850,000,000; 
  
 (e) Permitted Other Acquisitions in respect of which the aggregate amount of consideration paid after the date hereof (including Indebtedness assumed or repaid by the Parent or a Subsidiary) does not exceed at any
time $200,000,000; 
  
 (f) loans or advances made
by the Parent to any Subsidiary or made by any Subsidiary to the Parent or any other Subsidiary other than loans and advances made by Loan Parties to Subsidiaries that are not Loan Parties; and 
  
 (g) other investments, loans, advances, and Guarantees
constituting Indebtedness not prohibited by Section 6.01; provided that the aggregate amount thereof, at any time, shall not exceed $250,000,000 at the time of incurrence unless the Leverage Test or the Ratings Test shall be satisfied at
such time and would remain satisfied upon the completion of each such investment, loan, advance or Guarantee. 
  
 (h) other investments, loans, advances and Guarantees constituting Indebtedness not prohibited by Section 6.01; provided that
the aggregate amount thereof (excluding (x) any such Guarantees entered into prior to September 29, 2005, to the extent the Indebtedness guaranteed thereby does not increase on or after such date, and (y) any such Guarantee in respect
of Loans permitted under this Agreement) shall not exceed $350,000,000 at the time of and 

  

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after giving effect to the making or incurrence of any such investment, loan, advance or Guarantee unless the Leverage Test or the Ratings Test shall be
satisfied at such time and would remain satisfied upon the completion of such investment, loan, advance or Guarantee. 
  
 SECTION 6.05. Asset Sales. The Parent and the Borrower will not, and will not permit any of their respective Subsidiaries to, sell, transfer, lease
or otherwise dispose of any asset, including any Equity Interest owned by it, nor will the Parent or Borrower permit any of their respective Subsidiaries to issue any additional Equity Interest in such Subsidiary, except: 
  
 (a) sales of inventory, obsolete or surplus equipment and
Permitted Investments in the ordinary course of business; 
  
 (b) sales, transfers and dispositions to the Parent or a Subsidiary; provided that any such sales, transfers or dispositions involving a Subsidiary that is not a Loan Party shall be made in compliance with
Section 6.08; 
  
 (c) sales of accounts
receivable, inventory and the Proceeds thereof under any Securitization; provided that the aggregate amount of the inventory subject to any such Securitization of inventory shall not exceed $500,000,000 at any time; and 
  
 (d) sales, transfers and other dispositions of assets that
are not permitted by any other clause of this Section (including any sale and leaseback transactions); provided that (i) the aggregate fair market value of all assets sold, transferred or otherwise disposed of in reliance upon this
clause (d) shall not exceed, at any time, 20% of the Consolidated Tangible Assets of the Parent and its Subsidiaries as of the most recent such sale, transfer or disposition and (ii) any retained Equity Interests in any Subsidiary in which
any Equity Interests have been sold, transferred or otherwise disposed of shall be deemed to be noncash consideration received in respect of such sale, transfer or other disposition; 
  
 provided that all sales, transfers, leases and other dispositions permitted hereby (other than those permitted by clauses
(b) and (c) above) shall be made for fair value and for at least 75% cash consideration (it being understood that all noncash consideration constituting investments, and the retention of minority interests in sold Subsidiaries, shall be
subject to Section 6.04(e), and that contingent payouts, earnouts and similar consideration will be valued based upon the maximum consideration permitted to be received on a present value basis based upon reasonable assumptions). 
  
 SECTION 6.06. Hedging Agreements. The Parent and the Borrower will
not, and will not permit any of their respective Subsidiaries to, enter into any Hedging Agreement, other than Hedging Agreements entered into in the ordinary course of business to hedge or mitigate risks to which the Parent or any Subsidiary is
exposed in 

  

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the conduct of its business or the management of its liabilities and not for any speculative purpose. 
  
 SECTION 6.07. Restricted Payments; Certain Payments of Indebtedness.
(a) Unless either the Leverage Test or the Ratings Test shall be satisfied at such time and would remain satisfied after giving effect to such payment or distribution, the Parent will not, and will not permit any of the Subsidiaries to, declare
or make, or agree to pay or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except (i) Subsidiaries may declare and pay dividends ratably with respect to their capital stock,
(ii) so long as no Default or Event of Default shall have occurred and be continuing at the time of such payment and no Default would occur as a result of making such payment, (A) the Parent may make Restricted Payments to the extent that
the aggregate amount of all such Restricted Payments in the current fiscal quarter, taken together with the aggregate amount of all such Restricted Payments in respect of such Restricted Payments in the three fiscal quarters immediately preceding
such fiscal quarter, is not in excess of $100,000,000 plus 25% of Adjusted Consolidated Net Income for the four fiscal quarter period ending most recently prior to the time any such Restricted Payment is made and (B) the Parent may pay regular
dividends or distributions in respect of preferred stock issued after the date hereof, and (iii) notwithstanding the limitation in subsection (ii) above, so long as no Default or Event of Default shall have occurred and be continuing at
the time of a repurchase and no Default or Event of Default would occur as a result of making that repurchase, the Parent may repurchase its capital stock to the extent that the aggregate amount since August 4, 2004, of all such payments in
respect of such repurchases shall not exceed $500,000,000, in addition to any repurchases allowed under subsection (ii) above. For purposes of clause (ii) above, “Adjusted Consolidated Net Income” for any period shall mean
the sum, without duplication, for such period of Consolidated Net Income plus any special one-time or extraordinary non-cash charges deducted in calculating such Consolidated Net Income. 
  
 (b) Unless either the Leverage Test or the Ratings Test shall be satisfied at such time and would remain satisfied upon
making such payment or distribution, the Borrower and the Parent will not, and will not permit any of their respective Subsidiaries to, make or agree to pay or make, directly or indirectly, any payment or other distribution (whether in cash,
securities or other property) of or in respect of principal of or interest on any Indebtedness, or any payment or other distribution (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of any Indebtedness, except: 
  
 (i) payment of Indebtedness created under the Loan Documents; 
  
 (ii) payment of regularly scheduled interest payments and scheduled or mandatory principal payments as and
when due in respect of any Indebtedness, other than payments in respect of subordinated debt prohibited by the subordination provisions thereof, and payments made to 

  

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the Parent or any Subsidiary by Securitization Entities in respect of subordinated Indebtedness incurred pursuant to any Securitization; 
  
 (iii) refinancings of Indebtedness to the extent permitted
by Section 6.01; 
  
 (iv) repayments of
Indebtedness of acquired Persons or businesses in connection with and substantially simultaneously with the consummation of Permitted Acquisitions or Permitted Other Acquisitions; and 
  
 (v) payment of secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the
property or assets securing such Indebtedness. 
  
 SECTION 6.08.
Transactions with Affiliates. The Parent and the Borrower will not, and will not permit any of their respective Subsidiaries to, sell, lease or otherwise transfer any material amount of property or assets to, or purchase, lease or otherwise
acquire any material amount of property or assets from, or otherwise engage in any other material transactions with, any Affiliate of the Parent, Borrower or such Subsidiary, except (a) transactions that are at prices and on terms and
conditions not less favorable to the Parent, Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Parent and the Subsidiary Loan Parties not
involving any other Affiliate, (c) transactions between the Parent or any Subsidiary and any Securitization Entity pursuant to any Securitization and (d) any Restricted Payment permitted by Section 6.07. 
  
 SECTION 6.09. Restrictive Agreements. The Parent and the Borrower will
not, and will not permit any of their respective Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the
Parent or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets (including, without limitation, negative pledges, but other than negative pledges that do not prohibit, restrict or impose any condition upon
Liens securing this Agreement or the Obligations), or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans or advances to the Parent or any other
Subsidiary or to Guarantee Indebtedness of the Parent or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law or by any Loan Document or by any agreement, document or
instrument relating to any Securitization or any indenture, agreement or instrument evidencing or governing Indebtedness, in each case, as in effect on the date hereof or as modified in accordance herewith, or relating to the 2003 Securitization as
modified in accordance herewith, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.09 (but shall apply to any amendment or modification expanding the scope of, any such
restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the


  

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Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such Indebtedness is incurred in accordance with Section 6.01 and such restrictions or conditions apply only to the property or assets financed with such
Indebtedness, (v) clause (a) of the foregoing shall not apply to customary provisions in leases and other contracts restricting the assignment thereof and (vi) the Parent may enter into agreements limiting Guarantees by Subsidiaries.

  
 SECTION 6.10. Material Documents. The Parent and the
Borrower will not, nor will it permit any of their respective Subsidiaries to, amend, modify or waive in any manner that could reasonably be expected to adversely affect the Lenders any of its rights under (i) any indenture, material agreement
or material instrument evidencing or governing Indebtedness or (ii) its certificate of incorporation, by laws or other organizational documents. 
  
 SECTION 6.11. Fixed Charge Coverage Ratio. The Parent will not permit the ratio of (a) Consolidated EBITDAR to (b) the sum, without
duplication, of (i) Consolidated Cash Interest Expense, (ii) cash dividends on Equity Interests in the Parent and (iii) rental payments of the Parent and the Subsidiaries (other than under capital leases), determined on a consolidated
basis in accordance with GAAP, in each case for any period of four consecutive fiscal quarters ending on any date that is the last day of a fiscal quarter, to be less than 3.00 to 1.00 on the last day of such period. 
  
 SECTION 6.12. Leverage Ratio. The Parent will not permit the Leverage
Ratio as of the last day of any fiscal quarter to exceed 3.00 to 1.00. 
  
 SECTION 6.13. Restricted Properties. The Parent and the Borrower will not, and will not permit any of their respective Subsidiaries to, permit any property that is a “Restricted Property” or any equivalent term, however
defined, under and for the purposes of each document or instrument governing subordinated Indebtedness of the Parent or any Subsidiary, to be owned by any Person other than a Subsidiary that has no assets other than Restricted Properties, no parent
other than the parent specified in such document or instrument and no activities other than the ownership of Restricted Properties. 
  
 SECTION 6.14. Fiscal Quarters. The Parent will not change, and will not permit any Subsidiary to change, the fiscal quarter ends of the Parent or
any Subsidiary to any date other than March 31, June 30, September 30 or December 31, respectively. 
  
 SECTION 6.15. Amount of Permitted Debt under the Debt Instruments. The Borrower and the Parent will not incur additional indebtedness or letters of
credit in an aggregate amount that would at any time result in the Borrower not being permitted under any document or instrument governing subordinated Indebtedness of the Borrower or any Subsidiary to borrow Revolving Loans and obtain Letters of
Credit in an aggregate principal or face amount equal to the aggregate amount of the unused Commitments. 
  

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 ARTICLE VII 
  
 Events of Default 
  
 SECTION 7.01. If any of the following events (“Events of Default”) shall occur: 
  
 (a) the Borrower shall fail to pay any principal of any Loan
or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; 
  
 (b) the Borrower shall fail to pay any interest on any Loan
or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue
unremedied for a period of three Business Days; 
  
 (c) any representation, warranty made or deemed made by or on behalf of the Parent, the Borrower or any Subsidiary in or in connection with any Loan Document or any amendment or modification thereof or waiver thereunder, or any report,
certificate, financial statement or other document furnished pursuant to or in connection with any Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or
deemed made; 
  
 (d) the Parent or the Borrower
shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02, 5.03 (with respect to the existence of the Parent and the Borrower), 5.06 or 5.08 or in Article VI; 
  
 (e) any Loan Party shall fail to observe or perform any
covenant, condition or agreement contained in any Loan Document (other than those specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the Borrower (which notice will be given at the request of any Lender); 
  
 (f) the Parent or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of
any Material Indebtedness, when and as the same shall become due and payable prior to the expiration of any grace period applicable to such payment; 
  
 (g) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables
or permits the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its


  

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scheduled maturity, or there shall occur any default, event of default, event of termination or other event that results in, or entitles any person other
than the Parent or a Subsidiary to cause, the acceleration of any Indebtedness, or the termination of the purchase of accounts receivable or inventory, under any Securitization; provided that this clause (g) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness; 
  
 (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or
other relief in respect of the Parent, the Borrower or any Significant Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, the Borrower or any Significant Subsidiary or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered; 
  
 (i) the Parent, the Borrower or any Significant Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate
manner, any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, the Borrower or any
of their respective Subsidiaries or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of
creditors or (vi) take any action for the purpose of effecting any of the foregoing; 
  
 (j) the Parent, the Borrower or any Significant Subsidiary shall become unable, admit in writing its inability or fail generally to pay
its debts as they become due; 
  
 (k) one or more
judgments for the payment of money in an aggregate amount in excess of $25,000,000 which is not paid or fully covered by insurance shall be rendered against the Parent, the Borrower, any Significant Subsidiary, any Subsidiary Loan Party or any
combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of
the Parent, the Borrower or any Significant Subsidiary or any Subsidiary Loan Party to enforce any such judgment; 
  

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 (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Parent and the Significant Subsidiaries and Subsidiary Loan Parties in an aggregate amount exceeding $25,000,000; 

 
 (m) any Guarantee under this Agreement shall cease to be,
or shall be asserted by the Parent not to be, a valid, binding and enforceable obligation of the Parent; or 
  
 (n) a Change in Control shall occur; 
  
 then, and in every such event (other than an event with respect to the Parent, the Borrower or any Significant Subsidiary described in clause (h) or (i) of this
Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or
different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared
to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Parent, the Borrower or any
Significant Subsidiary described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations
of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 
  
 ARTICLE VIII 
  
 The Administrative Agent 
  
 SECTION 8.01. Each of the Lenders and the Issuing Banks hereby irrevocably appoints the Administrative Agent as its agent and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to it by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto. 
  
 SECTION 8.02. Any bank serving as Administrative Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any
kind 

  

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of business with the Parent or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder. 
  
 SECTION 8.03. The Administrative Agent shall not have any duties or
obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default
has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that
the Administrative Agent is required to exercise in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly
set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Parent or any of its Subsidiaries that is communicated to or obtained
by any bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge
of any Default unless and until written notice thereof is given to the Administrative Agent, by the Parent, the Borrower or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into
(i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or
(v) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
  
 SECTION 8.04. The Administrative Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by them to be genuine and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to them orally or by telephone and believed by them to be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be
counsel for the Borrower), independent accountants and other experts selected by them, and shall not be liable for any action taken or not taken by them in accordance with the advice of any such counsel, accountants or experts. 
  
 SECTION 8.05. The Administrative Agent may perform any and all their duties
and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their


  

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respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
  
 SECTION 8.06. Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Banks and the Borrower. Upon any such resignation, the Required Lenders shall have the right, in consultation
with the Borrower, to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank, that is reasonably acceptable
to the Borrower. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent. 
  
 SECTION 8.07. Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or related agreement or
any document furnished hereunder or thereunder. 
  
 ARTICLE IX

  
 Miscellaneous 
  
 SECTION 9.01. Notices. (a) Except in the case of notices and
other communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows: 
  
 (i) if to the
Parent, to it at 1300 Morris Drive, Chesterbrook, PA 19087, Attention: Jack F. Quinn, Telecopy No. (610) 727-3613. 
  

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 (ii) if to the Borrower, to it at 210 Binnington Court, Kingston, Ontario, Canada,
K7M8R6, Attention: Richard Normandeau, Telecopy No. (610) 727-3613, with a copy to the Parent; 
  
 (iii) if to the Administrative Agent, the Swingline Lender or Scotia Capital, in its capacity as Issuing Bank, to it at 720 King Street
West, 3rd Floor, Toronto, Ontario, Canada, M5V2T3, Attention: John Hall, Telecopy No. 416-866-5991; or

  
 (iv) if to any other Issuing Bank or Lender,
to it at its address (or telecopy number) set forth in its Administrative Questionnaire. 
  
 (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing
shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent, the Parent or the Borrower may, in their discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. 
  
 (c) Any party hereto may change its address or telecopy number for notices
and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.

  
 SECTION 9.02. Waivers; Amendments. (a) No failure
or delay by the Administrative Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power,
or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Banks and
the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of any Loan Document or consent to any departure by any Loan Party
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without
limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any Issuing Bank may have had notice or
knowledge of such Default at the time. 
  

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 (b) None of this Agreement, any Loan Document or any provision hereof or thereof may be waived, amended
or modified except, in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Parent, the Borrower and the Required Lenders or, in the case of any other Loan Document, pursuant to an agreement or agreements
in writing entered into by the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, in each case with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of
any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender
affected thereby, (iii) postpone the maturity of any Loan, or the required date of reimbursement of any LC Disbursement, or any date for the payment of any interest or fees payable hereunder, or reduce the amount of, waive or excuse any such
payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of payments
required thereby, without the written consent of each Lender, (v) change any of the provisions of this Section or the percentage set forth in the definition of “Required Lenders” or any other provision of any Loan Document specifying
the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender (or each Lender of such
Class, as the case may be), (vi) release the Parent from its Guarantee under this Agreement (except as expressly provided in this Agreement), or limit its liability in respect of such Guarantee without the written consent of each Lender or
(vii) change any provisions of any Loan Document in a manner that by its terms adversely affects the rights in respect of payments or prepayments due to Lenders holding Loans of any Class differently than those holding Loans of any other Class,
without the written consent of Lenders holding a majority in interest of the outstanding Loans and unused Commitments of the adversely affected Class; provided further that no such agreement shall amend, modify or otherwise affect the rights
or duties of the Administrative Agent, the Issuing Banks or the Swingline Lender without the prior written consent of the Administrative Agent, each Issuing Bank or the Swingline Lender, as the case may be. Notwithstanding the foregoing, any
provision of this Agreement may be amended by an agreement in writing entered into by the Parent, the Borrower, the Required Lenders and the Administrative Agent (and, if their rights or obligations are affected thereby, the Issuing Banks and the
Swingline Lender) if (i) by the terms of such agreement the Commitment of each Lender not consenting to the amendment provided for therein shall terminate upon the effectiveness of such amendment and (ii) at the time such amendment becomes
effective, each Lender not consenting thereto receives payment in full of the principal of and interest accrued on each Loan made by it and all other amounts owing to it or accrued for its account under this Agreement. 
  
 SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Parent
and the Borrower shall be jointly and severally obliged to pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Lead Arranger and its Affiliates, including the reasonable fees, charges and disbursements of
outside counsel for the Administrative Agent, in connection with the syndication of the credit facilities 

  

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provided for herein, the preparation and administration of the Loan Documents or any amendments, modifications or waivers of the provisions thereof (whether
or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Banks in connection with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the Administrative Agent, Lead Arranger, any Issuing Bank or any Lender, including the fees, charges and disbursements of any outside counsel for such
Administrative Agent, Lead Arranger, any Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection with the Loan Documents, including its rights under this Section, or in connection with the Loans made
or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit. 
  
 (b) The Borrower and the Parent shall jointly and severally indemnify the Administrative Agent, the Lead Arranger, each
Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and related expenses, including the reasonable fees, charges and disbursements of any outside counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or
delivery of any Loan Document or any other agreement or instrument contemplated hereby, the performance by the parties to the Loan Documents of their respective obligations thereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by an Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such
demand do not strictly comply with the terms of such Letter of Credit), (iii) any Environmental Liability related in any way to the Parent or any of the Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or wilful misconduct of such Indemnitee and
provided further that the Parent and the Borrower, in connection with any indemnified matter, shall only be required to pay the fees and expenses of joint counsel engaged to represent all Indemnitees, except to the extent that the use of
joint counsel could reasonably be expected to give rise to any conflict of interest for any such counsel or any Indemnitee shall have determined that it may have legal defenses available to it that are different from, additional to or in conflict
with those available to any other Indemnitee. 
  
 (c) To the
extent that the Parent or the Borrower fails to pay any amount required to be paid by it to the Administrative Agent, an Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay
to the Administrative Agent, such Issuing Bank or the Swingline Lender, as the 

  

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case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent, such Issuing Bank or the Swingline
Lender in its capacity as such. For purposes hereof, a Lender’s “pro rata share” shall be determined based upon its share of the sum of the total Revolving Credit Exposures and unused Commitments at the time. 
  
 (d) To the extent permitted by applicable law, the Borrower and the Parent
shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. 
  
 (e) All amounts due under this Section shall be payable promptly after written demand therefor. 
  
 SECTION 9.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), except that the Borrower and
the Parent may not assign or otherwise transfer any of their respective rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower or the Parent without such consent
shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of any Issuing
Bank that issues any Letter of Credit) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Lead Arranger, the Issuing Banks and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement. 
  
 (b) (i) Subject to the
conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it)
with the prior written consent (such consent not to be unreasonably withheld) of: 
  
 (A) the Borrower; provided that no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a
Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; 
  
 (B) the Administrative Agent and the Swingline Lender; and 
  
 (C) each Issuing Bank. 
  

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 (ii) Assignments shall be subject to the following additional conditions: 
  
 (A) except in the case of an assignment to a Lender or an
Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment, the amount of the Commitment of the assigning Lender subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than C$5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent; provided that no such consent of the Borrower
shall be required if an Event of Default has occurred and is continuing; 
  
 (B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement; 
  
 (C) the parties to each assignment shall execute and deliver
to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of C$3,500; 
  
 (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and 

 
 (E) so long as no Event of Default has occurred and is
continuing under Section 7.01, no assignee of a Lender, Issuing Bank or Swingline Lender shall be a Foreign Lender or Foreign Issuing Bank, unless such assignee meets the requirements of Section 2.17(e)(i)(II). 
  
 For purposes of this Section 9.04(b), the term “Approved Fund”
has the following meaning: 
  
 “Approved 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 of its business and that is administered or managed by a Lender, an
Affiliate of a Lender or an entity or an Affiliate of an entity that administers or manages a Lender. 
  
 (c) Subject to acceptance and recording thereof pursuant to paragraph (d) of this Section, from and after the effective date specified in each
Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights
and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.14, 2.15, 2.16 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (e) of this Section. 
  

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 (d) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one
of its offices in The City of New York a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC
Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Banks and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by any Borrower,
any Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
  
 (e) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s completed
Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of
this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph. Following the effectiveness of any assignment, the Administrative Agent shall, if so requested, cause promissory notes reflecting such assignment to be issued to the Assignee and, if applicable, to the
Assignor, upon cancellation of any existing promissory notes originally issued to the Assignor. 
  
 (f) Any Lender may, without the consent of the Borrower, the Parent, the Administrative Agent, the Issuing Banks or the Swingline Lender, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to
it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrower, the Parent, the Administrative Agent, the Issuing Banks and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce the Loan Documents and to approve any amendment, modification or waiver of any provision of the Loan
Documents; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that
affects such Participant. Subject to paragraph (f) of this Section, the Borrower and the Parent agree that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section, at the time such Participant acquires his participation interest. To the extent permitted by law, each Participant also shall be entitled to the benefits of
Section 9.08 as though it were a 

  

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Lender, provided such Participant agrees to be subject to Section 2.18(c) as though it were a Lender. 
  
 (g) A Participant shall not be entitled to receive any greater payment under
Section 2.15 or 2.17 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior
written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees,
for the benefit of the Borrower, to comply with Section 2.17(e) as though it were a Lender. 
  
 (h) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
  
 (i) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Bank”) may grant to a special purpose funding
vehicle (an “SPC”) of such Granting Bank, identified as such in writing from time to time by the Granting Bank to the Administrative Agent, the Borrower and the Parent, the option to provide to the Borrower all or any part of any
Loan that such Granting Bank would otherwise be obligated to make to the Borrower pursuant to Section 2.01, provided that (i) nothing herein shall constitute a commitment to make any Loan by any SPC, (ii) if an SPC elects not
to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Bank shall be obligated to make such Loan pursuant to the terms hereof, (iii) all amounts payable by the Borrower to any SPC hereunder in respect
of any Loan and the applicability of the cost protection provisions contained in Section 2.15, 2.16 and 2.17 shall be determined as if the Granting Bank had made such Loan and all payments made in respect of the Loan were made to the Granting
Bank, (iv) any notices given by the Administrative Agent, the Borrower and the other Lenders with respect to any Loan provided by an SPC may be given to the Granting Bank and the Granting Bank shall have the authority to act on behalf of the
SPC with respect to such Loans and/or notices, and (v) the SPC is not, and will not be, a Foreign Lender. The making of a Loan by an SPC hereunder shall be deemed to utilize the Commitment of the Granting Bank to the same extent, and as if,
such Loan were made by the Granting Bank. Each party hereto hereby agrees that no SPC shall be liable for any payment under this Agreement for which a Lender would otherwise be liable, for so long as, and to the extent, the related Granting Bank
makes such payment. In furtherance of the foregoing, each party hereto hereby agrees that, prior to the date that is one year and one day after the payment in full of all outstanding senior indebtedness of any SPC, it will not institute against, or
join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or similar proceedings under the laws of the United States or any State thereof. In addition, notwithstanding
anything to the contrary 

  

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contained in this Section 9.04 (except Section 9.04(b)(ii)(E)), any SPC may assign all or a portion of its interests in any Loans to its Granting
Bank or to any financial institutions providing liquidity and/or credit facilities to or for the account of such SPC to fund the Loans made by such SPC or to support the securities (if any) issued by such SPC to fund such Loans. 
  
 SECTION 9.05. Survival. All covenants, agreements, 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 the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of any 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 and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.14, 2.15, 2.16 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of
the Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof. 
  
 SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to
the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as
provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 SECTION 9.07. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a
particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  

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 SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held
and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Parent or any of its Subsidiaries (including the Borrower) against any of and all the obligations of the Parent or any of its Subsidiaries
(including the Borrower) now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of
each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have. 
  
 SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed in accordance with and
governed by the law of the State of New York. 
  
 (b) The Borrower
and the Parent each hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced in other 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 the Administrative Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower, the Parent or either of their properties in the
courts of any jurisdiction. 
  
 (c) The Borrower and the Parent
each hereby irrevocably and unconditionally waive, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court. 
  
 SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON 

  

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CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  
 SECTION 9.11. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration
in interpreting, this Agreement. 
  
 SECTION 9.12.
Confidentiality. Each of the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain the confidentiality of the Information (as defined below), and will not use such confidential Information for any purpose or in any manner
except in connection with this Agreement, except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that
the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any governmental, supervisory or regulatory
authority (it being understood that it will to the extent reasonably practicable provide the Borrower with an opportunity to request confidential treatment from such authority), (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in,
any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the written consent of the
Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or any other confidentiality agreement to which it is party with the Parent or any Subsidiary or
(ii) becomes available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Parent or the Borrower. For the purposes of this Section, “Information” means all
confidential information received from the Borrower relating to the Borrower or its businesses, other than any such information that is available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to
disclosure by the Borrower; provided that, in the case of information received from the Borrower after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the 

  

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same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
  
 SECTION 9.13. Interest Rate Limitations and Calculations.
(a) Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law (including,
without limitation, under the Criminal Code (Canada)), the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest
and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender; 
  
 (b) All interest payments to be made under this Agreement will be paid
without allowance or deduction for deemed re-investment or otherwise, both before and after maturity and before and after default and/or judgment, if any, until payment of the amount on which such interest is accruing, and interest will accrue on
overdue interest, if any; 
  
 (c) Unless otherwise stated,
wherever in this Agreement reference is made to a rate of interest or rate of fees “per annum” or a similar expression is used, such interest or fees will be calculated on the basis of a calendar year of 365 days or 366 days or 360 days,
as the case may be, and using the nominal rate method of calculation, and will not be calculated using the effective rate method of calculation or on any other basis that gives effect to the principle of deemed re-investment of interest. 

 
 (d) For the purposes of the Interest Act (Canada) and disclosure
under such act, whenever interest to be paid under this Agreement is to be calculated on the basis of a year of 365 days or 360 days or any other period of time that is less than a calendar year, the yearly rate of interest to which the rate
determined pursuant to such calculation is equivalent is the rate so determined multiplied by the actual number of days in the calendar year in which the same is to be ascertained and divided by either 365, 360 or such other period of time, as the
case may be. 
  
 SECTION 9.14. Reimbursement.
(a) [Reserved.] 
  
 (b) Without limiting the provisions of
Section 9.05, the Borrower shall reimburse the Administrative Agent and the Lenders for all costs and expenses, including attorney’s fees and disbursements, incurred by any of them in connection with any action contemplated by this
Section 9.14. 
  

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 SECTION 9.15. U.S.A. PATRIOT Act. Each Lender hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes
the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act. 
  
 SECTION 9.16. Judgment Currency. This Agreement and other Loan Documents evidence an international loan transaction in which the specification of
currency and payment in Canada is of the essence, and the obligations of the Obligors under this Agreement and the other Loan Documents to make payment to (or for the account of) the Administrative Agent or a Lender in Canadian Dollars or dollars,
as applicable (the “Subject Currency”) shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any other currency or in another place except to the extent that such
tender or recovery results in the effective receipt by the Administrative Agent or such Lender in Canada of the full amount of the Subject Currency payable to the Administrative Agent or such Lender under this Agreement or such Loan Document. If for
the purpose of obtaining judgment in any court it is necessary to convert a sum due hereunder in the Subject Currency into another currency (called the “judgment currency”), the rate of exchange that shall be applied shall be that
at which in accordance with normal banking procedures the Administrative Agent could purchase such dollars at its New York City office with the judgment currency on the Business Day next preceding the day on which such judgment is rendered. The
obligation of the Obligors in respect of any such sum due from it to the Administrative Agent or any Lender hereunder or under any Loan Document (called an “Entitled Person”) shall, notwithstanding the rate of exchange actually
applied in rendering such judgment, be discharged only to the extent that on the Business Day following receipt by such Entitled Person of any sum adjudged to be due hereunder in the judgment currency such Entitled Person may in accordance with
normal banking procedures purchase and transfer dollars to New York City with the amount of the judgment currency so adjudged to be due; and each Obligor hereby, as a separate obligation and notwithstanding any such judgment, agrees to indemnify
such Entitled Person against, and to pay such Entitled Person on demand, in the Subject Currency, the amount (if any) by which the sum originally due to such Entitled Person in the Subject Currency hereunder exceeds the amount of the Subject
Currency so purchased and transferred. 
  
 SECTION 9.17. Dollar
Equivalent. To the extent necessary or applicable, amounts designated in Canadian Dollars (including Section 2.01, Section 2.04 and Section 2.05) shall be deemed to include references to the dollar equivalent thereof calculated
using the Exchange Rate; provided that credit extensions made in Canadian Dollars must be repaid in Canadian Dollars, and those made in dollars must be repaid in dollars. 
  

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 ARTICLE X 
  
 Parent Guarantee 
  
 SECTION 10.01. Guarantee. The Parent hereby absolutely, unconditionally and irrevocably: 
  
 (a) guarantees the full and punctual payment when due,
whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise, of all monetary Obligations of the Borrower and each other Obligor now or hereafter existing, whether for principal, interest, fees, expenses or
otherwise (including all such amounts which would become due but for the operation of the automatic stay under Section 362(a) of the United States Bankruptcy Code, 11 U.S.C. §362(a), and the operation of Sections 502(b) and 506(b) of the
United States Bankruptcy Code, 11 U.S.C. §502(b) and §506(b) or any similar bankruptcy, insolvency or similar law applicable to such Obligor), and 
  
 (b) indemnifies and holds harmless the Administrative Agent, each Lender and each holder of a Note (collectively the
“Beneficiaries”) for any and all costs and expenses (including reasonable attorney’s fees and expenses) incurred by such Beneficiary in enforcing any rights under the guarantee set forth in this Article X. 
  
 The guarantee set forth in this Article X constitutes a guarantee of payment when due
and not of collection, and the Parent specifically agrees that it shall not be necessary or required that any Beneficiary exercise any right, assert any claim or demand or enforce any remedy whatsoever against the Borrower or any other Obligor (or
any other Person) before or as a condition to the obligations of the Parent under the guarantee set forth in this Article X. 
  
 SECTION 10.02. Acceleration of Parent Guarantee. The Parent agrees that, in the event of the dissolution or insolvency of the Borrower, any other
Obligor or the Parent, or the inability or failure of the Borrower, any other Obligor or the Parent to pay debts as they become due, or an assignment by the Borrower, any other Obligor or the Parent for the benefit of creditors, or the commencement
of any case or proceeding in respect of the Borrower, any other Obligor or the Parent under any bankruptcy, insolvency or similar laws, and if such event shall occur at a time when any of the monetary Obligations of the Borrower and each other
Obligor may not then be due and payable, the Parent agrees that it will pay to the Beneficiaries forthwith the full amount which would be payable under the guarantee set forth in this Article X by the Parent if all such monetary Obligations
were then due and payable. 
  
 SECTION 10.03. Guarantee
Absolute, etc. The guarantee set forth in this Article X shall in all respects be a continuing, absolute, unconditional and irrevocable guarantee of payment, and shall remain in full force and effect until the Termination Date. The Parent
guarantees that the monetary Obligations of the Borrower and each other Obligor will be paid strictly in accordance with the terms of this Agreement and 

  

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each other Loan Document under which they arise, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of
such terms or the rights of any Beneficiary with respect thereto. The liability of the Parent under the guarantee set forth in this Article X shall be absolute, unconditional and irrevocable irrespective of: 
  
 (a) any lack of validity, legality or enforceability of this
Agreement, any Note or any other Loan Document; 
  
 (b) the failure of any Beneficiary 
  
 (i) to assert any claim or demand or to enforce any right or remedy against any Borrower, any other Obligor or any other Person (including any other guarantor (including the Parent)) under the provisions of this Agreement, any Note, any
other Loan Document or otherwise, or 
  
 (ii) to
exercise any right or remedy against any other guarantor (including the Parent) of, or collateral securing, any Obligations of the Borrower or any other Obligor; 
  
 (c) any change in the time, manner or place of payment of, or in any other term of, all or any of the
Obligations of the Borrower or any other Obligor (other than the Parent), or any other extension, compromise or renewal of any Obligation of the Borrower or any other Obligor (other than the Parent); 
  
 (d) any reduction, limitation, impairment or termination of
any Obligations of the Borrower for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to (and the Parent hereby waives any right to or claim of) any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Obligations of the Borrower or otherwise; 
  
 (e) any amendment to, rescission, waiver, or other
modification of, or any consent to departure from, any of the terms of this Agreement, any Note or any other Loan Document; 
  
 (f) any addition, exchange, release, surrender or non perfection of any collateral, or any amendment to or waiver or release or addition
of, or consent to departure from, any other guarantee, held by any Beneficiary securing any of the Obligations of the Borrower; or 
  
 (g) any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Borrower,
any surety or any guarantor. 
  
 SECTION 10.04. Reinstatement,
etc. The Parent agrees that the guarantee set forth in this Article X shall continue to be effective or be reinstated, as the 

  

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case may be, if at any time any payment (in whole or in part) of any of the Obligations is rescinded or must otherwise be restored by any Beneficiary, upon
the insolvency, bankruptcy or reorganization of the Borrower or any other Obligor or otherwise, all as though such payment had not been made. 
  
 SECTION 10.05. Waiver, etc. The Parent hereby waives promptness, diligence, notice of acceptance and any other notice with respect to any of the
Obligations of the Borrower and each other Obligor and the guarantee set forth in this Article X, or exhaust any right or take any action against the Borrower, any other Obligor or any other Person (including any other guarantor (including
the Parent)) or entity. 
  
 SECTION 10.06. Postponement of
Subrogation, etc. The Parent agrees that it will not exercise any rights which it may acquire by way of rights of subrogation under the guarantee set forth in this Article X, by any payment made under the guarantee set forth in this
Article X or otherwise, until the Termination Date. Any amount paid to the Parent on account of any such subrogation rights prior to the payment in full in cash of all monetary Obligations of the Borrower and each other Obligor shall be held
in trust for the benefit of the Beneficiaries and shall immediately be paid to the Administrative Agent for the benefit of the Beneficiaries and credited and applied against the monetary Obligations of the Borrower and each other Obligor, whether
matured or unmatured, in accordance with the terms of this Agreement; provided, however, that if 
  
 (a) the Parent has made payment to the Beneficiaries of all or any part of the monetary Obligations of the Borrower, and 
  
 (b) the Termination Date has occurred, 
  
 each Lender and each holder of a Note agrees that, at the Parent’s request, the
Administrative Agent, on behalf of the Beneficiaries, will execute and deliver to the Parent appropriate documents (without recourse and without representation or warranty) necessary to evidence the transfer by subrogation to the Parent of an
interest in the monetary Obligations of the Borrower resulting from such payment by the Parent. In furtherance of the foregoing, for so long as any Obligations or Commitments remain outstanding, the Parent shall refrain from taking any action or
commencing any proceeding against the Borrower (or its successors or assigns, whether in connection with a bankruptcy proceeding or otherwise) to recover any amounts in the respect of payments made under the guarantee set forth in this Article
X to any Lender or any holder of a Note. 
  
 SECTION 10.07.
Successors, Transferees and Assigns; Transfers of Notes, etc. The guarantee set forth in this Article X shall: 
  
 (a) be binding upon the Parent and its successors, transferees and assigns; 
  
 (b) inure to the benefit of and be enforceable by each Beneficiary; and 
  

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 (c) shall not constitute a novation. 
  
 Without limiting the generality of the foregoing clause (b), any Lender may assign or
otherwise transfer (in whole or in part) any Note, Loan or Commitment held by it to any other Person or entity, and such other Person or entity shall thereupon become vested with all rights and benefits in respect thereof granted to such Lender
under any Loan Document (including the guarantee set forth in this Article X) or otherwise, subject, however, to any contrary provisions in such assignment or transfer, and to the provisions of Section 9.04 and Article
VIII. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written. 
  

			
	 PROJECT SNOW, INC

		
	By:	 	/s/    JOHN G. CHOU        
	 Name:
	 	John G. Chou
	 Title:
	 	Vice President and Secretary


  

 Credit Agreement 









			
	 AMERISOURCEBERGEN CORPORATION

		
	By:	 	/s/    J.F. QUINN        
	 Name:
	 	J.F. Quinn
	 Title:
	 	Vice President and Corporate Treasurer


  

 Credit Agreement 









			
	 THE BANK OF NOVA SCOTIA
 Individually and as administrative agent, issuing
 bank and swingline lender

		
	By:	 	/s/    BYRON KWAN        
	 Name:
	 	Byron Kwan
	 Title:
	 	Director


  

 Credit Agreement 









			
	 NAME OF INSTITUTION:

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 


  

 Credit Agreement